WHILE new reports suggest Australia's free trade agreements (FTAs) with Asian nations are paying dividends for horticulture, one representative group says a bigger picture view is needed.
Recently released IBISWorld research shows FTAs secured with China, Japan and South Korea in 2014 and 2015 are benefiting Australian producers.
The business information organisation's market research reports, "Outdoor Vegetable Growing in Australia", and "Citrus, Banana and Other Fruit Growing in Australia", show fresh fruit and vegetable exports have increased markedly since the agreements came into effect.
The fruit report shows revenue from exports growing at an annualised 19.9 per cent over the five years through 2016-17, while that from outdoor vegetable exports is reported at increasing at 8.9pc over the same period.
According to IBISWorld, exports in the citrus, banana and other fruit growing industry will generate $689.6 million in the current financial year.
Exports of outdoor vegetables will generate $303.7 million in 2016-17, based on the same research.
IBISWorld senior industry analyst, Sam Johnson, said although many tariffs will remain for some years yet, Australian farmers have been busy forging supply links with wholesalers and retailers across China, Japan and South Korea.
“Australian fruit and vegetable exports to Asia, particularly to countries that have FTAs with Australia, will continue to enjoy healthy growth over the next five years and well into the future as Australia positions itself as a major food supplier for increasingly wealthy Asian consumers,” Mr Johnson said.
“Australian almonds have performed particularly well, outpacing robust export growth across the overall industry.
"While FTAs have contributed to this success, almond growers have enjoyed larger harvests due to significant planting in 2006 and 2007.
"Water shortages that adversely affected Californian growers, the world’s largest supplier of almonds, also pushed global prices upwards over 2015 and 2016.
“Asparagus exports to South Korea have driven some growth over the last five years, rising in value by 123pc between 2014 and 2015.
"Other vegetables that have been successful in China, Japan and South Korea under the FTAs include lettuces, broccoli and broccolini, beans, spinach, cabbage, cauliflower, celery and peas."
We've got to understand the complexities of the issues. The reality is there is a suite of factors all at play.
- Dominic Jenkin, Australian Horticultural Exporters' Association
The total value of Australian vegetable exports to China alone increased from $570,000 in 2014-15 to $17.2 million in the following year.
But Australian Horticultural Exporters’ Association (AHEA) chief executive officer, Dominic Jenkin, says broad figures look good but below-the-surface details need to be considered.
"A reduction in tariffs is always sought after and appreciated but it's by no means where they finish for horticulture," he said.
"We've got to understand the complexities of the issues. The reality is there is a suite of factors all at play.
"I don't think it is perhaps the full picture."
He said FTAs may be contributing to improved access but technical barriers such as phytosanitary requirements present ongoing headaches and delays to greater growth.
Other non-tariff barriers such as political trade restrictions also loom as potential threats to carefully fostered international business channels and relationships.
While compiled figures make it look like an instant jackpot, Mr Jenkin said the horticulture export success stories have not been overnight breakthroughs.
He said negotiations can take between three and 10 years, a result of the slow process that comes from two national government agencies communicating with each other.
"It's up to industry to understand the reality of market access," he said.
He said there was a risk of commodity groups overselling the success of exports, which may present a false hope to growers still dealing with oversupplied domestic markets.
The IBISWorld reports point out an example of a technical barrier hindering at least one of the
darlings of the horticulture sector: avocados.
Mr Johnson said despite tariffs on Australian avocados entering China being set to fall from 25pc to 0pc from January 2019 onward, Australian avocado growers have yet to secure access to Chinese markets.
"A lack of quarantine market access protocol means that growers will have to prove that quarantine risks are manageable and import processes can be safely implemented," he said.
"Meanwhile, Mexican and Chilean avocados have already secured access to China, which could limit the growth potential for domestic growers once exports to China commence."
Federal trade minister, Steven Ciobo, released figures earlier this month stating the two-year-old Japan-Australia Economic Partnership Agreement (JAEPA) has seen fresh table grapes grow from barely $600,000 in the period January to September 2014, to more than $30 million in 2016.
Similarly, the value of Australian shelled macadamia exports to Japan nearly doubled in that same period.
He also talked up the Korea-Australia Free Trade Agreement (KAFTA), with Australian products such as macadamia nuts, Brussels sprouts and cane molasses all now attracting Korean tariffs at least 50pc lower than when the agreement came into force just over two years ago.
"Many products such as bottled wine, fresh cherries, chipping potatoes and liquefied natural gas are already entering Korea tariff free," Mr Ciobo said.
Mr Ciobo said the China-Australia Free Trade Agreement (ChAFTA) has seen the value of Australian exports to China at least double for some products, such as fresh cherries, in the first three quarters of 2016, as tariffs were cut.
"Over the same period, export values of fresh table grapes jumped six-fold to $102 million, exports of medicaments for therapeutic use grew more than 90pc to $523 million; milk powder exports grew almost 80pc to $127 million; bottled wine exports grew more than 40pc to $309 million; fresh navel orange exports grew 55pc to $51 million; and fresh cheese exports grew 28pc to $33 million," he said.
AHEA's Mr Jenkin said he didn't think US president Donald Trump's scuttling of the Trans Pacific Partnership (TPP) would have any immediate effects on Australian horticulture exporters, although if it is a signal of the deterioration of talks in the trade space, then it's impacts on other trade could be felt down the line.