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Apple industry statistics from 2004
Summary
Apples are a significant industry within the AlpValleys region,
contributing approximately $11 million in GVP although this figure
has reduced significantly since 2002. A major storm in 2002 (post
collation of AG Census figures) reduced the number of trees to less
than 200,000.
Over two thirds (66%) of the industry, in the North East, is located
within Alpine Shire whilst 33% is contained within Indigo Shire.
Apple growing takes place in the Ovens Valley and in the Buckland,
Wandiligong, and Stanley areas.
The main varieties of apples grown in the North East during 2003
were Pink Lady (26% of total tree numbers), Granny Smith (16%), Galas
(14%) and Delicious (10%).
There are approximately 10 growers in the north east region. Most
farms are characterised as a family owned and operated business.
Recent trends have seen smaller family-farming entities exiting the
industry and the amalgamation of orchards into larger specialised
enterprises. The industry is affected by national crop trends and
exposure to world markets. Labour availability and peri urban development
are the main issues facing the industry.
North East Region |
1996 – 97
AG Census |
2000 – 01
AG Census |
2001 – 02
AG Survey |
Gross value of production |
$10,074,304 |
$8,157,137 |
$11,027,666 |
Production volume (kg) |
9,637,716 |
7,196,330 |
8,611,375 |
Total number of trees |
231,108 |
243,551 |
|
Contribution to Victorian GVP
of commodity |
8.1% |
8% |
|
Contribution to Australian
GVP of commodity |
2.7% |
2.9% |
|
Estimated number of farms |
19 |
16 |
|
Source: ABS Agricultural Census 1997 and 2001, Agricultural Survey
2002
Apple industry overview
Detail |
Comments |
Product description |
Apples for the fresh fruit market, with some
juice production. |
Main season |
March to May. |
Industry associations |
Northern Victorian Fruitgrowers Association,
Australian Fresh Fruit Co., Australian Pear and Apple Ltd,
Victorian Apple and Pear Growers Council, Australian Pome Fruit
Improvement Program. |
Domestic market information |
Price received by growers is approximately
$25 per 12 kilogram box, though price received varies heavily
on the variety of apple. |
Export market information |
Those surveyed stated that none of their apples
were exported. |
Source AAVAF Survey 2004
Most orchards in the region are owner operated, and many growers
have other enterprises on their properties. These include other horticultural
crops such as cherries and stone fruits, and complementary livestock
enterprises based on availability of suitable land.
Production is highly concentrated within the growing areas with
estimates that the largest establishments account for over half the
production, and that 75% of production comes from 25% of orchards.
The growers in the region operate under continual competition from
domestic and international markets and in recent years they have
been affected by lower grower returns due to a higher national crop
level and a greater exposure to world market developments.
Location of the apple industry within North East Victoria
2001 Ag Census |
%
of GVP |
%
of production volume |
%
of farms for commodity |
North East Region |
Victoria |
North East Region |
Victoria |
North East Region |
Victoria |
Alpine Shire |
66.3% |
5.32% |
82.1% |
6.16% |
20.64% |
0.82% |
Indigo Shire |
33.3% |
2.67% |
16.9% |
1.27% |
57.54% |
2.28% |
Towong Shire |
< 0.1% |
|
0% |
0% |
7.5% |
0.30% |
Wangaratta (RC) |
0.3% |
0.02% |
1.0% |
0.07% |
14.38% |
0.57% |
Source: ABS Agricultural Census - 2001
Projected apple industry growth
Source |
Indicator |
Comments |
(ABS) AG Census and survey
data |
Growth in production volume 1997 to 2001 |
Production of apples for the North East region
has remained fairly constant between 1997 and 2002. There was
a 25% decline between 1997 and 2001, however a recovery increase
of 20% was noted in the 2002 ABS AG survey. |
Surveys |
Current profitability |
Stated as low. |
5 year business plans |
Stated no change in plans. |
5 year business outlook |
Stated as very good. |
Business planning / budgeting |
Those surveyed conducted formal business plans
/ budgets for the long term - 5 years plus. |
Age of producers |
Unknown. |
Capital expenditure 2002-03 financial year |
Represented up to 35% of gross income. |
Apple industry labour requirements
Detail |
Labour requirements
are for most of the year for thinning, pruning and packing,
with large numbers of casual labour required for the picking
season (approximately 2 months). Nightingale Brothers Wandiligong
Apple & chestnut orchard employ 28 fulltime persons and
260 persons during harvest and seasonal labour periods. |
Areas of indirect employment |
Suppliers, transport providers, buyers - namely
cooperatives. |
Labour market issues |
Finding and maintaining sufficient
numbers of casual labour at picking time proves an ongoing
issue for apple growers. |
Apple industry marketing activities
Detail |
Comments |
Marketing undertaken |
Most regional growers have established private
marketing arrangements. They also use agents nationally as
well as supply local wholesalers and retailers. Some individual
growers conduct their own marketing activities such as print
media, brochures, gate sales and signage.
Marketing activity through local farmer markets is also
used in conjunction with growers own farm marketing or collective
regional grower marketing. The Hume Murray Food Bowl farmers
market is also an important form of direct marketing. |
Value adding activities |
Producers engage in value adding activities
such as packaging and juicing of apples. |
Labels and brands |
Snowline Fruits (not unique to apples), Alpine
Apples, HiCountry Fruits |
Apple industry strategic advantages and opportunities
-
Integrated Fruit Production (IFP) is aimed
at providing Victorian apple producers with a competitive edge
in the export market. The program provides growers with a “clean, green” international
marketing advantage and is used as a key benchmark for quality
in many countries growers will currently or potentially export
to. Major export opportunities for the industry are for Pink
Lady and Sundowner apples.
-
The opportunity to work with the tourism industry is a desire
of some producers in the region through the development of agritourism
operations.
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The climate, aside from recent drought conditions, allows for
production of a superior product.
Apple industry strategic disadvantages and impediments to growth
- Recent weather conditions that resulted in a poorer quality of
produce.
- Urban encroachment and lifestyles impacting on the right to farm
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