Low AUD, exports spike helping avoid spring slowdown
Exports from Australia’s fresh produce growers are making news this week, however one exporter says…Exports from Australia’s fresh produce growers are making news this week, however one exporter says prices have been improving for ‘at least a year’ already. “We are more competitive on price when compared to South Africa especially on navel oranges, pears and apples,” says Vince Brullo of Australia Fruits.
The spike in demand for apples in particular is thanks to a sustained low Australian Dollar. The fact it is staying low through September and now into October has meant that the usually quiet period for exports has not been as quiet as expected on a seasonal basis, Mr Brullo adds.
When it comes to the demand for apples, which has been particularly strong, growers are being urged to find new markets to export to. Reports from Apples and Pears Australia Limited CEO John Dollison state that prices have dropped 25%, off the back of increased production, and conditions look to remain favourable, with export programs ramping up significantly from Western Australia, South Australia and Victoria, according to orchardist Howard Hansen.
Demand for other commodities besides apples is also on the up, according to Mr Brullo. “We airfreight mixed orders into the Middle East daily, including Broccoli, Celery, Asparagus mixed in the Fruits such as Rockmelons, Honeydews, Avocados and new season mangoes,” he says.
The China-Australia Free Trade Agreement, ChAFTA, has not yet had an impact on exports, Mr Brullo says, and it will need to be assessed further down the track, according to him.
The next boom in exports, with demand already coming from China in particular will be cherries, Mr Brullo says, with conditions looking good. “Our Cherry season is not far from starting, with trees in full blossom and early export varieties to be ready in about 4-5 weeks.”