Fresh Export

from Fresh Source Summer 2020

Fresh Perspectives

Mangoes fly high

Millions of Australian mangoes are on their way to key export markets around the world, as part of the Australian Government’s International Freight Assistance Mechanism (IFAM), however, some Queensland growers say they are at a disadvantage in the new scheme. With a $317.1 million funding boost in October’s federal budget, IFAM continues to support Australian exporters, including mango growers, to get their high-quality produce overseas. On 22 October, premium Australian mangoes started flying out of Brisbane to customers across the United States, with further flights from Sydney and Cairns to South Korea, China and the Middle East. Federal Trade Minister, Simon Birmingham, said it was vital that mango growers across northern Australia could pick mangoes with confidence knowing their produce can get onto planes and over to key export markets. “Our mango growers are expecting a bumper season and we want to make sure they can continue to get their highquality product over to their overseas customers,” Minister Birmingham said. “Growers have worked incredibly hard to secure export contracts and build a strong reputation for premium, safe and reliable produce that remains in high demand across the globe. “Our freight flights have already supported almost $2.5 billion in exports, maintaining important relationships with overseas customers at a time of significant uncertainty and export barriers.”

However, Queensland’s mango growers have said that a disparity in assistance between Northern Territory and Queensland could see a difference in up to $2 per box in the cost of production. Mango grower and Australian Mango Industry Association Chair, Ben Martin, said he wanted a fair go for all mango growers across Australia. “There are a lot of restrictions on the flights going out — it’s at a huge cost and ultimately the grower bears that cost.

Australian mangoes are making their way across the seas to international markets.

We need to develop sustainable market access and protocols into our exporting countries so we can weather storms like COVID,” Mr Martin said. For more information on IFAM, please visit https://bit.ly/3em8lK4.

07 3040 4343 | EFFIGY.COM.AU

PROUD DESIGNERS OF FRESH SOURCE MAGAZINE Make the connection

DESIGN • WEB • PRINT

Record-breaking year for Australian exports

By Andréa Magiafoglou, CEO, Australian Horticultural Exporters’ and Importers’ Association

The 2019/20 trade data for Australian fresh fruit and vegetable exports is in, with combined fruit and vegetable exports reaching a total of 762,840 tonnes (up 4.1%) valued at $1.84 billion. This result is a record breaker for the seventh consecutive year and was buoyed by strong outcomes for fruit exports at 547,137 tonnes (up 9.5% from 2018/19) and helped buffer a 7.4% volume reduction in vegetable exports over the same time period.

Aussie fruit find favour

Across fresh fruit, China remains the most prominent export market destination by both volume and value (156,372 tonnes; $536.5 million). However, export volume growth has eased from the substantial increases seen in previous years when strong gains in table grape and citrus exports coincided with new and/or improved market access conditions for stone fruit.

Japan has slid into the number two market for Australian fresh fruit exports by both value and volume (59,655 tonnes; $132.6 million), edging out Hong Kong which eased 4% by dollar value and 4.8% by volume; a reduction contributed to by increased direct trade to China. Overall fruit export volumes to Japan increased by 9% during 2019/20, with melon exports continuing to rise since entering the market in 2016. Singapore and Indonesia round out the top 5 markets for Australian fresh fruit exports, with Indonesia recording a 23% decrease in volume driven by challenges with import licensing on table grape exports to this market.

Slight drop for veg

Full year trade results for fresh vegetable exports indicate a 7.4% easing in volume to 215,700 tonnes, however value remained steadier at $290 million, 3% down from the previous year. Singapore remains the leading market by value (at $52.4 million), and second largest by volume after the United Arab Emirates (UAE). Of all fresh vegetable exports to Singapore, carrots accounted for around 48% by volume at 13,500 tonnes and remain relatively steady compared to export volumes from previous years. Pumpkins lifted 24% by volume, while broccoli exports to Singapore declined 30%, mainly driven by challenging production conditions in 2019 and COVID-19 supply chain disruptions in 2020. The UAE, Australia’s largest fresh vegetable export market by volume, remained relatively steady at 36,000 tonnes at $34.2 million. Onions to the UAE lifted to 3,500 tonnes, a 78% increase from 2018/19, with carrots continuing to contribute more than 80% of all Australian fresh vegetable exports to the UAE.

COVID-19 disruptions

The above trade results for 2019/20 would not be complete without a brief commentary on COVID-19 impacts on fresh horticultural exports. The data outcomes reported above only partly reflect COVID-19 disruptions. Various commodity groups are affected differently, and impacts shift as the landscape changes and seasons progress. As commented on previously, and to restate what is well known within industry, supply chain disruptions globally have created a challenging environment for fresh horticultural exporters and importers. However, a unifying shift towards coordination across horticultural industry bodies, supply chain participants, and federal and state governments has placed Australian exporters in good stead to optimise and expand on available opportunities to counter these ongoing challenges. The lessons and solutions we apply today will support and refine how we conduct business tomorrow, and ultimately provide a stronger and more resilient horticultural export industry in years to come.

Industry forum soon

The Australian Horticultural Exporters’ and Importers’ Association is looking forward to holding the next Industry Forum in early 2021. The Industry Forum is designed to connect members, update industry on the state of the global market and hear directly from Australian Government representatives involved in horticulture trade.

Previous years have attracted leading decision-makers involved in Australia’s international fresh produce trade with vibrant discussions covering key issues facing the sector. The Industry Forum is open to members and non-members alike. More information will be provided once details are finalised.

Fruit Total Exports Table Grapes Oranges Mandarins 2018/19 (t) 499,521 153,363 191,780 65,580 2019/20 (t) 547,137 160,790 210,329 86,855 Difference 9.5% 5% 10% 32% 2019/20 ($m) 1,553.7 640.5 326.6 208.1

Vegetables Total Exports Carrots Potatoes Onions 2018/19 (t) 232,953 111,876 39,210 48,687 2019/20 (t) 215,702 106,813 41,407 38,535 Difference -7.4% -5% 6% -21% 2019/20 ($m) 290 94.08 34.97 31.34

Potato growers big winners in Thailand

Two key commitments from the Thailand-Australia Free Trade Agreement (TAFTA) have now been realised, improving market access for Australian potato exporters into the Thai market.

Thailand has now implemented zero tariffs and removed tariff rate quotas that limited the volume of Australian seed and processing potatoes that could access the lower TAFTA tariff, meaning Australian seed and processing potato exports to Thailand are no longer subject to tariffs or limits on volume. According to AUSVEG National Manager – Export Development Michael Coote, Australian potato growers stand to benefit from the increasing of trade into Thailand following the removal of tariff volumes and rates.

“Australian potato growers are in a strong position to take advantage of opportunities in Thailand, which is becoming an increasingly important export market for Australian vegetable and potato growers,” said Mr Coote. “Thailand is an emerging market for Australian potatoes, in particular, with the Asian market currently the second largest importer of Australian potatoes behind South Korea.” Last year Australia’s global fresh vegetable exports were valued at $299 million. In the 2018/19 financial year, Australian vegetable exports to Thailand were valued at $15 million, following strong growth in the Thai market over the past three years. The top vegetable exports to Thailand are onions, carrots, potatoes, celery and broccoli; potatoes make up 25% of total Australian vegetable exports to Thailand.

Table grapes exports hit record high

Australian table grape exports have hit record highs for both value and volume this financial year. The total value of product sent overseas was $622,947,485 – an increase of 67% over the past three years. Meanwhile, 152,200 tonnes of table grapes were exported, up 47% with 110,280 tonnes exported in the 2018 financial year. Hort Innovation General Manager Marketing and Trade, Justine Coates, said the record exports were a result of a strong season prior to the coronavirus pandemic. “The table grape success was underpinned by the production of high-quality fruit, being able to export some product prior to significant global disruption and the ability to sea freight product,” she said. Asian markets were the biggest buyers of Australian table grapes over the financial year, with China taking up 42% of the total volume exported. South Korea saw a 152% year-on-year increase in volume, with a 951% growth over the past two years. The Philippines also recorded a 29% rise in their share of exports this year. “Even in the midst of the current economic climate, demand has continued to be strong for Australian fresh vegetables and potatoes in export markets, with enquiries still coming in from a range of international trading partners,” Mr Coote said. Processing potatoes produced in all states are permitted to import into Thailand subject to phytosanitary requirements. Seed potatoes from South Australia, Victoria and Western Australia are currently approved by Thailand’s Department of

Australian potatoes are proving a hit in Thailand.