Tony Filippi Fruit Growers Victoria Industry Development Manager Healesville 2015

Transcription

1 1 Tony Filippi Fruit Growers Victoria Industry Development Manager Healesville 2015

2 2 Outline MFC Market Access into New Asia experience Why the push into this market Establishing the framework to make it possible Success and some of the reasons Dealing with rejections Market Access for Cherries some comments from an outsider

3 3 Who am I? Originally from Mildura Been a grower Spent 7 years as P&D Scout for Fruit Doctors Specialised all crops including pome and stone-fruit. 2 years as IDO and later a director at MVCB 8 years as Tech Field Consultant at MFC (citrus) Specialised in preparing growers qualifying for export (23+ countries), 1 st navels into China front door Citrus representative of Tech Advisory Committee Sunraysia PFA Hope to bring some of the skills and knowledge to pome and stone-fruit growers

4 4 Background at Mildura Fruit Company Diploma of Horticulture Pest and Disease Scout Fruit Doctors IDO MVCB heavily involved in FRW project (strong relationships with industry researchers) MFC Grower Services since 2007 Tech Services provider Position involves strong grower interaction season long (120+) Enabled me to sell an MFC KCT protocol concept to growers High level understanding on compliance for each country s work-plan. Acknowledged & respected by DOA 2013 Export Biosecurity Award. Previous owner of horticultural property have grower empathy Skills to: develop program to meet technical requirements of DAFF workplan knowledge for the practical application at the grower level.

5 5 Gaining Market Access This is a commercial perspective Industry can do so much but it does not really happen until a hero comes along to get the business done that hero was MFC. Company that is well run and efficient with a corporate responsible attitude. MFC 120+ growers Owns no property depends on growers to supply Exports to 23+ countries 85% of packed intake Largest individual citrus packer in Australia Has a dedicated Grower Services Department

6 6 Why the push into New Asia? Why export? The market returns for growers are more sustainable if industry is close to over supply domestically. High exchange rate = Saturated domestic market and easy export markets A high X-rate means you lose low paying markets = poor returns to growers

7 7 It is How You Look at it Markets were there but needed to link it to commercial reality to make it happen Citrus due to being export focused over many years had many workable protocols Problem was many seen them too unworkable, but it was the way we did them Workplans are developed by DoA/AQIS to deliver fruit that should pass the protocols I interpreted the workplans to suit how we could pass the protocols FRW was a common link for 3 key Asian markets of South Korea, China and Thailand = KCT

8 8 Tough Markets = No competition South Korea toughest.. pass this and 2 others open up Worked hard on meeting the protocol requirements right from the grower through to country importer Meant a high level of management and scrutiny to detail Didn t just focus on meeting the phyto s made sure the fruit grown pays for the effort Packout is very important from both grower and packer motivation 3 different markets better size packing manifest = wider range of sizes from the bin to these markets Need to service the 3 markets every year not just favour one and use other as a market of last resort

9 9 Changed it to Suit MFC Found out the blocks were registered as a whole so I changed it to suit the management that was more individualised to suitable blocks = more work but more chance to succeed The setup Blocks; scouts; system is a seasonal management approach Simplified the monitoring technique based on risk; evidence and tracability Take the IPM approach MRL s are tested in these markets The approach - is lower the numbers in the orchards that goes to these markets and have checks in place along the way The ultimate aim of success of the program was based on a numbers game to reduce the chances of rejection.

10 10 Putting it Together What is a system s approach? Attention to all areas has to be given: Grower level Grower Services /Field Staff level Production level Bio-security level Marketing level

11 11 Where do you start? Look at the biology of the pest you are dealing with Make sure your system manages the Pest of concern Need to convince the exporting country and DOA. Take into account the grower perspective costs; spray units; etc. Grow fruit to prime sizes for these markets, No use to meet the phyto s and market quality is not there. Selecting individual blocks within an orchard for specific treatment

12 12 Growers Decision Matrix If you register your orchard as one then one rejection will knock you out of that market Select multiple blocks for individual treatment more likely to succeed

13 13 Why KCT was Successful? A Spectacular Performance is Always Proceeded by Spectacular Preparation R.H. Schuller Adapting to the new level required Takes some convincing but extra initial management costs worth it

14 14 Success Rate Over Journey 2011 season 47 containers presented 40 passed = <15% rejected 2014 season 415 presented 390 containers passed = <6% rejected Not all were from FRW some were from registrations and DoA interpretations

15 15 Adoption Rate by Growers Progression of growers taking a chance When you iron out the problems confidence builds Grower bin return average for this market was 3X the domestic return average Year No. Growers Ha s Managed

16 16 Insurance for the Grower Contractual arrangement between grower and MFC Marketing to China under HAL Export Efficiency powers Industry sets minimum price Good for the grower as it provides a base price But lazy exporter agents always want to erode it as they only chase the commission

17 17 Relationships are Important Develop strong relationships with: Industry DoA, growers, packers, logistics and importers. Visit the country - try to find out the key people In the quarantine service Find the right customers understand their needs they will help with rejections Develop program business Make sure you deliver on the orders = confidence of importer. Remember customers have to make money to pay you = price (not discount!!!); consistency and quality Why? long term business; times will be tough again need them to be loyal to you

18 18 Market Access for Cherries What are the pests of concern? There are many to consider. Look at the biology of the pests in terms of cultural practices and how can you prevent it being on the fruit Develop/ construct your own workplan based on the export country protocol and DOA workplan Communicate this to the DOA Look for other similar markets you could qualify for under this regime As individual packers/exporters mould the workplan to suit your business But make sure it still meets the requirements

19 19 It s Not All About Pest and Disease Documentation is everything both here in orchard and at pre and post clearance inspection Develop strong relationships with DOA, do not always butt heads..it is counterproductive Most issues raised are caused through ignorance of each others needs. Many of the DOA officials can have limited knowledge of your industry and solutions..any disputes will stick to the book!!!!

20 20 Understand What is Happening Follow the fruit during DoA preclearance If possible at export country post clearance.search for the reasons for rejections More countries are now implementing protocols of their own to address pests of concern Want more traceability from orchard to post clearance inspection need to prove it!! Enables them to export, not as barrier to trade as many want to believe. This is a good opportunity to get ahead of the rest of our competitors

21 21 Dealing with Rejections Find out where rejections to qualify can occur investigate it! Field measures are to prevent pest of concern presence at final inspection Remember there are other pests and diseases that you will need to consider it is not always just one! But integrating their management into your cultural practices can reduce the risk greatly. How it is interpreted has a bearing orchard free and free from all pests has different meaning. QFF is a different beast but AWM gives you a chance to get levels low enough to negotiate ALPP or PFPP.

22 22 Remember it s a Journey Not a Destination Something will always crop up so be prepared for left field

23 23 Measuring Success From Effort Not everyone will appreciate the level of effort But you can see who will reap the rewards