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Slow demand keep outlook bearish

AU: Balanced citrus crop but high dollar

“The best crop I have seen in many years,” is how one Sunraysia citrus grower has described the upcoming 2012 orange crop. Estimates do not show volumes dropping off as much as could be expected based on past years’ experience.

Most encouragingly, sizes are much improved on last season, with all indications that fruit will be two counts larger than last year’s peak – or 5-6mm bigger.

The navel crop is expected to reach 205,000mt, down from 250,000mt last season. The tri-state region will produce 195,000mt of this total. The Valencia crop will be down to 175,000mt from 235,000mt, with around 165,000mt of this coming from the tri-state region.

The outlook is also positive for mandarin growers in all regions. The Queensland crop has better fruit size and much improved rind quality. Fruit numbers are less, but better size will result in a similar crop volume of Imperials and Murcotts to 2011 – the key difference being that larger, cleaner fruit will allow for more of the crop to be sold as Class 1 or Export grade fruit.

In southern regions, Afourer mandarins are carrying a moderate crop with better fruit size than last year. Tonnages of Afourer are trending upwards as young plantings mature, but volumes will not increase this season as dramatically as expected. This is due to weather events such as hail in key growing areas last season.

Overall, the national mandarin crop is expected to reach about 100,000mt or 10 percent less than last year.



Export Forum gets bigger and better

Over 100 citrus growers, packers, marketers, exporters, researchers and government representatives assembled for the 2012 Citrus Export Forum hosted by Citrus Australia on 7 and 8 March.

The program of the Forum was aimed at identifying all of those major challenges facing citrus exports, and their causes, and encouraging discussion of possible solutions. It began with a context-setting review of the 2011 season followed by an outlook for the 2012 season.

Kevin Bodnaruk of AKC Consulting presented on maximum residue level (MRL) developments in key Asian export markets, then Darryl Barbour, Acting Assistant Secretary of DAFF Plant Biosecurity updated the Forum audience on citrus market access issues.

Other key speakers included:
  • Citrus Australia’s Andrew Harty on research being conducted to improve citrus market access protocols.
  • Kylie Calhoun of DAFF, who gave an update on trials of export inspections by AQIS Authorised Officers (AAOs).
  • Richard Palmer, also from DAFF, with a review of progress on in-transit cold disinfestation treatments for exports to Japan.
  • Brian Moir, an economist from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), gave an update on DAFF’s review of citrus export efficiency powers.
  • David Hatfield from the ACCC spoke on regulatory issues around citrus exports. He explained the structure, benefits and limitations of Export Exemption Agreements.
  • Neil Barker, CEO of major exporter BGP International gave an overview of the potential and challenges of the China market.
  • Nathan Hancock and Andrew Harty of Citrus Australia reviewed opportunities for exports to Thailand and South Korea.

Pictured: Kevin Bodnaruk (AKC Consulting), Tony Filippi and Melissa Amos (Mildura Fruit Company) and Ian Reichstein (DAFF National Residue Survey) at the Export Forum 2012

Australia’s international competitiveness and the decline of its share of the lucrative U.S. market were hotly discussed topics. Perry Hill of Mildura Fruit Company, and Richie Roberts of Costa Exchange Ltd. led a panel discussion titled: Is the Australian citrus industry internationally competitive?

Judith Damiani, CEO of Citrus Australia, spoke on the status of the U.S. market, followed by a look at coordinated marketing opportunities.

At the end of the busy program, one of the Export Forum participants summed up the experience as: “The most useful industry event I have been to in some time, both in terms of networking and information.”

Boosting Australian Citrus Quality Standards in 2012
Market Information & Quality Manager Nathan Hancock has been working behind the scenes to bolster the Australian Citrus Quality Standards program, and the second report of the season has been distributed around the industry.

Although it was disappointing that there were several failures, it is also heartening that the affected growers are responding in a responsible fashion, and taking steps to prevent further deliveries of sour fruit.

It was also pleasing receive good feedback from agents in the Melbourne Market on the positive effect that the ACQS program is having. One agent said he had secured a sale at a higher price by showing the buyer that his fruit had met the standards, whereas his competitor’s cheaper fruit had failed.

Nathan has begun visiting each region to refresh growers and packers on the testing method. Queensland was first off the rank, with a well-attended meeting in Gayndah on 20 March. Other regions will be covered as the season approaches, but growers and packers are free to contact Nathan in the meanwhile for copies of the training DVD and manual.


Pictured: Nathan Hancock demonstrates quality testing to Central Burnett growers at Blue Cow packhouse.

Growers to benefit from industry restructure
Riverina growers voted 63 percent in favour of winding up Riverina Citrus in an official poll conducted in March 2012. An announcement from the NSW Minister of Agriculture is expected soon.

In South Australia, a lengthy review has resulted in an independent report recommending that the South Australian Citrus Board be wound up and a new single entity – closely aligned with Citrus Australia – be formed. The South Australian Agriculture Minister has appointed a Transition Working Group to develop the new single structure and report back by May 2012.

In the Murray Valley, growers will be polled in April regarding the re-making of the Murray Valley Citrus Board.

Citrus Australia was formed by growers over 3 years ago as the first stage of an industry restructure. Our vision is to transform the industry to a unified new, efficient structure that will ensure better value and returns to growers.

After building membership and effective programs, and putting ‘runs on the board’, Citrus Australia can now clearly advocate for the wind-up of out-dated state statutory boards. This can be done by:

  • Eliminating state citrus levies.
  • Increasing (by a lesser amount) the national R&D and marketing levies to ensure essential services are maintained – and remember R&D levies are matched by funding from the Australian Government.
  • Ensuring regional representation by forming regional advisory committees that can directly advise the Citrus Australia Board on regional priorities and issues.
April will see many changes occurring at state level and Citrus Australia is committed to working through the transition process in each region.

State boards file complaint on Citrus Australia with DAFF
You may have seen recent news reports based on a complaint being lodged with the Department of Agriculture, Fisheries and Forestry (DAFF) about the number of Citrus Australia board members sitting on the HAL Industry Advisory Committee (IAC).

We can confirm that HAL has advised us of this letter, but no details of the letter or author have been disclosed to us. Citrus Australia is cooperating fully with HAL and DAFF as they complete their review.

The letter of complaint, and the identity of its authors, was disappointingly revealed by a deliberate leak to the media.

Citrus Australia has nothing to hide and in fact welcomes this opportunity to address any doubts that may arise, and to continue to make improvements to the R&D decision-making process.

Some of these improvements have already been made and others are outlined in the new 5 year R&D plan which was presented to over 160 growers at regional forums throughout SA, VIC, NSW, Qld and WA last month. The new R&D plan is the result of the more than a year’s consultation.

In the meantime let’s work together to focus on the real issues affecting the industry. These, together with the industry organisational changes underway, will amount to significant benefit to the citrus grower.
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