Potato imports into Australia is forecast to rise significantly in 2016, sparking concerns about the local potato industry over the coming months.
New data from Global Trade Atlas for the first quarter of 2016 has revealed potato imports into Australia rose by 23 per cent, compared with the same period last year, across a range of potato product categories, including frozen and non-frozen prepared potatoes.
AusVeg spokesperson Shaun Lindhe said “These statistics are extremely concerning as Australian potato growers will be competing against cheaper imported produce in the foreseeable future.”
“This competitive disadvantage is compounded by Australia’s higher costs of production compared to most overseas countries, including significantly higher labour costs. These factors naturally have an impact on the ultimate price of potato produce,” said Lindhe.
Australian potato exports have also experienced a six per cent decline in comparison to the first quarter of 2015, which equates to approximately $290,000 in lost sales.
“This data, along with an increase of 24,000 tonnes of frozen potato imports over the 2014-15 financial year, shows that cheap potato imports continue to be a major concern for the industry. If this trend continues, the overall viability of the Australian potato industry will be under serious threat,” said Lindhe.
