25 January 2009
Breakthrough on cherry exports to Japan
Tasmanian cherry grower Reid Fruits has overcome market access challenges to ship 17.5 tonnes of premium Japanese-variety (Satonishiki) cherries which retail at A$50 per kilo in Japan – the homeland of the unique cherry.
The non-fumigated white-flesh cherries, initially developed by Japanese growers in the 1930s, have been an instant success with Japanese consumers, renowned for being some of the most discerning in the world.
This is the first time Reid Fruits - the only large-scale southern hemisphere commercial grower of the Satonishiki cherry - has exported non-fumigated cherries to Japan.
Until recently, the company could only access Japan if their produce was fumigated, a process reducing end-product quality in a market that demands the highest standards.
Due to consumer demand and off-season southern hemisphere production advantages, the company aims to increase exports to over 200 tonnes in the next 2-3 years, planting 30,000 cherry trees in a new orchard in the Derwent Valley northwest of Hobart.
Australia’s Minister for Trade Simon Crean said the win demonstrated how Australia’s sophisticated agricultural producers, aided by improved market access, could deliver regional jobs to Australians.
“Cherries are an established and sacred part of Japanese culture. Winning improved market access for cherries is an important and symbolic breakthrough in Australia's agricultural trade with Japan.
“Reid Fruits employ 12 permanent and 300 seasonal workers during production, and now expect to increase total employment to 500 seasonal and permanent staff, demonstrating how trade can help build employment and prosperity in difficult times,” Mr Crean said.
“With the market for Japanese-produced cherries worth around A$255 million during the summer months, the company estimates the opportunity exists to supply the winter market at 10% of that amount.
“With only 40% food self-sufficiency in Japan, the need to import to a 130 million-strong consumer market will remain, despite uncertainties in the global trading environment.
“Austrade facilitated meetings, introduced buyers, and assisted the company to market their quality produce since the company first considered selling Satonishiki cherries to Japan.
“Japan remains Australia’s top export destination, purchasing over $34 billion of Australian commodities, products and services annually. Current negotiations for a bilateral free trade agreement stand to deliver significant future benefits from an already strong platform of engagement,” Mr Crean said.
Fruit Growers Tasmania led by Mr Tim Reid (AM) of Reid Fruits, Biosecurity Australia and the Tasmanian Department of Primary Industries worked together to achieve access to the Japanese market. Mr Reid was awarded a Member of the Order of Australia in 2007 for his work in helping develop the Tasmanian fruit industry.
Media Inquiries:
- Austrade: David Varga - 02 9390 2191 or mobile 0411 604 755
- Mr Crean’s office: Clinton Porteous - 02 6277 7420 or mobile 0403 369 588