With the Australian apple picking season in full swing, delegates from four Asian countries were recently invited to visit apple orchards, packhouses and markets across three states. At www.freshfruitportal.com we spoke with a representative from Apple and Pear Australia Limited (APAL) - which organized the visit along with the Victorian Government - and a Chinese purchasing manager who was very impressed with the quality of operations.

The inaugural shipment of Australian apples to mainland China last month was a landmark event for the industry, but Tasmania is still the only state that can capitalize on the market.

Growers in the rest of the country are still working on access, and hopefully Chinese authorities will share the same perspective on Australia's mainland production as the two Chinese delegates who recently visited.

The tour went to South Australia, Victoria and Tasmania, and was run for the second year in a row as part of a broader strategy to boost exports to Asia, with delegates from Thailand, Malaysia and Singapore also in attendance.

APAL market development manager Claire Fitchett told www.freshfruitportal.com the delegates were impressed with the quality of Australian apples as they were high colored, sweet and crunchy.

This was confirmed by Shanghai Supafresh purchasing manager Zhang Haitong, who said the Australian Pink Lady apples had a rich taste with a strong apple fragrance.

"The orchards are modern with a unique natural environment, and the packing operations are mechanized," she said.

"We introduced Pink Lady apples from Chile and New Zealand two years ago. The sales are good, however we always know that the best Pink Lady comes from its home in Australia.

"This tour proves it, but due to the strong Australian domestic market, there is little volume for export and the price of Australian apples is relatively high."

However, she emphasized China had the ability to "absorb high-priced product.

This year marks the 40th anniversary of Pink Lady-branded apples. As the country's most popular apple brand in the European market, during recent years it has been registered wider interest and expansion in key emerging markets like Asia.

In addition, higher priced varieties are taking a bigger share of Australian apple exports. Statistics  show that while sales for lower  priced apples were down, Pink Lady exports increased last year.

"We see Asia as the most important region for export growth for Australian apples and pears. The population growth and sharp increase in wealth in many Asian markets means our premium fruit will be in high demand in the coming years," Fitchett said.

"The sophistication and rapid growth of the Chinese market is astonishing, with online channels and social media helping drive sales.

"China has got certain ability to absorb high-priced product, but considering the total population, it only appeals to a small part of the market," Zhang added.

Australia to face "intense competition"

Last month, Australian apples had their premiere in China. Apples from Hansen Orchards were airfreighted from Tasmania to FruitDay.com, one of China's biggest fresh produce e-commerce companies.

Click here for a list of Tasmanian apple packhouses and orchards that have been registered for export to mainland China.

"Our first attempt to sell Australian apples, Royal Galas from the state of Tasmania, proved to be a great success. With our pre-sale methods, 210 cases were sold out within a week," FruitDay.com VP Zhao Guozhang told www.freshfruitportal.com.

He said Australia would face "intense competition" with Chilea and New Zealand in the future, and the challenge would be "huge", especially in terms of price.

"What's more, Australian apple orchardists didn't show much interest in the Chinese market in the past. But things are changing," Zhao said.

FTA negotiations are ongoing between these two governments. This year there will be a Pink Lady campaign across the country. We should  have more confidence that China will become a priority in their future strategy."

On the other hand, Fitchett seemed to be more concerned about transforming the first big hit into regular supply and long-term cooperation, which explains why she valued the pre-networking opportunities offered by the tour.

"We are committed to building long term relationships with the right buyers in each market. This visit program was the first step in forging strong relationships with importers and retailers in China," she said.

While mainland-grown Australian Pink Lady apples are still not allowed for import in China due to fruit fly concerns, Zhang was hopeful this last obstacle could be overcome.

"As soon as the market entry is permitted officially, we will set about negotiating more specific things," Zhang said.

www.freshfruitportal.com