The Trans-Pacific Partnership (TPP) and low Australian dollar is providing a good opportunity for table grape growers this season, according to one of Victoria's leading producers Budou Farms.
"The TPP was ratified a few months ago, and will drop the tariffs across some fruit and other commodities being exported," Owner Enrique Rossi said. "With the low Australian dollar, it makes it more competitive with our rivals. It leaves us that gap to fill in. This is a very good opportunity this year with the low value of the Australian dollar and TPP, so we can position ourselves better."
Production wise, Budou Farms, in Merbein in the state’s north, is behind harvest time slightly between a week to 10 days, but it is looking to be a slightly above average year in terms of volumes, despite some issues with the weather.
"We have had a few heatwaves and the next few days are meant to be very intense," Mr Rossi said. "From tomorrow we have two days of 45 degrees, which is not good. We are a little down on rainfall throughout the year. In winter, during one month we only got 4 millimetres of rain, which is very worrying. But in a positive we use less chemicals, which is a saving and is good for the consumer as well."
The company produces Crimson Seedless and despite the weather issues, Mr Rossi says quality is still very good.
"We have got really good-sized jumbo grapes," he said. "We have from 20-22 millimetres, and while we have other sizes, we focus on jumbo sized Crimson Seedless. Elsewhere in the region, seeing from neighbours, they also have good sizes on average."
For Budou Farms, 99 per cent of exports go to Japan, and niche markets within the country, for example high-end department stores, hotels and restaurants - but the company is looking for diversification. There have been small volumes supplied to Hong Kong, and there has been interest from Vietnam and Thailand.
Mr Rossi admits domestic volumes a little bit light in the northern regions this season, but helping to have acceptable prices, the Sunraysia region kept overall returns pretty stable for Australian growers.
"Any consumption domestically is very good, now we are just waiting on the export varieties," he said. "I have seen a few market reports and it is looking pretty good; the Chinese market is already chasing fruit before Chinese New Year, but unfortunately we are a little bit late so it will be very small volumes, but after that it will be pretty normal. Japan is asking for fruit, Vietnam is asking for fruit, and many other markets are waiting - as soon as the sugar rises and colour finishes, everything will be on the run."
He adds that the popularity of Australian table grapes with Asian customers is largely due to freshness.
"Our main competitors are Chile, Peru and South Africa - and we are closer to the Asian markets," Mr Rossi said. "We can get fruit from harvest to the table of the consumer within 21-23 days, if we get the cold chain and everything right. That gives a crispness, and texture. We have to take the good out of the heatwaves - and this extreme weather we have got in Australia, makes the fruit have exceptional flavour. So, we have got the balance between sweetness and acid, plus the freshness due to the short voyage. The consumer knows that we have this difference on flavour, and they are prepared to pay extra and ask for Australian produce."
For more information
Junko Matsuzaki and Enrique Rossi
Budou Farms
budoufarms@gmail.com
www.facebook.com/budoufarms