Air export delivery capacity for the Australian horticultural sector has been severely interrupted by COVID-19 and is expected to continue until June 2021, and possibly beyond. A study report commissioned through Hort Innovation shows that air shipping capacity will not meet key export desires This can lead to oversupply of domestic products, agricultural costs and generate monetary losses for Australian producers.
The study report carried out through the Centre for International Economics highlighted the adjustments in air shipment as a result of COVID-19:
He also highlighted:
The report focuses on the 2020/21 monetary year. Around 83,000 tonnes of air shipment capacity is expected to be this year:
Singapore and Hong Kong have air shipping needs, followed by China, the United Arab Emirates and Malaysia. These five markets account for 80% of the overall air shipping needs for Australian completion and vegetables by 2020/21.
Revenue from Melbourne, Sydney and Brisbane accounted for 79 per cent of total air shipment needs over the 12 months for the period.
The December/January period consistent with the period is a peak consistent with the air sending call period for general conditions inconsistent with them, representing 30 percent of the overall needs for 12 months.
Justine Coates, Managing Director of Marketing and Foreign Industry at Hort Innovation, said: “Restricted access to air freight and higher costs will have an effect on horticultural export volumes and divert them to the domestic market, reducing costs. this is the case for producers of cherries, summer fruits, mangoes and vegetables, which have committed export chains with air freight’.
“There is a greater effect on the fruit category (than on vegetables), with the profitability of fruit manufacturers with air freight reducing at least $263 million or 32. 5% per year. “
The report describes the worst non-air transport situation, which shows that the effect on the industry’s annual profitability can lead to 82% falls for asparagus, 66% for summer fruits, 62% for cherries, 50% carrots and 42%. for mangoes.
The report indicates that without air cargo, the fruit and vegetable sectors that rely on air cargo face estimated losses of approximately $5. 7 million. $300 million, respectively, for fiscal year 2020/21.
Justine said: “A momentary phase of these studies is beginning, which examines how to succeed over these demanding situations and how sea freight can potentially fill the void posed by cutting off air shipment for some products, for others, this would possibly not be possible. “.
“It should be noted that the knowledge movement is incredibly active and that the knowledge represented in this report is of the right type at this stage. “