Red grapefruit

Red-fleshed grapefruit from central, western and northern Australia is set to debut on Japanese retail shelves next year following Japan’s recent announcement of market access for grapefruit from all areas of the country.

Up until now, Australia has only been able to export grapefruit sourced from areas that are certified free of fruit fly. This confined market access to growers in the South Australian Riverland (year-round) and the Sunraysia region that straddles Victoria and New South Wales (between June and December).

With effect from 4 June, market access has been expanded to include grapefruit from fruit fly-affected areas under an in-transit cold treatment schedule that calls for a core fruit temperature of 2oC for 18 days.

The news marks a major breakthrough for growers in central, western and northern Australian, who have been developing their production of sweeter red-fleshed varieties in anticipation of gaining entry to the Japanese market.

Since 2004, growers and industry bodies have been working closely together with various levels of their government to fund and conduct the research that is required to open up the market. And Japan’s Ministry of Agriculture, Fishery and Forestries (MAFF) agreed to the new trading arrangements following the results of Australian fruit fly research work that showed fruit fly risks could be adequately managed through cold disinfestation treatment and appropriate quarantine measures.

“Citrus Australia representatives, in particular our red grapefruit grower members, Western Australian disinfestation researcher, Horticulture Australia and the Australian government Department of Agriculture, Fisheries and Forestry (DAFF) are to be congratulated on their combined effort,” said Judith Damiani, CEO of Citrus Australia. “The industry has been working very closely with Japanese importers, MAFF and DAFF, so we’ll be thrilled when the first shipments leave next year.”

While the official announcement of market access comes too late in the season for grapefruit growers to make any shipments this year, Ms Damiani said they’re gearing up to capitalise on the new market opportunities.

“Export orders are already being placed for the new season commencing March 2011. The first year of trade under the new conditions will see an estimated 1,500 tonnes of grapefruit exported to Japan valued at approximately A$1.5m,” she said. “The longer-term outlook looks even more promising. The demand in Japan over the next five years is anticipated to be around 4,000 tonnes and valued at A$4.8m annually.”

Ms Damiani told Fruitnet.com that Australia’s burgeoning production of sweeter, red-fleshed grapefruit varieties in northern Western Australia, the Northern Territory and Queensland is ideally suited to the Japanese market, both in terms of flavour and timing. “It offers a new seasonal timing, a totally new product for this market,” she noted.

A key source of this production is Rewards Group’s plantations in the Ord River Irrigation area of northern Western Australia (WA), which encompass some 200ha of Rio and Flame varieties.

Mano Babiolakis of Global Rewards, which markets fruit from the project, told Fruitnet.com there is a unique window for Australian production in the Japanese market between the latter part of the Florida grapefruit season and the beginning of the South African season.

“We’ll start shipping at the end of March, early April and we expect to be in the market from mid-April until the end of June,” he said. “South Africa’s season traditionally starts after 1 June and we’re able to get in slightly earlier. We’ll be competing with stored Florida fruit, but our fruit will be fresh.

“We are planning to ship anywhere between 20 and 40 containers to the Japanese market in our first season next year,” he added. “We’ll do a minimum of 25,000 cartons and hopefully as much as 60,000 cartons once our Japanese customers have the chance to taste the fruit.”

With Rewards’ plantations currently yielding around 3,500 tonnes and still four years from reaching their peak production of 10,000 tonnes, however, there is significant scope to expand volumes.

“We see very good potential for our grapefruit in Japan,” said Mr Babiolakis. “Japan is the largest grapefruit consumer in the world and they consume five times as much grapefruit as they do oranges.”

In addition to its advantages in terms of timing and freshness, he added that northern WA production could forge a quality edge in the market. “We have excellent sugar-acid ratios,” said Mr Babiolakis. “We don’t get as high a brix level with our fruit as Florida does but we get better acid levels because our climate is much hotter and more temperate.”

While Rewards Group was placed into administration last month, its grapefruit plantations, which are managed by the Dobson family, are expected to benefit from the new market opportunities under different ownership arrangements, according to Mr Babiolakis.

“The trees are growing well, with fruit coming on strong, and we have a state-of-the-art packhouse and great farmers in the Dobson family,” he asserted.