Review of apple and pear industry's market access and biosecurity R&D portfolio

Transcription

1 Review of apple and pear industry's market access and biosecurity R&D portfolio Prepared for Horticulture Australia Ltd & Apple and Pear Australia Ltd AP11025 FINAL REPORT Kalang Consultancy Services Pty Ltd (25 May 2012)

2 Horticulture Australia Ltd Project Number: Project Leader: Contact Details: Project Team Members: AP11025 Rob Duthie Kalang Consultancy Services Pty Ltd Bronwyn Wiseman & Gavin Edwards Purpose of the Report: To examine what R&D relating to market access and biosecurity has been completed and its implications; the potential knowledge gaps and links to market access priorities; and what future investment in R&D is best done across-industries or as industry-specific projects. It also provides information on the current market access status for apples and pears, phytosanitary restrictions for new priority export markets and phytosanitary restrictions that may emerge for existing markets Report Completed: May Acknowledgements: This project was funded by the Apple and Pear Industry levy with matched funding from the Australian Government facilitated through HAL. Appreciation goes to APAL staff Annie Farrow and Cassia Ferguson, Lucy Gregg of Tasmanian Fruit Growers and staff from the Department of Agriculture, Fisheries and Forestry (Biosecurity Plant) for their input and comments during preparation of the report. Disclaimer: Any recommendations contained in this publication do not necessarily represent current HAL Limited policy. No person should act on the basis of the contents of this publication, whether as to matters of fact or opinion or other content, without first obtaining specific, independent professional advice in respect of the matters set out in this publication.

3 Contents Contents... 1 Summary... 2 Introduction... 3 Technical market access projects... 5 Market access and biosecurity... 5 Fruit fly management... 5 Export market access... 7 Biosecurity and incursion protection... 8 Strategic investment Productivity & Supply Chain Current phytosanitary market access status Phytosanitary restrictions for new export markets Emerging phytosanitary restrictions for existing markets R&D priorities for international market access Fruit fly management Export market access Biosecurity and incursion protection Strategic investment General Appendix 1: Technical market access investments by the apple and pear industry Appendix 2a: Phytosanitary requirements for accessible markets - APPLES Appendix 2b: Phytosanitary requirements for accessible markets - PEARS Appendix 3: Detailed R&D recommendations for international market access Abbreviations APAL CRC DAFF HAL OHMA Medfly Pink Lady Qfly R&D Apple & Pear Australia Ltd Cooperative Research Centre Department of Agriculture, Fisheries and Forestry (Commonwealth) Horticulture Australia Ltd Office of Horticultural Market Access (managed by HAL) Mediterranean fruit fly / Ceratitis capitata PINK LADY as registered to APAL Queensland fruit fly / Bactrocera tryoni research and development 1

4 Summary Reaching exports of at least 10% of marketable product is a key priority for and a strategy for achieving this through existing and new markets is in place. On-going investment in R&D is needed to achieve this export priority and this review was conducted to inform what investments should be made. The review examined what R&D relating to market access and biosecurity has been completed and its implications; the potential knowledge gaps and links to market access priorities; and what future investment in R&D is best done across-industries or as industry-specific projects. It also provides information on the current market access status for apples and pears, phytosanitary restrictions for new priority export markets and phytosanitary restrictions that may emerge for existing markets. Recommendations for R&D to support export market access are made under the areas of: Fruit fly management Contribution to projects identified through the National Fruit Fly Strategy implementation plan. Development of treatments and systems approaches to manage fruit flies. Export market access Verification trial for Qfly cold treatment protocols for Taiwan. Integrating cold storage practices to cold treatment protocols for fruit flies and other pests. Development and early implementation of export protocols. Continuation of investment in residue and MRL issues. Continuation of post-harvest disinfestation (including irradiation) activities for pests. Surveillance, information collation and documentation of pests and their management practices in all production regions. Biosecurity and incursion protection Review and implementation of the Industry Biosecurity Plan. Capacity to review and respond to analysis and reviews developed by DAFF or other agencies. Continuation of co-contributions to pollination R&D. Strategic investment Contribute to across-industry market access programs including a peak forum and supporting technical advice. General Include consideration of pests and diseases that are important for export access within the Productivity, Irrigation, Pests & Soils project. 2

5 Introduction The need for this review was identified while preparation of the new strategic plan for the apple and pear industry was underway in An overview is provided below of the strategic plan, associated documents and the Terms of Reference for this review. The strategic plan, New Horizons , was finalised in March 2010 and identified three key areas/objectives: 1. Stimulate domestic demand by 5% through product quality and innovation; 2. Expand apple and pear export markets to 10% of marketable product exported by 2015; 3. Ensure industry has the resources and capability to be profitable and sustainable. One of the strategies identified as part of meeting the export objective was to Resolve technical market access issues in target markets. The actions identified for this strategy were: Define technical and commercial market access issues in key export markets Support and participate in negotiations and invest in research as required to improve market access for Australian apples and pears to target markets. Two of the plans prepared during in support of the strategic plan are relevant to these actions: the Draft Strategic Export Development Plan and the Apple and Pear Industry RD&E Investment Plan The Draft Strategic Export Development Plan assessed current production and export trends and used a range of criteria to rank potential export markets (e.g. size, competitors, phytosanitary and non-phytosanitary barriers, capacity to supply). The Draft Strategic Export Development Plan was then reviewed within APAL in November 2011 and re-interpreted to focus, initially, on exporting specialty products (Pink Lady), developing an export paradigm within the industry and achieving market access to key Asian markets including China and Taiwan. Together, these plans identify the target markets and identify the broad technical market access issues. The Apple and Pear Industry RD&E Investment Plan Innovation making a difference reviewed the current and past R&D portfolio, did a gap analysis against the strategic plan and made recommendations under seven new priority investment areas: Productivity & Supply Chain Climate Change; Germplasm Improvement; Market Access & Biosecurity; Market Research; Industry Development; and Portfolio Management. For the priority investment area of Market Access & Biosecurity, it was noted that a separate independent review was to be done before any decisions were made. The Key Performance Indicators given for Market Access and Biosecurity R&D were: The apple and pear industry s contribution to the across-industry program has been invested into priority areas and the RD&E is operational Specific apple and pear industry projects have been identified and a planned program of investment is underway Application of RD&E outputs has helped gain access to additional export markets. 3

6 Another document relevant to this review is the Horticulture Market Access R&D Strategic Plan This plan was prepared in 2010 and provided a revised outline of proposed multiindustry market access related R&D for 2009/10 to 2013/14. It suggested a continued primary focus on fruit flies but also the need for an increased focus on two other pests of importance to the apple and pear industry: Fullers rose weevil and light brown apple moth. For example: area wide management systems for light brown apple moth, cold disinfestation of fruit flies (including cold tolerance of tropical species), replacement strategies for dimethoate and fenthion, and preparation of a joint submission to Food Standards Australia & New Zealand (FSANZ) for approval to utilise irradiation as a phytosanitary measure. As noted in the Apple and Pear Industry RD&E Investment Plan, the apple and pear industry have an on-going interest in these multi-industry projects as a cocontributor. The content of the Horticulture Market Access R&D Strategic Plan remains valid but funding sources and arrangements are not yet confirmed. In light of these various strategies and plans, the apple and pear industry put decisions on future investments in market access and biosecurity on hold until a review of this investment area had been done. This was to ensure that future investment did not duplicate past investment, was in line with New Horizons and provided a clear focus on achievement of market access priorities. The terms of reference for this review were to: 1. Collate the past and current (on-going) technical market access related investments by the apple and pear industry 2. Summarise the current phytosanitary market access status of the industry 3. Identify the market access restrictions for new priority export markets, as outlined within the Apple and Pear Draft Strategic Export Development Plan 2010/ Identify potential emerging market access restrictions for the existing markets 5. Using the above, undertake a needs analysis to determine the R&D priorities for international market access for The review was to guide future investment and priorities for the apple and pear industry in market access R&D for and help identify that part of the investment which is best served by an across-industry approach and that which is best undertaken as industry-specific projects. 4

7 Technical market access projects This section provides a review and analysis of the past and current (on-going) technical market access related investments by the apple and pear industry. The investments considered were HAL technical market access projects funded by APAL both across and single industry. Following finalisation of the strategic plan 1 for the apple and pear industry in March 2010, an RD&E plan 2 was finalised in October Seven priority areas of investment were identified in the RD&E plan and two are relevant to this review: Market access & Biosecurity and Productivity & Supply Chain. Further analysis of projects in the Market access & Biosecurity area is provided below and summaries are provided in Appendix 1. The Productivity & Supply Chain area forms a significant (over 25%) and likely increasing part of RD&E investment. While not explicitly focussing on export markets, many of the projects in this area are relevant to achieving the export target and are discussed further below. Market access and biosecurity The 2010 RD&E plan provides context of the terms used to describe this area: the main market access concerns usually relate to facilitating exports to overseas markets; although there is also a component related to interstate trade. By contrast, sometimes the imminent importation of fruit into Australia is considered a market access issue (e.g. fireblight). The term biosecurity is usually used in the context of managing the risk of incursions or outbreaks of pests or diseases and may encompass activities related to prevention or amelioration. The recent and current portfolio within this area was known to include more than twenty different projects in the broad areas of: Fruit fly management Export market access Biosecurity and incursion protection Strategic investment Fruit fly management This area relates to improving the management of fruit fly pests during production and includes single-industry and, more commonly, multi-industry projects. Multi-industry projects tend to be relevant due to the wide host range of the endemic and exotic fruit flies of interest, the importance of these pests in shaping market access requirements, the need for monitoring and management systems to be used across relatively large areas, and the need for consistency and official (domestically and overseas) recognition of management activities. 1 New Horizons Apple and Pear Industry RD&E Investment Plan Innovation making a difference 5

8 Extensive R&D on fruit fly management has been conducted in Australia for many years and has been the subject of several reviews and stocktakes in recent years 3. A description of recent projects that the apple and pear industry have contributed to is provided below and summaries are provided in Appendix 1. AP06006 HG06040 MT06025 MT06041 MT08035 MT08036 Alternative fruit fly management for market access for apples Optimal irradiation procedures for sterilization of Queensland fruit Developing female lures for improved market access Trapping to better predict and prove fruit fly presence Providing data packages for new fruit fly control technology Ecology and pre-harvest control of fruit flies for systems approaches to market access for fruit fly host commodities AP06006 (Nov Aug. 2011) was an industry-specific project to investigate the efficacy of an alternative approach to managing fruit flies that was being used for the interstate trade of citrus from Queensland. It involved the use of a combination of in-field protein bait sprays and postharvest inspection to replace the use of a dimethoate dip. There were promising results for some late maturing varieties (Pink Lady and Granny Smith) but the alternative approach did not meet the existing rigorous control levels required for approval by State agencies. While focussed on interstate trade, this is an example of systems approach that is increasingly being recognised and used for international trade. An unexpected and important realisation from the project was the impact on mortality of fruit flies of the standard industry practice of using cold temperatures (either cold storage or controlled atmosphere conditions). HG06040 is an example of the on-going range of R&D that has been done to develop the Sterile Insect Technique (SIT) for the management of fruit flies. This project (Oct April 2010) investigated the effect of the irradiation dose used to sterilise the flies on their quality (e.g. ability to survive, disperse and compete with wild flies). Under laboratory conditions a reduced irradiation dose was found to be suitable and follow-up field trials were recommended. MT6025 and MT06041 were both across-industry projects done by the CRC for Plant Biosecurity to enhance the current techniques used for in-field management of Qfly and Medfly. MT6025 (Feb Feb. 2011) investigated possible cheaper, more durable and easier to use formulations of lures to use in traps for female fruit flies. Promising results were found for a gel (rather than liquid) formulation plus possible improvements to the current procedures. MT06041 (May 2007 May 2011) investigated possible alternatives to the standard grid patterns used to place fruit fly traps. The aim was to reduce the cost and resources required for the trapping programs by more strategic ( dynamic ) placement of traps. Results from field trials in NSW and WA were variable but data mining of historical trapping records gave promising indications for how trapping could be improved in the future. 3 Including the Draft National Fruit Fly Strategy (Nov. 2008) and associated stocktake of National Fruit Fly- Related Activities and National Fruit Fly Strategy Implementation Action Plan (April 2010). 6

9 MT08036 (July 2008 April 2012) is another across-industry project being done by the CRC and aims to collate and enhance the current scientific knowledge on the biology of Qfly and efficacy of control activities. The increased data package can then support development and justification of systems approaches (i.e. as investigated in AP06006, see above) to manage Qfly as part of interstate and export market access protocols. MT08035 (Aug June 2011) was a commercial in-confidence project done to test if an insect growth regulant product (Lufenuron) was useful for in-field control of fruit flies. The product inhibits reproduction of insects so can potentially reduce populations a part of systems approach to managing fruit flies in different regions. Outcomes of the project were not available at the time of the review. As for AP06006, this project is aimed at developing alternatives for a range of industries that have relied on the insecticides dimethoate and fenthion for in-field and/or post-harvest control of fruit flies. Export market access Projects in this area cover a variety of issues relating to gaining and implementing export market access. This includes the testing of new post-harvest treatments, validation and/or enhancement of existing treatments and protocols, collation of residue/mrl information, and specific marketing activities. Given the range of issues covered in this area, it is comprised of a mix of industry-specific and across-industry projects. AP06047 AP07011 AP07050 AP07504 AP09045 AP10009 AP11023 FR04024 Cold treatment of apples, pears and nashi against Qfly for access to Taiwan MRL risk analysis for major export markets of the pome fruit industry to the UK and Europe Improving shipment protocols to Japan 2008 Apple Export Marketing Program Evaluation of ethyl formate and nitrogen for disinfestation of eucalyptus weevil on export apples MRL risk analysis for major export markets of the pome fruit industry to the UK and Europe Asian export market development for Australian apples Residue risk analysis and development of risk management options for major export markets for certain fruits and vegetables MT07015 Tasmanian pest incursion monitoring MT09073 Aus/China market access seminar 2009 AP06047 and AP09045 were both industry-specific projects to evaluate post-harvest treatments for apples and pears. AP06047 was a key project towards regaining access to Taiwan. As was done in support of regaining access for other commodities, data was collected according to an agreed rigorous protocol and demonstrated that cold treatment at 1 C or 3 C for 12 days controls Qfly in apples, pears and nashis. Formal acceptance of the data by Taiwanese authorities is still required. AP09045 is due for completion at the time of this review and is showing promising results for a novel post-harvest treatment (ethyl formate and nitrogen) of apples to control eucalyptus weevil. 7

10 FR04024, AP07011 and AP10009 are a series of projects involving the collation of data on pesticides, maximum residue levels (MRLs) and guidelines for export markets (July 2004 May 2007, Jan Sept. 2010, July 2010 June 2013 respectively). AP07050 and MT07015 are examples of specific support provided for the development and implementation of export access for apples from Tasmania. AP07050 (June Sept. 2008) supported a trial shipment of a range of apple varieties to Japan including promotion to consumers and evaluation of their preferences. MT07015 supported the collection (over 3 seasons, ), storage and publication of independent surveillance and monitoring for pests on pome fruit, summer fruit and cherries. This type of information is highly valuable to support existing export protocols, negotiate new protocols and provide early detection of new pests. AP07504 and MT09073 are examples of the apple and pear industry s contribution to marketing related activities. AP07504 was a contribution to large multi-industry activities (Jan April 2009) to raise the profile of Australian apples through participation in international exhibitions and promotions, advertising and websites. It also included a BAPHIQ audit in Tasmania. MT09073 was for a workshop held in Guangzhou in November 2009 (the 2nd China-Australia horticulture workshop Cooperation on market access and mutual trade of horticulture products). AP11023 is a proposed three year collaborative project between APAL and the Victorian Department of Primary Industries to support implementation of the 2010 Export Strategy. At the time of this review it was at the final stages of contracting. The project is aligned with the three components of the Export Strategy and includes specific marketing and promotion activities and the coordination of the Department s technical input on issues as they evolve. Biosecurity and incursion protection Projects in this area relate to managing the risk of potential incursions of pests or diseases. Given the specificity of some pests and diseases to apples and pear crops, these projects have tended to be industry-specific. In addition to pests or diseases that directly affect apples and pears, this area also includes issues relating to bees/pollination so relevant projects are also described below. AP05029 AP06013 AP06054 AP07024 AP07051 HG03070 MT06032 MT10024 Investigate the current state of knowledge worldwide regarding Nectria galligena (Ng) or European Canker Enhanced specificity of fireblight diagnostics for improved incursion response Investigations on the survival of Erwinia amylovora in mature apple fruit calyces Implementation of the apple and pear industry biosecurity plan Identification of the transfer pathway for E. amylovora on fruit Development and implementation of industry biosecurity plans Enhanced biosecurity risk analysis tools Mapping and communicating biosecurity pest threat uncertainties AP05029, AP06054 and AP07051 all addressed specific scientific questions on the risks presented by two diseases that do not occur in Australia fire blight and European canker. They all arose to address questions associated with the (at the time) potential approval for importation of apples from New Zealand. AP06013 (Sept Dec. 2010) was a specific project dealing with biosecurity 8

11 preparedness in Australia by developing an improved diagnostic test for the fire blight bacteria Erwinia amylovora. HG03070 and AP07024 were two project conducted by Plant Health Australia to develop and implement industry biosecurity plans (IBP). HG03070 (Sept 2004 June 2007) was an across-industry project to develop the plans with the final draft Apple and Pear IBP being completed in June 2005 (an updated (version 2.01) was released in Nov. 2010). AP07024 (Nov Sept. 2008) was an industry-specific project to implement the IBP. Activities included distributing the IBP, conducting training workshops and preparation of an Orchard Biosecurity Manual. MT06032 and MT10024 are both across-industry projects done by the CRC for Plant Biosecurity aimed at developing and improving approaches to the risk analysis and decision making. MT06032 (Dec March 2010) developed a decision-facilitation process for use by government, scientific and industry stakeholders, for example, when prioritising pest threats, assigning R&D funding, or combining detailed technical information with personal experience. MT10024 is underway (Dec 2010 June 2012) and is considering how uncertainty can be dealt with in risk analysis and prioritisation processes. Investments relating to risk analysis have also been made in this area to allow the industry to engage and provide comprehensive responses to Import Risk Analyses (IRAs) and reviews conducted by the DAFF. For example, AP08061 Technical response to Import Risk Assessment (IRA) for Chinese apples. The past and current investments made in bees/pollination projects relate to this broad area and also the Productivity and Supply Chain. Projects on bee/pollination are coordinated by the Rural Industries Research and Development Corporation (RIRDC) with co-investment from DAFF, HAL, other Research and Development Corporations and various other organisations. APAL has invested in these projects through membership of the Australian Pollination Alliance and co-contributions through HAL based on industry size and reliance on pollination. The IAC has endorsed RIRDC s five year ( ) Pollination R&D Program with funding agreed to 2012/13. Projects completed include: MT08044 Future surveillance needs for bee biosecurity Developed a national surveillance program to underpin border surveillance and a post incursion response. MT08048 Simulation exercise for the pollination industries A simulation exercise on how the pollination sector would respond to a pest incursion and its aftermath. MT09026 Protecting pollination for the Australian horticultural industry Stage 2 MT09079 Pollination Aware: its importance to Australia Produced the Pollination Awareness Manual which includes production areas, volumes and values and dependence on pollination. MT09083 Protecting Pollination; Communication Awareness () Produced a video Honey bee blues which outlines the toll industrial agriculture and habitat destruction and varroa mite have taken on honey bee populations everywhere except Australia. 9

12 Strategic investment Projects within this area represent the apple and pear industry s contribution to providing the resources, skills and infrastructure to operate across-industry market access programs including a peak forum and supporting technical advice. The projects have been supported with levy funds (HAL Across Industry Program and multi-industry projects) and matched funding from the Australian Government. A range of projects have been funded in support of the (previous) Horticulture Market Access Committee (HMAC), the (current) Office of Horticulture Market Access (OHMA) and specific resources to coordinate phytosanitary and associated R&D issues. A description of how the projects relate to each other is provided below and summaries for a selection of the projects (see table) are provided in Appendix 1. AH07002 AH07003 AH09018 AH09019 AH09021 HG08061 Market access coordination Market access support program Office of horticulture access - National Director Office of horticulture market access Technical (SPS and research and development) Manager Office of horticulture market access Operations Support Market access R&D support service AH07002 and AH07003 supported the operation of HMAC up to June AH09018 and AH09021 provided equivalent support for OHMA up to February HG08061 supported a coordinator for the HAL Working Group for Market Access R&D for approximately one year to October AH09019 supported a resource to coordinate OHMA phytosanitary issues for one year to September Similar projects which APAL has contributed to overtime include: HG ; HG and HG08033 which effectively continued with HG08061 (included above); MT (parent project rather than specific activities under it) and MT MT09028 was an across-industry project for OHMA to develop and implement the Market Access R&D Plan. The Plan was developed in 2010 but the funding for the technical position within OHMA was not renewed after 12 months. Productivity & Supply Chain This priority investment area comprises an integrated systems approach to investing in issues such as agronomy, pest and diseases, post-harvest and fruit quality. Within this area, numerous projects relevant to phytosanitary market access issues have been completed and they contribute to industry s ability to meet the requirements of export markets. A comprehensive review of these projects was not within the scope of this review but representative projects are given below to illustrate relevant past investment: 4 HG07058 Market Access Facilitation Project 5 HG08058 & HG08033 were both titled Market access R&D support service. 6 MT06020 Improving market access R&D for the Australian horticulture industries 7 MT09028 Strategic whole of industry approach to market access R&D - Stage One. 10

13 AP8043 AP07009 AP06011 FR04009 FR04025 MT06001 MT07028 Through Chain Rot Management in Apples An IPM manual for Australia's apple and pear industry Understanding the fundamental interactions between Woolly Apple aphid and pome fruit (Revised) Improved attractants for monitoring and mass trapping of Oriental Fruit Moth and Codling Moth females in orchards Integrated management of Bacterial Diseases in Pome Fruits Further development of integrated pest management strategies to control thrips in pome and stonefruit in WA and Qld Towards sustainable pheromone based IPM in orchards The flagship Productivity, Irrigation, Pests & Soils (PIPS) project now provides a multi-disciplinary approach to RD&E for sustainable crop production or orchard productivity and is noted as the preferred project to embed all work on pests & diseases. This more integrated approach to investment in pest & diseases research and the Department of Primary Industry Victoria s lead role 8 in RD&E for the apple and pear industry will be helpful for future coordination with market access issues. 8 The National RD&E Framework for Horticulture was endorsed by the Primary Industries Ministerial Council in September 2010 and includes the Department of Primary Industries Victoria as the Major Priority (i.e. national leadership) agency for the pome fruit industry. 11

14 Current phytosanitary market access status The section provides the current phytosanitary market access status of the apple and pear industry based on information in the Manual of Importing Country Requirements (MICoR 9 ) database that is maintained by DAFF and other publically available information. A summary is provided below and details are provided in Appendix 2. Importing country apples pears Major phytosanitary requirements Canada yes yes Phytosanitary certificate, methyl bromide fumigation for light brown apple moth and cold storage. Pyrus communis (European pear) only. China yes Tasmania only. Phytosanitary certificate, orchard and facility registrations, area freedom (or cold treatment) for Medfly and Qfly, monitoring and control for codling moth, and orchard management for light brown apple moth, brown rot and woolly apple aphid. European Union yes yes Phytosanitary certificate. Fiji yes yes Phytosanitary certificate; either grown in an area free from fruit flies or cold treatment. Hong Kong yes yes No phytosanitary conditions. India yes yes Phytosanitary certificate, import permit and specific conditions for Qfly, Medfly, codling moth, light brown apple moth and scarlet mealybug. Fruit fly area freedom (Tasmania, Riverina, Riverland or Sunraysia) or on-shore cold treatment plus in-transit refrigeration. Indonesia yes yes General conditions for all fresh fruit imports. Phytosanitary certificate, sourced from fruit fly pest free areas (Riverland, Riverina, Sunraysia or Tasmania) or treated (cold, methyl bromide fumigation or heat). Japan yes Tasmania only. Phytosanitary certificate; fumigation (for codling moth) and pre-clearance. Malaysia yes yes General conditions for all fresh fruit imports. New Zealand yes Phytosanitary certificate; cold treated or sourced from fruit fly pest free areas (Riverina, Riverland, Ord Valley irrigation area, Sunraysia Irrigation Region or Tasmania). Pakistan yes Phytosanitary certificate, import permit and freedom from specified pests and diseases. Papua New Guinea yes yes Phytosanitary certificate, import permit, fumigated with methyl bromide and kept in cold storage. Russia yes Phytosanitary certificate. Singapore yes yes No phytosanitary conditions

15 Importing country apples pears Major phytosanitary requirements Solomon Islands yes Phytosanitary certificate, import permit and cold treatment or methyl bromide fumigation. Sri Lanka yes yes Phytosanitary certificate, import permit, sourced from fruit fly pest free area or cold treatment, and cold storage during shipping. Taiwan yes yes Tasmania and Riverland only. Phytosanitary certificate; sourced from fruit fly pest free area or cold treated (treatment accepted for Medfly but currently not for Qfly). Thailand yes yes Conditions being revised. Including phytosanitary certificate, registration and audits, orchard management, sourced from a fruit fly pest free area or cold treatment. Tuvalu yes Phytosanitary certificate and import permit. United Arab Emirates yes yes Phytosanitary certificate. United Kingdom yes yes As for the European Union. USA yes Phytosanitary certificate, import permit, freedom from light brown apple moth, sourced from a fruit fly pest free area (Riverland, Riverina, Sunraysia and Tasmania) or cold treatment. Vanuatu yes yes Phytosanitary certificate; either grown in an area free from fruit flies or cold treatment. Vietnam yes yes General conditions for all fresh fruit imports. Phytosanitary certificate, import permit and fumigated (if from WA). 13

16 Phytosanitary restrictions for new export markets This section provides information on the potential phytosanitary related market access restrictions for new priority export markets. The markets considered are those outlined within the APAL export strategy (based on the Draft Strategic Export Development Plan at November 2011 and then re-interpreted within APAL to focus on exporting Pink Lady apples). An overview of how the priority export markets were identified is given below to provide context. The Draft Strategic Export Development Plan used a range of criteria to rank markets (including size, competitors, phytosanitary and non-phytosanitary barriers, capacity to supply). Analysis and comments relating to market access issues were extracted across the document and are summarised in the table below. Country Summary of analysis and comments on market access issues / actions 10 North Asia China Achieve mainland access and improvements. Hong Kong Ease of access but is a low price, small and very competitive market. Japan Review existing protocols and seek improvements for mainland access. Korea Gaining access verging on non-viable; not recommended to pursue. Taiwan Have not been competitive with Tasmanian apples; pears are not viable in Taiwan. Achieve mainland market access and improvements. South and South East Asia Malaysia Marketing /promotion issues. India Not viable despite being the single largest volume in 2010 (low price, unreliable payments and high tariffs). Trade will still go to India however industry investment is not encouraged in the life of this plan. Indonesia Marketing /promotion issues; most apples are exported from Queensland. Singapore Marketing /promotion issues. Thailand Bordering on difficult but good inroads being achieved; proactive government team in Austrade and Vic DPI keen to support growth in the market. Vietnam Could be worthwhile in a few years though other markets have higher priority. Western Canada Largest single export market but (like NZ) probably at maximum without significant investment for market growth. Strategy is to maintain existing volumes. France Noted as potential niche market worth pursuing. Middle East Access is OK but further development and viability is difficult (very strong low price demand, small market overall and entrenched South African trade). NZ Apples oversupply of domestic production. Pears mature market (July-Oct window); probably at maximum without significant investment for market growth. Scandinavia Noted as potential niche market worth pursuing. UK Pink Lady to UK is the main export opportunity to Europe (declined 90% in 4 years due to competition from South Africa; opportunity exists in a supply window during Oct-Nov). USA Difficult and not recommended strong supply base with Washington plus a difficult protocol will make servicing the market close to not viable. 10 Based on the Draft Strategic Export Development Plan

17 The proposed refinement of the export strategy included to focus initially on exporting speciality products (Pink Lady) and achieve market access to key Asian markets. The priority markets to concentrate on were China and Taiwan, with APAL to also work with OHMA and DAFF to progress access to other Asian markets. The potential phytosanitary restrictions for new priority export markets were identified based on the existing requirements for those markets and the basis for their initial acceptance. For the purpose of this review, new markets include access to China, Taiwan and Japan for mainland apples. Comments are also included on the status of any market access submission to each market. Country North Asia China Phytosanitary restrictions? Consideration of an access request by China first relies on their finalisation of access requests for other commodities that were prioritised above apples. The expected minimum requirements for mainland fruit would be as for Tasmanian fruit: Fruit fly: area freedom or cold treatment for Medfly and Qfly Codling moth: monitoring and control Light brown apple moth: orchard management Brown rot: orchard management Woolly apple aphid: orchard management Inspection and certification. The existing access also relies on substantial data and documentation of the pests and diseases that occur in Tasmania, standard industry practices and orchard and post-harvest activities for specific pests. None of the key mainland apple production areas are accepted by China as fruit fly pest free areas. Area freedom would not be possible for some regions but a systems approach with several components is worth pursuing. Cold treatment protocols would need to be proposed and approved. Japan Korea Fuller s rose weevil is of quarantine concern to China and has been a challenging issue for citrus exports. Management to achieve consignment freedom is expected and the feasibility of this in mainland production areas may need investigation. Negotiations for access are likely to be lengthy, complex and require extensive technical information. Expected minimum requirements for mainland fruit would be as for Tasmanian fruit (including fumigation for codling moth and pre-clearance) plus requirements for fruit flies. As for the existing access to China, this relies on substantial data and documentation of the pests and diseases in the production areas plus a numerous technical visits and reviews by Japanese authorities. The existing access also relies on Japan s acceptance of Tasmania s fruit fly area freedom. A cold treatment protocol would need to be proposed and accepted by Japan existing data packages may be sufficient but this would need to be confirmed as part of any negotiations. Negotiations for access are likely to be very lengthy, complex and require extensive technical information. If finalised, any import protocol is expected to be very stringent. This is based on the long-term nature of negotiating (limited) access for citrus to this market, practical challenges in implementing the requirements for 15

18 Country Taiwan Phytosanitary restrictions? citrus, on-going negotiations for access for table grapes, and that Korea does not currently import any apples or pears. Pests of concern would include fruit flies and light brown apple moth. This supports with the conclusion in the Draft Export Plan that gaining access is verging on non-viable and is not recommended to pursue. Access for apples and pears was lost in January 2006 when Taiwan banned the entry of all commodities listed as hosts to Qfly until new protocols could be negotiated. Medfly is also a prohibited pest but a cold treatment protocol is available. Access for fruit from Tasmania is based on Taiwan accepting that this State is free from Qfly and Medfly. Taiwan also accepts that the Riverland is free of both fruit flies and that Sunraysia is free of Medfly. APAL submitted a proposal to OHMA in early 2012 requesting that access for mainland apples and pears be included on the formal list of priorities for Taiwan. In February 2012 OHMA recommended that this be the next priority application (after ware potatoes) for access into the Taiwan market. Timing for commencement of any assessment by Taiwan is not known but is expected to depend on progress with the existing issues already under negotiation. A submission on the East-West agreement has been provided to Taiwan and is the highest priority issue for Australia. The East-West agreement is seeking Taiwan s recognition that WA is free of Qfly and that the east coast is free of Medfly. To regain access for apples, the key restriction to overcome is gaining approval for a cold treatment protocol for Qfly. Acceptance of the East-West distribution of Qfly and Medfly is relevant to access for apples and all other commodities considered to be hosts of fruit flies. Western France Scandinavia (Denmark & Sweden) Research has been done in Queensland to show that that 3 C±0.5 for 12 days is a suitable treatment for Qfly for apples, European pears and Nashi pears. The research was done using 1 and 3 C. This data needs to be formally submitted to Taiwan for review. It is also expected that a (smaller scale) verification trial to demonstrate the treatment would then need to be done under the supervision of Taiwanese officials. No major phytosanitary related market access restrictions are likely. Requirements would be as for existing access to the entire European Union. No major phytosanitary related market access restrictions are likely. Requirements would be as for existing access to the entire European Union. 16

19 Emerging phytosanitary restrictions for existing markets This section provides information on potential emerging market access restrictions for existing markets. The approach taken was to consider markets currently accessible to Australian apples and/or pears and whether: their phytosanitary or legislative status is changing, or there are new emerging pest or disease issues within Australian production regions that may impact into the future. No relevant changes to the phytosanitary status of importing countries were identified. For example, the eradication of a specific pests or diseases which could justify additional restrictions on imported product. Changes to the quarantine and related legislation of trading partners have occurred in several instances in recent years and is expected to continue. The biosecurity threats for the apple and pear industry and the need for preparedness have been thoroughly considered and are documented in the Industry Biosecurity Plan and Orchard Biosecurity Manual (both updated in 2010). The six pests and four diseases on the high priority plant pest threat list could all impact access to export markets so the on-going effort in general (e.g. awareness, surveillance) and specific (e.g. diagnostics) preparedness is warranted. A key emerging pest issue within Australian production regions that will impact in the future is the management of fruit flies. Firstly, how Qfly and Medfly are managed across Australia, and secondly, the increasing interest of importing countries in other species of fruit fly that are present in Australia. For example, Northern Territory fruit fly (Bactrocera aquilonis), Jarvis fruit fly (Bactrocera jarvisi) and Lesser Queensland fruit fly (Bactrocera neohumeralis). This could impact by export protocols having additional requirements (e.g. specific surveillance and area freedom for multiple fruit flies) and/or additional data and justifications being required before exports were approved (e.g. demonstrating that treatments for Qfly were also effective against other species of fruit fly). A practical current issue for the management of Qfly and Medfly is how and where the monitoring and control activities are done. A key driver for this is how the activities can be resourced (e.g. more cost-effective procedures, cost-sharing arrangements). Making changes to existing procedures is further complicated by the need to consider whether importing countries would need to specifically approve them. For example, changes to the type and intensity of trapping, the detail of what an Area of Low Pest Prevalence or Pest Free Area is. A summary is provided in the table below against each existing market. 17

20 Importing country apples pears Potential emerging phytosanitary restrictions Canada yes yes None expected. China yes None expected (Tasmanian fruit only) European Union yes yes No phytosanitary restrictions expected but on-going potential for residue/mrl and packaging related issues. Fiji yes yes None expected. Hong Kong yes yes Potential remains for import requirements to be aligned with mainland requirements (for all fresh produce). India yes yes Current government-government negotiations on proposed changes to import protocol (including fumigation). Indonesia yes yes No specific phytosanitary restrictions expected but potential issues related to available entry points. Indonesia intended to close 4 ports to fruit and vegetables (including Jakarta) in March but postponed until 19 June Japan yes None expected (Tasmanian fruit only) Malaysia yes yes No emerging phytosanitary expected but potential for the recent changes to Malaysian legislation regarding packaging and labelling requirements to impact. New Zealand yes Likely loss of the option of the Shepparton Irrigation Region being a fruit fly pest free area. This region is formally accepted by NZ as a fruit fly pest free area but in practice there have been numerous fruit fly outbreaks in recent years. The alternative is cold treatment. Pakistan yes None expected. Papua New Guinea yes yes None expected. Russia yes None expected. Singapore yes yes None expected. Solomon Islands yes None expected. Sri Lanka yes yes None expected. Taiwan yes yes None expected (Tasmanian fruit only) Thailand yes yes Conditions being revised. Will require considerable additional requirements including registration and audits, orchard management for general and specific pests, and fruit sourced from a fruit fly pest free area or cold treated. Tuvalu yes None expected. United Arab Emirates yes yes None expected. United Kingdom yes yes As for the European Union. USA yes None expected. Vanuatu yes yes None expected. Vietnam yes yes No specific emerging phytosanitary restrictions are known but potential exists for a Vietnam to follow regional neighbours in reviewing their quarantine legislation and import requirements in the future. 18

21 R&D priorities for international market access This section provides the results of the needs analysis which was done to determine the R&D priorities for international market access. The purpose of the recommendations is to inform a 5 year investment plan for both across and single industry investment. Further detail is provided in Annex 3. As for the description of the previous and current portfolio of projects, the recommended priorities are separated into: Fruit fly management; Export market access; Biosecurity and incursion protection; and Strategic investment. Each recommendation includes whether single or acrossfunding should be considered and the relative priority (high, medium or low). Fruit fly management Contribution to projects identified through the National Fruit Fly Strategy implementation plan. - Development and improvement of generic options for monitoring and controlling fruit flies. Includes new research and protocols plus trialling and implementing existing options. (Across-industry; high priority) Development of treatments and systems approaches to manage fruit flies. - Development and improvement of specific options for monitoring and controlling fruit flies in apple and pear production systems. More emphasis on trialling and implementing existing options than new research. (Single-industry; high priority) Export market access Verification trial for Qfly cold treatment protocols for Taiwan. - New data to verify the cold treatments developed in previous project. (Single-industry; high priority) Integrating cold storage practices to cold treatment protocols for fruit flies and other pests. - Collation of existing industry and technical information on cold storage and treatment practices; commercial scale trialling of options for fruit handling and security. (Singleindustry; high priority) Development and early implementation of export protocols. - Collation of existing industry and technical information; commercial scale trialling and implementation of export protocols. (Single-industry; high priority) Continuation of investment in residue and MRL issues. - Collation of information and preparation of guidelines on chemical residue and MRL issue. (Single or across-industry; high priority) Continuation of post-harvest disinfestation (including irradiation) activities for pests - Testing of new or improved disinfestation procedures for pests. (Single-industry; medium priority) Surveillance, information collation and documentation of pests and their management practices in all production regions. - Collation of existing information/records and collection of new information on the pests and diseases in each production region and management options. (Single-industry; medium priority) 19

22 Market promotion and awareness activities should be considered under the Industry Development investment area. Biosecurity and incursion protection Review and implementation of the Industry Biosecurity Plan. - On-going review of the Industry Biosecurity Plan, implementation of biosecurity awareness and further technical assessments of priority pests. (Single-industry; medium priority) Capacity to review and respond to analysis and reviews developed by DAFF or other agencies. - Technical review and response to draft analysis and import protocols. (Single-industry; low priority) Continuation of co-contributions to pollination R&D. - Based on the priorities developed through RIRDC s Pollination R&D Program and their management of other investment from the Australian Pollination Alliance. (Single-industry; low priority) Strategic investment Proportional co-contributions to across-industry market access programs including a peak forum and supporting technical advice. - Coordination and prioritisation of national market access priorities. (Across-industry; high priority) General Include consideration of pests and diseases that are important for export access within the Productivity, Irrigation, Pests & Soils (PIPS) project. (Single-industry; medium priority) - Conduct additional R&D required for export access and extend other work. Potential projects include: orchard management and pack-house inspection procedures of Fuller s Rose Weevil; area wide management of light brown apple moth; development of IPM and other orchard management manuals. 20