Vegetable growers’ confidence on the rise

Vegetable growers are feeling more confident about their industry, with the latest results from the industry’s Economic Confidence Survey showing that confidence has increased by over 32 per cent during the June 2016 quarter.
 
The survey was conducted by national peak industry body AUSVEG and comprises questions relating to how confident growers feel about key economic indicators, including macroeconomics, investment, the market and government policy.
 
“Australian vegetable growers are becoming more optimistic about the current economic climate,” said AUSVEG spokesperson Shaun Lindhe.
 
“The rise in confidence this quarter is being driven by increased market confidence, with figures indicating these confidence levels have increased by 39.7 per cent, alongside rises in the macroeconomic and investment categories.”
 
“Results also indicated that confidence levels relating to government policies rose during the survey period. It is possible that this increase has occurred as a result of the 2016 Federal Budget handed down in May, which outlined a number of favourable initiatives for the vegetable industry, such as reducing the company tax rate, increased biosecurity funding and $2 billion for major water infrastructure projects.”
 
AUSVEG is the leading horticultural body representing more than 9,000 Australian vegetable and potato growers. The confidence index was constructed based on the results from an initial survey conducted for the quarter ending March 2015.
 
“Growers also indicated in this survey that they felt more confident investing in their businesses in light of current economic conditions, which is a positive sign. This could have a flow-on effect of creating jobs and strengthening the economic status of the Australian vegetable industry, as well as the national economy,” said Mr Lindhe.
 
Key statistics from the April to June 2016 quarter grower confidence survey include:

• Overall confidence in the industry has risen by 32.7 per cent;
• Confidence in the domestic and export markets have risen by around 40 per cent;
• Confidence in macroeconomic, investment and government indices all increased from the previous quarter; and
• Overall Victorian grower confidence was above the national level, while grower confidence was slightly below the national level in Queensland and Tasmania.

Economic activities in the vegetable industry are funded by Horticulture Innovation Australia using the National Vegetable Levy and funds from the Australian Government.