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Taste Australia yields big results in foreign trade

In the 12 months since Hort Innovation launched its boldest foreign trade initiative to date, the industry has reported record export sales and greater demand for Australian grown produce.

Underpinned by more than $40 million in research and development projects, and backed by world-class science and technology, the Taste Australia initiative was developed in response to industry calls for a cohesive, national export project to drive foreign interest and demand for Australian horticultural products.

The initiative was launched at Asia Fruit Logistica (AFL) last year, which is the largest specialised fruit and vegetable trade event in Asia. The project proved so successful, it is now being rolled out in 10 countries across Asia and the Middle East.

Australian growers will once again showcase their premium products under the Taste Australia banner at AFL next week with a Hort Innovation delegation of more than 220 stakeholders, representing 80 Australian businesses across 528 square metres.

The extensive trade effort over the last 12 months saw the value of fresh horticultural exports reach a record $2.18 billion for the year ending June 2018, with over 40 per cent of this value being driven by the export of citrus fruits, table grapes and cherries.

Hort Innovation General Manager for Trade, Michael Rogers, said the export results not only demonstrated the value of Taste Australia activities, but also positioned the Australian horticultural industry well within foreign markets.

“Australia has a solid reputation for delivering high-end produce that has undergone the most rigorous inspections along all stages of the supply chain, and the Taste Australia brand builds on this,” he said.

“We have been exhibiting at Asia Fruit Logistica for more than 10 years. When Taste Australia launched last year, we found it increased our engagement with key stakeholders across Asia."

“Through the Taste Australia brand, we are strengthening our homegrown produce on a global stage, bringing high quality, high-end premium goods to international markets.”

The Taste Australia campaign is funded by Hort Innovation using industry research, development and marketing levies and funds from the Australian Government.

Key Export Statistics
In the year ending June 2018, more than 264,000 tonnes of fresh citrus was exported valued at more than $440 million. Citrus exports were dominated by oranges ($280 million) and mandarins ($140 million).

Export values across combined citrus (including grapefruit, lemons, limes, mandarins, oranges) increased 48 per cent in just two years from $297 Million in 2015/16.

The single most valuable horticulture product exported was table grapes, achieving exports valued at $384 million. The value of table grape exports has grown consecutively over the last seven years.

For more information;
Farah Abdurahman
Tel: +61 447 304 255
Email: Farah.Abdurahman@horticulture.com.au
Publication date: 9/3/2018


Source: http://www.freshplaza.com

Indonesia boost for Australian exporters

Indonesia-Australia Comprehensive Economic Partnership Agreement will mean reduced tariffs and greater opportunities

Australian farmers will have tariffs reduced and be able to export more agricultural products including citrus to Indonesia, after the coalition government signed the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

It gives producers and exporters the opportunity to grow their A$3.5bn share of the Indonesian market - indeed, Indonesia is Australi's fourth-largest agricultural export destination.

Minister for Agriculture and Water Resources David Littleproud said the coalition government continued to deliver farmers better access to more markets.

“This agreement improve access for industries which trade most to Indonesia, including our livestock, beef and sheepmeat, grains, sugar, dairy, citrus and horticulture,” he said.

“Oranges and limes will get increased duty-free access while dairy, mandarins, potatoes and carrots will get reduced tariffs," he confirmed.

The conclusion of substantive negotiation of IA-CEPA was signed in Indonesia by Australian prime minister Scott Morrison.

Key agricultural outcomes of the IA-CEPA include immediate tariff cuts on mandarins from 25 per cent to 10 per cent for 7,500 tonnes per year, down to 0 per cent after 20 years for an unlimited volume, and duty free access for 10,000 tonnes of oranges per year, increasing 5 per cent each year, as well as duty free access for 5,000 tonnes of lemons and limes per year, increasing 2.5 per cent each year.

The agreement also means immediate tariff cuts for potatoes from 25 per cent to 10 per cent for 10,000 tonnes per year; after five years tariff further reduced to 5 per cent for 12,500 tonnes per year, increasing by 2.5 per cent per year, and immediate tariff cuts for carrots from 25 per cent to 10 per cent (from 25 per cent) for 5,000 tonnes per year; down to 0 per cent after 15 years for an unlimited volume.

Minister for Agriculture and Water Resources MEDIA RELEASE

The Hon. David Littleproud MP

Friday, 31 August 2018

Indonesia trade boost for Australian farmers

• Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) signed this week
• Improves market access for Australian livestock, beef and sheepmeat, grains, sugar, dairy, citrus and horticulture
• Allows farmers to grow their $3.5 billion share of the Indonesian market

Australian farmers will have tariffs reduced and be able to export more livestock, beef and sheep meat, grains, sugar, dairy, citrus and horticulture produce to Indonesia after the Coalition Government today signed the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

Minister for Agriculture and Water Resources David Littleproud said the Coalition Government continued to deliver farmers better access to more markets.

“This agreement improve access for industries which trade most to Indonesia, including our livestock, beef and sheepmeat, grains, sugar, dairy, citrus and horticulture,” Minister Littleproud said.
“This agreement delivers duty free access for half a million tonnes of feed grains per year.
“Our wheat industry exported $1.3 billion worth of produce to Indonesia in 2016-17 and this will grow that further.
”The agreement will increase duty free access for live male cattle by 4 per cent a year to 700,000 head annually.
“Tariffs on most lines of beef and sheepmeat will be reduced from 5 to 0 per cent immediately, with all remaining tariffs to be removed after five years. This will help us build on the $261 million that these exports were worth to Australia in 2016-17.
“Our grain farmers will get guaranteed duty free access for 500,000 tonnes of wheat, barely and sorghum grains per year increasing at 5% per year to 775,664 tonnes.
“Tariffs on our sugar cane will drop from as high as 12 per cent to 5 per cent.
“Oranges and limes will get increased duty-free access while dairy, mandarins, potatoes and carrots will get reduced tariffs.”
Minister Littleproud thanked former trade Minister Steve Ciobo for his hard work on this agreement, and also thanked the trade division of the Australian Department of Agriculture.
The conclusion of substantive negotiation of IA-CEPA was signed today in Indonesia by Australian Prime Minister, Scott Morrison.

Background facts:
• Indonesia is our fourth most important agriculture market
* Agriculture makes up almost half of our total exports to Indonesia - worth $3.5 billion to our economy.
* Australia’s top agriculture exports in 2016-17 to Indonesia include wheat ($1.3 billion), sugar ($541 million) and live feeder/slaughter cattle ($620 million).

Key agricultural outcomes from the IA-CEPA include:
More than 99% of Australian goods exports to Indonesia will enter duty free or under significantly improved and preferential arrangements.
• Duty free access for 575,000 head of live male cattle per year, growing at 4% per year to 700,000 at year five of the agreement.
• Remaining tariffs on all Australian exports of frozen beef and sheepmeat into Indonesia reduced to 2.5% immediately, and eliminated after 5 years.
• Guaranteed duty free access for 500,000 tonnes of feed grains per year (wheat, barley, sorghum), increasing at 5% per year to 775,664 tonnes.
• Reducing the tariff on Australian sugar cane from 8-12 % to 5%.
• Immediate elimination of 5% tariff for milk and cream, concentrated or containing added sugar or other sweetening matter.
• Immediate elimination of 5% tariff for grated or powdered cheese, of all kinds.
• Immediate tariff cut mandarins from 25% to 10% for 7,500 tonnes per year; down to 0% after 20 years for an unlimited volume.
• Duty free access for 10,000 tonnes of oranges per year, increasing 5% each year.
• Duty free access for 5,000 tonnes of lemons and limes per year, increasing 2.5% each year.
• Immediate tariff cuts for potatoes from 25% to 10% for 10,000 tonnes per year; after five years tariff further reduced to 5% for 12,500 tonnes per year, increasing by 2.5% per year.
• Immediate tariff cuts for carrots from 25% to 10% (from 25%) for 5,000 tonnes per year; down to 0% after 15 years for an unlimited volume.
• Progressive elimination of 5% tariff on Australian honey after 15 years.
Media Contact:
Les White, 0409 805 122

Tariff elimination to boost Australian cherries in China, says importer

Australian cherries are set to benefit from the elimination of tariffs in the Chinese market from the start of next year, according to one importer.

A free trade agreement was signed between the two countries in 2014, with Australian cherry exporters to be subject to zero-tariffs in China from Jan. 1, 2019.

Huang Xianhua, general manager of Shanghai Oheng Import & Export Co., told Fresh Fruit Portal Australian cherries would therefore be on a level playing field with Chile in terms of tariffs.

Chile signed an FTA with China in 2005, and sends the vast majority of its cherries to the Asian country.

Xianhua added that Australia’s higher production costs compared to Chile would be partially offset by its relative proximity to the market, while will save freight costs and make the country more competitive.

Australia is expected to produce a record 18,000 metric tons (MT) of cherries this year, with a little under half due to be exported, according to a USDA forecast. Meanwhile, Chile is expecting to export similar volumes to last season, which saw a huge export rise to 180,000MT.

And according to Xianhua, Chile faces numerous challenges with cherries.

“The processing capacity during the peak of harvest is insufficient, production is easily affected by weather conditions, and the quality is inconsistent, but they are hesitant to invest in protection such as rain nets if the investment it too big,” he said.

U.S.-China trade war
Xianhua also said that the U.S.-China trade war has led to a poor performance of U.S. cherries in the Chinese market this year. China has risen tariffs on the fruit by 40% over recent months, with the latest round coming into effect on July 6.

“This is an enormous cost and is unable to completely be shifted to the consumer end. In the end, the importers have to pay this extra bill,” he said.

Many importers stopped bringing in U.S. cherries while those who continued have run into difficulties, he said.

Other origins have been unable to fill the supply gap, he added.

“There is no [country] that can fully replace it. Canada’s supply is still limited, and Central Asian’s season is too early, also the quality is not good enough and they also have to worry about cold treatment,” he said.


Source: https://www.freshfruitportal.com

Agriculture leads the future

"Australian agriculture in a golden age, especially for the Chinese market"
The Australia-China Trade Expo 2018 "Australia-China Economic and Trade Expo" (ACTE2018) is a comprehensive economic and trade exhibition initiated by the Australian-Chinese business community. It was held in Melbourne last weekend and has been successfully held for 12 times.

At this exhibition, the President of Royal Fresh International, and CEO of AATI Holding, David Yang, spoke and shared relevant data on major fruit varieties, distribution, the supply season, fruit farm acquisitions, mergers and integrations in Australia. Royal Fresh has been focusing on Australian fruit exports for many years. AATI Holdings was established in November 2017 as an Australian agricultural technology investment holding company.

"Australian fruit exports to the world are increasing every year. The mainland China market continues to top the list of Australia's first export markets for two consecutive years last year. For example, in 2016, grapes exported 23,946 tons to China and 57,194 tons in 2018; citrus: 40,449 tons in 2017, 72,000 tons in 2018, so on and so forth. " Mr. Yang Jianguang said at the exhibition.

"The golden age of Australian agricultural development is not limited to the rapid growth of Australian domestic agricultural products in the international market in recent years and the good reputation it has won. It also confirms that China's investment in Australian farms has entered a golden age. "

For more information, please click here.

Royal Fresh International Pty Ltd will be looking forward to meeting you at the Hong Kong, Asia Fruit Logistica with Taste Australia. Booth: 3-S17/Hall 3D, Taste Australia

Contact information:
Royal Fresh International Pty Ltd
Email: info@royalfresh.com.au

AATI Holding Pty Ltd
Email: david@aatiholding.com.au

Publication date: 8/29/2018

Source: http://www.freshplaza.com 


Image from : https://abf.events/ 

USDA to purchase US$500M of produce as part of trade war assistance

The U.S. Department of Agriculture (USDA) says it will purchase more than US$200 million of apples and cherries as part of its assistance programs to growers impacted by tariffs implemented by countries like China.

A total of a little more than US$500 million will be spent on fruits, vegetables and tree nuts under the Agricultural Marketing Service’s (AMS) Food Purchase and Distribution Program, which has a total budget of US$1.2 billion.

The Food Purchase and Distribution Program is one of three programs – along with the Market Facilitation Program (MFP) and the Agricultural Trade Promotion Program (ATP) – with a total value of US$12 billion recently announced for farmers affected by “unjustified retaliation by foreign nations.”

China has implemented heavy tariffs on all U.S. agricultural exports, while Mexico has set duties for imports of some fruits including apples.

The amounts of commodities to be purchased through the AMS program are based on “an economic analysis of the damage caused by unjustified tariffs imposed on the crops listed below,” the USDA said.

“Their damages will be adjusted based on several factors and spread over several months in response to orders placed by states participating in the FNS nutrition assistance programs,” it said.

The USDA has set aside US$111.5 million for sweet cherries, US$93.4 million for apples, US$85.2 million for pistachios, US$63.3 million for almonds US$55.6 for fresh oranges, US$48.2 million for grapes, US$44.5 million for potatoes, US$34.6 million for walnuts and US$32.8 million for cranberries.

For cherries and almonds, the USDA said the program details are yet to be defined, and these two commodities were not included in the program’s US$1.2 billion budget.

For fruits, vegetables and tree nuts, assistance was also announced for apricots, blueberries, figs, grapefruit, hazelnuts, kidney beans, lemons/limes, Macadamia nuts, Navy beans, orange juice, pears, peas, pecans, plums/prunes, strawberries and sweetcorn.

“Early on, the President instructed me, as Secretary of Agriculture, to make sure our farmers did not bear the brunt of unfair retaliatory tariffs,” said Perdue.

Perdue said that after careful analysis, this strategy has been formulated to mitigate the trade damages sustained by farmers.

“President Trump has been standing up to China and other nations, sending the clear message that the United States will no longer tolerate their unfair trade practices, which include non-tariff trade barriers and the theft of intellectual property,” he said.

“In short, the President has taken action to benefit all sectors of the American economy – including agriculture – in the long run.

“It’s important to note all of this could go away tomorrow, if China and the other nations simply correct their behavior. But in the meantime, the programs we are announcing today buys time for the President to strike long-lasting trade deals to benefit our entire economy.”

Click here to view the USDA press release.


Source: www.freshfruitportal.com 

AHEIA announces 2018 Industry Forum

The AHEIA annual industry forum is a must attend event to find out the latest developments and opportunities direct from the people who represent our industry to our international trading partners.

When: Thursday,23 August 2018, 9.30am

Where: Holiday Inn, Melbourne Airport

RSVP by 17 August 2018 to admin@horticulturetrade.com.au or call 07 3379 4983

Price: AHEIA members free, non members $60 +gst



Forum Registration/Coffee



Morning session

  • Opening and introduction - AHEIA Chair - Joseph Saina

  • Michael Rogers, Trade, HIAL

  • Exports - David Ironside, A/g Assistant Secretary, Plant Export Operations, DoAWR

  • Imports - Douglas Kerruish or Bussakorn Mpelasoka, Assistant Secretary, Plant Import Operations, DoAWR

  • Anita Langford or Thomas Lees, Office of Transport Security

  • Travis Brooks-Garrett, Director, Freight and Trade Alliance






Afternoon session

  • Statistics Presentation - Wayne Prowse Principal & Senior Analyst, Fresh Intelligence Consulting

  • Ben Reilly - Steritech

  • Moderated Q & A

  • Opportunities in 2017/2018 and Close - AHEIA CEO, Dominic Jenkin




Cost $60+ gst for non-members, free for members

RSVP by 17 Aug - please respond as to whether you are attending the AGM and/or Forum 

Phone: (07) 3379 4983

Email: admin@horticulturetrade.com.au 


The AHEIA 2018 Industry forum is sponsored by Steritech

Australia launches 10-year berry export plan amid soaring growth

Australia’s Hort Innovation has launched the Berry Export Strategy 2028 for the strawberry, raspberry and blackberry industries following huge international growth over recent years.

The dedicated export plan to grow the three sectors’ global presence over the next decade was driven by significant grower input, the organization said.

Hort Innovation trade manager Jenny Van de Meeberg said the value and volume of raspberry and blackberry exports rose by 100 percent between 2016 and 2017.

Strawberry exports rose 30 percent in volume and 26 percent in value over the same period.

“Australian berry sectors are in a firm position at the moment,” she said.

“Production, adoption of protected substrate cropping, improved genetics and an expanding geographic footprint have all helped put Aussie berries on a positive trajectory.

“We are seeing a real transition point. Broad industry interest and a strong commercial appetite for export market development combined with the potential to capitalise on existing trade agreements and build new trade partnerships has created this perfect environment for growth.”

High-income countries in Europe, North America and northern Asia have been identified as having a palate for Australian-grown berries, with more than 4,244 metric tons (MT) of fresh berries exported in the last financial year alone.

The strategy identified the best short-term prospect markets for the Australian blackberry and raspberry industry as Hong Kong, Singapore, the United Arab Emirates and Canada.

The strongest short-term trade options identified for the strawberry sector were Thailand, Malaysia, New Zealand and Macau.

The strategy focuses heavily on growing the existing strawberry export market from 4 percent to at least 8 percent of national production by volume. For raspberries and blackberries, the sectors aim to achieve a 5 percent boost in exports assessed by volume across identified markets by 2021.

Tasmanian raspberry exporter Nic Hansen said: “The more options we have for export the better. Now we just have to get on with the job of ensuring industry has all the tools it needs, such as supporting data and relationship building opportunities, to thrive in new markets.”


Source: https://www.freshfruitportal.com

Airport check to add $19 million in costs to industry

AUSTRALIAN horticulture exporters are bracing for $19 million in additional costs when strict new security measures are rolled out across the nation’s airports next year.

In the wake of a foiled terrorist plot to blow up an aircraft in Sydney last year, Prime Minister Malcolm Turnbull announced the security boost for all Australian airports.

It comes after the US introduced similar security procedures mid-last year. The new air cargo examination requirements will see every piece of airfreight either physically examined or screened by technology for explosives and drugs from March 1 next year.
Australia exports more than 87,000 tonnes of fresh fruit and vegetables annually by aeroplane, making up about 15 per cent of all airfreighted goods.

Australian Horticultural Exporters’ and Importers’ Association chief executive Dominic Jenkin has estimated the measure will cost about $0.22/kg, “representing an additional cost of more than $19 million a year”.
“And the true cost to the economy is likely to eclipse this amount,” Mr Jenkin said.

Vegetables made up a significant portion of Australian exports by plane in 2017-18, followed by melons, summer fruit, grapes and mangoes.

Mr Jenkin said the horticultural exporting industry was disappointed there was so little consultation about how the security measures would be applied to fresh produce. “We see the sector as a significant stakeholder in the air cargo community, also one with challenges — low margins, high volumes — the little things can make a big effect,” he said.

The AHEIA calculated it would cost the nation’s vegetable industry $4 million a year in screening fees.

An AusVeg spokesman said while the importance of a safe and secure supply chain was acknowledged, “it is crucial such measures do not compromise the viability and quality of vegetable exports”. 

Australian Mango Industry Association chief executive Robert Gray said aside from the US, Australia would be one of the few countries with such strict security measures in place for airfreight exports.

“We’re going to be encumbered by an added process our competitors won’t have to endure,” Mr Gray said.

AHEIA chairman and Brisbane exporter Joseph Saina said the issue for the horticulture industry was the low value of the goods.
“Vegetables will be the biggest losers,” Mr Saina said.

July 11, 2018

U.S. has launched “biggest trade war in economic history”, says China

The U.S. Government has followed through on its threat to implement tariffs on US$34 billion worth of Chinese goods, in a major escalation of a trade dispute that will likely hit consumers and companies in both countries.

The 25% duties, which went into effect at 12:01 am EST, prompted quick retaliation by Beijing, which said it immediately put its own similarly sized tariffs on U.S. goods, including fruits and vegetables.

China’s Ministry of Commerce said in a statement the U.S. “has violated World Trade Organization rules and launched the biggest trade war in economic history to date.”

It accused the U.S. of bullying and said the move would jeopardize global supply chains and hinder the pace of global economic recovery. It added this would trigger “global market turmoil and will affect more innocent multinational corporations, general enterprises and ordinary consumers.”

“The Chinese side promised not to fire the first shot, but in order to defend the core interests of the country and the interests of the people, we had to be forced to make the necessary counterattacks,” the ministry said.

“We will promptly inform the WTO about the situation and work with countries around the world to jointly safeguard free trade and the multilateral system. At the same time, we reiterate that we will unswervingly deepen reform, expand opening up (of markets), protect entrepreneurship, strengthen IP rights protection, and create a good business environment for Chinese companies in the world.”

The first wave of US$34 billion of tariffs is expected to be followed by a further US$16 billion, with both countries having threatened a total of US$50 billion worth of duties.

With no official talks scheduled between the two countries, and disagreements within the Trump administration about how best to proceed, a quick resolution seems increasingly unlikely, the New York Times reported.

“At the moment, I don’t see how this ends,” Edward Alden, a senior fellow at the Council on Foreign Relations, told the publication.

“This is very much in the president’s hands because he’s got advisers that seem divided, some substantively, some tactically. I just don’t think we’ve had any clear signs of the resolution he wants.”

In terms of U.S. fruit exports, cherries, apples and citrus are likely to be the most affected. However, Produce Marketing Association vice president of global membership and engagement Richard Owen last month said he expected the Chinese market to more easily absorb the higher prices for cherries.

Source: www.freshfruitportal.com

Vietnam: Export fruit enters choosy markets

According to the Vietnamese Ministry of Agriculture and Rural Development (MARD), after many years of negotiation, Vietnam has overcome technical barriers an is now able to enter choosy markets including Australia, the US, New Zealand, Japan and South Korea.

By April 2018, Vietnam had exported over $1.3 billion worth of fruits, an increase of 30 percent year-on- year. In 2017, the export turnover from fruits was $3.5 billion, nearly twice as much as 2016 ($1.7 billion). The figure is expected to reach $4.3-4.5 billion this year.

Vietnam is able to meet strict requirements set by import countries on origin tracing. The efficiency of trade promotions, branding and the connection between farmers and exporters is also very good.

According to Hoang Trung, head of the Plant Protection Agency, it took Vietnam seven years to obtain the right for Vietnam’s rambutan to enter the New Zealand market. And only after 10 years of negotiations did the US open its market to Vietnam’s star apple.

Source: english.vietnamnet.vn

Publication date: 7/5/2018

Australian air cargo to be examined at piece level

The move will have costly implications on Australian fresh produce industries shipping by air

From 1 March 2019, the Australian government’s Office of Transport Security is cracking down on security by introducing piece-level examinations for all outbound international cargo shipments.

Currently, piece-level examinations are only standard for Australian cargo destined for the US, however, the requirement will soon be made for all outbound air shipments. That includes all fresh produce.

Dominic Jenkin, CEO of the Australian Horticultural Exporters and Importers Association (AHEIA), said the changes will significantly increase the cost of exporting fresh fruit and vegetables from Australia.

Each individual box of produce will need to be screened by a Regulated Air Cargo Agent, using technology like x-ray, or be physically inspected.

After screening and loading fees, The AHEIA estimates total added costs to the industry at A$0.22/kg (US$0.16) and expects low unit value items like melons and vegetables to suffer most.

Australia currently exports more than 87,000 tonnes of fresh produce annually by air, which accounts for 15 per cent of the country’s total fresh produce exports.

If this figure remains, the total cost increase for the industry predicted by the AHEIA sits at around A$19m (US$14m) annually.

Source: http://www.fruitnet.com

Author: Camellia Aebischer