China remains key market for Tasmanian expansion

Don't be fooled by the size of Tasmania on a world map, with 68,000 square kilometres, there is a lo…

Don't be fooled by the size of Tasmania on a world map, with 68,000 square kilometres, there is a lot of area left for expansion. Over past decades, parts of Tasmania have been experiencing drought, so the state government, farmers and private investors have created unique irrigation schemes across the state, which has helped to keep Tasmania as one of the key economic drivers in agriculture for Australia.

The Tasmanian Irrigation projects have bought dairy, cropping and production horticulture back into regions where climate change saw the land used for not much more than sheep production. Now with nearly 20 irrigation projects either completed, being constructed or under planning, the future of Tasmanian agriculture around production and investment is extremely positive.

With this continued expansion, more orchards are being planted with an eye on expanding market access to China with apples and cherries. More apple trees have been planted in the last 3 years than the last 5 decades. Phil Pyke, from Fruit Growers Tasmania, present at this years Asia Fruit Logistica in Hong Kong, shared that; "Upon assessment, it is expected that another 100,000 cherry trees are going in over 2015/16. Currently there is a 2 year wait for cherry rootstock, but the expansions are well underway.

Tasmanian apples
"The biggest apple export market is China. Last year we sent one air freight container and this year that has grown to 20 containers. It might not sound like a lot, in comparison to the US exports, but when you look at the scale in Tasmania where everyone is planting flat out for exports, it really is a big thing."

The two varieties finding popularity in China are the Tiger Fuji and the Rubigold. Both apples are only produced on one farm in Tasmania for all exports. The Rubigold is a hybrid of a Griggs jongagold which had been grafted over time and is now internationally recognised as its own breed.

"The Chinese market in particular want something different, so the Tiger Fuji and the Rubigold are premium market apples. The Pink Ladies, Royal Gala also fit into this market." Phil Pyke confirmed

Chinese economy, counterfeiting in China
Pyke said that he has not noticed any issues at the moment with the Chinese economy. He said that even at Asia Fruit Logisitica, it seems to be business as usual.

The biggest issue that growers and exporters are facing with China, and also Vietnam, is the issue of counterfeiting. "Along with directly affecting our premium Tasmanian brand, it is ripping off the Chinese consumers. The Chinese consumer pays for a premium product and deserves that product. The reality is that the Chinese consumer should be fairly insistent on knowing where their produce comes from. If it is not a quality experience in that box, they should contact the grower because if it is a counterfeit product, we will find out very quickly and we will take action. Consumer pressure is going to be a lot more effective with solving the issue."

Cherries
Cherries remain the largest export to China. Approximately 44% of the Australian cherry market is exported from Tasmania. However, it is still small volumes. Production in the state reached 6,000 tonnes this year, rain damaged around 2,000 tonnes, and out of the remaining 4,000, some of this was also allocated for the domestic market.

"We look forward to export growth which will also see Tasmanian apples moved into Taiwan for the first time under current protocols. Fruit Growers Tasmania joins Australia Fresh this year, we know the strength of our Tasmanian brand and that could also help consolidate the Australian brand."