fruits, vegetables
p. 35 · Read in the full issue
Marketing island fruits, vegetables
WHEN, in December, I made my annual review for the Forum Secretariat of the work we did at the South Pacific Trade Commission’s office in Sydney during 1993, one thing was pretty clear the number of enquiries that came into the office continued to run at a high level. They arrived thick and fast by mail, fax, phone and by people simply
dropping in.
Answering queries, checking or prepar ing information and advice for those who seek it, is a major part of our activities, and it would keep us busy even if we had nothing else to do. But we encourage it, as anybody who reads this column regularly would know, for information and advice are vital to people in business.
Queries cover every kind of product and business matter imaginable, with an in creasing demand for the kind of infor
mation that can be supplied by our computer data bases. This includes finding answers to queries from island countries about the standing of Australian companies they plan to deal with. That’s a check we’ve always advised anybody to make before giving serious attention to a business proposal.
But among all the various types of queries there is one that is a hardy perennial. That is. “What are the opportunities for selling fruit and vegetables to the Australian market? How can I break into it?” The inquirer usually has particular fresh produce in mind, and our answer quite frequently is that he can’t export it because Australia’s quarantine laws forbid its entry.
That’s simple query with a concise answer that stops it dead, you’d think. But in fact there are opportunities in the produce business and the whole question has far more facets than might appear, so I intend to start the new year with a summary of the situation th&t potential inquirers should find useful.
To begin with, the fruit and vegetable needs of Australia’s 17 million people (most of whom live in the capital cities and are thus accessible) are satisfied by suppliers from within the country. There is nothing surprising about this, for it is also true of the Forum Island Countries. Nevertheless, Australia still imported more than As 49 million worth of fruit and vegetables in 1991-92. This was a 13 percent increase on the import figures for 1989-90, and they continue to grow.
One important reason for this is that tastes in foods stuff have changed considerably in recent years as Australia’s migrant population, including the Asian and islander components, continues to grow. Changing eating habits have opened up opportunities for increased supplies of foodstuffs that were once thought as “exotic” and are now being used by the whole community. Asian restaurants abound.
Island suppliers do have opportunities, but the best onces are for processed fruit and vegetables (cooked, dried, frozen, packaged, tinned etc.) Processed produce comprises most of Australia’s imports specifically because of the quarantine restrictions on much fresh produce which apply to other
countries besides the islands of course.
Fresh yams, taro, cassava, pawpaw, coconuts, chillies, mustard leaves, okra can be imported from the islands subject to quarantine inspection and treatment. Asparagus can be impor ted but is subject to inspection and fumigation. Mangoes can oe imported from Fiji only. Kiwifruit, garlic, stone fruit, snow peas and avocados can only be imported from New Zealand and Norfolk Island (an exception for avocados is that they can be imported when grown on plantations from certified stock). But these restrictions, and others like them, do not apply to processed fruit and vegetables, which also have the advantage of entering from the island duty free.
Canned coconut cream from West ern Samoa is already selling well in Australia, and canned rourou, duruka and palusami from Fiji are also popular. There is growing demand for
individually frozen and puree tropical fruits in Australia.
Items in strongest demand are mango and passionfruit frozen, canned, puree and concentrate - which is used in the food industry. Australia is an important importer of spices, with over 70 per cent of the imports sold to food processing or catering industries, and there are some
opportunities there.
Information on these and other opportunities and things to avoid are contained in a marketing report, The Australian Market Potential for Fruit and Vegetables, which was prepared by John Harden at our request and funded by the Australian Trade and Investment Promotion Service. (TIPS in turn is funded by the Australian International Develop ment Assistance Bureau.) John is a private consultant, with former Trade Department experience, and his very detailed, no-nonsense report, prepared specifically for island suppliers, is available from us on request. It deals with every aspect of the trade detailed quarantine requirements on virtually every likely item, the distribution system, packaging and labelling, prices, trading terms, agents’ address,, and prospects and comments on every kind of fruit, vegetable and spice.
John points out that the Australian market for both fresh and processed fruit and vegetables is sophisticated, extremely quality conscious and very price sensitive. Australian importers will insist on competitive prices, consistency quality, suitable and attractive packaging and regular supply before they will buy from a new supplier. There is also strong competition from New Zealand and Asian suppliers. But, he adds, the prospects for Pacific islands suppliers are “quite reasonable”, with the best prospects in the area of processed fruit and vegetables. As I said, the trade has many facets but we’re here to help. Bill McCabe is senior commissioner of the South Pacific Trade Commission, Sydney an arm of the South Pacific Forum. D