At a time when many fresh produce categories are under pressure, one Australian apple grower is heading into the season with rare optimism, as Duxton Apples is set for what CEO Glenn Carningham describes as a standout year.
"We're in a pretty good spot," Carningham says. "We've got a good yield this year on both our sites; we're probably going to have a record harvest this season."
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Favourable conditions in South Australia have set the business apart from the broader national picture. "If you compare it to other orchards around the country, we're probably faring a bit better than other growers," he says. "Yields are definitely down this year elsewhere, but we've had really good growing conditions, good weather, so everything's really fallen into place."
That is translating directly into returns. With supply tighter across the country, prices have surged. "Pricing is probably at record levels at the moment, which is amazing," Carningham says. "If you go into a supermarket on a bad year, they might pay $28 to $32 a box, but now it's up over previous seasons.
For Duxton, that creates a rare opportunity. "We're in a good situation where we can maximise our bin returns and hopefully have a good season in supply and final bin returns."
However, Carningham is clear that such conditions are unlikely to last, which is driving a renewed focus on export. "This year is probably not the best year for exporting because prices are high in Australia," he says. "But in the years to come, it will play a major role in the business, because supply won't be short like this every year."
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To that end, the company has partnered with New Zealand exporter Kiwi Crunch/Consolidated Fruits, a move designed to build consistency in offshore markets. "They export about 90% of their fruit, and we're looking at exporting to India and China this year," Carningham says. "You've got to be in it to be part of it, you can't be on and off all the time; you've got to be consistent each year."
Early steps into export have already begun. "We sent a couple of containers to India last year — it went okay," he says. "There was a learning curve, but they're asking for more, so it worked. We just need to learn from a couple of mistakes."
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Alongside export, Duxton is also exploring new varieties, albeit cautiously. "We have planted Snap Dragon, and they'll be ready in probably about two years," Carningham says. "But it's a tough one. There are so many new red apples out there, you just don't know which one's going to work."
That uncertainty reflects the long lead times involved. "You plant 30,000 or 40,000 trees, and in three to five years you get a crop — if it doesn't work, you've lost a lot of time and money," he says.
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For now, the business remains anchored in proven lines. "Pink Lady is probably 60-70% of our crop," Carningham says. "If you look at the market, it's still the leader by far — consistent, stores well, and people keep coming back to it."
With the harvest now underway, the outlook is strong. "Pink Lady is going to hit the market this week, and we should see some good results.
For more information:
Glenn Carningham
Duxton Apples Pty Ltd
Tel: +61 427 288 358
[email protected]
www.duxtonapples.com.au
