VEGETABLE and fresh produce supply chain pressure points and opportunities for growth are under scrutiny as part of a State of the Industry report.
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The SA government has supplied Ausveg SA with a $65,000 grant to partner with the University of Adelaide's SA Centre of Economic Studies with the goal of better understanding the market environment for growers and consumers, investigating supply chain pressure points and identifying investment opportunities for future growth of the sector.
Ausveg SA chief executive officer, Jordan Brooke-Barnett, said the initiative would allow the industry to better assess its state of play and provide important insights into grower returns.
"While many Australians are struggling with cost-of-living pressures, our supermarket duopoly continues to post billion-dollar profits with growers expected to operate on extremely low margins," he said.
"The State of the Industry report will be critical in providing industry and government the insights into margins of key staple lines, which will show who is making what in the supply chain and provide a better picture for decision makers and the broader community."
To be delivered in early 2024, the report will focus on farmgate returns on key commodities, investment sentiment among growers, key challenges and the economic contribution of the sector to various regional areas within the state.
The intensive horticulture industry is valued at more than $1.5 billion in Adelaide's north with vegetables generating about $2.5b state-wide.
Primary industries and regional development minister, Clare Scriven, said this was an industry with great potential with the report to provide a blueprint and foundation for future growth.
"Horticulture is a vital contributor to the South Australian economy through revenue generated but also as a significant source of employment in many of our regions," she said.
"It is also important in terms of our lifestyle and reputation as a producer of fine food and produce."
Already strong, it is also an industry with great potential and the AUSVEG SA report that we are supporting will provide a blueprint and foundation for future growth.
