This research is identifying export opportunities for Australian onion and vegetable exporters so that the industry can realise its full potential in international markets.

Challenge

In the Indo-Pacific region, where approximately 63 per cent of Australia’s vegetable trade occurs, China and India are the largest competitors, competing in the same markets as Australia, Hong Kong, Malaysia, Singapore, South Korea, and the UAE. Australia’s key vegetable exports include carrots, onions, and broccoli/ cauliflowers, with fresh vegetable export value reaching AU$251.6 million in 2022. Comparatively, China exported US$6 billion of fresh vegetables in 2022.

When exploring strategies to optimise the Australian vegetable trade, it is essential to consider the breadth of value chain factors that continue to constrain export growth potential. These challenges include fragmented supply chains, lack of effective cold chain infrastructure, inefficient cold treatment protocols, transportation issues, technological challenges, quality and safety standards of competitors, limited traceability, and limited demand and market information.

Response

In order to understand Australia’s position globally, particularly against regional competitors such as China and India, and develop a clear understanding of how Australian export competitiveness in fresh vegetable exports can be enhanced, the vegetable industry needs to identify key areas of competitive advantage and core obstacles preventing the sector from realising its full potential.

This project will identify key export markets, competitors, and relevant stakeholders. The team will work to conduct a global competitor benchmarking analysis and develop market factsheets for the six priority markets, providing insights and guidance on how to best service Australia’s key markets, with these areas of competitive segmentation as a primary consideration.

Benefit

The project will deliver high-level strategic recommendations on how to capitalise on Australia’s areas of competitive advantage and address areas of improvement while adopting best trade practices specific to key markets.

The project outputs will be tactical and realistic, designed to benefit Australian vegetable growers and exporters. The recommendations will primarily focus on four key areas: logistics costs, supply chain management, grower capabilities, and government support.

This project has been funded by Hort Innovation, using the research and development levies listed below and contributions from the Australian Government. Hort Innovation is the grower-owned, not-for-profit research and development corporation for Australian horticulture.

• Onion Fund
• Vegetable Fund