Maximizing Profitability When Going Organic

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1 Maximizing Profitability When Going Organic Maintaining yield and quality in certified organic apple orchards. Sponsored by : Jason Jarvis 2008 Nuffield Scholar

2 Acknowledgements Sponsors: Apple and Pear Australia Ltd and Horticulture Australia Ltd Nuffield Australia for making it possible Edgar Hawter for encouraging me to apply Scholars I travelled with on our global focus tour All the producers and researchers I visited with Parents / business partners Henry & Joy Wife Fiona and kids Davin and Kasey.

3 Presentation Overview Our business Aims of my Nuffield travels What is currently being achieved Factors affecting yield and quality Innovative pest management techniques Nutrient levels Biological trial in Hawkes Bay NZ Some issues identified Summary

4 Our family farming business in Donnybrook Western Australia Comprises Apple orchard Beef unit Pony Stud and riding stables Contract packing and cool storage operation

5 2008 Pink Lady harvest Varieties we produce : Sundowner Granny Smith Royal Gala Fuji Red Delicious Golden Delicious But mostly Pink Lady

6 Sister Sharon runs the pony stud and riding centre. Aims to produce high quality ponies suitable for young children to ride in the show ring and dressage arena, and her students have achieved national success. Father Henry runs 135 Red Poll breeders using Murray Grey as terminal sire.

7 Twin Apple Packhouse Packed export PL industry wide skin browning (superficial scald) issue on arrival in UK this issue coincided with the first year industry wide use of a certain postharvest chemical for rots massive losses were experienced by most WA export producers WA grower confidence in the export process has never really recovered Packing export Pink Lady for the UK

8 Our Journey Conventional chemical farming background Biological farming approach Applying for Organic Certification (3 year process) Using some Replacement Organic inputs Focus on producing nutrient dense high brix fruit

9 Aims of Nuffield Studies I set out searching for others who were successfully producing nutrient dense apples, unaffected by insects and disease, using a Biological Organic approach. I found that the vast majority of organic apples grown worldwide are produced using Replacement Organic means.

10 Replacement Organic Replace conventional inputs with organic Use compost / organic fertilizer to supply needs of crop Focus is on how to kill pests organically

11 Can profitability be maximized by maintaining yield and quality in certified organic apple production?

12 Organic producers in Washington State USA currently match conventional producers on yield and cost of production. Slide contents courtesy of David Granatstein WSU

13 Organic ahead on quality Slide contents courtesy of David Granatstein WSU

14 How do they do it Dry growing season, semi arid environment : 1. Low insect and disease pressure = minimal sulphur use 2. Effective LS + Fish oil thinning

15 Controlling disease with Sulphur it can cause russetting in certain climates can have a phytotoxic affect on leaves reducing level of photosynthesis resulting in smaller fruit and reduced yields 2050% variety dependant - their impact on photosynthesis up to 20+ times per a season Sulphur sprays: Leaf assimilation rate ( µmol m s ) most common organic fungicide 20 Braeburn apple 50% reduction control lime sulphur PPF (µmol m s ) 50% reduction in photosynthesis: reduced fruit size reduced fruit yield Slide contents courtesy of Jim Walker Hort Research NZ

16 Disease Resistant Cultivar Producers in high disease risk areas are planting resistant cultivars Many new cultivars becoming available Better eating than initial disease resistant options However consumer education is needed to introduce these new choices Juliet is being marketed as an organic only variety and growers must be certified to produce it.

17 Thinning influences on yield Up to 90% flowers need to be removed or Thinned Early removal = maximum size potential Over cropping can lead to biennial bearing Lime sulphur most common organic blossom thinner Can cause russeting issue in some climates Results can be variable Hand thinning expensive but allows removal of damaged fruit

18 Darwin - New thinning option Strengths Mechanical blossom thinner Guaranteed early thinning effect Not weather dependent Cost-effective Issues Tree shape and depth must suit Operator skill can have influence Non selective

19 How do producers outside Washington State compete? Those in a less favourable environment often rely on a replacement strategy and/or integrate a variety of marketing techniques in order to compete and remain profitable. E.g. locally produced, pick-your-own, box schemes, farmers markets or value added processed products.

20 Innovative Pest Management Technique Pest > Problem > Pigs > Plough > Produce > Plonk > Pulp > Manure > Pork > Profit

21 Another Innovative Pest Management Technique Michigan producer Bob Weaver Thermal Pest Control machine developed in Chile. Towed through orchard 5km/hr PTO powered fan, LPG burner 100 deg Celsius hot air blast Used weekly, regular shock first season achieved effective control of Plum Curculio, Aphid, Leaf Hopper, Mites, Leaf Miner, and Apple Maggot insect pests and partial disease control

22 Are all apples created equal? In 2008 the Australian Apple industry focused promotions on the many health attributes of apples The centerpiece was, the apple report, a review of research from around the world to validate the claim An apple a day keeps the doctor away Nowhere in this report does it say how production methods influence the nutritional value of apples. I believe as producers of the worlds nutrition, we are part of the wellness industry. But is it possible that this industry exists in part because collectively as producers we are not quite producing the goods. Two-time Nobel laureate, Dr Linus Pauling, claimed that, in his opinion: One could trace every sickness, every disease and every ailment to a mineral deficiency.

23 Nutrient Density USDA has tested nutrient values of many foods Steady decline nutrient values over past 50 yrs So which apple were those health benefits based on? The 1994 apple or the 2008 one? Why is the nutrient density decreasing? Is Australia any different? Nutrient Units Value per Value per % 100 grams 100 grams Change in 14 yrs Proximates Water g Energy kj Protein g Minerals Calcium, Ca mg Iron, Fe mg Potassium, K mg Copper, Cu mg Manganese, Mn mg Vitamins Apples, raw, with skin (1) Vitamin C, (Core totaland stem) mg Refuse: 10% ascorbic aciddomestica Scientific Name: Malus Common Name: Includes USDA commodity food A343 NDB No: (Nutrient values and weights are for edible portion) Footnotes: 1 Based on analytical data for red delicious, golden delicious, gala, granny smith, and fuji varieties. USDA National Nutrient Database for Standard Reference, Release 11 (1994) and Release 21 (2008)

24 Biological organic - Assisting nature Focus is on producing nutrient dense food Views insects and disease as symptom of low plant health status rather than cause Weed species as an indicator of soil nutrient status, a product of the environment in which it grows Healthy soil biology and balanced levels of plant available soil nutrients is the key

25 Some on-farm tools for monitoring sap to determine plant health Refractometer measures BRIX levels. The Higher the Brix reading the better. A fuzzy, high line indicates good levels of complex sugars and mineralization (Calcium) sap ph of 6.4 ideal. Below 6.4 = cation imbalance and disease pressure and above 6.4 = anion imbalance and insect pressure sap EC indicates level of simple ion uptake. If too low elements not available, too high mineral ions not complexed correctly (2-12 ms/cm) nitrate meter 5000ppm(veg) 3000ppm(fruit/s) potassium meter 3500ppm(v) 5000ppm(f/s)

26 Bio-Ag (NZ) Trial The purpose of the trial is to assess the ability of a BioAg biological programme to supply nutritional requirements and control pests and diseases, without using any of the typical organic control measures currently used in the majority of New Zealand organic apple orchards. BioAg biological verses input replacement Variety Braeburn 30m separating blocks First year of programme Prior to the trial, blocks managed identically Independent monitoring by Agfirst Results of second assessment Nick Pattison BioAg (NZ) tests Brix levels

27 Bio-Ag (NZ) Trial BioAg treated trees had: average 25% more apples per tree similar average fruit diameter significantly better leaf condition similar (low) level of leaf blackspot significantly lower levels of scale, codling moth, woolly apple aphid and russet (0.4% compared with 13.3%). similar leafroller and Elsinoe levels in fruit or leaves Unfortunately (and understandably) one season had not achieved perfect results and fruit black spot levels were 3.35% compared to 0.0% for the standard replacement organic treatment. Steve Haswell BioAg (NZ) tests for degree of soil compaction

28 Issues Identified Lack of consistency between countries Funding for organic research limited Published peer reviewed research? Most research reductionist by nature

29 Summary Development of new plant protection products has made organic production achievable for many producers who wish to take an input replacement approach. The use of plant protection products no matter how innovative or organic are really only covering up the symptoms of an unhealthy plant/soil. Access to these band aid solutions may be necessary in the short term but long term sustainability lies in addressing the underlying cause. Apple producers worldwide would benefit from a greater awareness, education and emphasis on encouraging, healthy soil biology and balanced plant available nutrition.

30 Thank you for listening For more info.

31 Australian Nuffield Farming Scholarships A World Experience Scholarships exclusively for Australian primary producers The mission of the Australian Nuffield Farming Scholars Association is to promote excellence in all aspects of Australian agricultural production, distribution and management through the adoption of local and international best practice and continuous development of a unique network of industry leaders and innovators

32 Further information Phone: Fax: enquiries@nuffield.com.au Further details on Nuffield may be downloaded from the Nuffield website:

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