Wayne Prowse (WP) is marketing manager, export development, Horticulture Australia, which brings together three core areas of export access, export development and export growth into a strategic plan for all of horticulture. Prowse has specific responsibility for strategic development of the country's summerfruit (stonefruit) sector in overseas markets.
Michael and Justin Silm's (MS) and (JS) Panda Ranch Group is an established exporter of Australian stonefruit to the UK market. It is heavily involved in variety and technology development designed to take the export industry forward.
Ben Walker (BW) is export manager of Western Australia stonefruit exporter Old Valley Pty Ltd. Old Valley recently ended an arrangement through which Craig Mostyn managed its marketing. From December 1, Old Valley has 100 per cent control of this function.
Fernando Espinosa (FE) is export manager of Pacific Fruit Brokers, the Sydney based group which owns and operates stonefruit orchards in the Tumut region of New South Wales. It has been airfreighting Australian summerfruits for several years into the UK, France and Italy.
IT HAS BEEN A DIFFICULT START TO THE SEASON IN AUSTRALIA, DUE IN THE MAIN TO FROST. WHAT ARE THE PROSPECTS FOR THE REMAINDER OF THIS AUSTRALIAN STONEFRUIT SEASON?
WP: “This season will have better size and great quality among the crops that have not suffered damage by frost or hail. Overall the combined frost and hail damage is estimated at the moment to impact on the crop by taking volumes to approximately 30 per cent lower than last season.
“The most difficult period to get fruit will be in January, as the later fruit (February and March) is less affected. Cherries coming from Young, New South Wales) and southern Victoria and even more now from Tasmania were not affected by frost and the season is looking very good.”
“The lower crop will impact on prices and we are already seeing stronger domestic prices this season. This unfortunately will impact on export volumes, however I see this as this season only and not impacting on long-term potential.”
MS: “In the eastern states we suffered a frost just on bloom period of much of the stonefruit. Worst hit were plums and apricots around the Shepparton region. The later varieties of plums seem to survive better than others.
Generally, we have had cool weather for the last three to four weeks, and that has made the harvest season approximately 14 days later than normal.
“Cherries are just starting now with early season Burlat and Supreme in full swing. The Brooks variety has started in Young and Shepparton, but unfortunately there has been fairly wide spread rain which has caused damage in many areas. Generally however, the cherry crop is on the lighter side, which should result in larger berry size and good pack-outs of export quality if the rains stop now.
“Peaches and nectarines are frosted in some areas, but there will probably be only a marginal drop in total crop (maybe 15 per cent) due to younger plantings coming on line. The main nectarine production region, Swan Hill, has not been hit too badly and almost full crops are expected from this region, albeit late.”
BW: “Western Australia has two main growing areas for stonefruit and particularly plums (our key line); the Perth Hills area, which has been hail-effected and suffered from poor pollination and consequently has low plum crop estimates this season, and the south west which is lower overall but largely unscathed. Old Valley's main growers are in the south west, close to our two main packsheds; Donnybrook and Kirup (a temperature controlled export pack-shed that will be BRC accredited within the next two months).
“We are currently getting our growers up to EurepGAP standard with several already achieving the accreditation. These were the first orchards in Australia to do so.”
FE: “The effects of frosts, hail and drought have equated to a smaller number of UK / European grade trays / cartons being available to exporters for shipping. Victorian growers suffered badly due to frosts. Then subsequently New South Wales growers were hit with hail.
“We are finding an increased internal competition as domestic demand is strong for the smaller volume of product available. This coupled with the UK and European high quality demands, cost of freight and low prices of southern-hemisphere competition has made it a very challenging start to the season.”
THE UK IS REALLY BEGINNING TO TAKE AN INTEREST IN AUSTRALIA AS A MAJOR SOURCE AGAIN, AFTER A FEW YEARS OF STAND-OFF FOR VARIOUS REASONS. WHERE DOES THE UK MARKET STANDS IN THE EYES OF THE AUSTRALIAN EXPORTER?
WP: “The UK and EU generally has been too far and too difficult for many exporters used to the Asian trade. However, the opportunities for counter seasonal trade and improvements in fruit logistics are enabling a few exporters to tap into this market with premium quality fruit and commitment to EurepGAP and other business arrangements unique to the UK. It is encouraging to hear that retailers in the UK are noting a preference for Australian fruit as it is better than some other southern hemisphere suppliers.”
JS: “Panda Ranch has been exporting to the UK for six years now. It was tough in the beginning, but our persistence has paid off. Our sales and marketing director, Gerome Raco has been working closely with key customers in the UK. These customers are realising Australia has excellent quality stonefruit that has exceptional eating characteristics. This is due to the combination of weather (hot, dry climate) soils and good horticultural practices that increase the sugar levels and flavour.
“We were told last season in the UK, in blind tastings Aussie stonefruit beat the competition almost 100 per cent of the time in terms of the eating experience it provided.”
FE: “We do feel the UK is warming up again as a prospective destination for Aussie summerfruits. The ever-increasing demands of quality control systems are also creating hurdles for exporters and producers alike. I believe the UK market is popular with Australian marketers as they see a parallel in the views and lifestyles of UK consumers and our own.
“We believe that there is a place in the UK market for Australian product in the face of increasing competition by other lower priced producers. UK buyers are very prudent and their purchasing decisions in our favour are credit to the Australian industry and the product it markets.”
BW: “The UK is a market that we know well through our Pink Lady connections as the largest shipper of this product from Australia to the UK. It is a market that has exciting but niche potential for Australian stonefruit, with our likely unique selling points being white-flesh nectarine from the eastern states or late variety plums from Western Australia. It is the latter that we are looking to develop at this point.”
THE LAST TWO YEARS HAVE SEEN AUSSIE APRICOTS AND CHERRIES, PEACHES AND NECTARINES, TAKE ON A NEW PRESENCE ON THE UK SHELVES. ARE THE INDICATIONS YOU RECEIVE THAT THE UK IS BECOMING MORE OF A POTENTIAL MARKET?
WP: “Economics will always play a major role. If Australian exporters can land fruit into the EU at a competitive price to other suppliers then there is strong promise for more Australian fruit establishing a presence. The cost to land fruit into the EU, and the assurance of sufficient freight capacity are inhibiting factors although the quality of fruit is making the efforts to get the fruit into the EU worthwhile.
“The potential for the UK is large. In Australia we sell some 80,000t of stonefruit to 19m people in four months. The UK market is many times larger, therefore we see, even for lower demand, higher priced counter seasonal fruit, a demand for Australian fruit that is several times more than we supply now.”
MS: “Exports of stonefruit from Australia to the UK have grown nicely over the last four years. Panda Ranch Group are getting some good commitments in terms of programs from major buyers now and as a sign of market development, the Australian industry and exporters will commit funds to promotion for this upcoming season, in a modest form to start with.
“Australia's natural “volume” market is Asia, because of our proximity. However, the UK is an import developing market for certain lines of fruit. We cannot compete with South Africa in the main seasons of plum and nectarines, but there are windows of opportunity that do have good potential. Peaches, nectarines (later in the season) and late plums are some of the potential winners for Aussie fruit exporters.”
WHICH FRUITS AND VARIETIES OFFER THE GREATEST SCOPE?
MS: “Any variety that exhibits exceptional eating characteristics. Yellow peaches like Rich Lady and similar show great potential. Spring Bright nectarines were also very successful last season. White nectarines is another growth area.
“Australia is well advanced in terms of varietal development and commercialisation. All major stonefruit breeders are represented and the time lag between breeding and introduction / production is very fast now. I would say Australia is ahead of our southern hemisphere rivals in this regard.
“From our own company point of view, Panda Ranch is well placed in this regard. We have signed distribution andproduction agreements with US breeders Sun World, C&C Nurseries and very close working relationships with Zeiger Genetics and its representative in Australia ñ Flemings, as well as Bradfords and its agents in Australia, Buchanans / ANFIC.
“We see this area as a key business driver in the future in terms of the UK market.”
BW: “In terms of varietal developments, we have considered several varieties along the lines of controlled marketing of niche products and are continuing this process. Agwest and other bodies are developing the varieties here in Australia.
“We are hoping that the UK market will show more consideration for our high class plums and stonefruit than Jonny did for our Wallabies!”
WP: “All stonefruit has good potential. However, some of our white-fleshed nectarines and peaches offer something different to normal yellow-flesh fruit.”
IS FREIGHT COST STILL A MAJOR PROHIBITIVE FACTOR OR DO YOU SEE COSTS EVENING UP ACROSS THE SOUTHERN HEMISPHERE?
FE: “We have always believed the UK holds great potential for our products. However, the distance between our two markets has been a limiting factor. We see freight costs as being a major inhibitor in unleashing the full potential of Australian product in the UK.
With freight costs often outweighing the cost of the actual product we are always fighting a difficult battle. The mixed results of combination air / sea freight trials hold little promise for us at this time. However, with concentrated and professional logistic channels this may definitely be an interesting avenue for Australian exporters and UK importers alike.
“There is some promise in this respect with the strengthening of the airline industry, indicated clearly by the increasing number of carriers on our offer from Australian ports recently.”
WP: “Freight costs are still high and 9/11 has not helped with extra security charges now levied on air freight. I see the greatest potential in getting the Controlled Atmosphere containers used more efficiently and possibly combined air / sea freight combinations to deliver high quality fruit at reduced costs to full airfreight. Apart from cost, capacity is also a problem at times, and will continue to be so until volumes reach a point that can justify chartered freighter aircraft.”
MS: “Due to our distance from the market, airfreight programmes make up the majority of the peach and nectarine volumes and this cost is substantial.
However, many of our competitor countries have even more problems with capacity and cost of airfreight, so I think we are in a pretty good position, especially after Christmas. Late plums by sea have been well-received over the last few seasons and this continues to be a growth area.
“We expect that, over the coming years, technological advances will bring the UK market closer and within reach for more products. Combined logistics options like sea and air also can work if the arrival windows are appropriate.”
BW: “The cost of freight and length of time for sea-freight is an inhibitor to greater trade, but using the best longlife packaging and freight technology to deliver goods, and the use of air-sea does create opportunities.”
SUMMER OFFERS FRUIT SPECIAL DOWN UNDER
The summerfruit industry in Australia, which is coordinated by Summerfruit Australia Inc, is comprised of approximately 2,900 peach, nectarine, plum and apricot growers with major production areas in Victoria, New South Wales and South Australia. Approximately 102,000 tonnes of fresh summer fruit are produced each year, with an estimated farm gate value of Aus$264 million.
There is significant production development in all states and tree plantings are expected to increase by substantially over the next five years. The development of the low chill industry has been particularly strong since the mid 1990s. New varieties and new production methods together with improved product handling techniques have resulted in an increasing range of high quality Australian fresh summer fruit, which is available from September to April.
A 2003-4 research and development programme will concentrate on increasing consumer awareness of the benefits of summer fruit and expanding domestic and overseas markets through improved quality management linked to integrated fruit production, post-harvest handling, breeding and varietal evaluation, technology transfer, industry benchmarking, and improved production and supply chain efficiency. There will also be an emphasis on ëready to eat' fruit, increased orchard profitability, improved industry statistics and the use of product description language by the Australian industry.
2003-4 will also see the ongoing promotion of Australian summer fruit via the domestic and export marketing programme. The export development initiative will continue to seek new market access to overseas countries, and will include product promotions in Europe.
CHERRY MAYBE
Australia's cherry industry is spread over five states, with a large percentage of national production from New South Wales and Victoria. Significant production areas include Young, Orange and Bathurst areas in New South Wales; the Dandenong Ranges and Goulburn Valley near Melbourne; the Mount Lofty Ranges east of Adelaide the Riverland area in South Australia; the Huon Valley south of Hobart; and the elevated south west region of Western Australia.
The national association is Cherry Growers of Australia, which represents around 800 growers.
In 2002-3 the gross value of production from around 1.27 million trees was 8,290t valued at (AUS)$49.7m. Cherries are available from November to February with most of the crop harvested during December and January. Fruit supplies are limited during the early and late parts of the season and availability and quality largely determine pricing.
Breeding and disinfestations projects are pinpointed as crucial to the future success of the industry in Australia and in export markets. The breeding program has a long-term aim to produce new Australian cherry varieties suitable for the expanding domestic demand and to supply Asian and other Northern Hemisphere markets.
HOLMAN EXCITES WITH NEW AUSSIE VARIETIES
Holmans is a wholesaler, exporter, importer and grower of fresh produce, based in Melbourne, and a member of the AFFCO group (who facilitate the Australian Pink Lady Apple program).
The company has been marketers of Australian produce for over 30 years and today is a partner with just one category leader in each of table grapes, stone fruit and cherries. Holmans also markets citrus and pears to North America, Europe, Asia and the Pacific region.
David Holman tells the FPJ that his company is offering a new taste in stone fruit. Holmans is showcasing a new and extended range of Australian cherries this season. The ëCherry King' produces nearly 900 tonnes of fresh cherries between late October and early January. Producer, Gaudions, is unique in that it is the only Australian grower of the Brooks variety, which is an extremely sweet and crunchy sub-acid variety.
Gaudions also grows Giant Ruby, a very large fruiting US variety, and Sweetheart, which is a darker red cherry, with good flavour, good taste and which performs well in transit, enhancing its storability.
“The cherry farms are located in a huge area that spans central New South Wales to Southern Victoria, which facilitates a consistent flow of the same variety for as long as eight weeks at a time,” says Holmans. “No single producer in Australia can presently compete with the versatility of the production schedule we will be able to offer to customers that need consistency in volume by variety.
“Our partner in the stone-fruit category is VF Siciliano & Sons in Swan Hill, Victoria. Swan Hill is situated on the banks of the Murray River, which represents the border between Victoria and New South Wales, as well as the primary source of irrigation for fruit production in the area.”
Sicilianos packs for a cluster group of 12 dedicated growers that works together to plan in advance, creating production schedules that assure a diverse and complete range of medium chill nectarines, peaches and plums in volumes that are relevant to customer demand.
“Our nectarine and peach production starts in early December and progresses through the white flesh and yellow flesh varieties, both conventional and sub-acid, until March,” Holman says. “We have successfully sea -freighted our stone fruit to Europe and plan to increase volumes this season, through Direct Fruit Marketing in Germany. DFM has already assisted in the local promotion and distribution of Australian fruit in Germany and is committed to making its virtues known to the wholesaler and retail sectors.”
This year, Holmans also had some earlier plum varieties under trial for pre-Christmas sales, before it moves into the traditional Fortune, Amber Jewel, Tegan Blue and Autumn Giant in the New Year.
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