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Australian Cherry
Export By Michael Rouget
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My export experience
• Cherries via airfreight.
• White peaches and nectarines by sea and air into
Taiwan.
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Air freight Cherries
• Markets supplied - Singapore, Hong Kong,
Vietnam, Russia and previously Thailand.
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Our market window
• As early as possible, as soon as we have varieties that are firm enough. November and early December.
• As we near christmas Chilean air freight costs rise gradually from $3 to $ 7/kg.
• Chilean sea freight arrives post Christmas. We can sell for a premium over sea freight with a better product.
• Post Christmas before Tassie start, up until 10th of January. This is the best period, we are head to head with Chilean sea freight.
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Products
• 2kg – 30-32mm & 32-34mm
• 5kg – 26-28mm & 28-30mm
• Majority is shipped in an AVE which holds 260 x
5kg or 600 x 2kg.
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Why air freight?
• Cherries are highly perishable and high value. Time and distance are your enemy.
• Australia has cheap air freight rates of $1.50/kg,
• Minimal loss of quality in 1 day voyage compared to 15 days. It suits the premium market that we are focused on.
• Cost is not as critical as in the commodity game.
• Air is lower risk due to faster feedback and less fruit in transit when the market hits a brick wall.
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Brand
• We have a specific brand for
export.
• One importer for that brand in
a country.
• Helps to achieve the right $$$
and allows the importer to
assess demand.
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What I've learnt • Fruit has to be firm. No 1 Criteria.
• Uniform color.
• Defects = trouble. If you are not 95% happy with quality or unsure about the market, Stop sending until you have feedback on the out turn and confirmation on price.
• Don’t try and export 70% of your crop, you need a good marketing spread to deal with varying quality. Keep inferior fruit close by.
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Future Opportunities
• Plenty of growth in all these export markets for
large and small producers.
• Small – Medium sized packer could focus on
niche high quality product.
• China, What can you say, massive market, they
love cherries!
• “Cherries have nearly become the national fruit. It
has surprised us.”- Frank from Coffco.
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Nectarines to Taiwan
• Successful 10 year period
through the 90's
producing and selling
white nectarines to
Taiwan by sea freight.
Also peaches by air.
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A long term plan
• Importer brought the varieties to Australia.
• Co-ordinated planting.
• One Brand.
• Large volumes. Individually and collectively.
• Growing standards, including harvesting with minimum brix,
• Packing specs. % of major defects allowable etc.
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Why it worked
• A quality product.
• A good partner.
• Planned sale program.
• Organized.
• Consistent product.
• 100% of first grade fruit exported.
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What impact did that period
have on our business?
• Yellow nectarines were selling for $1.80 per kg.
• White nectarines 1st grade $3.00 per kg.
• White nectarine 2nd grade $ 2.00 per kg.
• We were getting about a 90% pack out.
• Efficiency gains through growing volume.
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Benefits to us?
• Increased profits.
• Market driven expansion of our business.
• Volume efficiency.
• We learnt a lot about internal fruit quality through
trying to send fruit via sea for 3 weeks.
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The export future for
Australian Cherries
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Opportunities
• Open new markets and reopen some past ones.
• China, Taiwan, Thailand, Sth Korea, and Japan.
• If we could just get access to two of these it would
change our industry.
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Impediments
• No access or protocols that are not viable.
• Communication between Australian government
and Industry has been poor.
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Frustration
• No new market access.
• Lost Thailand.
• Lost Russia
• Agreed to new protocols( China & Taiwan) that
don't facilitate any trade for the majority of
industry.
• Have never seen a fruit fly grub in a cherry, ever!
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Risks
• If we lose another market or don’t open new
ones, with increased production coming we could
have a price drop similar to 2 years ago where it
is not profitable to produce cherries.
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Why have we failed to
open new markets?
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Whats wrong?
• We haven't had an agreed industry plan on bio
security for the cherry industry.
• No documented system that we produce cherries
under.
• Inadequate 3rd party verified trapping records.
• Don’t have all the science required to back up our
claims.
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Steps in the right direction • Setting up the CEWG.
• Writing the BMP.
• Produced export guidelines.
• Updated IPM Calendar.
• Engaging with State and federal government. Seeking their feedback.
• Trade Missions helping to build relationships.
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The BMP ( Bio security
Management Program)
• Is a plan for all production regions and situations.
• Starts with assessing the risk a pest presents.
• Implements a suitable system to control pests of
concern or a suitable end point treatment.
• Considers cherries are a non preferred host.
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Our Strengths
• Close to market.
• Fresh product, can deliver to market in just 3
days!
• Cheap air freight.
• Safe, clean green image.
• Trusted producer.
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Competitor Strengths
• Chile- Low cost producer, stable production
climate, volume has created a market.
• New Zealand- very firm cherries. Regarded as
best quality when in the market.
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Competitor weaknesses
• Chile- Distance and time. Resulting in poor
flavour and inconsistent quality.
• New Zealand- currently small volume. Unstable
production climate = inconsistent supply.
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Our weaknesses
• Non workable protocols.
• A perception from importing countries and our
government that Queensland fruit fly is a serious
pest of cherries.
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Demand We are best placed
in the world to supply
premium quality
cherries to the
biggest market in the
world, China.
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So what needs to be
done?
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Develop an export
culture
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What does that mean?
• Focus on growing more of what the export market
demands. Firm, large cherries.
• Shift from being a domestic market focussed industry
to growing more fruit for export .
• Do it in a way that gives importing markets confidence
in our system to control pests of concern.
• The Australian cherry industry standard becomes
"world class".
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Strategy going forward • Agreed industry position, The BMP. Still needs refining.
• Build relationships with importing countries. Host visits
and demonstrate the levels we go to, to ensure pest
free cherries.
• Registered farms. Pest Free Places of Production.
• Operating an internationally accepted QA program.
Maybe it has to be Global Gap?
• 3rd party verified trapping regime.
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In Summary • It has to be air freight access. This is good
business, flights every day, competitively priced.
Suits smaller volume. Low risk.
• Tell the world that our system works to control
pests of concern.
• Keep a positive attitude and don’t take ‘no’ for an
answer and don’t except that it will take 5 years to
gain access.