Australia: Grape season back on track next week
"There is a shortage of fruit at the moment," explained Jeff Scott, CEO of the Australian Table Grape Association. "But it will come back on board next week and we will be back to normal. I expect to see some good mature fruit on the market."
There has been an increase in demand for Australian grapes in the last few years and domestically prices have been good compared to previous seasons. In addition demand is extremely high on the export markets, particularly from Asian countries.
"There are more and more new importers requesting Australian grapes, our existing importers are getting what they need, but some of the new ones are really struggling for supply," according to Jeff.
Traditionally China is the biggest export market for Australian grapes, but Japan is growing very quickly. Australia only achieved access in the last two years but already it the 5th biggest market and increasing all the time. At the moment Australia can only export three varieties to Japan, Thompson, Crimson and Red Globe.
"We're hoping to gain access for all varieties into Japan and we have been talking to the Australian Government in the hope that they can reach an agreement with the Japanese Government for additional varieties. There will be talks in early March. Given the fact that we have been exporting to Japan for 2 years and there is huge demand and importers want more varieties, we hope they will take that into consideration. Menindee Seedless, Ralli seedless and Midnight Beauty are some of the varieties which we would like to get into Japan."
Other markets which have also been increasing are Thailand, Singapore, the Philippines, Indonesia and Malaysia.
Vietnam suspended all fruit exports from Australia for a year, but they got access back last year and have almost regained market share.
"There is a marked increase in production in Australia and this extra demand from the Asian countries is certainly taking up the extra production.
"We are fairly stable with Thompsons in Australia but our Crimson production is expanding," said Jeff. "But there are a lot of new proprietary varieties going in and some of these are having great success abroad and the trend is certainly towards seedless. Witches Fingers is one of varieties planted in small numbers which do very well in premium markets."
There has been a 10-20% increase in production year on year for the last 5 years, primarily for the export varieties.
The Australian grape industry are hoping to have improved protocol conditions into the US which would allow export to the US market.
"The access is more based on psytosanitary issues rather than trade agreements such as the TPP, it will not make a big a difference as we are counter-seasonal to the US production," said Jeff. "In the US, Australia can't compete with Peru and Chile on price but we are well known for the high quality of our fruit and target the niche markets."
Jeff Scott
Australian Table Grape Association Inc.
Tel: +61 35021 5718
Email: [email protected]