Australian fruit and vegetable growers have started the year on a more optimistic note, with the latest Rabobank Rural Confidence Survey showing improved sentiment across much of the sector. Overall, 24% of food and fibre producers expect conditions to improve in the coming year, while 51% believe conditions will remain stable.
This positive shift is supported by expectations of favorable seasonal conditions and market stability, particularly in states such as South Australia, Victoria, and Tasmania, where sentiment has rebounded strongly following a challenging 2024. The first quarter survey found that optimism is largely pinned on hopes for early rains to support the winter cropping season and horticultural production.
Improved overseas market conditions were also noted, with 26% of farmers citing global demand as a positive factor—up from 15% in the previous quarter. While geopolitical tensions and tariffs remain a concern, only a small percentage of respondents (4%) reported these as key worries.
Input costs and government policy continue to weigh on the minds of fruit and vegetable growers, although concern over rising costs has eased slightly due to a more favourable Australian dollar and lower interest rates. Investment intentions have also strengthened, especially in areas like on-farm infrastructure and technology, as producers prepare for a more productive year.
Western Australia was the only state where rural sentiment dipped slightly. Despite this, growers there are still benefitting from a strong 2024 season and remain cautiously optimistic, especially as seasonal conditions improve.
Rabobank's Marcel van Doremaele noted that confidence among fresh produce growers is being driven by the potential for more stable commodity prices and favourable growing conditions after last year's dry spells. However, he also emphasised that growers are watching closely for an autumn break to bridge feed and water gaps.
As Australian fruit and vegetable producers prepare for the peak season, many are hoping that this improved outlook—driven by both market and seasonal factors—will translate into better yields and stronger financial performance across the board.
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For more information:
Denise Shaw
Rabobank
Tel: +61 (0) 2 8115 2744
Email: denise.shaw@rabobank.com
www.rabobank.com.au