Australian citrus exports:

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Alan French
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1 Australian citrus exports: Past, present and future David Daniels Market Access Manager, Citrus Australia

Industry snapshot 1 500 growers on 25 000 hectares Produce close to 700-750 000 tonnes pa.

2 Industry snapshot growers on hectares Produce close to tonnes pa. 28% of businesses = 79% of area 1/3 juice, 1/3 domestic fresh, 1/3 export Exports to over 50 destinations Export volume (2017) tonnes Export value (2017) $A462 million

3 Why Australian citrus? Australian citrus Attracts high premium O/S Renowned for excellent colour Renowned for sweetness Clean, green image Reputation for safety

oranges Niche export opportunities Removal of

4 The past 1970s 1980s Focus on domestic market Focus on domestic juice market Large plantings of Valencia oranges Niche export opportunities Removal of tariffs Entry of imported juice Declining returns for juice

5 The past 1990s exports Access to USA for South Australia (1992) Formation of Riversun Export Pty Ltd Increase in navel plantings Access for NSW and Vic. (1996) Access to Japan Heavy focus on USA market through Riversun

6 The rise and fall of the USA market 1990s early 2000s Riversun - 24 exporting shareholders Coordinated shipping Strict quality control (officers in regions) Efficiency full reefer vessels Consistency of quality Reliability Assisted promotions at other end Maximise returns

7 The rise and fall of the USA market The first signs of success!! No southern hemisphere competition Favourable exchange rates Single exporter Single importer Competitive rates for freight Fruit Fly Pest Free Areas recognised

8 X 1000 tonnes The rise and fall of the USA market 40 Australian citrus exports to USA (x1000 tonnes)

9 X 1000 tonnes The rise and fall of the USA market Australian citrus exports to USA (x1000 tonnes)

10 X 1000 tonnes The rise and fall of the USA market Australian citrus exports to USA (x1000 tonnes) South Africa (1997) Chile (2009)

11 x 1000 tonnes The rise and fall of the USA market 70 Chilean orange exports to USA (x 1000 tonnes)

12 x 1000 tonnes The rise of Japan Citrus exports to Japan from Chile and Australia (x 1000 tonnes) Aust Chile

13 x 1000 tonnes The rise and fall of the USA market Chilean orange exports to USA and Japan (x 1000 tonnes) Japan USA

14 The rise and fall of the USA market 2011 facing reality Success in USA is fading Chile very competitive $A at parity with $US (or worse) Still recovering from drought Heavy on crop of small fruit Poor returns for juice Large plantings of navels (for USA) but Showing some positive signs in Asia

15 The present a focus on Asia A focus on Asia Healthy GDP growth Rapidly expanding middle class Populations moving into the cities Don t trust their own food supplies Imported food seen as luxury item

The present 2017 Citrus exports 273 000 tonnes (+20%) Value A$462 million (+32%)

16 The present 2017 Citrus exports tonnes (+20%) Value A$462 million (+32%) China tonnes (+78%) Japan tonnes (+14%) Hong Kong tonnes (+5%)

17 Snapshot Oranges tonnes (+18%) $A298 million Mandarins tonnes (+23%) $A144 million tonnes $A10-12 million Lemons Limes Grapefruit

18 Tonnes 91% 2017 citrus exports

19 Tonnes 2017 citrus exports % % + 5% + 11% - 11% + 9% +13% -28% +23% +23% -14% -35% +19% +340% 0

20 Tonnes 2017 orange exports % + 11% % % -7% -29% +3% +446% -18% -14% -4% 150%

21 Tonnes The present Australian citrus exports to China 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,

22 Not an overnight success China Access since 2006 Little trade until 2013 Difficult quarantine conditions Challenging market conditions Critical support needed

23 Not an overnight success Critical support: instructional material Pest and disease monitoring Cultural practices Pest control measure Packing-house procedures

24 China - not an overnight success Critical support Online training for crop monitors

25 Not an overnight success Critical support Online export registration system 550 growers 80 packing houses hectares

26 Not an overnight success Critical support: market intelligence Crop estimates committees, fruit density and frame counts Crop forecasting Weekly shipping volumes Relationships with southern hemisphere competitors Online tree census

27 Metric tonnes Mandarin forecast Mandarin Production Forecast (Afourer & Murcott) Afourer Murcott 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, , , ,

28 Metric tonnes Navel Orange: Early Varieties 80,000 Early Navel Production Forecast 70,000 60,000 50,000 40,000 30,000 20,000 57,512 57,691 59,998 10, Year

29 Metric tonnes Navel Orange: Mid Varieties 120,000 Mid Navel Production Forecast 100,000 80,000 60,000 40,000 96,866 79,613 69,168 20, Year

30 Metric tonnes Navel Orange: Late Varieties 140,000 Late Navel Production Forecast 120, ,000 80,000 60,000 40,000 20, , , ,

31 Not an overnight success Critical support: trade development Exporter groups Trade seminars In market activities

32 Not an overnight success Critical support: quality improvement Sensory evaluation Quality standards Maturity testing & prediction Pass to pick program Sweeter citrus program Ultra-low residue concept

33 Agrichemical residue monitoring and compliance Critical support: agrichemical management agrichemical access MRL advice

34 Not an overnight success Critical support: food safety

35 Disappointments South Korea Indonesia United States Japan Thailand

36 Risks Phytosanitary breaches MRL violations Food safety risks Political risks Currency fluctuations

37 Take home messages Quality, quality, quality Grow to market requirements Anyone can sell the scotch fillet Cooperation between businesses Success is difficult to predict Have a sense of humor

38 Thank You

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