Australia’s cherry production for 2014-15 is forecast to expand to 18,000 metric tonnes (MT), 12 per cent above the previous year, with the harvest area significantly revised upwards. Higher production is driven by improved seasonal conditions, especially in Tasmania, combined with rising prices in key export markets.
Production of peaches and nectarines, on the other hand, is expected to decline below 100,000 MT in 2014-15 due to adverse market conditions.
The stonefruit industry in Australia is dominated by cherry, peach and nectarine production, with smaller apricot and plum orchards. Nectarines are available from November to April, peaches from September to May and cherries from November to February. In value terms, cherry production exceeds A$ 100 million in value, with peaches and nectarines (typically called “summer fruit”) about twice this total.
In 2013, Australia was the seventh largest market for U.S. stonefruit in volume terms, the fourth largest market in value terms and is likely to become more important in the future.
Cherries
Australian cherries are available from mid-to-late October to late February and are produced in six states, with New South Wales, Victoria and Tasmania as the three largest producers. The number of cherry growers in Australia has been steady at just under 500, with 2,845 hectares under production nationally.
In the 2013 year, around 14,000 tonnes of cherries were placed onto the market, an increase of over 35 per cent on the previous year. Provided that seasonal conditions remain favourable, production is forecast to increase to 16,000 tons in 2014 and to 18,000 in following years. With new cherry plantings, production could reach 20,000 tonnes by 2020.
Consumption:
The industry launched its current campaign ’Cherish the Moment’ in the 2012 season. In 2013, Australians consumed 11,000 tonnes of cherries and over 20 per cent were reportedly purchased in the week leading up to Christmas. Most consumers buy cherries in summer while the Australian fruit is in season and tend not to buy cherries during winter when the US fruit is in season. Supermarkets are the usual purchasing channel for cherries.
Trade:
The domestic market accounts for 80 per cent of production, but exports are steadily increasing. Almost 3,000 tonnes of cherries were exported in the 2013 season and this figure is likely to be exceeded in 2014.
In 2014, Australian cherry exports reached 2,737 tonnes worth A$ 39 million, a 5 per cent decline in the record volumes of the previous year, but 25 per cent higher by value, with unit values increasing to around A$14 per kilo due to strong demand. Hong Kong accounted for 43 per cent of exports with 1,180 tonnes, followed by Taiwan with 475 tonnes and Singapore with 286 tonnes.
Almost all cherry imports into Australia are from the United States and Californian exporters in particular. These are mostly marketed from July to September, during the Australian off-season.
Peaches and nectarines
Production of peaches and nectarines has been difficult to estimate in recent years due to incomplete surveys and levy coverage. In 2012 output was forecast at around 100,000 MT due to worsening seasonal conditions but production was estimated at 130,000 MT for 2013 as better rainfall returned although farm-gate prices fell significantly as supply increased.
For 2014, it is expected that supplies will moderate because of lower prices and industry rationalization, with a return to the previous year’s tonnage of around 100,000 MT likely. Accordingly, the area planted is expected to fall by around 5 per cent in the 2014 season to less than 1,800 hectares.
One reason for this decline is the decline of demand for peaches and nectarines from fruit processors in Australia. The local processing industry claimed that increased imports had been the main cause of declining demand for its products but the Productivity Commission found that changing consumer tastes were the main reason for this trend. Over the past five years, retail sales of processed fruit have declined by over 20 per cent.
Trade:
Total exports of peaches and nectarines in marketing year 2013 were previously forecast to reach 9,000 MT, but declining overall production and possibly the high Australian dollar has slowed the expansion of exports.
In 2013, Australian exports of peaches and nectarines reached 7,450 tonnes, up 17 per cent and should increase by around 10 per cent to over 8,000 tonnes in 2014. Hong Kong remains the single largest export market for Australian stonefruit (accounting for over 40 percent of total exports) followed by the United Arab Emirates and Singapore. Exports to Taiwan have not yet recovered from the disruption to market access in 2009.
Imports of U.S.-grown peaches and nectarines into Australia began from July 2014, when market access was approved, although the season was fairly short. Mainly California peaches and nectarines were exported to Australia following the approval of quarantine protocols. Imports from the United States are forecast to increase by around ten per cent in 2014.
