WHILE there has been plenty of buzz around agriculture exports to China, Australian table grape growers are nurturing huge growth potential in Japan.
According to a recent Australian Table Grape Association (ATGA) trade report, Australia exported the highest ever single volume of table grapes in April at 32,587 tonnes, eclipsing the March 2016 record.
China remained the highest importer of grapes but Japan posted the strongest rise for the season with a 406 per cent growth on the previous season (nearly 10,000 tonnes).
Making the increase even more remarkable is the fact it has become the fourth largest trade destination for Australian table grapes in just the second full year of trade.
Analysts have predicted Japan could become Australia’s second-biggest trading partner after China.
Making inroads to the land of the rising sun has not been an instant phenomenon.
ATGA CEO Jeff Scott said it has come about as a result of the tireless efforts of the association in prioritising growth, development and promotional activities in key export markets, particularly throughout Asia.
“Access to new export markets does not happen overnight, and is not an exercise for the faint hearted," Mr Scott said.
"The Australian Summerfruit industry can attest to this, having announced the signing of export protocols for nectarines into China following 12 years of negotiations.
"While this is a positive achievement for the industry, the commitment and expense associated with any industry gaining export market access cannot be ignored.”
Achieving new access into high value markets such as China, Japan and South Korea may just give the sector an export advantage over other fruits.
Close working relationships between the AGTA and federal and state governments were cited as major reasons for achieving such gains in the space of three years.
“Japan and South Korea, in particular, are crucial markets to export growth for table grapes," Mr Scott said.
"Both countries are niche markets, seeking only the highest quality product from Australian growers.
"It is critical that the industry supplies mature, sweet, clean, green fruit.
Product differentiation is the key for Australian table grape growers, according to Mr Scott.
"Major competitors Chile, South Africa and Peru have significant production advantages with cheap labour and lower input costs, by which the average Australian grower is unable to complete," he said.
"In order to command a premium price over the significant volumes being produced by Chile, the Australian grower must supply fruit with high sugar content, crisp berries and consistent bunch colour.”
The Asian market has been in line with the 2015/16 export season which exceeded expectations for the industry.
The areas hungriest for Aussie grapes have been Asia and the Middle East.
The ATGA is closely watching Saudi Arabia where Australian grape exports have also been welcomed.
Grape exporters also benefitted from the introduction of online software last year to administer annual export registrations.
The technology has subsequently increased the number of growers applying to export table grapes each year.
The trade report showed the combined China/Hong Kong volume (nearly 50,000 tonnes) was 513pc higher than at the same time last year, although Hong Kong was tracking 56pc lower.
Indonesia was the second largest destination after China and was up 34pc as at the end of April.
Exports totalled 108,594 tonnes to the end of May 2016 with an estimated value of $364 million, making the season 32pc higher than at the same time last season.
