It seems ironic that because the Australian economy is doing a lot better than the rest of the world - the rising Australian dollar will be responsible for the closure of an iconic fruit processing plant in Victoria's north - with the loss of one hundred and fifty jobs.
SPC Ardmona - near Shepparton - is owned by Coca Cola Amatil ( CCA ) and has lost market share because the rise of the Australian dollar has enabled imported packaged fruit and vegetables to flood into the country - and made our exports dearer for overseas customers.
This same rising dollar enables Australians to take cheap overseas holidays - to the detriment of our own tourist industry, and now a basic industry is being destroyed by our very financial success.
The crazy thing is that a lot of our industries do much better when the Australian dollar trades at about 70 c to 75 c against the US dollar. Our exports are cheaper in overseas markets and overseas tourists pay less money to holiday in Australia.
Unfortunately the closure of SPC Ardmona will have long term effects. The value of our dollar is a constant roller coaster. Further down the track it's value will change and again favour exports - but once SPC Ardmona closes it's doors - it is gone forever !
A big Victorian country town will have an unemployment problem and that will not be confined to the plant's workforce. Without a processing plant there will be a likely drop in the production of fruit and vegetables that flowed along the production chain - and that means difficult times for the shops, traders, pubs and entertainment venues in Shepparton.
And we live in a world where millions are near starvation in the horn of Africa - and science is warning of a coming world famine.
No wonder many people think we live in a mad - mad - mad world !
No comments:
Post a Comment