CITRUS growers are optimistic about the potential for record returns this export season but warn high water prices are making some think hard about the future.
Citrus Australia chair Ben Cant said this year's export season was nearing the end but export prices, particularly for navel oranges, had been among the highest in years.
He said they were still waiting for data but expectations were this season would be in line with last season, if not slightly higher.
(China) takes a massive volume out of the market, until all of a sudden demand starts outstripping supply and prices head north.
- MICHAEL ARNOLD
"Last year was a record for volume and dollar value for exports," Mr Cant said.
"We had $464 million in citrus out of Australia."
He said the major driver for the lift was the significance of the Chinese market.
He said there was also strong demand for Australian citrus in Japan, as well as newer "fringe" markets developing in the Philippines, Taiwan, Thailand and India that were "starting to punch above their weight".
"All-in-all, it's creating great demand," he said.
Mr Cant said the season this year was probably a week or two delayed in starting in the northern and southern regions as they waited for cold weather to bring the colour, but it had turned into a year with "average to slightly above average" yields.
He said despite the "buoyant" mood among growers, due to the high prices, there was also concern as the industry entered the period of highest water use.
"There is concern about what water prices will look like," he said.
Grower Michael Arnold, Loxton, said the returns to growers had been positive this year, as he approached the end of harvest.
He sells through Venus Citrus, accessing both the domestic and export markets, depending on where the best returns were available.
"The Chinese market has been a bit of a saviour for the citrus industry," he said.
"It's a big market that has been opened up - and credit to the guys who did the hard work opening the door. It takes a massive volume out of the market, until all of a sudden demand starts outstripping supply and prices head north."
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Despite these good returns, he said some growers would be considering how to approach this summer, with water prices soaring.
"A few years ago, we were paying $300 a megalitre to $350/ML, now we're paying $700 for the same amount," he said.
"The last drought it got up to $1000/ML.
"When we have to pay that for water, it eats into the bottom line."
He said in higher performing parts of the orchard, this might still be viable but it would put pressure on other "average" patches.
He said some growers might be considering if they could continue with their orchard as it was, or even be re-evaluating the industry altogether.
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