Tomatoes, mushrooms and pre-packed salads up to five times more valuable to consumers, veg industry quarterly report finds print

Pre-packed salads, tomatoes and mushrooms sell at up to five times the price per kilogram (kg) of other fresh vegetables, the vegetable industry’s inaugural quarterly report has found.

As an example of the higher retail price that certain ‘value added’ vegetables have achieved, the selling price for mushrooms is around $20 per kg compared to $3.50 per kg for the fresh vegetables category overall.

AUSVEG Communications Manager Hugh Tobin said that the price difference was a result of value-adding achieved by varying portion sizes, promoting extra varieties and additional pre-preparation options.

Mr Tobin said that the vegetable industry quarterly report was an important resource for vegetable growers that would provide useful learning opportunities about ways to offer additional value and options to consumers.

“The price difference indicates that certain vegetable products like mushrooms, tomatoes and pre-packed salads have attracted significantly higher retail value by offering extra value to consumers through variable portion sizes and packaging options,” Mr Tobin said.

“Understanding the vegetable market and the drivers behind consumer behaviour are important factors for vegetable growers in making business decisions about new product development options and value adding,” Mr Tobin said.

The report, entitled VEGINSIGHTS: The Market Q4 2009, revealed that the average price per kg of tomatoes, loose leaf and pre-packed salads and mushrooms was dramatically higher than that of other fresh vegetable commodities.

Commodities that did ‘value add’ fetched up to $25 per kg more the report reveals. Mushrooms offered consumers 12 different products, with portion size and pre-preparation options a major selling point, while pre-packed salads provided consumers with a range of extra varieties to purchase, including up to 16 different salad products.

“Veginsights provides evidence that those vegetable commodities which do add real value for consumers receive a significantly higher return in terms of retail value,” Mr Tobin said.

“This is an opportunity for growers to get an overall picture of the market and to better understand the volumes and value of the different distribution channels.”

The quarterly report was produced by freshlogic – a market analysis and consulting firm specialising in agribusiness – as part of the Vegetable Industry Development Program (VIDP).

For more information or to obtain a copy of the report please contact AUSVEG. The VIDP is funded by the National Vegetable Levy through Horticulture Australia Limited (HAL) with matched funds from the Australian Government.

ENDS

MEDIA CONTACT: Hugh Tobin, Communications Manager, AUSVEG
Phone: (03) 9544 8098, Mobile: 0431 939 920, Email: hugh.tobin@ausveg.com.au