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.Crop species new to Australia represent both opportunities and risks to producers. Opportunities to supply markets in the species' countries of origin are primarily limited by the capacity to produce in a sufficiently large and consistent manner. Niche ethnic markets in Australia are small, and rarely justify large-scale producer investment.
To break out of this chicken and egg paradox close cooperation among current and intending producers of the new crop(s) is needed; in promoting a unified front to achieve volumes of production suitable for the export market, and in raising Australian consumer awareness for the local market.
An experiment is underway, catalysed by RIRDC investment, to establish the Chinese water chestnut (Eleocharis dulcis) industry in Australia.
A number of key features underpin this incentive. Firstly, demand exists for the product in Australia, with approximately 15-20 t fresh produce currently being marketed annually. Tinned produce from Thailand and China sells for about half to two thirds the price of locally-produced fresh water chestnuts, and is diced in 'fresh' Asian stir fry mixes. Fresh produce is preferred by discerning consumers.
A weekly supply of 1t fresh water chestnut would eliminate the use of tinned produce, in Asian stir fry mixes, and open a weekly market for a conservative value of $5,000. Replacement of household and restaurant use of imported processed water chestnuts also opens up an opportunity for further sale of fresh produce, and will critically depend upon the ability to extend supplies of fresh produce throughout the year.
Secondly, with new market opportunities, producers could scale up their operations, for the major limiting factor to water chestnut production - the labour intensive harvesting - has been overcome by the development, independently, of four mechanical harvesters. This alone should allow Australian producers to command a large proportion of the world fresh market and dictate prices.
Thirdly, export opportunities are increasing, especially for the fresh produce. Both Japan and Taiwan have experienced a decline in local production. This is largely due to the high labour requirements for harvesting and has opened up opportunities for export. The US annually imports US $35-40 million tinned water chestnuts from Thailand and China and this is expected to rise.
Fourthly, current producers of water chestnut in Australia have come together, under the auspices of the Australian Aquatic Vegetables Development Committee (AAVDC), to bring cohesion and share resources and knowledge, to create an industry of critical mass to leverage research and development opportunities, to institute and maintain quality assurance, and to generally promote water chestnut, in particular, and aquatic vegetables in general.
Encouraging coordinated national efforts among the minor emerging industries is one of the key policies of RIRDC. The establishment of the AAVDC arose from a collaborative effort of Central Queensland University, the Department of Natural Resources and Environment, Victoria, and several leading producers and business advisers, and is partly funded by RIRDC. Following analysis of a mail questionnaire sent throughout Australia to more than seventy producers and others interested in the industry, a National Workshop was held in Victoria in December 1996, uniting individuals, producer groups, industry and researchers.
Specific issues relating to production, harvesting and marketing, and others pertaining to industry standards, an umbrella industry organisation, and the unattractiveness of the product name were discussed. Following identification of the major R & D issues (viz. cultivar identity, nutrition, extended harvest season and fresh produce storage), local market promotion, naming, retailer ignorance, consistency of quality, and industry coordination, a follow-up meeting was held in May 1997, during which an Industry Strategy Plan and a Research and Development proposal were discussed for implementation.
Modest, yet specific features of the strategic plan were agreed upon:
This now forms the basis for the industry development by way of an Industry Development Strategy Plan.
A few issues have still to be resolved by the AAVDC. These include the choice of name that will appeal to Australians while retaining the name water chestnut for overseas markets, and the design of a logo for common quality assurance and marketing country wide.
A coordinated water chestnut industry would be too small to warrant a crop specific industry body. Rather, one that encompasses other aquatic vegetable species - for water chestnut producers will likely rotate with other aquatic vegetable species - was opted for. Individuals and groups researching and producing other aquatic species are encouraged to contact the author to broaden the representation on the AAVDC.
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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GK; latest update 6 June 1999 by: RF