Tasmanian Pink Lady apples head to China

Pink Lady apples are a highly popular variety amongst consumers in Australia, but one grower is about to find out whether Chinese tastes will appreciate the tart, juicy and acidic flavor they are known for. Tasmanian grower, and licensed exporter of Pink Lady branded apples, Hansen Orchards, is expected to send four lots of 60 cartons via airfreight to China this week. The first two cartons will go to two direct retailers and the remaining two will go to e-commerce companies. The hope is that the first cartons are liked well enough to encourage the Chinese to make annual orders for sea container shipments. The current economic climate favours the exporter, while the Australian dollar remains low and the domestic crops are large. 

 

The initial shipments will be to allow the Chinese consumers to test the unfamiliar (to them) variety and Hansen Orchards will be supported by the Pink Lady global marketing campaign when introducing the apple there.  “We’re introducing something that’s quite a new eating experience, but we think they’re becoming more open to trying something different in China. There’s a global marketing campaign behind it.” Says Baden Ribbon, Marketing Manager for Hansen Orchards. “They’ve got Chinese marketing materials that can help in stores.”

 

The apples are destined for the premium market, and Mr Ribbon says that Hansen does have a price in mind that would be 'sustainable' long term. He also says that exports in general for apples are not very competitive because of comparatively high labour costs and freight costs. Getting the right balance, and sea freight container orders is a definite possibility though, according to him. The supermarkets are not willing to take the risk of ordering 40 foot shipping containers at this point, so an airfreight trial was decided. “It’s been a bit of a chicken and egg scenario,” he notes. “It is not viable to send these shipments by air long term, but we’ve got to start somewhere”.

 

There is also an existing relationship between Hansen Orchards and the Chinese buyers, who know the quality of the Hansen Orchard Tasmanian cherries that they also export. That has given the Chinese buyers enough encouragement to trial Pink Lady apples.