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Under Cover Vegetable Growing in Australia Industry Market Research Report Now Updated by IBISWorld
Date:12/5/2013

Melbourne, Australia (PRWEB) December 06, 2013

Under-cover vegetables are cultivated in controlled environments and are therefore less reliant on weather conditions and seasonal changes than field-grown vegetables. The controlled growing environment, as in the case of greenhouses, generates greater yield output and faster growth, which has contributed to the growth of the industry over the past five years. The use of closed systems provides water efficiencies and energy savings, which has also benefited the industry in light of water shortages and restrictions over the past five years. The Under Cover Vegetable Growing industry is forecast to expand by an annualised 3.8% in the five years through 2013-14. IBISWorld industry analyst Nick Flores states “protected growing enables growers to produce a constant stream of supply while using less inputs and reducing the environmental footprint, which has helped boost industry performance.” Industry revenue is forecast to increase by 5.1% in 2013-14 to reach $987.8 million.

According to Flores, “the dominance of supermarket giants Coles and Woolworths has favoured the larger industry players that are able to provide a constant stream of supply, and exhibit a sufficient level of scale.” Production volumes generally dictate profitability, which favours larger, more integrated and technically advanced growers. Small firms have benefited from grower-run cooperatives that aid in meeting demand quotas for large orders. Benefits have also come from using alternative distribution channels, such as fresh food markets, and by providing produce directly to food service providers. The industry has several non-employing, owner-operated enterprises, and exhibits a moderate level of consolidation as smaller firms operating
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