CHINESE consumers are closer to wiping more Australian nectarine juice from their chins after the introduction of new import protocols by both countries.
But a substantial amount of work needs to be done before that scenario materialises.
From January 1, 2017, Australian nectarines will face a reduced tariff of 4 per cent in China, down from 10pc, courtesy of the implementation of the China–Australia Free Trade Agreement (ChAFTA).
Further tariff reductions will follow in 2018, with all tariffs on Australian nectarines to be eliminated from January 1, 2019.
The agreed protocols came into effect on Friday, May 20.
Australia currently exports citrus, table grapes, mangoes and cherries to China.
Orchards, packing sheds and export facilities including cold treatment and fumigation facilities will be audited and approved by the Department of Agriculture and Water Resources for nectarines to be exported to China.
As part of the compliance growers will have to monitor their orchards for 12 quarantine pests listed in the protocol by a person approved by the department.
Key to the agreement is China's recognition of the Riverland region in South Australia as fruit fly free, meaning growers in the area are able to export nectarines without the pest management requirements that exist for other commodities.
Until now, Tasmania was the only state in Australia that experienced this fruit fly free status from China.
It is really exciting that Australia’s nectarine growers will now be able to export their product to the second largest economy in the world.
- John Lloyd, CEO, Horticulture Innovation Australia
To secure market access to China, nectarines being exported outside of Tasmania and the Riverland must adhere to stringent fruit fly treatments.
For example, nectarines from Western Australia will need to undergo cold treatment at 2.1°C degrees for 21 days or a combination with methyl bromide.
Nectarines from eastern states can be shipped using cold treatment at 3°C for 18 days or a combination with methyl bromide.
Horticulture Innovation Australia chief executive John Lloyd said the protocol shows never-before-seen levels of confidence from China.
“Now this precedent has been set in the Riverland region, there is a potential for China to be more receptive to importing other produce from the area without treatment, such as apples, citrus, cherries and table grapes,” he said.
“It is really exciting that Australia’s nectarine growers will now be able to export their product to the second largest economy in the world.
"Chinese consumers will now get to enjoy more Australian produce.”
Department of Agriculture and Water Resources first assistant secretary Louise Van Meurs, said the new agreements reflected collaboration between the department, the summerfruit industry and government officials in nectarine-producing states such as Victoria and South Australia.
“Today’s announcement is an excellent example of what can be achieved when governments and industry work together to secure access to priority markets,” Ms Van Meurs said.
“China is now Australia’s largest agricultural export market, with total exports in 2015 worth approximately $10.9 billion.
“Access to this market will deliver very practical and commercially viable export opportunities to Australian nectarine producers.”
The Australian stonefruit industry welcomed the joint signing of the protocol, saying it had taken 13 years to achieve.
A meeting in April last year between growers and the Department of Agriculture and Water Resources' Plant Biosecurity cast doubt on whether the agreement would ever be signed.
This drove the formation of the Summer Fruit Export Alliance (SEDA) which growers funded voluntarily.
It represents 80pc of fresh market stonefruit production and 90pc of the exported stonefruit volume.
SEDA is a sub-committee of the peak industry body Summerfruit Australia Ltd (SAL).
SEDA chairman Ian McAlister said the body had formed a strong transparent relationship with the department’s Plant Biosecurity Division.
Mr McAlister said increased federal government funding to progress market access had helped.
“This extra funding along with the commitment of department staff to engage with us in frank discussion about what we had to do on our side to achieve market access is why we have access for nectarine exports to China,” he said.
Mr McAlister reiterated how appreciative the industry was of the department who, he said, had been maligned in the past by many industries, including the stonefruit industry.
Western Australian stonefruit organisation, the Hills Orchard Improvement Group (HOIG) applauded the protocol's signing.
HOIG spokesperson and SAL director for Western Australia Brett DelSimone, said Australian nectarine producers, and particularly those in WA, were absolutely delighted at "the incredible breakthrough".
“Exports to the Chinese market will provide incredible stimulation to the Australian stonefruit industry for decades to come and will promote growth and expansion which is critical to a strong industry and national economy,” Mr DelSimone said.
Nectarine growers who have received extremely low prices the last two seasons are likely to see vastly improved prices in the coming season.
- Ian McAlister, chair, Summer Fruit Export Alliance
Summerfruit Australia chair and Stanthorpe grower Andrew Findlay paid tribute to the work of SAL CEO John Moore and Mr McAlister.
"By engaging with the Chinese market and industry investment of considerable grower research and development levies into projects to develop disinfestation treatments that would make sure the protocol would ensure commercial trade,” Mr Findlay said.
Mr Moore said the investment in disinfestation treatments led to the protocol which is the first the Chinese have agreed to a 3°C treatment for Queensland Fruit Fly and Lesser Queensland Fruit Fly of any Australian horticultural product.
"This is critical for sea freight shipments as they can be rejected when temperatures can spike above 2.1°C when the sea container defrosts when the ship is near the warmer climate around the equator," he said.
China has also agreed to a new low dose methyl bromide fumigation treatment for Queensland Fruit Fly, which was developed by using grower levies.
The new treatment will reduce the risk of fruit being damaged by the fumigation treatment.
Mr McAlister said more open export markets were always welcomed.
"Nectarine growers who have received extremely low prices the last two seasons are likely to see vastly improved prices in the coming season,” he said.
“It is very important for growers, packers and exporters to realise a protocol to export fruit to another country is a privilege and not a right, a privilege that can be removed at any time by the importing country.”
Ashley Walmsley
Ashley Walmsley is the editor of ACM's only national, fresh produce magazine, Good Fruit & Vegetables, while also covering horticulture stories for the agricultural papers and websites. He also writes the weekly, The Ringer, column in the Qld Country Life.
Ashley Walmsley is the editor of ACM's only national, fresh produce magazine, Good Fruit & Vegetables, while also covering horticulture stories for the agricultural papers and websites. He also writes the weekly, The Ringer, column in the Qld Country Life.
