Home > Australasian Horticulture Shaping to meet Today’s Consumer and Global Trade

Australasian Horticulture Shaping to meet Today’s Consumer and Global Trade

Supplier News
article image Rabobank Senior Analyst Marc Soccio

The New Zealand and Australian Horticulture report, released by Rabobank , highlights how Australian and New Zealand suppliers of horticultural produces have to come to terms with the ongoing evolution of consumers, grocery retail market dynamics and global trade.

However, despite the profile of producers being diverse across both countries, the supply chain and end markets have grown and evolved in their operations. A strategy is now required for the industry in order to plan and adapt for long-term success.

Report co-author, Rabobank Senior Analyst, Marc Soccio says major grocery retailers are placing more emphasis on fresh produce in an attempt to improve and differentiate their customer offerings.

“In Australia in particular, the majors have been taking significant share from independent high-street operators in recent times. And while this trend is less evident in New Zealand, large retailer Progressive Enterprises has been the market mover,” says Soccio.

Successful suppliers and retailers are continually adapting to the changes in consumer preferences and circumstances, such as the rising income levels and fundamental social changes that shift how people live in today’s society and their consumer behaviour.

The global competition amongst horticulture suppliers becomes a more important factor, says Rabobank report. The increased global trade flows through improved logistics has made some producers in Australia and New Zealand within competition of each other.

“New Zealand produce and produce marketers are in Australia to compete like never before, and the gaps in the global competitiveness of Australian horticulture have been brought into focus.”

The Rabobank report also shows horticulture producers are finding ways to add value to their products, especially against the rising input costs and downstream buyer power.
Soccio explains that horticultural producers need to continue to make fruit and vegetables more convenient to consume as well as organise themselves to best maximise the resources and relationships at their disposal.

“It seems old-fashioned to talk about cooperatives, but when they’re managed well, they can clearly add significant value for primary producers,” says Soccio.

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