Australia Post: Canberra Fresh Deciduous Fruit Report 2009 USDA FAS

Australia Post: Canberra Fresh Deciduous Fruit Report 2009 USDA FAS


Report Highlights: Domestic and export market conditions for apples and pears have been described as difficult with a historically high Australian dollar reducing the competitiveness (and returns) of exports. Production of apples for CY 2010 is forecast to decline to 275,000 MT. Production of pears for CY 2010 is forecast at 105,000 MT, down significantly on the revised estimate of 125,000 MT for the previous year.


General At the time of writing this report, Australia continues to suffer drought conditions despite receiving rainfall in the second half of CY 2009. Irrigation water supplies continue to remain at historically low levels and this, along with difficult market conditions, has continued to place downward pressure on area planted to deciduous tree fruit and tree numbers. Market conditions have been described by industry sources as “difficult”, with competition from other fruits placing downward pressure on prices. Stone fruit has been described as particularly competitive this year. Export conditions have also been described as difficult with an historically high Australian dollar reducing the competitiveness (and returns) of apples and pears for export. The Australian Bureau of Statistics (ABS) publication “Agricultural Survey, Apples and Pears” which previously served as post’s principle guide, has been discontinued due to a lack of funding. As a result, post is now unable to adjust back year data in line with an official Government of Australia (GOA) data series. Post will continue to review ABS data changes in the future. Post has relied on Industry sources to estimate production across the S&D series.


Biosecurity Australia Australian quarantine regulation effectively prevents the importation of apples despite efforts by countries such as New Zealand to open the Australian market to imported apples. On October 29, 2009, Biosecurity Australia a released a draft Import Risk Analysis report for fresh apple fruit from the northwest states of the United States.


The draft report proposes that the importation of apple fruit be permitted, subject to quarantine measures for pests and diseases of quarantine concern. The draft report was put out for public consultation for a period of 60 days and concluded on December 21, 2009. Respondents to this consultation have included Australian State Government Departments as well as Australian Industry groups. The United States Department of Agriculture (Animal Plant Health Inspection Service Agency) is also listed as a respondent. Biosecurity Australia is expected to review the comments received before revising the Draft IRA. For more information see Biosecurity Australia’s website www.biosecurityaustralia.gov.au Pears Production Production of pears for CY 2010 is forecast at 105,000 MT, down significantly on the revised estimate of 125,000 MT for the previous year. If achieved, this level of production would represent the lowest level in over a decade. Poor pollination in the second half of CY 2009 accounts for a large part of the decline. However, the industry also remains under longer-term downward pressure from steadily falling tree numbers. Poor climatic conditions, a lack of irrigation water and poor prices have seen production contract steadily since 2000/01. Source: ABARE/DAFF