AS IF its running battle with bad weather isn’t enough, the citrus industry’s costs remain high as the sector has to contend with rising production and transport costs since the onset of the COVID-19 pandemic.
That’s along with seasonal labour shortages.
Citrus Australia chief executive Nathan Hancock says the price of agricultural inputs skyrocketed in 2021-22 and has brought little relief for growers this year.
“Higher costs include diesel, fertiliser, equipment and energy prices while many growers and packers have also found sourcing pallets difficult,” Mr Hancock says.
“A harvest labour shortage has been resolved to some degree, although the cost of harvesting citrus crops remains substantially higher than in pre-pandemic times.
“This is due to an increase in the minimum wage, along with changes to the Horticulture Award around piece rates.
“Worker shortages are also keeping the labour market price higher.”
Like other Australian fresh produce industries, the citrus sector has faced serious transport and logistics challenges since the onset of the pandemic.
On the domestic front, Mr Hancock says the collapse of a major trucking company earlier this year compounded these issues, creating a shortage of truck drivers, with some land transport routes significantly impacted.
Internationally, exporters have received some relief in terms of shipping costs and availability.
“With more vessels being commissioned and the route between China and the US slowing down, the availability and reliability of vessels has vastly improved,” Mr Hancock explains.
“Shipping prices have also improved somewhat, particularly for imported goods, but there is a long way to go before prices return to the level they were at before the start of the pandemic.”
