Australia’s horticulture sector reached a value of $19.5 billion in the 2024/25 financial year, according to data from the Australian Bureau of Statistics. This growth, fueled by record almond production and expanded export markets, marks a doubling of the sector’s total value over the past decade.
Why is the Australian horticulture sector seeing record growth?
The jump to a $19.5 billion valuation is largely due to significant gains in the fruit and nut categories. Lucy Noble, head of industry insights at Hort Innovation, noted that the industry is seeing large growth in crops currently in the ground.
Tree crops are leading this expansion. Specifically, industries like avocados and almonds are driving much of the upward trend, according to Ms. Noble.
Almonds reached a record value of $1.3 billion this year, representing a significant increase. Ms. Noble attributed this specific surge to a strong recovery in exports.
While the industry is growing rapidly, only 10 to 15 per cent of Australia’s horticulture is currently exported, with the majority serving the domestic market.
Which fruit and vegetable categories are performing best?
The domestic value of fruit rose to $7.3 billion. This growth includes established industries like citrus and berries, alongside emerging sectors such as papaya and passionfruit, according to Hort Innovation data.
Vegetable production also saw an increase, with the local value rising to $6 billion. Within this category, potatoes reached a value of $1.2 billion. Ms. Noble also identified growth in emerging categories like capsicums, as well as head lettuce and pumpkins.
Comparing Sector Growth Rates
- Fruit Value: $7.3 billion
- Vegetable Value: $6 billion
- Almond Value: $1.3 billion
How are exporters reaching new international markets?
Expanding overseas relationships is a primary driver for the sector’s increased production value. Ms. Noble stated that developing access to these markets is critical for the industry’s continued scale.
The industry has successfully broadened its footprint into several key regions, including:
- India
- Vietnam
- Hong Kong
- Japan
The strategy involves investing in these critical markets while diversifying produce to ensure there are destinations for various types of crops, Ms. Noble said.
Why is profitability still a challenge for farmers?
Despite the record-breaking $19.5 billion valuation, higher production value doesn’t always translate to higher profits for individual growers. Ms. Noble explained that while the industry is scaling and remaining competitive, profitability varies significantly based on the crop, the region, and the specific season.
North Queensland grower Karl Mau noted that meeting consumer price expectations is often a bigger factor for profitability than the total value of the national crop. He explained that certain vegetables must remain on the cheaper end of the price scale because that is what consumers are accustomed to paying.
Rising costs for wages and various inputs also put pressure on margins. To mitigate farmgate price variability, some growers, including Mr. Mau, are moving produce directly to consumers.
Direct-to-consumer sales models can help mitigate the impact of farmgate price variability and rising input costs.
How is weather impacting crop cycles?
Changing weather patterns are affecting how quickly crops reach maturity. In North Queensland, warmer-than-usual winter nights have caused crops to ripen earlier than expected.
“With the warmer nights everything just ripens up a lot quicker,” Mr. Mau said, noting that his strawberries, tomatoes, and capsicums are all pushing along well due to the temperature shift.
Frequently Asked Questions
What is the total value of Australia’s horticulture sector?
The sector was worth $19.5 billion in the 2024/25 financial year, according to the Australian Bureau of Statistics.
Which nut crop saw the most growth?
Almonds reached a record $1.3 billion, marking a significant increase.
What is the value of the Australian potato industry?
The local value of potatoes reached $1.2 billion.
Why aren’t all growers seeing more money despite higher industry value?
Rising costs for wages and inputs, combined with consumer price expectations and seasonal variations, mean profitability remains inconsistent across different regions and crops.
What are the main export markets for Australian horticulture?
The industry has successfully expanded into India, Vietnam, Hong Kong, and Japan.
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