March's horticulture market update

Highlights horticulture

• Harvest of both almond and table grapes across key production regions has now passed the halfway point. Yields and quality have continued to surprise to the upside. Citrus crops have also come out of the summer period looking strong. Large fruit and high quality have driven a lift in industry sentiment as we head into the autumn period. Industry groups are anticipating another strong year of exports as a result. This comes despite there being a question mark surrounding Chinese export demand. This concerns is driven by the ongoing trade dispute with the US which is continuing to escalate. The dispute has the potential to weigh on the Chinese economy. This would have flow through effects on Chinese consumer demand. Domestic demand should pick up in late March as fruit and vegetable prices ease. A lift consumer sentiment on the back of interest rate cuts may also prove positive.
• Vegetable producers in southeast Queensland and northern NSW are now grappling with the impact from Cyclone Alfred. This follows the flooding and rainfall events across Far North Queensland last month. Fruit producers in the region are a risk of some yield reduction and quality downgrades. While macadamia orchards located in the Bundaberg and Northern Rivers regions are also risk of crop losses due to the cyclone.

Sean Hickey

Senior Agricultural Analyst

Sean is our Insights specialist for the horticulture sector, utilising both his time spent within the industry alongside a Bachelor of Commerce to produce informed market analysis and commentary.