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Inside industry: Horticulture

PIRSA Horticulture works in partnership with the Apple and PearGrowers Association of SA Inc. Their aim is to increase and improve market access and export opportunities as set out in the SA Apple,Pear and Cherry Industry Strategic Plan 2006-2011.

Boosting Pink Lady™ apple exports

A new project aimed at reducing supply chain costs and revitalising exports to the United Kingdom is currently underway.

ft28-p13-1With Australia's Pink Lady™ apple exports to the UK dropping to less than 50,000 cartons last year from a previous peak of 280,000 cartons, PinkLady™ Australia has launched a new $115,000 national project aimed at revitalising exports.

John Fennell, PIRSA's Acting Director Horticulture says the joint project funded by PIRSA Market Development, the Western Australia Department of Agriculture and Food, Horticulture Australia Limited and Pink Lady™ Australia, will focus on the delivery of apples to the UK market at reduced supply chain costs.

"The project includes trialing bulk exports of Pink Lady™ apples to the UK in an aim to reduce risk, improve our competitiveness and re-build industry confidence in exports," John said.

Currently exported Australian Pink Lady™ apples have been packed and shipped in palletised 12kg and 18kg cartons. This project will look at the benefits of sending export bulk shipments in 400kg bins for packing in-market.

"This allows for less handling of the apples, more effective quality control of rots and hopefully increased flexibility for marketing in the UK through shipping a higher proportion of fruit in bulk form," John said.

Bulk shipment trials began in May this year, with two 40 foot containers of fruit being shipped to the UK. PIRSA Market Development will map the supply chain and look into the economic benefits of conventional versus bulk shipments. A detailed report is expected to be released to growers in November 2008 at a series of industry meetings.

Plummers Border Valley Orchards lead the way

Fifth generation growers, Plummers Border Valley Orchards, has been operating for over 108 years and has exported to the UK since the early 1960s.

John Plummer says current exports to the UK have been embarrassing, and that it was time that growers moved away from the comforts of the domestic market.

"Australia has been sending over about 40, 50 or 60 containers of fruit. If you compare this to say six or seven years ago, it was probably more like 160 containers of fruit," he said.

"The strong Australian price in the domestic market has been a major factor keeping growers from exporting overseas, coupled with less risks. Obviously there is less risk marketing fruit on the domestic market," he said.

"There isn't that five or six week shipping time that can bring you undone with quality issues, such as rot or internal browning."

John says returns from the UK market has been very good for a number of years now and that growers will have no choice but to look at exports for the viability of their future.

"We'll soon be facing increasing competition from other countries that will be able to import their produce into Australia at a cheaper price," he said.

"Our returns will start to fall in the domestic market, so increasing exports is the only way forward for our industry. If this project can demonstrate that we're better off shipping in bulk because it will bring our costs down then it will help instill confidence back into our growers to get into the export market."

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