AUSSIE Orange Week wraps up tomorrow, but Tooleybuc citrus grower Leon Caccaviello said he didn’t have anything to celebrate.
“In the past five years, input costs have gone up 50 per cent and sell prices have fallen 50 per cent,” Mr Caccaviello said.
“The number one question is how long can we continue to do this for?”
Mr Caccaviello said the disappearance of the juice market in Australia had a negative effect on growers and the high Australian dollar was destroying the industry.
“The dollar is so high that the margins just aren’t there,” he said.
“I’m selling my fruit for almost half what I did five years ago and it is a nation-wide problem.”
Last year, Citrus Australia chief executive officer Judith Damiani said figures from April to June 2011 showed orange exports were down 13 per cent compared to the same time in 2010 — the lowest volume in five years.
“Our citrus growers have survived the drought, frost and pest infestation, but unfortunately the exchange rate may be the final straw for many growers,” Ms Damiani said.
Leon Caccaviello co-runs the business with his mother Josie, who also fears for the future of the industry.
She said despite her fruit’s quality being “perfect” and her staff being “brilliant”, overall profits were getting smaller.
“Five years ago we didn’t have to worry about cash flow,” she said.
“Over the years the margins have gotten lower and lower.
“The citrus industry is in dire straits and I think most people will just pack up and go if it gets worse.”
Ms Caccaviello said downsizing the business was not an option given the demands of the various citrus markets, and if things continued to get worse her family would have to consider selling.
“But what I’d really love is to see my business continue down the generations — this has been our life.”
According to Citrus Australia, this year around 385,000 tonnes of navel oranges are expected to be harvested and are destined for domestic and export markets including Japan, Hong Kong and the USA.
The citrus industry in Australia is worth $540 million.
