Evaluation of the potential to expand horticultural industries in Northern Australia

Summary

Northern Australia has long been regarded as an important gateway to the Asian market. However, due to Australia’s focus on supplying the domestic market, horticultural industries in the region have yet to take full advantage of international market opportunities.

The Evaluation of the potential to expand horticultural industries in Northern Australia project has undertaken an assessment of the production and supply capacity of the horticultural industry in northern Australia (i.e. north QLD, NT and WA), and sought to match that with the market and logistical dynamics of imported mangoes, avocados and lychees in targeted Asian markets.

This report seeks to provide an evidence base for decisions on the expansion of exports of high-value horticultural products (mangoes, lychees and avocados) from Northern Australia to high margin Asian markets by integrating market dynamics and supply capacity with efficient and innovative value chains.

The research informing this report was conducted through the combination of a stakeholder workshop, desktop analysis of production, trade and market data, and in-depth field discussions with industry bodies, growers and exporters in northern Australia and importers, wholesalers and retailers in Hong Kong, Singapore, China, Japan and South Korea.

The objective of the research was to create a growth stimulus across horticultural industries in northern Australia by matching new developments in the industry with new international market opportunities. The project developed an industry research framework to evaluate the potential to expand horticultural industries in northern Australia. In discussion with the project partners, three major research themes – supply intelligence, market intelligence and supply chain intelligence – were identified as key priorities for action. The analytical results of the project provide an evidence-base to support decision-making in regional and market investment. The project evaluated three horticultural industries – lychee, avocado and mango – in northern Australia and assessed opportunities to expand into new high-margin, targeted Asian markets by undertaking comprehensive market assessments in Hong Kong, Singapore, China, Japan and South Korea. The intent was to work within a cooperative framework with northern Australia’s horticultural growers, researchers and peak industry bodies and provide key market information to inform and strategically support their future decision-making, while ensuring growth in both volume and return. The study’s outputs provide guidance on where to support strategic development actions within industry and to direct major investments for Horticultural Innovation in northern Australia. One of the key findings was that the voice of the consumer in the Asian markets analysed is not being heard by most growers. What has been suggested is a stronger long-term solution, supported and enabled by new governance structures and technology.