NOTICE: Hard copies of the Australian New Crops Newsletter are available from the publisher, Dr Rob Fletcher. Details of availability are included in the
Advice on Publications Available.David Gallacher
Plant Sciences Group
Central Queensland University
Rockhampton Queensland 4702
Telephone: 07 4930 6583
Facsimile: 07 4930 9209
Email: d.gallacher@cqu.edu.au
David is currently:
Lecturer - Irrigated Horticulture
School of Agriculture
Charles Sturt University
Wagga Wagga NSW 2678
Tel: 02 6933 2117
Fax: 02 6933 2812
Email: dgallacher@csu.edu.au
[This article first appeared in the Access to Asian Vegetables Newsletter, ISSN 1329 9174; a free monthly publication from the Victorian Department of Natural Resources and Environment and the Rural Industries Research and Development Corporation; Issue 19, May 1999; Editors are Mandy Chew and Wendy Morgan, Institute for Horticultural Development, Private Bag 15, South Eastern Mail Centre, Victoria, 3176; Telephone: 03 9210 9222; Facsimile: 03 9800 3521; Email: mandy.chew@nre.vic.gov.au; Web site: http://www.nre.vic.gov.au/trade/asiaveg]
One aim of government research into new and emerging industries such as Asian vegetables is to pave the way for new markets. In some cases the new market for Australian producers may be a replacement of imports (e.g. bamboo shoots, water chestnuts and taro) but for most Asian vegetables it is a new export market. Another justifier for research in more established crops such as Chinese cabbage, is to strengthen the local industry against the threat of future imports. Whether the research is selecting new varieties, studying diseases or developing industry structures, the aim is the same, viz. to hold on to or expand the markets available to Australian producers.
Since new export markets is the main focus in this industry, we will look at how new export markets form, what hinders them, and what government can do to help. New crop industries tend to follow a pattern:
1. Product is introduced onto the domestic market.
Many Chinese vegetables have been available in Australia since the 1850's, but vegetables specific to the Japanese markets (e.g. burdock) have arrived relatively recently. Following introduction, prices are very high and volume is small, limited to restaurants and as a luxury domestic item (e.g. yam bean).
2. Production increases.
With high prices, domestic production naturally follows as producers wish to cash in on high prices and an expanding market (eg current expansion of taro production).
3. Prices drop.
Even if markets grow, as they are with most Asian vegetables, growth in production will likely be faster so prices will still drop. This occurred recently with tropical melons and will probably occur soon with taro.
4. Turmoil.
With lower prices the industry undergoes a transformation. Less committed producers change to other crops (e.g. the trend away from bitter melon and snake beans in NT), while the more committed producers become more efficient. Production costs are reduced, perhaps by increasing total volume, and quality may be improved to get a higher price. A problem with the Asian vegetable industry is that many producers are willing to survive for a time on very marginal profit. Prices remain low and innovation is minimal, which means that issues important for export may not be addressed.
5. The market matures.
Fluctuations in domestic demand and supply settle down. They still change, since seasons and consumer requirements never remain constant, but the change is less extreme and producers have a relatively stable income.
6. Exports.
Producers now have the skills to consistently grow and sell a marketable product. Ideally, producers will have addressed quality issues to establish a better reputation than their competitors, and can therefore supply a consistently high quality product for much of the year.
An export industry cannot develop unless there is first a domestic market. There are some exceptions, such as crops grown on contract eg vegetable seed production, but in most cases producers need the testing ground of a local market with which to refine production. If the domestic market is small, there may not be enough competition to refine production methods, and the jump in scale to provide for exports may be too big. In such cases (eg burdock), exports may not occur unless government or a multinational company intervenes.
Producers need access to good information on production and postharvest methods so they can adapt quickly to new crops with minimal losses.
Our project provides general information on a range of Asian vegetables by summarising from books, journals, the Internet and from talking to producers, seed merchants and produce dealers. Gaps in this knowledge are being filled by a range of experiments being conducted across Australia.
As a group, producers and exporters also need good information of international market requirements, and they must be able to work together to meet those requirements. What shape, what colour, what texture, what varieties, what price? We have also collected this information in the project, but the information is incomplete and we do not have the means to fill gaps.
Currently there is little organisation in the Asian vegetable industry, and this must change if export markets are to develop. There are people around Australia who have expert knowledge of international markets, some of whom make regular overseas trips. We need to combine these people into a unified body, to strengthen our industry and increase our chances of generating new export industries.
Our project is aimed at addressing two of the three main areas where government can help:
The third area we do not touch on is direct financial support in gearing up to size and stabilising export price fluctuations. By addressing these issues, and by understanding the process of new crop development, we hope that Australian producers will find and succeed in new export industries to Asia.
Any claims made by authors in the Australian New Crops Newsletter are presented by the Editors in good faith. Readers would be wise to critically examine the circumstances associated with any claims to determine the applicability of such claims to their specific set of circumstances. This material can be reproduced, with the provision that the source and the author (or editors, if applicable) are acknowledged and the use is for information or educational purposes. Contact with the original author is probably wise since the material may require updating or amendment if used in other publications. Material sourced from the Australian New Crops Newsletter cannot be used out of context or for commercial purposes not related to its original purpose in the newsletter
Contact: Dr Rob Fletcher, School of Land and Food, The University of Queensland Gatton College, 4345; Telephone: 07 5460 1311 or 07 5460 1301; Facsimile: 07 5460 1112; International facsimile: 61 7 5460 1112; Email:
r.fletcher@mailbox.uq.edu.au[
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