Australian Natural Resources Atlas

Natural Resource Topics

Agriculture - Horticulture Industry - Australia

Australia

Benchmarking Rural Industries' Practices and Productivity Performance and Review of Industries' Capacity to Change

This benchmarking project describes the main environmental challenges facing the Australian horticultural industry and outlines the industry's response to these challenges in terms of use and adoption of recommended management practice. The project provides an analysis of national and industry scale information and is not intended to have property level uses. Regional adoption rates of practices are documented and future directions for the industry are proposed where regional data was available.

The information used in the preparation of this benchmarking report is derived from investigations commissioned by the Horticultural Research and Development Corporation (HRDC), and documented in the publication "Horticulture. Productivity and Sustainability" (HRDC, 2001). This HRDC report provided the source material for the benchmarking project reporting. Main findings of the HRDC report that are relevant to this benchmarking report are documented in this storyboard.

Investigations have identified the major resource management issues confronting the industry as soil erosion, waste disposal and options for dispensing of used chemical containers. The industry is attempting to address these issues through the preparation of best management practices (BMP), applied research and development and supporting extension programs.

Some of the major findings of this project for the horticultural industry are that:

KEY FACTS

Where is Australian horticulture produced?

The horticultural industry is diverse and widespread. The industry supports more than 100 crop types. and these are categorised into 21 commodity groups. For the purposes of this investigation, these commodity groups are further grouped into broad categories of annual and perennial production types, each with several commodity groups. This dissection was used due to each broad grouping having a similarity of natural resource management (NRM) approach.

A summary of this division for the Australian horticulture industry includes the following commodity groups:

Horticultural growing regions are grouped by agro-ecological region (AER). The main production areas for horticulture are listed for the AER's below.

Arid interior

Carnarvon, WA; Sunraysia, Vic; Sunraysia, NSW/Vic

North wet/dry tropics

Darwin rural area, NT

North-east wet/dry tropics

Bowen, Qld; Burdekin, Qld; Atherton Tablelands, Qld; Thuringowa, Qld

North-west wet/dry tropics

Ord, WA

Semi-arid tropical/subtropical plains

South-west, Qld

Subtropical slopes and plains

Lockyer Valley, Qld; Granite Belt, Qld; Darling Downs, Qld; Burnett, Qld; Warwick, Qld

Temperate highlands

Northern Midlands, Tas; Central West, NSW; East Gippsland, Vic; Cooma-Monaro, NSW; East Central Highlands, Vic; Central West, NSW; Central Murrumbidgee, NSW; Northern Tablelands, NSW; South West Slopes, NSW; Loddon , Vic

Temperate slopes and plains

Southern Coast, WA; Central West, NSW; Riverina, NSW; Riverland, SA; Murray Mallee, SA; Central Murray, SA; Sunraysia, Vic; Central Macquarie, NSW; Goulburn Valley, Vic; Loddon, Vic; Sunraysia, NSW/Vic

Wet subtropical coast

Cooloola, Qld; Beaudesert, Qld; Lockyer Valley, Qld; Bundaberg/Isis, Qld; North Coast, NSW; Burnett, Qld; Bundaberg, Qld; Mid North Coast, NSW; Far North Coast, NSW; Sunshine Coast, Qld; Gayndah/Mundubbera, Qld; North/Far North Coast, Qld; Livingstone, Qld

Wet temperate coasts

Northern Midlands, Tas; Burnie-Davenport, Tas; Meander Valley, Tas; North Wast, Tas; Derwent Valley, Tas; North East, Tas; Werribee, Vic; Manjimup, WA; Perth, WA; Gippsland, Vic; Mornington Peninsula, Vic; Yarra Ranges, Vic; Hornsby/Baulkam Hills; Preston, WA; Lower South East, SA; West Gippsland, Vic; Huon Valley, Tas; Gosford, NSW; Onkaparinga, SA; South West, WA

Wet tropical coasts

Atherton Tablelands, Qld; Wet Tropics, Qld; Cairns, Qld

The AER regions are presented in the following figure.

Map of regions

The proportion of Australia's horticultural industry in terms of area, yield and value of production within each of these regions is presented in the following table.

Agro-Ecological Region Area (Ha) Yield (Tonnes) Value ($M)
Annual Perennial Annual Perennial Annual Perennial
North-west wet/dry tropics 2,094 966 42,405 6,070 30 12
North wet/dry tropics 71 1,221 516 5,122 3 10
North-east wet/dry tropics 9,461 9,656 159,559 39,475 143 61
Wet tropical coasts 1,409 10,839 23,137 152,112 33 153
Semi-arid tropical/subtropical plains 198 68 5,243 1,549 3 1
Subtropical slopes and plains 9,729 8,082 189,032 84,918 122 59
Wet subtropical coast 16,872 49,162 274,294 291,791 273 311
Wet temperate coast 51,357 18,337 1,267,799 401,262 736 303
Temperate highlands 14,314 9,709 260,274 257,700 162 159
Temperate slopes and plains 30,550 47,936 875,035 904,671 387 628
Arid interior 734 3,660 14,882 70,871 12 55
Total 136,787 160,437 3,112,177 2,215,540 $1,905M $1,754M

The horticulture industry is distributed throughout all Australian states and centred predominantly near major river systems or irrigation developments.

Horticulture is grown in areas of high rainfall or in areas with accessible and reliable water supplies. Temperature ranges for horticultural crops range from warm frost free winters needed for growing tropical fruits to cool, frequent winter frosts for citrus and pome fruits. Soil types are often free draining and considered as good agricultural land.

The industry is supported by infrastructure of packing sheds and often refrigerated transport networks. In recent times, the horticulture industry has commenced competing with sugar industry in certain areas for the productive soil and water resources.

The industry employs in excess of 93,000 people. The largest area of horticultural production occurs in the temperate slopes and plains agro-ecological region (AER), predominantly in the lower Murray-Darling basin. Production yields are greatest for perennial crops in this area, though yields for annual crops are greatest in the wet temperate coastal AER, which is also the largest area of land use for annual crop production. The wet subtropical coastal region is the largest perennial crop growing area with production predominantly occurring in the Rockhampton, Bundaberg, Maryborough and Wandoan areas and the upper Murray-Darling Basin area.

A representation of the location of annual and perennial production areas, based on ABS data, is given on the maps below.

Map of annual horticulture Map of perennial horticulture

What land and water resources are invested in Australian horticulture production?

Horticultural production occurs across a wide range of environmental conditions, with distribution restricted primarily by access to water, water quality, quality of soil and by topography. Major production areas are concentrated in fertile areas with high annual rainfall or abundant water resources from rivers, streams or reticulated irrigation scheme areas.

Soil types supporting horticultural production range from the highly fertile deep krasnozem soils, moderately deep to shallow duplex podzols and podzolics and alluvial soils on the floodplains of river systems. An important attribute of these and other horticultural soils are that they are well drained. The landscape supporting the horticultural industry is also highly variable, ranging from flatter alluvial areas for annuals to moderate/steep slopes for some of the perennials.

The industry is supported by the infrastructure such as packing sheds and processing plants. In recent times, the horticulture industry is competing with the sugar industry for productive soil and water resources.

In 1996-97, the Australian horticulture industry includes:

The proportion of Australia's horticulture area used for each commodity group is:

Commodity Group Area (Ha) % of Australian horticulture area
Annuals 136,787 50.0
beans and peas 18,040 6.6
brassicas 13,910 5.1
cucurbits 9,340 3.4
leaf vegetables 6,040 2.2
melons 7,710 2.8
nurseries 4,670 1.7
onions and garlic 5,630 2.1
peppers 1,880 0.7
potatoes 45,450 16.6
root vegetables 9,880 3.6
sweet corn 5,430 2.0
tomatoes 8,830 3.2
Perennials 160,437 50.0
asparagus 2,140 0.8
bananas 11,610 4.2
berry fruit 1,624 0.6
citrus 30,400 11.1
nuts 19,750 7.2
pome fruit 18,690 6.8
pyrethrum 740 0.3
stone fruit 26,910 9.8
tropical fruit 24,710 9.0

How much horticulture does Australia produce and where is it sold?

The breakdown of production, value and average return within each commodity group is outlined in the table below.

Commodity Production (t) Value ($m) Average return ($/ha)
Annuals 3,112,180 1905.4 13,927
beans and peas 83,260 74.6 4,135
brassicas 181,730 152.6 10,971
cucurbits 116,910 74.9 8,019
leaf vegetables 160,120 115.8 19,172
melons 163,370 91.2 11,829
nurseries - 378.2 80,985
onions and garlic 205,070 107.7 19,130
peppers 32,220 40.6 21,596
potatoes 1,393,660 489.3 10,766
root vegetables 317,930 177.1 17,925
sweet corn 64,790 26.5 4,880
tomatoes 393,120 176.9 20,034
Perennials 2,168,558 1719.4 12,590
asparagus 7,884 37.5 17,523
bananas 199,580 216.6 18,656
berry fruit 13,140 68.4 42,118
citrus 645,260 391.8 12,888
nuts 23,440 101.9 5,159
pome fruit 940,470 513 27,448
pyrethrum 590 - -
stone fruit 151,824 216.2 8,034
tropical fruit 186,370 174 7,042

In 1999, Australia's horticulture industry produced 3.1 million tonnes of annual crops and 2.2 million tonnes of perennial crops. The total values of these products were $1,905 million and $1,719 million, respectively. The distribution of Australia's horticultural products on a percentage basis to domestic and export markets is shown in the graphs below.

Chart of annual horticulture Chart of perennial horticulture

In 1997/98, between 65% and 70% of Australia's horticultural produce was exported to Asian countries, including Singapore, Hong Kong, Malaysia, Japan and Indonesia. Other major export destinations included the United States, New Zealand, Germany and the United Kingdom.

What are the key characteristics of Australian horticultural producers and farms?

Key characteristics of Australian horticultural producers and farms include the following averages:

Key characteristic Horticulture average Fruit industry Vegetable industry
Median age of owner/manager (years) 45 46 44
Owner/manager completed higher education 21% 30% 13%
Owner/manager work>40 hrs/wk on farm 68% 80% 57%
Level of farm income ($) 53,112 58,603 43,796
Level of farm debt($) 193,158 226,530 136,546
Level of off-farm income($) 17,925 16,286 20,705

Characteristics that are likely to affect the adoption of management practices relate mainly to:

In 1998-99, Australian horticulture employed more than 93,000 people across 13,865 properties. The State distribution of these employees and properties is provided in the chart below.

Chart of horticulture industry employment

What are the main environmental challenges facing Australia?s horticulture industry?

The key environmental challenges facing the horticultural industry were determined from consultations with State government agency, grower organisations and individual growers.

The State agencies identified the following environmental challenges:

Growers identified the following environmental challenges:

What is the Australian horticulture industry doing to meet these challenges?

The horticultural industry is responding to these challenges through a number of mechanisms, including:

Industry strategic planning

The following table highlights industry specific strategic plans in effect through out various commodity sectors in Australia and the environmental issues covered by these plans. The year of currency is also shown.

Industry Current until BMP IPM Water Use Quality Assurance Education Bench-marking
Mango 1996
Melon X
Nursery 2001
Pineapple 2000
Potato 1999
Tomato 2001
Pyrethrum 2000
Strawberry 2004
Vegetable 1997
Canned Fruits 1997
Banana 1998
Avocado 2000
Almond 2001
Macadamia 1999
Stone Fruit 2000
citrus 2000
Chestnut 1997
Cherry 1997
Apple and Pear 1998

- evidence of strategies in environmental planning areas

Adoption of Management Practice

Management practices being adopted to address the issue of chemical container/ waste disposal and farm chemical storage include:

Management practices being adopted to address the issue of soil loss include:

Management practices being adopted to address the issue of soil nutrient levels and availability include:

Management practices being adopted to address the issue of organic matter/ soil structure decline include:

Management practices being adopted to address the issue of soil acidity include:

Codes of Practice

Codes of Practice are becoming increasingly common across larger rural industries. Horticulture is no exception.

The Queensland Fruit and Vegetable Grower's Association is working towards environmental sustainability with the development of the Farm Care Code of Practice. HRDC and NLWRA (2001) consider the adoption of national or regional Codes of Practice to be limiting due to fragmentation of the industry, particularly vegetable growers.

Research and development programs

The Horticultural Research and Development Corporation (HRDC) is a national organisation that funds and manages R&D to advance Australian horticulture. Currently $30 million per year is invested in 500 projects in some 40 different horticultural industries. The functions of HRDC are to:

HRDC play a critical role in linking the various industries to state agencies and in delivering the outcomes of R&D efforts. Key research efforts focus on three areas:

Industry Links with Government

Australia is a signatory to a number of international treaties and conventions that will likely have some impact on the agricultural industry. The Commonwealth intervenes in matters related to most agricultural industries through financial mechanisms (eg. taxation, grants to the States) Horticulture industry products and enterprises are subject to Commonwealth corporations, trade and commerce powers that potentially allow regulation of production, processing. marketing and exports.

States generally have responsibility for the development and implementation of environmental policy matters. Schedule 2 (4) of the Inter-governmental Agreement on the Environment (IGAE) specifies that the "development and administration of he policy and legislative framework will remain the responsibility of the States and Local Government." The majority of agricultural legislation is within the power of each State.

Local governments manage environmental and planning issues from legislation delivered from the State level. The IGAE stated that local government is responsible regional to local issues but with cooperation at other levels of government.

How do these factors affect the future prospects of the industry?

The industry has recognised, through this industry-wide audit process, key environmental challenges, namely chemical container/ waste disposal, options for storing farm chemicals soil loss, soil nutrient levels, organic matter/ soil structure decline and soil acidity.

In order to meet these challenges, industry will need to determine BMP's for each of these issue areas. These BMPs will require scientific investigation, targeted research activities, commodity group level extension activity and self regulation through Codes and guidelines. These activities are being influenced by wider environmental considerations such as catchment conditions policy, water quality policy and chemical use policies. The horticultural industry is a participant in these processes at the commodity group scale.

In addition to the BMP approach, improvement in environmental performance can be achieved through:

Further information

Link to Map maker to make a map using this information.

Link to data available for download on "A spatially consistent sub-set of agricultural statistics (AgStats) data 1982/93 to 1996/97"

"Benchmarking environmental challenges and agricultural practice - an overview" report

Horticulture Australia web site

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