An exceptional yield, with pack outs of up to 70% top grade quality, compared to an average of 40-50%, has meant that the domestic market for citrus grown in the NSW Riverina area was spoilt for choice during the first six weeks of the season. “The start of the season usually sees a lot of activity in the domestic market,” says Vito Mancini, a grower and Secretary of the Griffith and District Citrus Growers Association. “Due to the abundance of high quality fruit, the local markets kicked off with high volumes placing pressure on pricing. At the farm gate returns are averaging $220-$300 to growers this year."
Growers who registered back in January to export to Korea, China
and Thailand have fared well, however, with the quality produce delivering good returns to growers. “I have had growers report that the prices have been high due to the high quality. Not everyone is making big money in China because there are a lot of sharks out there, but Australian citrus is definitely attracting a premium of up to $6 or $8 per carton,” says Mr Mancini. The start of the export season a week ago should see returns to growers lift, according to him.
and Thailand have fared well, however, with the quality produce delivering good returns to growers. “I have had growers report that the prices have been high due to the high quality. Not everyone is making big money in China because there are a lot of sharks out there, but Australian citrus is definitely attracting a premium of up to $6 or $8 per carton,” says Mr Mancini. The start of the export season a week ago should see returns to growers lift, according to him.For those who can access the right markets, it makes sense to continue to export to Asia as well as to join the push to send Australian product to the US, Mr Mancini says. “There’s a benefit in terms of shipping and logistics. Our close proximity and nett importer status means that freight rates and freshness are at a huge advantage from our Southern Hemisphere competitors." Registrations by growers to send to Korea, China and Thailand this year are up by around 15%, according to him.
With the suite of new FTA's now gaining effect, I also see greater opportunities in Asia by helping us close the gap between pricing and improving profitability in some of the more sensitive markets.
Growers need to carefully consider the estimated $200-$300 per hectare involved in registration costs, versus nothing to send to Japan or the US when deciding how they will export each year. They also have to comply with relevant treatment standards and orchard hygiene practices, and both have to be factored into export planning, according to Mr Mancini.
For more information
Vito Mancini
Red Belly Citrus/Griffith and District Citrus Growers Association
Phone: +61412690481
E-mail: secretary@gdcga.com.au