Aussie berries to kick up a storm

STRAWBERRIES

Hot new Australian strawberry varieties are in a position to take Europe by storm.

The Australian strawberry industry has released “Kiewa”, a strong flavoured, high yielding strawberry, to immediate approval. Australian growers have rapidly converted land from imported varieties to this new Australian variety. Importers can expect to see large quantities on the market this year.

Traditionally, Australia’s strawberry growers have been heavily reliant on imported varieties from the United States and Israel. Bred for northern hemisphere climates, imported runners have rarely performed particularly well in the Australian climate. With the release of Kiewa, and several other varieties in the pipeline, Australian growers believe they are poised for expansion and industry growth.

Home-grown varieties enable increased yields and importantly free growers from commercialisation and growing regulations so often tied to imported runners. The new Australian varieties will be free from such barriers to allow growers to get on and do their jobs unhindered.

Supermarkets are increasingly controlling variety patents, regulating growth and development, and tying growers to varieties and supply arrangements.

Varieties from private breeding programmes grown under exclusive supply arrangements to supermarket chains are imminent in the Australian domestic market. As growers become more geared towards such arrangements, it opens the opportunity to grow for the international marketplace, in particular the European supermarket chains moving into Asia.

Dennis Phillips, senior development officer with the Department of Agriculture, says: “The industry trend is to grow and supply strawberries under exclusive supply arrangements to supermarkets. For growers who want to remain free of such constraints, the Australian bred strawberries are becoming increasingly important.”

The Australian strawberry industry produces over 14,000 tonnes per annum, with a value of (Aus)$93 million. Although not a huge industry in world terms - less than 1,000 hectares of strawberries are farmed each year - Australia is a major exporter to Asia, competing favourably with New Zealand and the US.

Exports to the UK have remained stagnant for some years, but with the introduction of more suitable varieties and a 12-month supply calendar, the window of opportunity for Australian growers will increase.

The industry is spread across Australia, with major producers in Victoria, Queensland and Western Australia. Western Australia - due to its proximity to Asia - is able to take advantage of cheaper sea freight alternatives to access markets in Hong Kong, Singapore and Malaysia. Other regions must ensure efficiency of product delivery through airfreight, more costly but timely.

Strawberries Australia executive officer Beth Luckhurst says: “Travel time from farm to market is paramount for quality. For a long time Australia has not performed well in the export markets, however with new and improved freighting containers and CA storage we are now able to deliver top quality berries.”

The breeding programme - funded by grower r&d levies and matched with government money - is based on traditional and genetic engineering breeding techniques. It aims to produce well-flavoured, long seasoned and disease resistant varieties.

Growers have reached out for new technologies to provide them with tools for long-term competitiveness. Many growers have moved away from the traditional field grown strawberries to a more controlled greenhouse and hydroponic environment. These new systems have reduced disease issues, and overcome the need for soil fumigation, an important factor with the imminent withdrawal of the soil fumigant methyl bromide in international markets.

Australia has gained some niche market opportunities through direct growing arrangements. A group of growers in Tasmania - under contract with Japan - are growing Japanese varieties, using Japanese techniques and exporting directly to Japan. These growers have been able to specifically target a market, and grow to their market requirements. Mainland growers are also attempting to target such arrangements, as they provide excellent long-term sustainable opportunities for the industry as a whole.

The Australian strawberry industry is buoyant. With customers increasingly making purchasing decisions based on food safety issues, Australia believes it is well placed to deliver.

Phillips says: “Australia will always be a niche supplier of strawberries to international markets. We need to continue to pitch product to consumers not only concerned with quality and safety - but perhaps more importantly - to those consumers who are prepared to pay for it.”

BLUEBERRIES

The driving force behind the rapid increase in consumption of the blueberry - considered the modern version of taking a BEX - over the last 10 years has been the globally recognised medicinal attributes. Claiming anti-aging and cancer reducing properties it is no wonder there has been an interest in the small firm blue berry.

Not surprisingly, it is the Americans and Japanese who have taken to the “berry” with astounding hunger.

The Australian blueberry industry is set to harvest an estimated 2,400t of berries this year (total world production currently stands at 226,000t), with a value of (Aus)$34m. The industry is steeped in a history of smallholdings, until recently when Australia began seeing the emergence of corporate and specialist growers.

These specialist growers have driven the industry towards coordinated marketing programs and importantly the investment of grower funds into r&d. It is this r&d, which has led to better varieties and growing systems to enable the top quality end product, which now exists.

President of the Blueberry Growers Association and blueberry grower Paul Casey says: “The driving force behind success in our industry has been coordination. With increasing competition from countries with lower labour costs - New Zealand, Chile and Argentina - the Australian industry has had to develop new varieties that are pest and disease resistant, easy to prune, pick, and produce large attractive tasty firm berries.”

Opportunities exist to supply northern hemisphere markets from September to March, in particular Europe with an increasing demand for quality firm berries. However the increasing competition from South American growers and carryover CA fruit from British Columbia, Oregon and Poland is causing the Australian’s some concern.

Blueberry growing regions are divided between low and high chill production. Low chill production is based along the north coast of NSW, through to south East Queensland. High chill production is in the southern Australian regions - NSW, Victoria and Tasmania. Imported from the US, Rabbiteye and Highbush are the primary varieties grown in Australia. The advantage of the two distinct growing conditions enable a longer growing season, adding to market advantage.

Blueberry Farms of Australia - a subsidiary of Chiquita - is a major blueberry producer, holding over half the industry plantings and production. Peter McPherson, of Blueberry Farms of Australia, says: “The industry has expanded with new plantings in most areas. Production is set to increase three fold when these plantings come into fruition, and older plantings with declining yields are taken out of production.”

The Australian blueberry industry is at an exciting point in its development. Poised for an increase in demand for safe consistent product, Australian growers have niche capabilities to export quality, firm berries. Most importantly the industry is able to expand to cater for larger markets, as growers are well placed to access to large tracts of suitable land.

RASPBERRIES

Roses are red, violets are blue, but the world is about to find out that raspberries are yellow. Yellow raspberries, an Australian bred variety, are becoming increasingly popular with Australian consumers. Poised for distribution into Europe, opportunities exist for UK importers to share in the delight of this new variety.

Bred by the national raspberry breeding programme based outside Melbourne, growers have seen three new selections released in recent years. With a mandate to develop cultivars better adapted to mild winters, hot summers, and able to handle mechanical management, the government and industry funded programme is on track.

Australia produces less than 700t of raspberries yet the industry has adopted inspiring technology, cool chain management and capabilities to deliver top quality product. Australia exports only 3t of raspberries to the UK, which is likely to increase with a change in grower status - from hobby farm to networked marketing groups.

Karen Meeuwissen, president of the Australian Rubus Growers Association, says: “The raspberry industry is a very small industry, with a few dedicated exporters. The growth in the industry has been helped by imports increasing availability and awareness of raspberries, which in turn has increased the demand.”

Raspberry production in Australia is mostly from April to June. With a small window for fresh product, the industry is targeting niche market opportunities.

TO MARKET, TO MARKET

How do 12 medium-sized family businesses compete successfully in the international arena? They form a group, share information and brand under a single label.

One of Australia’s most successful fruit marketing groups is YV Fruits. Hailing from the Yarra Valley, just east of Melbourne, 12 family businesses came together during the tough times of the 1990s. When many of their neighbours were selling up, and grower returns were at their lowest, YV Fruits formed to deliver top quality products under a single brand.

YV Fruits grows and markets a broad range of fresh produce - apple and pear, stone fruit, citrus and now soft berries - all produced under integrated fruit production systems that ensure minimal chemical usage, sustainable development, and environmental protection. The group is registered with SQF 2000, Australia’s most recognised quality assurance system. With high-tech on farm CA storage, packing facilities and transport systems, YV Fruits is able to supply Australia’s largest supermarkets.

The path to success however has not been easy. Using a business manager to take control of much of the growing paperwork, YV Fruits set about convincing Australia’s largest supermarkets that their systems produced great quality fruit, and importantly, that YV Fruits had critical mass to supply the quantity required by large retailers. Not an easy job when faced with tough competition from corporate entities.

Long-term relationships remain important. With a future filled with imports of fruit at peak season times, YV Fruits had to sure-up relationships to ensure long-term survival. There was no point investing in the market today if tomorrow’s markets were to be obliterated by competitors.

Gaining confidence in their abilities to handle the marketplace, YV Fruits was then able to look further a-field and focus on exporting. YV Fruits solid understanding of relationship management has been key to securing export markets.

Other critical success factors are the continual seeking of improved varieties and technology from around the globe. By working together, the group has developed economies of scale not previously available to the individual businesses. The scale of operation now allows a significant reduction in production and packaging costs.

The group has flourished since inception. With a larger business and further markets to develop, YV Fruits recognised the need for detailed market know-how. The logical next step was to develop a marketing and distribution company, YV Marketing. Co-opting trading partners from the retail and wholesale sector, YV Marketing has established a short efficient fresh fruit supply chain.

Mark Chapman, of YV Marketing, says: “The YV model is reflective of global marketing models for building competitive and sustainable supply chains.”

Raspberries, blueberries and blackberries now form part of the fruits grown, packed and delivered by the YV group. With 30 hectares already in production - yielding over 200t of fruit - the group believes they will have nearly 100ha in production over the next four years.

Contact Mark Chapman by email: at mark@chappieschoice.com.au for supply information.

Australian growers and exporters have experience behind their businesses. They are keen and committed to the long-term relationships expected in the global market environment. As suppliers of distinctive colours and flavours, the fruit industry is ready to open its door to the future.