Environmental Benefits
Productive Capacity
Regional Benefits
Social and Health Benefits

Horticulture in Australia is intensive, generally irrigated, agriculture. Horticulture is a diverse industry, spread across the continent in a wide array of climates. Horticulture is the second-largest and the fastest growing industry in agriculture; with some 30,000 businesses nationally, and a farm gate value of $9 billion. Total horticulture exports (including fresh fruit, vegetable, nuts and plants including flowers) were $751m (12 months to May 2008). As the most labour intensive of all agricultural industries, Horticulture employs around one-third of those employed in agriculture.

Horticulture includes vegetables, fruit, grapes (dried, fresh and wine grapes), nuts, mushrooms, nursery, turf, cut flowers and extractive crops.

The industry is the principal driver of many local communities and economies in rural and regional Australia (the average multiplier for horticulture in regional and rural Australia is x factor of 5).  Members of horticultural industries take seriously their responsibilities to operate within the constraints of environmental and climatic conditions; significant research and extension work has taken place within the industry over the past decade to ensure that horticulture's Water Use Efficiency (WUE), for example, is world's best practice.

The major growing regions in Australia include the Goulburn Valley of Victoria, the Murrumbidgee Irrigation Area of New South Wales; the Sunraysia district of Victoria/NSW; the Riverland of South Australia; northern Tasmania; southwest Western Australia; the coastal strip of northern New South Wales; and Queensland. In broad terms, approximately one-third of Australian horticulture is located in Queensland, with another third along the southern Murray Darling Basin (MDB). Amenity horticulture (nursery and turf production, landscaping and urban green spaces) generally occurs in, and close to, metropolitan centres.

Banana, pineapple, mandarin, avocado, mango and fresh tomato production is concentrated in Queensland; stonefruit and oranges in New South Wales, Victoria and South Australia; processing potatoes in Tasmania; fresh pears, canning fruit and processing tomatoes in Victoria; and apples and fresh vegetables in all states.

Environmental Benefits

For all the benefits the horticulture industry provides, it also strives to ensure it has a relatively small environmental impact. Australia's horticulture producers are already leading the way in environmental management. The horticulture industry is reliant on natural resources, especially water for irrigation, and as such is focused on implementing best management practices to reduce its impact on these resources.

Horticulture emissions equate to just 1% of agriculture's emissions, or some 0.2% of Australia's total emissions.

Emissions from horticulture production result mainly through nitrous oxide release from the use of nitrogenous fertilisers.

Source: Calculated from Agricultural Soils statistics 2009

This low level of emissions is due in part to the type of crops grown. The mixture of perennial crops such as tree fruits, tree nuts and vine fruits, combined with seasonal vegetables and herbs provides carbon storage above ground.

Horticulture is also a high value user of water. Horticultural crops account for only 17 per cent of total irrigation but produce more than 40 per cent of Australia's irrigated production. Water is a key resource for the horticulture industry for both permanent and annual plantings, so efficiency is a strong focus of the industry. Figures suggest that for every 100 mega litres of water used in horticulture $250,000 and four jobs are generated at the farm gate and approximately $0.5 billion injected into the economy.

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The industry also contributes to the environmental, physical and psychological benefits of communities through urban greenlife. The importance of the outdoor room has become entrenched in contemporary life-styles and building design. Outdoor rooms are adding value to homes, as renovators and homebuyers place increasing importance on this home design feature. Recent consumer surveys show that the two most popular views that express homeowners associations with their garden were "relaxing in their garden" (75%) and "entertaining with family and friends" (68%).

Improvements in natural resource management and in productive capacity over the past decade have shown that horticulture can meet consumer and community expectations for sustainable production, both now and over the longer term.  The horticulture industry acknowledges environmental stewardship as an industry priority and has invested heavily in improving environmental management.

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Productive capacity

The two largest product sectors of horticulture, fruit and vegetables have generally achieved increasing GVPs since 1999-00.  The fruit GVP increased every year apart from 2003-04 which followed a severe drought.  The vegetable GVP has been more variable and vulnerable to droughts.  It has also experienced a significant market downturn for processing vegetables.

Since 2000-01, the main constraint on the industry's productive capacity has been climate variability and the impact of two severe droughts in quick succession on production and farm profitability.  Low water availability from natural rainfall and restricted irrigation water allocations have been the key production-limiting factors.

Regional Benefits

The significance of the horticulture Industry to the Australian economy is not limited to the value of the production. The horticulture Industry is also a significant supplier to, and consumer of the products of other industries.

As a supplier, the horticulture industry provides raw inputs to a range of Australian industries. For example, the Fruit and Vegetable Product Manufacturing Industry and (to a lesser extent) the Other Food Manufacturing Industry, both depend on horticulture produce. The horticulture industry also purchases inputs from various sectors of the Australian economy. For example, the fertiliser industry depends on demand from horticulture enterprises, while the horticulture industry uses a significant amount of transport, electricity and storage services.

In Australia there is a wide diversity of enterprises (scale and nature) involved in horticultural production. The range is from hobbyists who regard horticulture as a secondary source of income or producers whose turnover is less (often significantly less) than $100K per annum, up to family-owned and large corporate holdings who have sales in excess of $40 million per annum. Thus the industry contributes significantly to regional communities and development of employment opportunities.

Social and Health Benefits

Horticulture also provides significant social and health benefits to the Australian community. Eating plenty of fruit and vegetables not only contributes to good health, but also protects against a number of diseases and helps maintain a healthy weight. For consumers there is a level of trust and an expectation that they can purchase safe and healthy products that are produced in a sustainable manner.

See http://www.gofor2and5.com.au/ for some more health information.