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Emerging animal and plant industries

Their value to Australia

Max Foster and the Agricultural Commodities Section, ABARES

September 2014

RIRDC Publication No 14/069 RIRDC Project No PRJ-008496

ISBN 978-1-74254-685-8 ISSN 1440-6845

Emerging animal and plant industries—their value to Australia Publication No. 14/069 Project No. PRJ-008496

The information contained in this publication is intended for general use to assist public knowledge and discussion and to help improve the development of sustainable regions. You must not rely on any information contained in this publication without taking specialist advice relevant to your particular circumstances.

While reasonable care has been taken in preparing this publication to ensure that information is true and correct, the Commonwealth of Australia gives no assurance as to the accuracy of any information in this publication.

The Commonwealth of Australia, the Rural Industries Research and Development Corporation (RIRDC), the authors or contributors expressly disclaim, to the maximum extent permitted by law, all responsibility and liability to any person, arising directly or indirectly from any act or omission, or for any consequences of any such act or omission, made in reliance on the contents of this publication, whether or not caused by any negligence on the part of the Commonwealth of Australia, RIRDC, the authors or contributors.

The Commonwealth of Australia does not necessarily endorse the views in this publication.

This publication is copyright. Apart from any use as permitted under the Copyright Act 1968, all other rights are reserved. However, wide dissemination is encouraged. Requests and inquiries concerning reproduction and rights should be addressed to the RIRDC Publications Manager on 02 6271 4165.

Researcher contact details

Agricultural Commodities Section ABARES

PO Box 1563 Canberra 2601 Phone: +61 2 6272 2010 Fax: +61 2 6272 2040 Email: [email protected]

In submitting this report, the researcher has agreed to RIRDC publishing this material in its edited form.

RIRDC contact details

Rural Industries Research and Development Corporation Level 2, 15 National Circuit BARTON ACT 2600

PO Box 4776 KINGSTON ACT 2604

Phone: 02 6271 4100 Fax: 02 6271 4199 Email: [email protected]. Web: http://www.rirdc.gov.au

Electronically published by RIRDC in September 2014 Print-on-demand by Union Offset Printing, Canberra at www.rirdc.gov.au or phone 1300 634 313

Foreword

New and emerging industries need readily accessible information about farm production, processing and marketing techniques. Information about the nature of the international and domestic markets that each emerging industry will be supplying is often neglected. This report identifies a broad range of new and emerging industries in Australia, at various stages in their development cycles. It also points to a number of industries that were classified as new and emerging over the past decade, but are now in decline or—in some cases—have ceased to exist. It is inevitable that some new industries will not become successful and sustainable in the long run. This is the third edition of Emerging animal and plant industries—their value to Australia, all of which have been funded by the Rural Industries Research and Development Corporation. The first edition was published in 2005 and the second edition in 2009. The 2014 edition has been extended to include information about international markets for new industries that are prospective in Australia, but where there are not yet commercial producers; for example, the guar and stevia industries. This report is an addition to RIRDC’s diverse range of over 2000 research publications and it forms part of our R&D program, which aims to facilitate the development of new and developing plant and animal industries that have commercial potential for Australia. Most of RIRDC’s publications are available for viewing, free downloading or purchasing online at www.rirdc.gov.au. Purchases can also be made by phoning 1300 634 313.

Craig Burns Managing Director Rural Industries Research and Development Corporation

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Abbreviations kg kilogram = 2.20462 pounds t tonne = 1000 kilograms kt kilotonne = 1000 tonnes Mt megatonne = 1 000 000 tonnes L litre kL kilolitre = 1000 litres ML megalitre = 1 000 000 litres GL gigalitre = 1 000 000 000 litres ha hectare A$ dollar (Australian) $m million dollars (Australian) $b billion dollars (Australian) US$ dollar (United States) US$m million dollars (United States) US$b billion dollars (United States) cif cost, insurance and freight EVAO estimated value of agricultural operations fas free alongside ship fob free on board GDP gross domestic product na not available nc not calculated nec not elsewhere classified nes not elsewhere specified p provisional ABARES Australian Bureau of Agricultural and Resource Economics and Sciences ABS Australian Bureau of Statistics DAFF Australian Government Department of Agriculture, Fisheries and Forestry FAO Food and Agriculture Organization of the United Nations RIRDC Rural Industries Research and Development Corporation WTO World Trade Organization UNCTAD United Nations Conference on Trade and Development Small discrepancies in totals are generally caused by rounding. 0 is used to denote nil or a negligible amount.

Contents

Foreword ...... iii

Abbreviations ...... iv

Overview ...... xiv Method of analysis ...... xiv Valuing production ...... xiv Data sources ...... xv Key findings ...... xvi

Emerging livestock industries ...... 1 Alpacas ...... 3 Buffaloes ...... 6 Camels ...... 8 Dairy sheep ...... 11 Deer ...... 13 Emus ...... 17 Game birds ...... 19 Game pigs ...... 23 Goats...... 24 Meat goats ...... 25 Cashmere ...... 27 Mohair ...... 29 Dairy goats ...... 31 Kangaroos and wallabies ...... 33 Kangaroos ...... 33 Wallabies ...... 35 Ostriches ...... 36 Possums ...... 39 Rabbits, farmed ...... 41 Aquaculture and fisheries ...... 43 Carp ...... 44 Crocodiles ...... 46 Freshwater crayfish ...... 49 Mulloway ...... 51 Murray cod ...... 53 Seaweed...... 54

Emerging plant industries ...... 59 Asian vegetables ...... 60 Wombok (Chinese cabbage) ...... 62 Bitter melon ...... 63 Japanese pumpkin ...... 64 Okra ...... 64 Snake bean ...... 65 Taro (large corm) ...... 66 Wasabi ...... 67 Australian native foods ...... 68 Bush tomato ...... 71 Davidson plum ...... 71 Kakadu plum ...... 71

Lemon myrtle ...... 72 Mountain pepper ...... 72 Native limes ...... 72 Quandong ...... 73 Riberry...... 73 Wattleseed ...... 73 Cocoa ...... 74 Coffee ...... 77 Culinary herbs ...... 80 Dates ...... 82 Essential oils ...... 83 Boronia oil ...... 87 Eucalyptus oil ...... 88 Lavender oil ...... 89 Peppermint oil ...... 91 Sandalwood ...... 94 Tea tree oil ...... 97 Grains, seeds and plant fibre ...... 99 Chia ...... 99 Guar seed ...... 100 Industrial hemp ...... 102 Quinoa ...... 104 Olives ...... 105 Spices ...... 110 Coriander seed ...... 114 Ginger ...... 115 Saffron ...... 117 Stevia ...... 118 Tea ...... 120 Overview ...... 120 World tea market ...... 120 Australian tea consumption ...... 121 Black tea ...... 122 Japanese green tea ...... 123 Tree nuts ...... 125 World tree nut market ...... 125 Hazelnuts ...... 128 Walnuts ...... 130 Tropical exotic fruit ...... 134 Durian ...... 136 Jackfruit ...... 137 Longan...... 139 Lychees ...... 140 Mangosteen ...... 142 Papaya and pawpaw ...... 143 Pitaya (dragon fruit) ...... 145 Rambutan ...... 146 Truffles ...... 147 Wildflowers and native plants ...... 151

Appendixes ...... 157 Appendix A: Value of Australian farm and fisheries production and exports ...... 157 Appendix B: Levies applicable to emerging industries in Australia ...... 161

References ...... 163

Tables

Table 1: Emerging industries in Australia: value of production, exports and imports ...... xvi

Table 2: Alpacas: product supply, disposal and value, Australia ...... 5

Table 3: Buffaloes: supply, disposal and value, Australia ...... 7

Table 4: Camels: supply, disposal and value, Australia ...... 10

Table 5: Sheep milk and cheese: key characteristics of the world market ...... 11

Table 6: Sheep milk: supply, disposal and value, Australia ...... 12

Table 7: Deer products: supply, disposal and value, Australia ...... 16

Table 8: Emu products: supply disposal and value, Australia ...... 18

Table 9: Game birds: key characteristics of the world market ...... 20

Table 10: Game birds: supply, disposal and value, Australia ...... 21

Table 11: Game birds (other than duck and turkey): Australian production, 2001–02 and 2011–12 22

Table 12: Game pig meat: supply, disposal and value, Australia ...... 23

Table 13: Goat products: key characteristics of the world market ...... 25

Table 14: Goat products: supply, disposal and value, Australia ...... 26

Table 15: Cashmere: key characteristics of the world market ...... 27

Table 16: Cashmere: supply, disposal and value, Australia ...... 28

Table 17: Mohair: supply, disposal and value, Australia...... 30

Table 18: Goat milk products: supply, disposal and value, licensed dairy farms, Australia ...... 32

Table 19: Kangaroo products: supply, disposal and value, Australia ...... 34

Table 20: Wallaby products: supply, disposal and value, Tasmania ...... 36

Table 21: Ostrich products: supply, disposal and value, Australia ...... 38

Table 22: Possum products: supply, disposal and value, Tasmania ...... 41

Table 23: Rabbit meat: key characteristics of the world market...... 42

Table 24: Rabbit products: supply, disposal and value, Australia ...... 43

Table 25: Carp: supply, disposal and value, Australia...... 46

Table 26: Crocodilian products: world trade in skins and meat a ...... 48

Table 27: Crocodile products: supply, disposal and value, Australia ...... 49

Table 28: Freshwater crayfish: supply, disposal and value, Australia ...... 51

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Table 29: Seaweed: key characteristics of the world market ...... 54

Table 30: Seaweed products: supply, disposal and value, Australia ...... 56

Table 31: Selected Asian vegetables: average prices, Sydney wholesale market ...... 61

Table 32: Wombok (Chinese cabbage): supply, disposal and value, Australia ...... 63

Table 33: Bitter melon: supply and value, Northern Territory ...... 64

Table 34: Okra: supply and value, Northern Territory ...... 65

Table 35: Snake bean: supply, disposal and value, Northern Territory ...... 65

Table 36: Major Australian native foods from plants ...... 69

Table 37: Selected Australian native foods: production, prices and value of production ...... 70

Table 38: Cocoa beans (raw and roasted): key characteristics of the world market ...... 74

Table 39: Cocoa products: supply, disposal and value, Australia ...... 76

Table 40: Coffee: key characteristics of the world market ...... 77

Table 41: Coffee: supply, disposal and value, Australia ...... 79

Table 42: Culinary herbs: supply, disposal and value, Australia ...... 80

Table 43: Culinary herbs: prices, fresh product, Melbourne wholesale market ...... 81

Table 44: Dates: key characteristics of the world market ...... 82

Table 45: Dates: supply, disposal and value, Australia ...... 83

Table 46: Essential oils: characteristics of world trade ...... 84

Table 47: Essential oils: Australian exports and imports, by type ...... 86

Table 48: Boronia oil: supply, disposal and value, Australia ...... 87

Table 49: Eucalyptus oil: supply, disposal and value, Australia ...... 89

Table 50: Lavender oil: supply, disposal and value, Australia ...... 91

Table 51: Peppermint oil: supply, disposal and value, Australia ...... 93

Table 52: Sandalwood products: supply, disposal and value in Australia ...... 97

Table 53: Tea tree oil: supply, disposal and value, Australia ...... 99

Table 54: Guar seed products: supply, disposal and value, Australia...... 102

Table 55: Industrial hemp: key characteristics of the world market ...... 103

Table 56: Olive products: key characteristics of the world market ...... 106

Table 57: Olive products: supply, disposal and value, Australia ...... 108

Table 58: Spices: characteristics of world trade ...... 110

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Table 59: Spices: exports and imports, Australia ...... 113

Table 60: Coriander seed: supply, disposal and value, Australia ...... 115

Table 61: Ginger: supply, disposal and value, Australia ...... 116

Table 62: Saffron: key characteristics of the world market ...... 117

Table 63: Saffron: supply, disposal and value, Australia ...... 118

Table 64: Tea: key characteristics of the world market ...... 121

Table 65: Tea: supply, disposal and value, Australia ...... 123

Table 66: Japanese green tea: supply, disposal and value, Australia ...... 125

Table 67: Tree nuts: prices, Melbourne wholesale market ...... 127

Table 68: Hazelnuts: key characteristics of the world market ...... 128

Table 69: Hazelnuts: supply, disposal and value, Australia ...... 130

Table 70: Walnuts: key characteristics of the world market ...... 131

Table 71: Walnuts: supply, disposal and value, Australia ...... 133

Table 72: Selected tropical exotic fruit: average prices, Sydney wholesale market ...... 134

Table 73: Durian: supply, disposal and value, Australia ...... 137

Table 74: Jackfruit: supply, disposal and value, Australia ...... 138

Table 75: Longan: supply, disposal and value, Australia ...... 140

Table 76: Lychee: supply, disposal and value, Australia ...... 141

Table 77: Mangosteen: supply, disposal and value, Australia ...... 143

Table 78: Papaya: supply, disposal and value, Australia ...... 145

Table 79: Rambutan: supply, disposal and value, Australia ...... 147

Table 80: Truffles: key characteristics of European Union trade ...... 148

Table 81: Truffles: supply, disposal and value in Australia ...... 150

Table 82: Wildflowers: Australian species ...... 153

Table 83: Wildflowers: supply, disposal and value, Australia ...... 155

Table A1: Gross value of Australian livestock production ...... 157

Table A2: Gross value of Australian fisheries products a ...... 158

Table A3: Gross value of Australian crop production ...... 159

Table A4: Value of exports of crops and crop products ...... 160

Figures

Figure 1: Emerging industries in Australia: growth in the value of production and trade between 2006–07 and 2011–12, by sector, Australia ...... xix

Figure 2: Livestock: value of production, Australia, by sector, 2011–12 ...... 1

Figure 3: Emerging animal industries: number of process plants, by species, Australia ...... 3

Figure 4: Alpacas: meat and fibre production and farmgate prices, Peru ...... 4

Figure 5: Alpaca tops: exports and export prices, Peru ...... 4

Figure 6: Alpacas: offer prices, Australian Alpaca Fleece Limited, by fleece type, 2010–11 and 2011–12 a ...... 6

Figure 7: Buffaloes: live exports from Northern Territory, by destination ...... 8

Figure 8: Camels: world production and trade ...... 9

Figure 9: Roquefort cheese: exports and export prices, France ...... 12

Figure 10: Traditional sheep milk cheeses: imports and import prices, Australia ...... 13

Figure 11: Venison: New Zealand exports and export prices a ...... 14

Figure 12: Emu meat: Australian production, exports and export prices ...... 18

Figure 13: Game birds and chicken: world production for food a ...... 19

Figure 14: Game birds: world meat imports and import prices ...... 20

Figure 15: Game bird meat: exports and export prices, Australia a ...... 23

Figure 16: Game pig meat and offal: European Union imports and import price by source ...... 24

Figure 17: Live goats: exports and export prices, Australia ...... 26

Figure 18: Goat meat: exports and export prices, Australia ...... 27

Figure 19: Cashmere: Chinese production, exports and export prices ...... 28

Figure 20: Mohair: world production and South African average auction prices ...... 30

Figure 21: Goat milk (whole, fresh): world production and producer price in France ...... 32

Figure 22: Kangaroo meat: exports and export prices, Australia ...... 35

Figure 23: Ostrich: slaughterings and returns, South Africa ...... 37

Figure 24: Ostrich meat: production, exports and export prices, Australia ...... 38

Figure 25: Brushtail possums: commercial harvest and quota in Tasmania ...... 40

Figure 26: Rabbit meat: world production, exports and export prices ...... 42

Figure 27: Aquaculture: value of production, by sector, 2011–12 ...... 44

Figure 28: Carp: European Union imports and import prices ...... 45

Figure 29: Carp: production and unit values, Victorian and South Australian waters ...... 46

Figure 30: Crocodilians: world exports of crocodilian skins, by species a ...... 47

Figure 31: Freshwater crayfish: world production and producer prices ...... 50

Figure 32: Freshwater crayfish: production and producer prices, Australia ...... 51

Figure 33: Wild catch mulloway: production and prices, South Australia ...... 52

Figure 34: Farmed mulloway: production and prices, New South Wales ...... 53

Figure 35: Murray cod: aquaculture production and prices, New South Wales ...... 54

Figure 36: Seaweed: world production, imports and import prices ...... 55

Figure 37: Alginic acid: trade and prices, Australia...... 57

Figure 38: Horticulture: value of production, Australia, by sector, 2011–12 ...... 59

Figure 39: Asian vegetables (fresh and dried): value of Australian exports to Asia, by region ...... 62

Figure 40: Wombok (Chinese cabbage): production, exports and export prices, Australia...... 63

Figure 41: Japanese pumpkin: Japanese imports from Australia ...... 64

Figure 42: Okra and taro: world production ...... 65

Figure 43: Taro: world exports and export prices ...... 66

Figure 44: Taro: imports and import prices from Fiji, Australia ...... 67

Figure 45: Wasabi: production, Japan, 2010 ...... 68

Figure 46: Selected Australian native foods: value of production, around 2011 ...... 70

Figure 47: Cocoa products: composition of the value of world exports ...... 75

Figure 48: Cocoa beans: world production, imports and import price ...... 75

Figure 49: Coffee beans: world production and indicator prices ...... 78

Figure 50: Culinary herbs: gross value of Australian production of herbs, 2010–11, by state ...... 80

Figure 51: Culinary herbs (dried): imports and import prices, Australia ...... 81

Figure 52: Dates: world production, exports and export prices ...... 82

Figure 53: Essential oils: composition of world trade value a ...... 85

Figure 54: Eucalyptus oil: Australian exports and export prices ...... 89

Figure 55: Lavender oil: production and prices, France ...... 90

Figure 56: Peppermint oil: production and grower prices, United States ...... 92

Figure 57: P eppermint oil: world exports and export prices ...... 92

Figure 58: Peppermint oil: Australian exports, imports and prices ...... 93

Figure 59: Sandalwood oil: import and export volumes and prices, India...... 94

Figure 60: Sandalwood: imports of wood and wood powder, Taiwan ...... 95

Figure 61: Sandalwood: production and payments to harvesters, Western Australia ...... 96

Figure 62: Tea tree oil: production and farmgate returns, Australia ...... 98

Figure 63: Chia: production and returns to growers, Mexico ...... 100

Figure 64: Guar gum powder: world exports and export prices ...... 101

Figure 65: Guar seed: Indian production and US import prices ...... 101

Figure 66: Industrial hemp products: exports and export prices, Canada ...... 103

Figure 67: Quinoa: world production, exports and export prices ...... 105

Figure 68: Olive products: imports and import prices, Australia ...... 109

Figure 69: Olive products: exports and export prices, Australia ...... 109

Figure 70: Spices: value of world trade ...... 110

Figure 71: Value of imports and exports, Australia ...... 112

Figure 72: Coriander seed: world exports and export prices ...... 114

Figure 73: Saffron: production and producer prices, Spain ...... 117

Figure 74: Glycosides: import value, Australia ...... 120

Figure 75: Tea: world production, exports and export prices ...... 121

Figure 76: Tea: value of grocery sales in Australia, by type, 2011–12 ...... 122

Figure 77: Japanese green tea: production and producer prices, Japan ...... 124

Figure 78: Tree nuts: value of world imports, by type a ...... 126

Figure 79: Tree nuts: country shares of the total value of world trade a ...... 126

Figure 80: Tree nuts: value composition of trade, Australia a ...... 127

Figure 81: Hazelnuts (in shell): production and prices, United States ...... 128

Figure 82: Hazelnuts: world imports and import prices ...... 129

Figure 83: Walnuts (in shell): production and grower prices, California ...... 132

Figure 84: Walnuts: world imports and import prices ...... 132

Figure 85: Selected tropical exotic fruit: production, Thailand ...... 135

Figure 86: Durian: world exports and export prices ...... 136

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Figure 87: Jackfruit: exports and export prices, Thailand ...... 138

Figure 88: Longan: production, exports and export prices, Thailand ...... 139

Figure 89: Lychee: production, exports and export prices, Thailand ...... 141

Figure 90: Mangosteen: production, exports and export prices, Thailand ...... 142

Figure 91: Papaya: world exports and export prices ...... 144

Figure 92: Rambutan: production, exports and export prices, Thailand ...... 146

Figure 93: Truffles: production and prices, monthly, France ...... 148

Figure 94: Cut flowers and foliage: value of world imports ...... 152

Figure 95: Wildflowers: flower and seed harvest from native environments of south-west Western Australia...... 154

Figure 96: Wildflowers: value of exports, Australia ...... 156

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Overview An increasingly diverse range of plant and animal commodities are produced in Australia. While the key characteristics of mainstream agricultural production in Australia are well-documented, there is relatively little public information for a large number of emerging agricultural products. Public information on emerging agricultural industries is important. New and emerging industries have a key role in giving growers the ability to spread risk through diversification. They can also confer regional distinctiveness—such as tropical fruits in Far North Queensland or truffles in Tasmania and south-west Western Australia. The lack of reliable statistics about emerging industries can hamper their development. The availability of information can significantly influence the availability of commercial funds because lenders and potential investors require access to reliable statistics. Only when statistics exist can effective policies be developed for emerging agricultural industries, such as in targeting research and development activities. Official statistics produced by the Australian Bureau of Statistics are an important source of information but do not cover all agricultural commodities produced in Australia. While there are other sources of information on emerging industries, it is often difficult to access this information and to establish comparable, robust statistics on the industries. Many of the emerging industries in Australia produce a diverse range of products. For example, goats can produce meat, fibres, milk, leather and a range of other by-products. RIRDC classifies around 80 different agricultural commodities as coming from emerging industries. Information on these emerging agricultural industries and new products from existing industries is highly valued by the industry, traders and consumers in Australia and overseas. Around 50 per cent of the value of emerging livestock products comes from export sales. The purpose of this project is to help address the gap in public information available on new and emerging industries. This publication is an update of a previous report published by RIRDC in January 2009 (Foster 2009), with additional sections on carp, chia, cocoa, dates, guar, industrial hemp, mulloway, Murray cod, quinoa, saffron, seaweed and stevia. In this report, a set of supply and utilisation tables is presented for a selected group of agricultural industries in Australia that are defined as ‘emerging’ by RIRDC, taking into account that each of these industries may produce a number of different products. Information is also provided on the nature of the international market for these commodities.

Method of analysis

Valuing production

The method of calculation of the gross value of commodities produced is that used by the Australian Bureau of Statistics (ABS) (see ABS 2012c) and is the value placed on recorded production at the wholesale prices realised in the market place. In general, the market place is the metropolitan market in each state. In cases where commodities are consumed locally, or where they become raw material for a secondary industry, these points are assumed to be the market place. A feature of many emerging animal industries is that they are in the process of building up flock or herd numbers. At this stage of industry development, there is usually little production that requires slaughter of animals (for example, meat and hides) and very strong intra-industry trade with breeding livestock. This trade is traditionally not considered as part of the value of the industry for estimation purposes so is not included in this analysis, but it is an important element for existing practitioners.

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In many cases an industry’s value of production will be less than the value of the industry’s exports. This is because there is substantial value added through processing before products are exported. For example, the tanning process with animal skins adds considerable value.

Data sources

The ABS is a key source of Australian information for this project, particularly for trade data. The approach in this report is to exclude re-exports and re-imports when reporting Australian trade data. Another highly useful source of information for a number of commodities is the Levies Revenue Service (LRS), an organisation within the Australian Government Department of Agriculture. The LRS is responsible for collecting and distributing levies to the various statutory research and development corporations, statutory marketing authorities, Animal Health Australia and the National Residue Survey. LRS is also responsible for distributing the Australian Government’s matching levy for research and development contributions. The LRS collects levies from over 60 industries. The natures of levies being applied on the products from emerging industries are outlined in Appendix B. More information on the LRS and levy arrangements is available at www.daff.gov.au/agriculture- food/levies. State departments responsible for agriculture and key industry representative bodies are the other key sources of information in Australia. The Northern Territory Department of Primary Industry and Fisheries is particularly useful because many of its activities are oriented toward emerging industries. Knowledge of the supply chain for each commodity helps identify where to gather statistics for that industry. For example, the marketing systems for the goat fibre industries (mohair and cashmere) are centralised, which makes gathering production statistics reasonably straightforward. The meat processing industry has readily identifiable points for gathering data because meat must be processed through a limited number of licensed processing establishments. There are regulatory bodies in each state that collect statistics on animal slaughter numbers for monitoring purposes. For plant-based industries, information can be collected from the major markets for fruit, vegetables and flowers in each of the mainland state capital cities—that is, Sydney, Melbourne, Brisbane, Perth and Adelaide. A reporting service for these markets is provided by the Ausmarket Consultants group (www.ausmarket.com.au). The FAOSTAT database of the Food and Agriculture Organization of the United Nations (FAO) (faostat.fao.org) was the primary source of international information on production for many emerging industries. The United Nations Commodity Trade Statistics Database (Comtrade) was the primary source for trade data. The European Commission’s EUROSTAT database provided some additional trade information for products that were not provided by FAOSTAT—for example, carp, game pigs and game birds. The United States Department of Agriculture (USDA) also has some useful world supply and disposal data for agricultural commodities—for example, tree nuts. Trade data for many countries are available online, usually maintained by each country’s customs service or government trade agency. These data usually have more commodity detail than the Comtrade database—country databases usually report trade code data to eight digits for exports and ten digits for imports, whereas Comtrade only reports trade codes to six digits. Where no FAO or USDA data are available, knowledge of the supply chain can help identify international sources of information. For example, South Africa is the main world producer and exporter of mohair; an industry body in that country—Mohair South Africa—gathers a range of statistics on the world mohair industry. The annual report of Klein Karoo International Ltd, the world’s key marketer of ostrich products, provides information on production and prices of ostrich products. Industry participants, particularly industry associations, were indispensible sources of information in Australia. These information sources are acknowledged throughout the report.

Key findings

Together the selected emerging industries had an estimated gross value of production of $912 million, equivalent to 1.9 per cent of the total value of Australian farm production in 2011–12. They earned estimated export revenue of $491 million in 2011–12, or 1.3 per cent of total farm and fisheries export revenue. Australian imports of products within the selected new and emerging industries totalled $1.24 billion in 2011–12. The selected livestock industries had an estimated gross value of production of $322 million in 2011– 12, and they earned export revenue of around $201 million (Table 1). The biggest of these industries were the game bird, meat goat and kangaroo industries, together accounting for 85 per cent of the total value of emerging livestock production and nearly 90 per cent of the total value of emerging livestock exports. Except for the dairy goat and deer industries, emerging animal industries face little competition from imports. The total value of imports of similar products to those produced by Australia’s emerging animal industries is less than $13 million, mainly from goat cheese. The main meat imports were venison from New Zealand, but the value of these imports had fallen from $2.8 million in 2006–07 to $0.6 million in 2011–12.

Table 1: Emerging industries in Australia: value of production, exports and imports, by industry

Gross value Exports Imports 2006–07 2011–12 a 2006–07 2011–12 2006–07 2011–12 $’000 $’000 $’000 $’000 $’000 $’000 Livestock Alpacas 1 245 2 625 16 0 468 60 Buffaloes 5 077 3 071 4 923 729 – – Camels 1 483 1 288 0 0 – – Dairy sheep 4 000 5 550 na na 732 551 Deer 3 047 1 659 3 251 1 985 2 814 633 Emus 1 256 561 1 032 641 – – Game birds 120 000 165 000 7 891 6 224 – – Game pigs 9 615 6 694 12 275 8 477 – – Goats – meat goats 57 208 81 137 88 748 127 046 264 6 – cashmere 103 72 83 11 0 0 – mohair 2 398 1 450 1 875 1 395 – – – dairy goats 6 000 11 025 na na 4 814 11 500 Kangaroos and wallabies 54 073 28 646 99 223 46 553 – – Ostriches 2 364 324 1 833 601 – – Possums 39 65 0 65 – – Rabbits, farmed 2 599 3 181 18 34 4 6 Total, livestock 273 629 321 966 224 814 200 680 9 096 12 756 Aquaculture Carp 1 447 585 0 68 – – Crocodile 10 179 51 859 10 139 15 048 – – Freshwater crayfish 4 251 3 996 – – – – Mulloway, farmed 107 488 – – – – Murray cod 331 291 – 0 0

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Gross value Exports Imports 2006–07 2011–12 a 2006–07 2011–12 2006–07 2011–12 $’000 $’000 $’000 $’000 $’000 $’000

Seaweed 3 000 2 500 2 978 2 213 18 858 23 284 Total, aquaculture 19 315 59 719 13 117 17 329 18 858 23 284 Plant Asian vegetables – wombok (Chinese cabbage) b b 1 500 129 – – – bitter melon 4 100 1 100 – – – – – Japanese pumpkin b b 468 0 – – – okra 1 129 1 300 – – – – – snake bean 1 400 1 000 – – – – – taro (large corm) 3 500 5 000 – – 4 574 2 984 – wasabi 68 240 – – – – – other Asian vegetables 66 803 76 860 na na na na Australian native foods – bush tomato 252 540 – – – – – Davidson plum 90 90 – – – – – lemon myrtle 4 200 15 000 – – na na – native limes 750 575 – – – – – quandong 252 180 – – – – – riberry 50 100 – – – – – wattleseed 216 150 – – – – Cocoa – 1 250 4 281 7 603 157 675 197 903 Coffee 7 780 11 376 113 758 168 688 302 607 596 118 Culinary herbs 18 863 46 000 na na 3 184 4 297 Dates – – 101 380 9 379 14 969 Essential oils – boronia 488 780 – – – – – eucalyptus 1 100 1 260 1 915 4 458 na na – lavender 466 1 313 392 190 na na – peppermint 187 750 390 343 1 479 1 165 – sandalwood 9 906 14 740 23 144 21 636 – – – tea tree 11 021 12 132 11 458 na na Grains and seeds – chia 2 600 3 000 – – – – – guar seed 0 0 310 614 11 334 46 384 – industrial hemp 80 300 0 0 15 160 – quinoa 0 160 0 19 na 2 650 Olives 64 060 169 300 17 048 20 412 281 181 158 514 Spices – coriander seed 991 1 400 1 759 646 461 404 – ginger 22 726 21 442 13 874 8 566 3 164 3 989 – saffron 50 150 11 148 538 1 165

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Gross value Exports Imports 2006–07 2011–12 a 2006–07 2011–12 2006–07 2011–12 $’000 $’000 $’000 $’000 $’000 $’000

– stevia 0 0 0 0 0 na Tea – black tea 1 808 1 984 2 484 3 436 88 948 87 959 – Japanese green tea 0 819 725 2 614 8 652 10 355 Tree nuts – hazelnuts 389 708 692 414 15 717 19 283 – walnuts 5 561 37 334 74 11 150 27 333 41 949 Tropical exotic fruit – durian 64 480 0 – 236 4 – jackfruit 1 102 7 240 – – 0 5 – longan 1 100 12 500 – – – – – lychees 13 378 15 177 9 418 – 149 48 – mangosteen 950 1 924 68 67 419 982 – papaya and pawpaw 17 370 22 625 18 10 918 590 – pitaya (dragon fruit) 416 2 250 – – – – – rambutan 1 204 3 760 – – – – Truffles 1 640 5 152 204 – 438 – Wildflowers and native plants 40 000 30 000 20 975 6 778 – – Total, plant 308 110 530 361 215 201 272 894 918 695 1 199 564 All industries 600 054 912 046 453 132 490 903 946 649 1 235 604 a 2011–12, or latest available data. b Included in ‘other Asian vegetables’. na Not available.

The gross value of selected aquaculture industries in 2011–12 was $59.7 million, up from $19.3 million in 2006–07 (Table 1). The crocodile industry accounted for the bulk of the value of production and exports. Australia imported seaweed products valued at $23.3 million, but the value of seaweed product exports (excluding beta-carotene for which data were not available) was only $2.2 million. The gross value of production of the selected emerging plant industries in 2011–12 was an estimated $530 million, up from $308 million in 2006–07 (Table 1). This was largely contributed by the more mature emerging industries—that is, olives, Asian vegetables and tropical exotic fruit (mainly papaya and lychee). Many of the emerging plant industries are export-oriented, with total exports of $273 million in 2011–12 compared with $215 million in 2006–07. Most of the emerging plant industries face strong competition from imports, particularly the cocoa, coffee, olive and tea industries. The total value of these plant product imports was nearly $1.2 billion in 2011–12, up from $919 million in 2006–07. For seasonal products such as tropical fruits and green tea the Australian industry’s niche appears to lie with supplying fresh product outside the main production periods of the main exporting countries that have substantially lower production costs. Percentage changes in the value of production, exports and imports between 2006–07 and 2011–12 for the emerging livestock, fisheries and plant industries are compared with Australian totals in Figure 1. The emerging livestock sector had lower growth rates for each of these measures than the total Australian livestock sector, mainly because of the loss of access to the Russian Federation market for kangaroo meat and contractions of the deer, emu and ostrich industries. The emerging fisheries sector had higher growth rates for gross value and value of exports than the Australian fisheries industry as a

xviii

whole, mainly because of strong growth in the farmed crocodile industry, but also higher growth in import value. The value of production of the emerging plant industries as a whole grew faster than the total plant industry in Australia over this period, but export value growth was slower.

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% 0

-50 gross value exports imports gross value exports imports gross value exports imports livestock industries aquaculture and fisheries plant industries new and emerging industries all industries

Figure 1: Emerging industries in Australia: growth in the value of production and trade between 2006–07 and 2011–12, by sector, Australia

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Emerging livestock industries

The emerging livestock industries in Australia produce a range of products, including meat, milk, fibre, skins and oil and fat. The estimated annual average value in Australia of the emerging livestock industries examined in this report was around $270 million in 2011–12. This compares with the average annual value of Australian livestock products in 2011–12 of $21.2 billion (Figure 2). More information on the production and exports of Australia’s animal-based agricultural industries is given in Appendix A.

Total value of livestock production: $21 224m

poultry, $2078m lamb, $1950m sheepmeat, $383m other livestock pigs, $934m products, $796m wool, $2857m

cattle, $651m Live exports Live milk, $3986m sheep, $345m

cattle and calves, Data source: ABARES (2013) $7244m

Figure 2: Livestock: value of production, Australia, by sector, 2011–12

Around 40 per cent of the total value of Australia’s emerging animal industries is based on harvesting wild resources—kangaroos, wallabies, wild pigs, feral goats, camels and possums. The value of these industries to Australia is greater than the value of their products because the culling of wild populations helps to reduce adverse impacts on agricultural production systems and damage to the environment. Wild pigs cause damage to riverine environments, while feral goats and camels damage sensitive rangeland and desert environments. Another 6 per cent of the total value of Australia’s emerging animal industries is based on farming native Australian animals, including crocodiles and emus. Wild harvesting or farming of Australia’s native animals is subject to strict conservation management plans. These management plans are consistent with Australia’s obligations under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), which aims to ensure that international trade in specimens of wild animals and plants does not threaten their survival. Farming of introduced animals—alpacas, buffaloes, deer, goats, ostriches and rabbits—makes up around one-half of the total value of Australia’s emerging animal industries. The opportunity for rabbit farming has largely emerged since 1996, when the industry based on harvesting wild rabbits at the time collapsed following the release of rabbit calicivirus in Australia. Some of the farmers in emerging animal industries appear to be attempting to diversify their production away from more traditional agricultural products. There is also a strong lifestyle element to many of the emerging livestock industries, with production occurring on hobby farms. Early entrants

to emerging animal industries have often benefited from supplying the lucrative market for breeding stock that characterises emerging animal industries in their early stages of development. The growth of some emerging animal industries is a response to Australia’s changing ethnic composition, to increasing awareness of healthy products and to changes in tastes and preferences as a result of growing incomes. The changing ethnic composition is influencing consumer preferences in the wider population, leading to increased demand for products like goat meat and milk from goats and sheep. Growing incomes mean increasing demand for more distinctive and healthier products. All of the emerging animal industries produce meat that easily meets the distinctive quality criteria. Most of the meats are claimed to be healthier than traditional meats because they have lower fat contents. Increasing domestic demand for dairy products from buffaloes, goats and sheep reflect the influence of Australia’s changing population and preferences. Leather is an important product of most emerging animal industries. In particular, the distinctive characteristics of leather from crocodiles, kangaroos and ostriches mean these leathers earn premium prices in world leather markets. The oil from emus and the velvet from deer have niches in the health products market. The emerging livestock industries are generally highly export-oriented, with more than half of all products exported. The degree of export means that trade barriers are important issues for emerging animal industries. An important factor facilitating exports of emerging industry meat is Australia’s relatively disease free status compared with many other countries, maintained through Australia’s strict quarantine arrangements. In recent years incidents of avian influenza in South Africa have severely disrupted South African exports of ostrich meat to its traditional markets in Europe, creating export opportunities for the Australian ostrich industry. While live exports account for 7.5 per cent of the total value of Australia’s emerging animal industries, there is considerable value-adding through processing. Based on an update of data originally reported in Wondu Business and Technology Services (2007), there were more than 180 abattoirs and processing plants (many handling a number of species) servicing Australia’s emerging animal industries (Figure 3). Wondu Business and Technology Services reported costs for processing of emerging animals of around $40 million a year. Around 30 of the abattoirs identified were licensed to export (export accredited), 20 had halal certification, 2 had kosher certification and 12 had organic certification. There are currently no export abattoirs for alpaca, buffalo or possum. The last export abattoir for buffaloes in the Northern Territory closed in 2004, which posed a problem for the buffalo industry, but a new export accredited abattoir may open in the Territory in the future.

yabby redclaw marron

crocodile Inland

fisheries carp wallaby possum game pig

Wild kangaroo harvest camel rabbit horse goat

deer Other

farmed buffalo livestock alpaca turkey spatchcock quail pigeon pheasant partridge

Bird ostrich guinea fowl goose emu duck no. 0 5 10 15 20 25 domestic only export accredited Data sources: ABARES; Wondu Business and Technology Services (2007)

Figure 3: Emerging animal industries: number of process plants, by species, Australia

Alpacas

Alpacas are native to South America and were initially imported to Australia from Peru, Bolivia, Chile and North America. There are two main alpaca types: Huacaya, making up around 90 per cent of the world population of alpacas, and Suri. With tight restrictions on the export of alpacas from South America, there is still a worldwide shortage of good alpaca breeding stock. Alpacas are a source of fibre, meat and leather. Alpaca fibre is soft, light, warm and comfortable when worn next to the skin. Its qualities and limited supply put it in the luxury fibre category. It is processed into a range of high-quality garments—suits, jackets, skirts, sweaters, scarves and headwear—and homewares such as rugs, blankets and continental quilts (as filling). Alpaca fibre comes in a range of natural colours, including white, silver, many shades of grey and fawn, chocolate brown and jet black. In South America, alpaca farming is concentrated in the Altiplano—the high altitude regions of southern Peru, Bolivia and Chile. Alpacas not only battle a harsh climate—burning sun by day, freezing conditions at night—but also receive few of the benefits of modern animal husbandry (Australian Alpaca Association 2002). Peru has approximately 2.5 million alpacas, Bolivia around 500 000 and there are some 50 000 in Chile and Argentina combined. Alpacas have flourished in countries such as Australia, Canada, France, Italy, New Zealand, South Africa, Spain, the United Kingdom and the United States under more temperate climates than their homelands and with more sophisticated animal husbandry techniques. Both alpaca meat and fibre production in Peru have been increasing steadily over the past decade (Figure 4). Peru produced 11 648 tonnes of alpaca meat and 4917 tonnes of alpaca fibre in 2012.

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2012 kt 0 0 US$/kg 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 meat production fibre production meat price (right axis) fibre price (right axis) Data source: Ministerio de Agricultura, Peru (2012)

Figure 4: Alpacas: meat and fibre production and farmgate prices, Peru

Prices for alpaca fibre generally differ according to fibre diameter, length and colour—fine, longer and white types command the highest price. Alpaca fibre tends to coarsen as animals age. Export prices of alpaca tops (scoured and combed fibre) from Peru have increased steadily since 2005, reflecting increased demand for exotic fibres (Figure 5). The main export destinations in 2012 for alpaca tops from Peru were China (45 per cent of the total value of exports), Italy (37 per cent), Japan (6 per cent), the United Kingdom (4 per cent), the Republic of Korea (3 per cent) and Taiwan (2 per cent). The total value of Peruvian alpaca tops exports in 2012 was US$30.4 million. In 2011, alpaca products valued at US$87 million were exported from Peru in the form of yarn (US$38 million), woven cloth (US$5 million), knitwear (US$32 million), woven garments ($7 million) and accessories (US$5 million) (COMEXPERU 2013).

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2012 kt 0 0 US$/kg 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

exports export price (right scale)

Data sources: AgrodataPeru (2012); COMEXPERU (2013)

Figure 5: Alpaca tops: exports and export prices, Peru

Australian alpaca industry

The Australian alpaca industry was established in the late 1980s and the registered flock size has grown to around 132 000 in 2011–12, more than 90 per cent of which are the Huacaya alpaca type (Table 2). Reflecting that the Australian industry is in a herd building phase, there has been little meat production to date and a substantial trade in breeding stock. An estimated 188 tonnes of alpaca fibre with a gross value of $2.6 million was produced in Australia in 2011–12. These production and gross value estimates were based on a number of assumptions. First, it is assumed that the population of alpacas in Australia is double the registered number of alpacas. Second, the average fleece weight was assumed to be 2.5 kilograms and, based on McGregor (2006), the proportions of saddle, neck and skirtings were 56 per cent, 16 per cent and 28 per cent respectively. The average fibre diameter was assumed to be 23.5 micron with a standard deviation of 4.3 micron, based on test results reported by Australian Alpaca Fibre Testing (2012).

Table 2: Alpacas: product supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Registered alpaca numbers ’000 72 84 100 100 122 134 132 at 30 June Fibre production – volume tonnes 82 102 125 129 163 184 188 – gross value $’000 778 1 245 1 496 1 419 1 708 2 149 2 625 – unit gross value $/kg 9.47 12.24 12.00 11.00 10.50 11.70 14.00 Meat production a tonnes na 3 na na na na 4 Exports Fibre, not carded or combed – volume tonnes 11.0 2.7 13.5 21.8 0.0 0.0 0.0 – value $’000 125 16 96 333 0 0 0 – unit value $/kg 11.29 5.97 7.09 15.29 na na na Imports, fine animal hair, Peru, carded or combed – volume tonnes 7 40 24 54 7 0 4 – value $’000 85 468 265 704 68 0 60 – unit value $/kg 11.59 11.73 11.06 12.93 10.41 na 13.67 a Dressed weight. na Not available. – Negligible. Sources: AAFL (2011); ABARES; ABS (2013); Australian Alpaca Association (2012)

Until recently, the main marketer of alpaca fibre in Australia was Australian Alpaca Fleece Limited (AAFL), a company established in March 2004. AAFL collects and classes alpaca fleeces before selling them to strategic partners who market their products nationally and internationally. AAFL replaced the Australian Alpaca Cooperative, which was established in 1995 under the Cooperatives Act 1995. In 2008 Grupo Inca—one of the largest processors of alpaca and other fibres in Peru— became the largest individual shareholder in AAFL with a holding of 28.7 per cent (AAFL 2013). A number of other major marketers of alpaca fibre now operate in Australia, including Cashmere Connections, Alpaca Ultrafine Bale and Alpaca Ultimate. A simple average of prices offered by these organisations was used as the unit gross value of production of alpaca fibre. AAFL purchase prices for the various types of alpaca in 2010–11 and 2011–12 are shown in Figure 6. Alpaca fibre prices decline as fibre coarsens and there is a substantial discount for coloured fibre compared with white fibre. Most of the fibre with commercial value is contained in the so-called saddle of the alpaca; the neck and leg fibre contains a lot of coarse guard hair. The saddle makes up approximately 56 per cent of the total fleece weight, neck fibre 16 per cent and skirtings 28 per cent (McGregor 2006).

$/kg 0 x-fine (73% of fleece <22 fine (57% of fleece <22 medium (11% of fleece adult (2% of fleece <22 micron) micron) <22 micron) micron) white, 2011–12 b white, 2010–11 b coloured, 2011–12 coloured, 2010–11 a Based on whole shorn fleece, including neck and pieces, GST excluded. b Including light fawn 'near-white'. Data source: AAFL (2011)

Figure 6: Alpacas: offer prices, Australian Alpaca Fleece Limited, by fleece type, 2010–11 and 2011–12 a

Prices are very high for suitable breeding alpacas in Australia, reflecting the herd building phase of the Australian industry and the worldwide scarcity of breeding stock, but are expected to decline as the herd builds. The average price received for elite stud alpacas at the Australian Alpaca Association’s National Show and Sale in October 2006 was $40 000, with a top price of $124 000 for a male alpaca. At the National Show and Sale in October 2012, the average auction price was only $19 083, with a top price of $61 000.

Further information about alpacas

 Alpha Tops Group (www.alphatops.com)—monthly prices for alpaca fibre, by broad category.  Australian Alpaca Association (www.alpaca.asn.au)—information from the industry representative body in Australia, including an online magazine Alpacas Australia (subscription required).  Australian Alpaca Fleece Limited (www.australianalpacafleece.com.au)—information on the marketing of alpaca products.  International Alpaca Association (www.aia.org.pe)—information on alpacas, mainly in Peru, including some Peruvian export data.  The Schneider Group (www.gschneider.com/brochure/specialfibres.php)—prices and other market information for alpaca fibre.

Buffaloes

Buffaloes are used as draught animals in poorer countries, particularly in Asia. Buffalo meat is used for human and pet food and buffalo hides are a valuable co-product of meat production. Buffaloes are an important source of milk in some countries, accounting for 13 per cent of world milk production over the three years to 2010. Mozzarella cheese was originally made from buffalo milk. India is the main exporter of buffalo meat, with average exports of 527 000 tonnes in the three years to 2010 (FAO Statistics Division 2013). Over the same period, an average 32 000 live buffaloes a year were also exported, mainly from India and Nepal.

There are three broad types of domesticated buffalo:  the River type—the milking animal of the Indian subcontinent  the Swamp type—widely used in South-East Asia as a draught animal  the Mediterranean type—used for both draught and dairy purposes (Australian Buffalo Industry Council 2011).

Australian buffalo industry

Buffalo were introduced to the Northern Territory in the early 19th century. A large feral buffalo population soon became established, peaking in the 1980s at around 350 000 head, before strict disease eradication measures against bovine tuberculosis in the early 1990s. The buffalo population in the Northern Territory was declared free of bovine tuberculosis in 1997. It is estimated that there is currently a feral buffalo population in the Northern Territory of around 150 000 head (DSEWPaC 2011a) and a domesticated herd of around 9500 head on 12 farms. There are also very small buffalo herds in all the other states. Throughout Australia in 2011-12, there were 65 farms with an estimated total of around 12 000 buffaloes. The buffalo herd in the Northern Territory is made up mainly of the originally introduced Swamp type. River buffalo were imported in the mid-1990s and have been crossed with Swamp buffalo to produce faster growing animals. Most of the Riverine buffalo in Australia are located on five buffalo dairy enterprises in Victoria, Queensland and the Northern Territory. Buffalo meat is claimed to be leaner and lower in cholesterol than beef (Lemcke et al. 2006). To assist marketing, the Australian buffalo industry has introduced a label called TenderBuff™ for buffalo meat that meets its specified quality standards for the restaurant trade. The gross value of the Australian buffalo industry in 2011–12 was around $3.2 million, which mainly comprised of milk and meat production, and live exports from the Northern Territory (Table 3). Live buffalo exports from Australia were down sharply in 2011–12, largely because live cattle exports were suspended by the Australian Government for a period. The closure of the only export accredited buffalo abattoir in the Northern Territory in 2003 has meant no Territory buffalo slaughter for export since. However, construction commenced in late 2012 on a new export abattoir near Darwin with the capacity to process 200 000 cattle a year.

Table 3: Buffaloes: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Meat production Farms no. 67 65 Buffaloes no. 13 559 12 000 Slaughterings no. 365 228 80 146 136 236 171 Average slaughter weight kg/head 112 112 112 112 112 112 112 Meat production tonnes 41 26 9 16 15 26 19 Gross value, meat a $’000 4 028 5 077 3 682 3 326 3 163 1 874 841 Milk production Farms no. 5 Milk production kl 847 Gross value, milk $’000 2 330 Total gross value 3 171 Exports, live Volume no. 4 707 6 564 4 786 4 213 3 741 2 166 1 003 Value $’000 3 766 4 923 3 628 3 226 3 063 1 706 729

Unit value $/head 800 750 758 766 819 788 727 a Includes value of live exports. Sources: ABARES; ABS (2013); Barry Lemcke (pers. comm., 15 February 2013); Lemcke & Suarez (2010); Levies Revenue Service (2012)

The main markets for live exports of Australian buffalo are Brunei, Indonesia and Malaysia (Figure 7). Indonesia emerged as a major export market, following the signing of an animal health protocol with Australia in October 2005. A factor in the increased demand for live buffalo exports in the mid-2000s was buffalo herd rebuilding after the Asian tsunami of late 2004. More recently (2013/14 and figures not yet available) Vietnam has opened as an important live export destination

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head 0 2002–03 2005–06 2008–09 2011–12 Brunei Indonesia Malaysia Other

Data source: Northern Territory Department of Primary Industry and Fisheries (2012b)

Figure 7: Buffaloes: live exports from Northern Territory, by destination

Buffalo milk production was estimated at nearly 850 000 litres in 2011–12, with a gross value of $2.3 million.

Further information about buffaloes

 Pastoral Market Update (www.nt.gov.au/d/publications/index.cfm?fj=Pastoral%20Market%20Update%20Newsletter)— live exports of buffaloes via Darwin port.  Australian Buffalo Industry Council (www.buffaloaustralia.org)— information about the buffalo industry in each Australian state and territory.

Camels

The two species of camel are the dromedary or Arabian camel (Camelus dromedarius) with a single hump and the Bactrian camel (Camelus bactrianus) with two humps. Camels are used in many parts of the world, mainly as a beast of burden and as a source of milk and dung. Camels are also slaughtered for meat for human consumption and pet food. Other camel products include leather, camel wool and camel oil. There is also a camel racing industry. World camel slaughter has grown at around 2 per cent a year over the past 10 years, to reach a record 1.91 million head in 2011 (Figure 8). Annual world trade of live camels averaged around 230 000 head in the five years to 2010, while recorded world trade in camel meat averaged slightly less than

450 tonnes (carcass weight). Saudi Arabia accounted for over 40 per cent of the world’s live camel imports over this period; the other major importers were Egypt (22 per cent), Qatar (20 per cent) and United Arab Emirates (16 per cent). The main suppliers of live camels to the world trade were Djibouti (22 per cent), Saudi Arabia (22 per cent), former Sudan (19 per cent) and United Arab Emirates (14 per cent). World import prices for live camels have fluctuated around US$380 a head in real terms over the 10 years to 2010 (Figure 8).

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'000 2012 head 0 0 US$/head 1991 1996 2001 2006 2011 slaughter live imports live import price (right axis) Data source: FAO Statistics Division (2013)

Figure 8: Camels: world production and trade

Australian camel industry

The Australian camel industry is largely based on feral dromedary camels harvested in the arid central regions of Australia. Australia’s feral camel population was believed to be as large as 1 million head in 2010 and doubling every nine years (Natural Resource Management Ministerial Council 2010). Around 45 per cent of feral camels are located in Western Australia, 27 per cent in the Northern Territory, 18 per cent in South Australia and 10 per cent in Queensland. Feral camels cause environmental damage and economic losses to agricultural producers and communities in central Australia. The National Feral Camel Action Plan was announced in November 2010, aimed at removing 670 000 camels over the first four years of the plan and another 500 000 camels in the following four years, to reduce the density of feral camels to less than 0.1 animal per square kilometre over their range. Australian slaughtering of camels were estimated at around 2750 head in 2011–12, made up of 55 per cent for human consumption (domestic and export) and around 45 per cent for pet food (Table 4). Live export of camels peaked at 415 head in 2001–02, declining to only 36 head in 2012. The estimated gross value of the Australian camel industry in 2011–12 was around $1.3 million. Slaughter of camels for human consumption began in Alice Springs in the 1980s. Warfield and Tume (2000) identified annual camel meat production of 35–50 tonnes in the late 1990s, which was sold in South Australia and the Northern Territory through supermarket chains. Australian exports of camel meat have been growing in recent years. Australian exports of camel meat (fresh, chilled or frozen meat and edible meat offal) were 1136 tonnes in 2012 (the only year for which data are available), with an export value of $4.84 million (ABS 2013). The main export markets for Australian camel meat in 2012 were Morocco (960 tonnes), the United States (169 tonnes), Qatar (3.5

tonnes) and Hong Kong (1.1 tonnes). There are export accredited abattoirs at Peterborough in South Australia and Caboolture in Queensland.

Table 4: Camels: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Slaughterings – human consumption no. 198 390 1 500 – pet food no. 4 000 4 000 1 250 Meat production – human consumption tonnes 65 129 450 – pet food tonnes 1 200 1 200 375 Gross value $’000 1 532 1 483 1 288 Exports Live a – volume no. 68 343 0 0 0 0 36 – value $’000 49 245 0 0 0 0 45 – unit value $/hd 715 715 na na na na 1 246 Meat – volume tonnes 1 136 – value $’000 4 836 – unit value $/hd 4.26 a Via Darwin port only, before 2011–12. Sources: ABARES; ABS (2013); Northern Territory Department of Primary Industry and Fisheries (2012b)

The Northern Territory traditionally supplies most of Australia’s live camel exports. However, there appears to have been no live camel exports from the Northern Territory since 2006–07. In the four years to 2006–07, shipments of live camels from the Northern Territory were made to Malaysia (68 per cent of total numbers) and Brunei (32 per cent) (Northern Territory Department of Primary Industry and Fisheries 2012b). There were also exports of live camels to Saudi Arabia before 2003. Zeng and McGregor (2008) identified that around 3600–4600 camels a year were used as pet food at average prices of $187–$225 a camel. However, a scientific study published in March 2011 (Fitzgerald et al. 2011) that associated some dog deaths to a diet of camel meat has sharply reduced demand for camels for pet food. Australia also exports camel wool, though it has not been possible to find statistics on these exports. Mongolia produced 1100 tonnes of camel wool in 2010 from a herd of 255 000 camels (National Statistical Office of Mongolia 2012). Adult camels in Mongolia produce around 3.5 kilograms of fine wool a year and 1.5 kilograms of coarse wool (UNIDO 2011).

Further information about camels

 Australian Camel Industry Association Inc (www.australiancamelindustry.com.au)—a range of information including trading specifications for live camels and camel meat, and a code of practice for the welfare and husbandry of camels.  Australian Feral Camel Management Project (www.feralcamels.com.au)—information on the distribution and management of feral camels in Australia.  FAO’s online database (faostat.fao.org)—a range of data by country, including camel numbers and meat production; volume and value of trade (live and meat); and camel milk production.

 Northern Territory Department of Primary Industry and Fisheries, Pastoral Market Update (www.nt.gov.au/d/publications/index.cfm?fj=Pastoral%20Market%20Update%20Newsletter)— monthly live exports of camels via Darwin port.

Dairy sheep

Milk from sheep is an important dairy product in many countries. Apart from being consumed as milk, sheep milk is processed into yoghurts and specialty cheese. A cheese made exclusively from sheep milk is Roquefort, a blue cheese traditionally produced in France. The name ‘Roquefort’ has protected designation of origin status under the laws of the European Union. This means the only cheese that may bear that name is made from ewe’s milk from the Lacaune breed of sheep, produced in the Roquefort region and aged in the natural Cambalou caves of Roquefort-sur-Soulzon. Roquefort accounted for 35 per cent of the cheese made from sheep milk in France in 2011 (FranceAgriMer 2012c). Feta cheese is also traditionally made from sheep milk in some regions. Another sheep milk cheese is romano pecorino from Italy. Annual world production of sheep milk averaged 9.5 million tonnes in the three years to 2011, equivalent to around 1.3 per cent of annual world production of all milk types, while cheese production averaged 656 000 tonnes (Table 5). The main producers of sheep milk and cheese are China and countries in Europe and the Middle East. Around 8 per cent of world sheep cheese production enters world trade.

Table 5: Sheep milk and cheese: key characteristics of the world market

Volume a Value a Key countries volume shares (average, three years to 2011) Production Milk 9 526 kt na China (17%), Turkey (9%), Greece (8%), Syria (7%), Romania (7%), Somalia (6%), Spain (6%), Iran (5%), Italy (5%), France (3%) Cheese 656 kt na Greece (19%), China (16%), Syria (9%), Italy (9%), Spain (8%), France (8%), Turkey (4%), Romania (4%), Iran (3%) World trade Cheese 54 kt US$423 Exporters: Italy (44%), France (21%), Bulgaria (13%), Luxembourg (10%), million Greece (5%) Importers: United States (51%), Germany (14%), United Kingdom (8%), Luxembourg (6%), Spain (4%), Sweden (3%), Netherlands (3%), France (2%) a Annual average, three years to 2011. Sources: FAO Statistics Division (2013)

French exports of Roquefort cheese grew steadily to 3858 tonnes in 2006 but have eased to around 3500 tonnes in recent years (Figure 9).

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2012 tonnes 0 0 US$/kg 1997 2002 2007 2012

exports export price (right axis)

Data source: European Commission (2013)

Figure 9: Roquefort cheese: exports and export prices, France

Australian dairy sheep industry

There were 13 commercial dairy sheep farms in Australia, with an estimated flock size in 2011–12 of 5500 sheep (Table 6). One of these farms only produced sheep milk for soap. The main sheep breeds used for milking are Awassi and East Friesian. Estimated production of sheep milk in Australia in 2011–12 was around 550 000 litres, with the Victorian farm (Meredith Dairy) accounting for around 40 per cent of the total. Unlike cows’ milk in Australia that is delivered to central processors, sheep milk is usually processed on farm. The estimated gross value of sheep milk products at the farm gate was around $5.5 million in 2011–12. Around 60 per cent of Australian sheep milk production is used to make yoghurts, and the rest for cheese. No data are available for sheep milk used to produce soap. The Meredith Dairy produces a blue sheep milk cheese with Roquefort characteristics—a white mould ripened cheese of a Camembert style—and also uses sheep milk (along with goat milk) in its feta cheese.

Table 6: Sheep milk: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Commercial farms no. 8 13 Dairy sheep no. 4 000 5 500 Milk ’000 litres 500 550 Gross value a $’000 4 000 5 500 Cheese imports Feta b – volume tonnes 3 296 2 783 3 030 3 042 2 922 2 696 2 104 – value $’000 16 530 16 697 19 746 23 495 18 836 17 537 15 218 – unit value $/kg 5.01 6.00 6.52 7.72 6.45 6.51 7.23 Roquefort, from France – volume tonnes 39 30 26 19 23 24 25 – value $’000 973 732 643 576 615 595 551 – unit value $/kg 24.97 24.03 24.37 30.30 26.89 24.36 22.02

a Value at the farm gate of milk, yoghurt and cheese produced on the farm. b May also be made from cow, goat and other milk. Sources: ABARES; ABS (2013); Dairy Authority of South Australia (2012); Dairy Food Safety Victoria (2012); New South Wales Food Authority (2012); Stubbs & Abud (2009)

Australia imports small quantities of Roquefort cheese from France at prices of $22–$30 a kilogram in recent years (Table 6). Import prices for Roquefort cheese were relatively high in real terms in the 2000s but have declined in recent years (Figure 10). There are also substantial Australian imports of feta cheese made from cow, goat and other milk types.

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2011-12 tonnes 0 0 $/kg 1991–92 1996–97 2001–02 2006–07 2011–12

Roquefort imports, from France feta imports Roquefort import price, from France (right axis) feta import price (right axis)

Data source: ABS (2013)

Figure 10: Traditional sheep milk cheeses: imports and import prices, Australia

Further information about sheep milk

 Australian Specialist Cheesemakers’ Association (www.australiancheese.org).  Dairy Industry Association of Australia (www.diaa.asn.au).  Meredith Dairy (meredithdairy.com)—operates one of the largest sheep dairies in Australia.

Deer

Deer are species in the family Cervidae, mainly white tailed deer (Odecoileus virginianus), mule deer (Odocoilus hermonius), elk/wapiti (Cervus canadiensis), moose (Alces alces), reindeer/caribou (Rangifer tarandus), fallow deer (Dama dama), roe deer (Capreolus capreolus), rusa/sambar (Rusa timorensis) and chital (Axis axis). Approximately two million deer are farmed worldwide, more than half of which are in New Zealand. There are also large farmed herds in the United States (270 000 in 2007, according to USDA 2013a), Europe (around 200 000 in 2012, according to Federation of European Deer Farmers Associations 2013) and Australia (around 45 000 in 2010–11, according to ABS 2012a). Deer products are also widely sourced from wild herds in Europe (particularly Russia) and North America. The main products from deer farming are venison and velvet antler, the immature antler that is widely used in traditional Asian (particularly Chinese) medicine. Velvet is cut from live deer under anaesthetic. Other parts of deer are also used in traditional Asian medicine, including the pizzle, tail, sinews, heart and blood.

Hunters pay to hunt deer in enclosed parks or hunting preserves. In the United States, around one-third of the nearly 8000 deer farming operations in 2007 were run either partly or wholly as hunting preserves and there is a large breeding industry to supply the hunting preserves (Anderson et al. 2007). Deer urine as a hunting attractant is a significant output of the US farmed deer industry.

New Zealand deer industry

New Zealand is the largest producer of farmed deer in the world, with around 3800 farms in 2010–11 carrying 1.06 million deer, down from 1.76 million deer in 2004. New Zealand accounts for more than half of the world’s farmed deer. In 2011–12 New Zealand exported 15 271 tonnes of venison, 179 tonnes of velvet, 239 000 square metres of leather and 187 000 deer hides (Deer Industry New Zealand 2013). The total value of exports of deer products in 2011–12 was NZ$268 million, of which venison made up 77 per cent, velvet 10 per cent, leather 7 per cent, hides 2 per cent and other coproducts (pizzles, sinews and tails) 7 per cent. A surge in New Zealand deer production in the first half of the 2000s pushed New Zealand venison exports to record levels but put strong downward pressure on venison export prices (Figure 11). However, lower New Zealand venison production since then has resulted in some recovery in venison prices. In 2011–12 Germany accounted for 34 per cent of New Zealand’s venison exports, the Netherlands 11 per cent, the United States 9 per cent, Belgium 9 per cent, Finland 8 per cent and Switzerland 5 per cent, with the rest of Europe accounting for most of the remainder (Statistics New Zealand 2013).

40 20

30 15

20 10

10 5

kt 0 0 2011–12 NZ$/kg 1999–2000 2002–03 2005–06 2008–09 2011–12

exports export price (right axis)

a October-September years. Data sources: Deer Industry New Zealand (2013); Statistics New Zealand (2013)

Figure 11: Venison: New Zealand exports and export prices Deer velvet prices, as indicated by New Zealand unit export returns, have also improved since 2004– 05 in response to lower production in New Zealand. China accounted for 70 per cent of New Zealand’s velvet exports in 2011–12, with the other main markets being Republic of Korea (23 per cent) and Hong Kong (4 per cent) (Statistics New Zealand 2013).

Australian deer industry

In 2010–11 there were 1436 farms carrying deer in Australia, with a total of 45 073 deer (ABS 2012a). There are deer herds in every state; Queensland, Victoria and New South Wales account for more than 70 per cent of deer on farms (ABS 2012a). The composition of the Australia deer herd in 2010 was

approximately 48 per cent red deer, 44 per cent fallow deer, 3 per cent rusa/sambar, 4 per cent chital and 1 per cent elk/wapiti (Shapiro 2010). Slaughterings of deer in Australia in 2011–12 were estimated at 5784 head (Table 7), only 12 per cent of the record level of 2002–03. The combination of extended drought and lower prices in recent years for both venison and deer velvet have resulted in deer farmers leaving the industry. The gross value of the Australian deer industry was estimated to be around $1.7 million in 2011–12, with meat production accounting for more than half of the total. Deer in Australia are usually sold direct to processors. A processor will purchase animals direct from the farmer and arrange the transport, slaughtering, boning, packaging and marketing. Around 85 per cent of all venison produced in Australia is exported, principally to Europe. The Australian deer industry faces competition in the domestic market from New Zealand venison. However, according to Statistics New Zealand (2013), New Zealand exports of venison (including offal) to Australia were only 25 tonnes in 2011–12 with a value converted to Australian dollars of $633 000 (Table 7). New Zealand venison exports to Australia peaked at 1 624 tonnes in 2005–06 when the New Zealand industry was looking for new markets because of increased production. Australian velvet is sold through pooling arrangements or at the farm gate. The main pooling arrangement is operated by Deer Horn and Co-Products Pty Ltd, a wholly owned company of the Deer Industry Association of Australia, the Australian deer industry’s peak body. The main export markets for Australian deer velvet are Hong Kong, China, the Republic of Korea and Taiwan.

Table 7: Deer products: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 VENISON Production Slaughterings no. 25 762 15 989 15 556 13 383 11 101 6 888 5 784 Volume tonnes a 901 616 576 498 410 289 223 Gross value $’000 2 188 1 662 1 723 1 998 1 599 1 146 949 Unit value $/kg 2.43 2.70 2.99 4.01 3.90 3.97 4.25 Exports Live deer – volume no. 801 404 682 90 0 0 0 – value $’000 70 39 73 13 0 0 0 – unit value $/head 87.48 97.2 107.7 144.4 na na na Venison – volume tonnes 765 523 490 423 349 245 190 – value $’000 2 232 1 695 1 758 2 038 1 631 1 169 968 – unit value $/kg 2.92 3.24 3.59 4.81 4.68 4.76 5.10 Hides, leather – volume no. 13 351 16 989 14 916 15 577 4 054 5 615 4 415 – value $’000 349 390 333 437 180 142 264 – unit value $/kg 26.18 22.95 22.33 28.03 44.39 25.31 59.71 Total export value $’000 2 652 2 125 2 164 2 487 1 811 1 311 1 231 Imports of venison (including offal) from New Zealand Volume tonnes 1 624 840 54 32 19 22 25 Value $’000 4 476 2 814 683 414 588 579 633 Unit value $/kg 2.76 3.35 12.63 13.02 30.57 26.68 25.49 ANTLER VELVET Production Volume kg 35 884 20 877 12 296 17 663 13 779 14 020 12 089 Gross value $’000 567 1 385 726 798 844 758 710 Unit value $/kg 15.80 66.33 59.06 45.17 61.28 54.10 58.77 Exports Volume kg 16 215 20 361 3 255 14 556 11 266 13 260 11 577 Value $’000 599 1 504 209 713 757 784 754 Unit value $/kg 36.94 73.88 64.35 48.98 67.22 59.09 65.11 ALL DEER PRODUCTS Gross value $’000 2 755 3 047 2 449 2 796 2 444 1 904 1 659 Total export value $’000 3 251 3 629 2 374 3 200 2 569 2 094 1 985 a Hot carcass weight. Sources: ABARES; Levies Revenue Service (2012); Statistics New Zealand (2013)

Further information about deer

 Deer Industry Association of Australia (www.deerfarming.com.au)—production and marketing information for deer in Australia.  Deer Industry New Zealand (www.deernz.org.nz)—information on production and prices for deer products in New Zealand.

Emus

The emu (Dromaius novaehollandiae), a native of Australia, is the world’s second largest living bird (only the ostrich is larger). An adult emu can weigh over 50 kilograms. Commercial farming of emus began in Western Australia in 1987 and has spread to all other mainland states. Wild harvesting of emus is prohibited in all states and emu farmers must be licensed. In 2001 there were around 145 establishments producing emus in Australia, but this declined to less than 30 in 2012. There are emu industries in other countries, most notably the United States and Canada. The United States had around 48 000 farmed emus in 2002, but the number dropped to 28 000 by 2007, mostly in Texas, California and Alabama (USDA 2013a). Canada had nearly 60 000 farmed emus and rheas on 910 farms in 1996 but the number fell to only around 4000 on 182 farms in 2006 (Statistics Canada 2008). The main products from emus are meat, oil and skins for leather. Emu meat is low in fat and cholesterol and high in protein. Emu oil, rendered from emu fat, is sold as an oil to relieve joint pain, soft tissue injury and dermatitis, as well as a base for a range of cosmetics (O’Malley & Snowden 1999). Body and leg skin is used to make high-quality leather. The average meat yield from an emu is 12 kilograms and the oil yield is 6 litres. Based on a model emu farming operation in Australia, Hassall & Associates (2000) found that oil would make up around 45 per cent of the total revenue from such an operation; meat, 42 per cent; hides, 8 per cent; leg skin,3 per cent; and trim, 2 per cent. Emu oil is exported to a number of countries, including the United States. However, it has not been possible to locate reliable data for Australian emu oil production and exports. To estimate the value of Australian emu production, assumptions have been made about the volume of emu oil produced and exported. It is assumed that each emu slaughtered produces 6 litres of oil and that 80 per cent of Australian production is exported. A similar estimate was made for emu skins where no reliable data are available. There is only limited demand for Australian emu leather in international markets, though MacNamara and colleagues (2003) highlight the potential in the US and Chinese markets if improvements can be made in the tanning process. It is assumed that one-third of emu skins from slaughtered birds are used; that the domestic price for raw, salted skins is $66 a skin; and that 50 per cent of all skins produced are exported in raw, salted form. Emu production in Australia declined substantially from the peak of 21 000 birds slaughtered in 1996, to only 3108 in 2011–12 (Table 8). The value of emu production was estimated to be $561 000 in 2011–12.

Table 8: Emu products: supply disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Slaughterings no. 4 173 7 002 5 344 3 395 2 253 2 650 3 108 Meat production a tonnes 50.1 84.0 64.1 40.7 27.0 31.8 37.3 Oil production kL 25.0 42.0 32.1 20.4 13.5 15.9 18.6 Gross value $’000 829 1256 926 533 359 495 561 Exports Meat and edible offal – volume tonnes 9.6 18.3 20.9 7.1 7.0 9.7 13.4 – value $’000 111.1 180.5 194.0 55.0 55.9 101.7 133.4 – unit value $/kg 11.61 9.86 9.29 7.79 8.02 10.53 9.96 Oil – volume tonnes 20.0 33.6 25.7 16.3 10.8 12.7 14.9 – value $’000 485 813 621 394 262 308 361 – unit value $/kg 35.00 45.00 52.00 55.00 56.00 57.00 58.00 Hides and leather – volume no. 689 1155 882 560 372 437 513 – value $’000 23 38 29 18 12 14 17 – unit value $/skin 33.00 33.00 33.00 33.00 33.00 33.00 33.00 Total export value $’000 619 1 032 844 468 330 424 511 a Based on a dressed weight of 12 kilograms a bird. Sources: ABARES; ABS (2013); Levies Revenue Service (2012)

100 20

75 15

50 10

25 5

2011–12 tonnes 0 0 $/kg 2002–03 2005–06 2008–09 2011–12 production exports export price (right axis) Data sources: ABARES; ABS (2013); Levies Revenue Service (2012)

Figure 12: Emu meat: Australian production, exports and export prices

Further information about emus

 Emu Web Australia (www.emuindustry.asn.au), website of the Emu Industry Federation of Australia, the industry representative body.  American Emu Association (aea-emu.org)—information about emu products and the farmed emu industry in the United States.

Game birds

Birds usually referred to as game birds include turkey (Meleagris gallopavo; Meleagris ocellata), goose (Anser cygnoides), duck (Anas domesticus; Cairina moschata; Anas platyrhynchos), pheasant (Phasianus colchicus), plover, quail, grouse, partridge, guinea fowl (Numida meleagris), spatchcock and squab (young pigeon, Columbia livia domestia). They have been traditionally harvested from the wild but most game birds now consumed are raised on farms. Annual world production of meat from game birds averaged 11.8 million tonnes in the three years to 2010 and consisted mostly of meat from turkeys, ducks, geese and guinea fowl (Figure 13). This puts game bird production at around one-sixth the size of world chicken meat production. The United States produces nearly half of the world’s turkey meat and China accounts for around two-thirds of world duck meat production (Table 9).

goose and guinea fowl, 2.4 Mt duck, 3.9 Mt other bird, 0.1 Mt turkey, 5.5 Mt

chicken, 83.2 Mt a Annual average, three years to 2010. Data source: FAO Statistics Division (2013)

Figure 13: Game birds and chicken: world production for food World imports of game bird meat grew strongly during the 1990s but have levelled off at around 1.5 million tonnes over the past decade (Figure 14). At the same time, unit export returns for game bird have trended upward in real terms.

Table 9: Game birds: key characteristics of the world market

Item Volume a Value a Key countries (share of total volume in the three years to 2010) Production Turkey 5 467 kt na United States (49%), Germany (8%), Brazil (8%), France (8%), Italy (6%), United Kingdom (3%), Canada (3%) Duck 3 906 kt na China (67%), France (7%), Malaysia (3%), Myanmar (2%), Thailand (2%), Vietnam (2%) Goose and guinea 2 425 kt na China (95%), Egypt (1%), Poland (1%), Hungary (1%) fowl World trade Turkey meat 876 kt US$2 237 Exporters: United States (28%), France (13%), Brazil (12%), Germany (8%), million Poland (8%), Italy (6%), Hungary (4%), Netherlands (4%), United Kingdom (3%) Importers: Mexico (19%), Germany (10%), Russian Federation (5%), Austria (5%), Benin (4%), Belgium (4%), China (4%), Netherlands (3%), Saudi Arabia (3%), South Africa (3%), France (3%), Spain (3%), United Kingdom (4%) Duck, goose and 255 kt US$1 111 Exporters: France (19%), China (16%), Hungary (16%), Germany (10%), guinea fowl meat million Poland (8%), Netherlands (6%), Brazil (5%), Bulgaria (4%), United States (3%), United Kingdom (3%) Importers: Hong Kong (20%), Germany (19%), France (8%), United Kingdom (6%), Qatar (6%), Spain (4%), Austria (3%), Denmark (3%) a Annual average, three years to 2010. Sources: FAO Statistics Division (2013); United Nations Statistics Division (2013)

1200 8

900 6

600 4

300 2

2012 kt 0 0 US$kg 1991 1996 2001 2006 2011 imports, turkey imports, other game bird import price, turkey (right axis) import price, other game bird (right axis) Data source: United Nations Statistics Division (2013)

Figure 14: Game birds: world meat imports and import prices

Australian game bird industry

There are game bird industries in all states in Australia; the main producing states are New South Wales and Victoria. Turkey and duck accounted for around 90 per cent of the value of production of the game bird industry in 2011–12 (Table 10), equivalent to around 10 per cent of the total gross value of poultry meat production in Australia. Other game bird production contributed 6 per cent of the total value of the industry. An estimated 7 million ducks with a gross value of $81 million were processed in Australia in 2011– 12. The number of ducks processed in Australia has been growing at around 5 per cent a year over the

10 years to 2011–12. This reflects the growing Chinese population in Australia, who are traditionally consumers of duck meat. The Australian market is dominated by two large Australian-owned processing companies—Pepe’s Ducks Pty Ltd, processing over 70 000 ducks a week, and Luv-a-Duck Limited, located in the Wimmera district of Victoria and processing around 60 000 ducks a week. These companies also raise ducks and contract other growers to supply ducks for processing. Most ducks are raised in barns, but not in cages. Ducks raised using free range methods attract price premiums. An estimated 3.3 million turkeys were processed in Australia in 2011–12 with a gross value of $82 million. There are around 20 turkey growers in Australia, but the industry is dominated by two large producers and processors that are also Australia’s largest producers of chicken meat—Inghams Enterprises (recently sold to overseas interests) and Steggles Pty Limited. Both companies also contract other growers to supply turkeys for processing.

Table 10: Game birds: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Ducks and drakes – slaughterings ’000 5 195 5 408 6 117 6 315 6 448 7 608 7 054 – production a tonnes 11 828 11 647 13 620 16 005 – gross value $’000 29869 46 584 82 484 81 235 Turkeys – slaughterings ’000 3 761 3 477 3 544 3 262 – production a tonnes 23 895 23 176 20 851 23 039 – gross value $’000 64 716 65 277 67 135 81 904 Other fowls – slaughterings ’000 7 034 7 297 5 827 8 425 – production a tonnes 9 004 8 825 3 557 4 912 – gross value $’000 9 520 8 137 4 928 9 460 Total gross value $’000 104 105 119 999 154 547 172 599 Exports Turkey – volume tonnes 5 999 7 084 5 953 5 034 3 499 2 783 4 545 – value $’000 5 500 6 754 6 488 5 342 4 868 4 056 5 666 – unit value $/kg 0.92 0.95 1.09 1.06 1.39 1.46 1.25 Other game birds – volume tonnes 161 293 296 303 260 500 318 – value $’000 718 1 137 1 721 1 582 1 569 1 368 558 – unit value $/kg 4.44 3.88 5.82 5.23 6.03 2.73 1.76 Total export value $’000 6 217 7 891 8 209 6 924 6 437 5 424 6 224 a Dressed weight of whole birds, pieces and giblets. Sources: ABARES; ABS (2012b, 2013, unpublished data)

A breakdown of game birds other than duck and turkey processed in Australia in 2001–02 and 2011– 12 is shown in Table 11. The quail, squab and guinea fowl industries are the largest of the ‘other game birds’ category. While the throughput of most of these industries has declined, the value of their retail sales has increased substantially.

Table 11: Game birds (other than duck and turkey): Australian production, 2001–02 and 2011– 12

Species Processed Meat, dressed weight Retail value ’000 tonnes $’000 Quail 2001–02 6 500 1 560 14 000 2011–12 6 500 1 560 35 642 Squab 2001–02 680 238 6 800 2011–12 323 140 12 396 Pheasant 2001–02 60 72 1 260 2011–12 20 24 480 Guinea fowl 2001–02 40 48 6 200 2011–12 35 42 1 428 Partridge 2001–02 18 19 300 2011–12 18 19 440 Goose 2001–02 5 16 400 2011–12 5 16 731 Total 2001–02 7 303 1 953 28 960 2011–12 6 978 1 801 51 116 Sources: ABARES; Leech et al. (2003)

Around 10 per cent of Australia’s game bird meat is exported and this is mainly turkey meat (Figure 15). Unit export returns in real terms for turkey meat have trended downward. While there has been substantial growth in Australian exports of game bird meat since 1990, the small size of the Australian industry makes it difficult to compete on price with the major world producers (Leech et al. 2003).

8 12

6 9

4 6

2 3

2011–12 kt 0 0 $/kg 1991–92 1996–97 2001–02 2006–07 2011–12 exports, turkey exports, other game bird export price, turkey (right axis) export price, other game bird (right axis) a Meat and offal, including preserved meat. Data source: ABS (2013) Figure 15: Game bird meat: exports and export prices, Australia

Further information about game birds

 Australasian Turkey Federation (www.turkeyfed.com.au)—includes a newsletter.  PoultryHub (www.poultryhub.org)—website maintained by the (Australian) Poultry Cooperative Research Centre, and includes information about the various game bird species.  Scott, P, Turner, A, Bibby, S & Chamings, A 2009, Structure and dynamics of Australia’s commercial poultry and ratite industries, report prepared for the Australian Government Department of Agriculture, Fisheries and Forestry, Canberra, daff.gov.au/__data/assets/pdf_file/0008/1132793/structure-poultry-ratite-ind.pdf (pdf 1590 kb).

Game pigs

The game pig industry in Australia is based on harvesting the feral pig (Sus scrofa) populations that have established since European settlement. Game pigs are usually shot in the wild; very small numbers are trapped and slaughtered at abattoirs. An estimated 23.5 million feral pigs are spread across all of the sparsely populated areas of Australia except the arid inland (DSEWPaC 2011c). Populations are most dense in wetlands and seasonally inundated floodplains. Feral pigs cause considerable environmental damage through destroying vegetation, competing with native wildlife for food sources, and wallowing and rooting practices that lead to soil erosion. Australian game pig production can vary considerably from year to year because of seasonal conditions. Feral pig numbers have exploded in recent years in response to favourable seasonal conditions in Australia’s eastern states after a sequence of droughts (Table 12).

Table 12: Game pig meat: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Kill ’000 119.3 165.3 150.1 92.0 100.7 108.5 112.4 Volume tonnes 1 491 2 066 1 876 1 150 1 259 1 356 1 405 Gross value $’000 9 764 12 738 12 188 9 059 6 702 7 866 8 697 Exports

Volume tonnes 1 471 2 046 1 856 1 130 1 239 1 336 1 385 Value $’000 12 211 15 676 14 897 10 785 8 345 9 723 10 650 Unit value $/kg 8.30 7.66 8.03 9.55 6.74 7.28 7.69 Sources: ABARES; Levies Revenue Service (2012)

There is only a very small domestic demand for game pig meat. The main export markets for Australian game pig meat are in the European Union, particularly Germany, France and the Netherlands. There are no statistics for game pig meat exports in ABS (2013) but some idea of Australian exports and export prices can be gained from import statistics from the European Commission (2013) that have a ‘non-domestic’ (wild) swine category. EU imports of Australian game pig peaked in 1999 but reached very low levels in 2009 and 2010 (Figure 16). Australia’s main competitor in the European game pig market is the United States. Together, Australia and the United States accounted for 96 per cent of the total volume of EU game pig imports in the three years to 2011. Unit import prices for the EU market for Australian game pig meat reached the highest level on record in real terms in 2011 (Figure 16). Australia’s average export return for game pig meat is more than twice that for farmed pig meat.

6000 9

4000 6

2000 3

20122012 tonnes 0 0 Tonnes US$/t 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 US$/t

imports, Australia imports, other countries a import price, Australia a Excludes intra European Union trade. Data source: European Commission (2013)

Figure 16: Game pig meat and offal: European Union imports and import price by source

Australian game pig meat cannot be exported to Canada, the United States and the Republic of Korea because these countries require an ante-mortem examination that is not possible with pigs shot in the wild.

Goats

Goats are hardy and versatile animals producing meat, milk, fibre (cashmere and mohair) and skins. They adapt to a wide range of climatic conditions and are easily integrated into wheat and sheep farms or grazing enterprises in most agricultural areas in Australia. There are a number of goat-based industries in Australia with different degrees of specialisation in these products. These can be broadly categorised as meat goats, cashmere goats, angora (mohair producing) goats and dairy goats.

Meat goats

Annual world production of goat meat is around 4.3 million tonnes, less than 1 per cent of which enters world trade (Table 13). Annual world trade in live goats averaged US$110 million in the three years to 2011, while the goat meat trade was valued at US$84 million. Islamic countries are the main importers of live goats; live imports enable these countries to satisfy requirements for halal slaughter. The United States is the main importer of goat meat.

Table 13: Goat products: key characteristics of the world market

Item Volume a Value a Key countries (share of total volume in the three years to 2012) Production Meat 4 345 kt na China (43%), India (12%), Pakistan (9%), former Sudan (4%), Nigeria (3%), Bangladesh (3%), Nigeria (3%) World trade Live b na US$110 Exporters: Syria (44%), Australia (16%), Somalia (11%), Iran (10%), United million Arab Emirates (5%) Importers: Saudi Arabia (37%), Oman (20%), Bahrain (10%), Jordan (9%), Yemen (7%), Malaysia (3%)

Meat 25 kt US$84 Exporters: Australia (48%), China (11%), France (8%), New Zealand (8%), million Ethiopia (7%), Spain (4%), India (3%), Brazil (3%) Importers: United States (37%), Saudi Arabia (10%), Hong Kong (10%), Italy (6%), France (5%), Canada (5%), Qatar (4%), Portugal (3%) a Annual average, three years to 2005. b Trade shares are based on trade value because quantity data appear unreliable. Sources: FAO Statistics Division (2013); United Nations Statistics Division (2013)

Australian meat goat industry

Around 90 per cent of Australia’s meat production is derived from rangeland type goats, mainly from feral populations. There are at least 2.6 million feral goats in Australia but the populations vary widely according to the availability of water and feed in the rangelands (DSEWPaC 2011b). Goat meat is also a by-product of specialist goat milk, mohair and cashmere production. Specialist meat production breeds other than rangeland goats are being increasingly used—mainly the Boer goat but also Kalahari red goats. Around 1.78 million goats were slaughtered in Australia in 2011–12 and there were live exports of around 71 900 goats (Table 14). Apparent domestic consumption of goat is currently around 1500 tonnes a year—and is growing due to changes in the ethnic composition of the Australian population—but more than 95 per cent of Australian goat meat production is exported. Small quantities of goat meat are imported. Australian exports of live goats fluctuate according to seasonal conditions, particularly those in the pastoral zones of Australia ( Figure 17). Almost all live exports of goats from Australia are air freighted. Australia is the world’s second largest exporter of live goats, with the main markets being Malaysia (87 per cent of total Australian live goat exports in the three years to 2011–12) and Singapore (10 per cent). Average export prices for live goats have levelled off at around $135 a head in 2011-12 dollars over the past five years.

Table 14: Goat products: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Slaughterings ’000 1 336 1 350 1 189 1 363 1 803 1 819 1 781 Average slaughter weight kg 15.0 15.3 15.4 15.5 15.5 15.5 15.5 Meat tonnes 20 047 20 588 18 312 21 131 27 943 28 200 27 600 Value of production $’000 49 947 57 208 44 596 45 938 75 942 100 194 81 137 Exports Live goats – volume ’000 43.8 75.3 78.2 87.5 95.3 68.3 71.9 – value $’000 5 452 9 857 9 946 10 378 10 956 9 672 9 654 – unit value $/head 124.58 130.82 127.15 118.60 114.96 141.64 134.27 Meat – volume tonnes 21 730 17 997 15 721 20 223 27 363 26 686 26 729 – value $’000 82 116 76 790 55 188 71 629 104 051 124 486 113 606 – unit value $/kg 3.78 4.27 3.51 3.54 3.80 4.66 4.25 Hides – volume tonnes 239 340 402 239 262 865 1 060 – value $’000 1 133 1 792 1 581 1 090 645 2 729 3 784 – unit value $/kg 4.74 5.27 3.93 4.56 2.47 3.16 3.57 Leather – volume tonnes na na na na na na na – value $’000 348 310 36 96 1 9 3 – unit value $/kg na na na na na na na Total export value $’000 89 049 88 748 66 752 83 193 115 653 136 895 127 046 Imports Meat – volume tonnes 22.5 55.5 0.0 163.5 29.8 26.0 0.5 – value $’000 113 264 0 872 138 116 6 – unit value $/kg 5.02 4.75 na 5.33 4.63 4.45 12.83 Sources: ABARES; ABS (2012c, 2013); Levies Revenue Service (2012); Meat & Livestock Australia (2013)

150 250

120 200

90 150

60 100

30 50

'000 2011–12 0 0 $/head head 1991–92 1996–97 2001–02 2006–07 2011–12

exports export price (right axis) Data source: ABS (2013) Figure 17: Live goats: exports and export prices, Australia

Australian exports of goat meat have increased strongly over the past decade, although exports were down from 2005 to 2008 ( Figure 18). The main export markets for Australian goat meat in the three years to 2011–12 were the United States (53 per cent of total Australian exports), Taiwan (28 per cent), Canada (6 per cent), Trinidad and Tobago (7 per cent), and Jamaica (4 per cent).

30 6

20 4

10 2

2011–12 kt 0 0 $/kg 1991–92 1996–97 2001–02 2006–07 2011–12 exports export price (right axis) Data source: ABS (2013) Figure 18: Goat meat: exports and export prices, Australia

Further information about goat meat

 Goat Industry Council of Australia (www.gica.com.au), peak industry body.  Meat & Livestock Australia (www.mla.com.au)—a range of information including the Goats on the Move newsletter.  National over the hooks goat report (www.mla.com.au/prices-and-markets/)—weekly information on goat meat prices and goat slaughterings in eastern Australia, provided by the National Livestock Reporting Service.

Cashmere

Cashmere goats produce down—the cashmere fibre—under longer coarser hair. Cashmere needs special processing; the raw fibre must be dehaired to separate the fine soft cashmere from the largely worthless hair. Cashmere is mainly produced in the cold and arid regions of central Asia. World production of raw (unseparated) cashmere was estimated to average 20 000 tonnes over the three years to 2011. The main cashmere producing countries were China (18 500 tonnes) and Mongolia (6300 tonnes) (Table 15). There is a strong upward trend in Chinese cashmere production ( Figure 19). China mostly trades unspun cashmere in unprocessed (not carded or combed) form to wealthy countries that spin it into garments (Table 15). Increasingly China is processing its own raw cashmere into garments before export.

Table 15: Cashmere: key characteristics of the world market

Item Volume a Value a Key countries (share of total volume in the three years to 2010) Production 20 kt na China (75%), Mongolia (18%), Iran (5%) World trade

Cashmere, not carded or 7.2 kt US$308 Exporters: China (63%), Iran (8%), Afghanistan (7%), Mongolia combed million (5%), United Kingdom (5%) Importers: Italy (40%), United Kingdom (26%), Belgium (11%), Japan (7%), Germany (3%)

Cashmere, carded or 0.5 kt US$32 Exporters: China (68%), United Kingdom (12%), Italy (7%), combed million Mongolia (3%) Importers: Italy (44%), Republic of Korea (15%), Japan (9%), Hong Kong (9%) a Average, three years to 2011. Sources: ABARES; National Bureau of Statistics of China (2012); National Statistical Office of Mongolia (2012); United Nations Statistics Division (2013)

Chinese export prices of cashmere in 2012 US dollars have been broadly in the range of US$60–100 a kilogram in recent years ( Figure 19).

20 120

15 90

10 60

5 30

kt 0 0 2012 US$/kg 1991 1996 2001 2006 2011 production exports export price (right axis) Data source: National Bureau of Statistics of China (2012) Figure 19: Cashmere: Chinese production, exports and export prices

Australian cashmere industry

The Australian cashmere industry began in the 1970s and expanded during the 1980s with support from international processors (McGregor 2002). In 2012 there were around 10 000 cashmere goats in Australia, down from 13 000 in 2006. Australian production of cashmere (hair in) was around 3 tonnes in 2012—a gross value of $88 000 (Table 16).

Table 16: Cashmere: supply, disposal and value, Australia

Unit 2006 2007 2008 2009 2010 2011 2012 Production – hair in tonnes 4.5 4.0 3.0 – dehaired tonnes 1.6 1.4 1.0 Gross value of fibre $’000 103 87 88 production Exports Not carded or combed – volume tonnes 0.0 0.0 46.7 0.0 0.3 0.0 0.0

– value $’000 0 0 601 0 12 0 11 – unit value $/kg na na 12.86 na 37.48 na na Carded or combed – volume tonnes 0.0 2.9 0.6 0.0 0.0 0.0 0.0 – value $ 0 83 40 0 0 0 0 – unit value $/kg na 28.96 63.24 na na na na Total export value $’000 0 83 641 0 12 0 11 Imports Not carded or combed – volume tonnes 0.3 0.2 0.0 0.2 0.0 0.0 0.0 – value $’000 15 10 0 5 2 0 0 – unit value $/kg 50.34 44.28 na 27.96 76.76 na na Carded or combed – volume tonnes 0.0 0.0 0.0 0.0 0.2 0.3 0.0 – value $’000 0 0 0 0 18 33 0 – unit value $/kg na na na na 81.43 109.44 na Total import value $’000 15 10 0 5 20 33 0 Sources: ABARES; ABS (2013)

In the period 1985 to 2004, the Australian Cashmere Marketing Corporation, an industry owned organisation, marketed up to 90 per cent of the Australian cashmere clip on behalf of growers. Most of the Australian clip is now delivered by growers directly to a cashmere processor located at Bacchus Marsh in Victoria.

Further information about cashmere

 Alpha Tops Group (www.alphatops.com)—monthly prices for cashmere, by broad category.  The Schneider Group (www.gschneider.com)—market reports, latest market indicator prices (China, Mongolia and Iran) and monthly Chinese cashmere exports.

Mohair

Mohair is a wool-like fibre produced as fleece from angora goats. Mohair becomes coarser as a goat gets older. ‘Kid’ mohair starts at an average fibre diameter of 23 microns and is typically used in knitwear. ‘Young goat’ (intermediate diameter) mohair is used in suiting material and ‘Adult goat’ mohair—the coarsest, ranging up to 36 micron—is typically used in coats and rugs.

World mohair market

World mohair production peaked in the late 1980s at more than 25 000 tonnes but has since declined to 4500 tonnes in 2012 ( Figure 20). The decline mainly reflects increased competition from manufactured fibres and the removal of subsidies on mohair production in the United States. The world mohair market is increasingly dominated by South Africa. In 2010 South African production represented 48 per cent of the world total; Lesotho, 16 per cent; Argentina, 15 per cent; the United States, 10 per cent; Australia, 4 per cent; and Turkey, 3 per cent (Mohair South Africa 2011). In 2010 South Africa exported 4320 tonnes of mohair, of which 36 per cent went to Italy; China, 31 per cent; the United Kingdom, 16 per cent; Taiwan, 7 per cent; and Japan, 4 per cent (Mohair South Africa 2011). Strong adult fibre made up 47 per cent of the South African mohair clip in 2010; young goat fibre a further 20 per cent; kid, 18 per cent; and fine adult fibre, 15 per cent (Mohair South Africa 2011).

With reduced world mohair supplies, world mohair prices in constant US dollar terms have increased in recent years but are still lower than in the early 1980s ( Figure 20).

30 30

20 20

10 10

kt 0 0 2012 US$/kg 1982 1987 1992 1997 2002 2007 2012

production, rest of world production, South Africa average auction price, South Africa (right axis) Data sources: ABARES; Mohair South Africa (2011) Figure 20: Mohair: world production and South African average auction prices

Australian mohair industry

Australian mohair production peaked at around 1200 tonnes in 1989 but has declined substantially since then (Mohair South Africa 2011). Mohair production in Australia was estimated to be 137 tonnes in 2011–12, with a gross value of $1.45 million (Table 17).

Table 17: Mohair: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Volume tonnes 247.1 206.5 209.9 145.2 191.7 134.8 136.7 Gross value $’000 3 453 2 398 1 936 1 140 2 007 1 626 1 450 Unit gross value a $/kg 13.97 11.61 9.22 7.85 10.47 12.06 10.59 Exports, fine animal hair Volume tonnes 191.8 153.4 148.0 141.8 117.8 160.4 102.8 Value $’000 2 888 1 875 1 561 1 521 1 341 2 047 1 395 Unit value $/kg 15.06 12.22 10.55 10.73 11.38 12.76 13.56 a Average auction price. Sources: ABARES; ABS (2013); Levies Revenue Service (2012)

Mohair in Australia is generally sold by auction or private treaty through brokers. In past years Australia has processed around 40 per cent of its mohair into garments and homewares, but most of Australian mohair production is now exported to South Africa for processing. Key participants in the Australian mohair industry are:  Mohair Australia Limited, the peak industry organisation for mohair fibre and the angora goat industry in Australia  Australian Mohair Marketing Organisation (Narrandera, New South Wales), marketer of the bulk of the Australian mohair clip.

Australian mohair is also exported but is aggregated with other fine animal fibre in recorded trade statistics. The fine animal hair exports reported in Table 17 are likely to be largely made up of mohair, but may include other fibres such as alpaca or camel. Australia also appears to import mohair. South African exports of mohair to Australia are shown in Mohair South Africa (2011) as 11.8 tonnes in 2001, 10.2 tonnes in 2003, 7 tonnes in 2004 and 5 tonnes in 2005.

Further information about mohair

 Alpha Tops Group (www.alphatops.com)—monthly prices for mohair, by broad category.  Mohair South Africa website (www.mohair.co.za)—auction market reports for South Africa and statistics on production consumption and exports of mohair by key producing country.  Mohair Australia Limited website (www.mohair.org.au)—industry data for Australia, including detailed auction and private treaty sales reports and husbandry hints. Access to the Australian herd book and other information is password protected for members only.  Australian Mohair Marketing Organisation (www.ausmohair.com.au)—auction results for mohair in Australia.

Dairy goats

Goat milk is an important source of nutrients in many countries. World production of goat milk has been increasing steadily and averaged 16.6 million tonnes a year in the three years to 2011, equivalent to 2.3 per cent of total world production of all milk types ( Figure 21). The main goat milk producers are India (28 per cent of world production in the three years to 2011), Bangladesh (15 per cent), former Sudan (9 per cent), Pakistan (5 per cent), Mali (4 per cent), France (4 per cent) and Spain (3 per cent). Roughly 20 per cent of world production of goat milk gets made into cheese. World goat cheese production averaged 475 000 tonnes in the three years to 2011 and has been growing at around 1.2 per cent a year over the past 20 years (FAO Statistics Division 2013). The largest producers of goat cheese are the former Sudan (23 per cent of world production in the three years to 2011), France (19 per cent), Greece (10 per cent), Spain (9 per cent), Iran (8 per cent), Mexico (4 per cent) and Tajikistan (3 per cent). Producer prices for goat milk in France, a producer of high-quality goat cheese, have risen strongly over the past decade ( Figure 21).

18 1.2

12 0.8

6 0.4

2012 Mt 0 0 US$/kg 1991 1996 2001 2006 2011 production, milk, world production, cheese, world producer price, milk, France (right axis) Data source: FAO Statistics Division (2013) Figure 21: Goat milk (whole, fresh): world production and producer price in France

Cheese types traditionally made from goat milk (chevre cheese) include feta (also traditionally made from sheep milk) and kasseri (also made from sheep milk).

Australian dairy goat milk market

Details of the market for Australian dairy goat products are provided in Stubbs and Abud (2009). Australia has six recognised dairy goat breeds—Saanen, Toggenburg, British Alpine, Anglo Nubian, Australian Brown and Australian Melaan. Saanen is the most common. There are believed to be around 55 000 dairy goats in Australia in 2012, producing milk for home consumption and commercial production of drinking milk, cheese and yoghurt. This report deals only with dairy goat farms that are licensed to produce milk for food consumption. Some dairy goat farms, usually small, also produce goat milk to make products such as goat milk soap. The size of this component of the Australian goat milk industry could not be determined. In the licensed dairy sector the estimated number of goats milked in Australia in 2011–12 was around 15 750 head on 63 farms, producing nearly 8 million litres of milk. The gross value of licensed goat milk production in 2011–12 was estimated to be $11 million (Table 18). The average price of goat milk at the farm gate in 2011–12 in Australia was $1.40 a litre, compared with $0.42 a litre for milk from cows. Estimated state shares of this production were Victoria, 35 per cent; Queensland, 25 per cent; South Australia, 15 per cent; New South Wales, 15 per cent; Western Australia, 5 per cent; and Tasmania, 5 per cent. Cheese production accounts for around 60 per cent of domestic goat milk production, with a further 35 per cent consumed as whole milk or yoghurts. The remainder is processed into powder and tablets. Australia is importing increasing quantities of chevre and other cheese types that have traditionally been made from goat milk (Table 18). However, feta and kasseri are also traditionally made from sheep milk and increasingly from cow milk.

Table 18: Goat milk products: supply, disposal and value, licensed dairy farms, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Farms no. 65 63 Goats head 12 000 15 750

Milk production ’000 litres 5 581 6 000 7 875 Gross value $’000 5 302 6 000 11 025 Farmgate price $/litre 0.95 1.00 1.40

Cheese produced wholly from goat milk a – volume tonnes 300 436 821 753 755 867 1 053 – value $’000 3 447 4 814 9 442 9 866 9 663 10 137 11 500 – unit value $/kg 11.47 11.04 11.50 13.10 12.79 11.69 10.92 Feta – volume tonnes 3 296 2 783 3 030 3 042 2 922 2 696 2 104 – value $’000 16 530 16 697 19 746 23 495 18 836 17 537 15 218 – unit value $/kg 5.01 6.00 6.52 7.72 6.45 6.51 7.23 Kasseri – volume tonnes 96 135 124 173 68 97 44 – value $’000 871 1 350 1 279 2 230 700 867 377 – unit value $/kg 9.12 10.04 10.28 12.88 10.30 8.94 8.57 Total cheese $’000 20 847 22 861 30 467 35 591 29 199 28 540 27 096 imports a Excluding feta and kasseri. It is not clear how much goat milk is contained in feta and kasseri. Sources: ABARES; ABS (2013); Dairy Authority of South Australia (2012); Dairy Food Safety Victoria (2012); New South Wales Food Authority (2012); Stubbs & Abud (2009)

Goat milk sells for much higher retail prices than cow milk. In 2012 the chilled goat milk price in Australia’s major supermarkets averaged $4.60 a litre, compared with the chilled cow milk price for the supermarkets’ own brands of $1 a litre. The price of goat milk powder in supermarkets was around $22 a kilogram, compared with $6–8 a kilogram for cow skim milk powder.

Further information about dairy goats

 Dairy Goat Society of Australia (dairygoats.org.au), including the Australian Goat World magazine (free to members).  Dairy Goat Society of Australia, Victorian Branch (home.vicnet.net.au/~goats/dgsavictoria/).

Kangaroos and wallabies

The Australian kangaroo and wallaby industry is based on shooters harvesting kangaroos from the wild. The industry has developed over the past 30 years from one based on pest control to one where greater use is made of the harvested kangaroos for meat for human consumption and pet food. Kangaroo skins are also an important product of the harvesting. Kangaroos are only harvested on mainland Australia and wallabies are only harvested in Tasmania.

Kangaroos

Kangaroo production operates under a quota system administered by the state and federal governments. Commercial harvesting is currently allowed for only four of the 55 species of kangaroos in Australia. The quotas in each state are generally set annually at 10–20 per cent of the estimated population for each of the permitted species. Kangaroo populations vary substantially from year to year depending on seasonal conditions. Quotas declined in the middle of the last decade, but were raised substantially in 2011–12 when good seasonal conditions led to a rapid increase in kangaroo populations.

The industry is highly regulated, and all ‘harvesters’ must be accredited and licensed by State agencies, and must operate under strict hygiene and animal welfare Codes of Practice. Kangaroos processed for human consumption must be taken by appropriately licensed harvesters, delivered to dedicated and licensed human consumption field chillers, and processed only in premises registered to produce food for human-consumption (either for domestic or various export markets). The total commercial harvest was around 1.8 million kangaroos in 2011–12, less than one-third of the quota, with a gross value of around $28.6 million (Table 19). Production and prices were down considerably from the mid-2000s because of the Russian Federation’s withdrawal from the kangaroo meat market in 2009. Before that the Russian Federation accounted for more than 70 per cent of Australian kangaroo meat exports. The gross value is a measure of the total amount paid to kangaroo shooters at the meat processing plant gates.

Table 19: Kangaroo products: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Harvest quotas a ’000 3 809 3 641 3 765 4 264 4 141 3 870 5 408 Harvest – human consumption ’000 1 294 1 344 1 410 1 323 903 768 1 026 – pet food ’000 1 799 1 358 949 878 767 662 442 – skins only ’000 339 315 315 315 315 315 300 – total ’000 3 431 3 017 2 674 2 516 1 985 1 752 1 768 Gross value $’000 59 843 54 073 35 665 45 232 25 765 27 869 28 646 Meat – human consumption tonnes 15 567 16 176 16 968 15 920 10 863 9 237 12 350 – pet food tonnes 21 648 16 344 11 419 10 572 9 238 8 052 5 320 – total tonnes 37 215 32 520 28 387 26 492 20 101 17 290 17 670 Exports Meat – volume tonnes 11 445 13 788 12 289 8 873 3 907 2 983 4 525 – value $’000 36 631 47 202 39 576 34 609 15 448 12 225 20 381 – unit value $/kg 3.20 3.42 3.22 3.90 3.95 4.10 4.50 Pet food – volume tonnes 607 585 327 405 213 133 328 – value $’000 841 915 478 628 384 330 462 – unit value $/kg 1.39 1.56 1.46 1.55 1.80 2.48 1.41 Hides, skins, leather – volume ’000 2 691 2 505 2 524 1 895 1 535 1 372 1 827 – value $’000 55 486 51 106 49 313 42 435 27 766 23 538 25 710 – unit value $/hide 20.62 20.40 19.53 22.39 18.09 17.15 14.07 Total export value $’000 92 958 99 223 89 367 77 672 43 599 36 093 46 553 a Calendar year; for example, quota in 2011–12 refers to quota for 2012. Includes sustainable quotas and special quotas. Sources: ABARES; ABS (2013); DSEWPaC (2012); Levies Revenue Service (2012)

Kangaroo meat exports for human consumption grew strongly until loss of access to the Russian Federation market ( Figure 22). There are signs of the Russian Federation market for kangaroo meat re-establishing with one Australian processor of kangaroo meat resuming sales to that market in late 2012 after satisfying market access requirements. Kangaroo meat is mainly used in sausage making in the Russian Federation and is lower in quality and price than the prime cuts traded with countries such as France and Germany (Humphries 2005). Steaks and other prime cuts typically make up only about

15 per cent of the total dressed weight of a kangaroo and, depending on the cut, command price premiums of $5–10 a kilogram over other kangaroo meat. The major export destinations for kangaroo meat in 2011–12 were South Africa (28 per cent of total exports), Germany (19 per cent), the Netherlands (17 per cent), Papua New Guinea (14 per cent) and Belgium (11 per cent). South Africa and Papua New Guinea import lower quality kangaroo meat. There is growing demand for higher quality cuts of kangaroo meat in western Europe, where kangaroo is considered a game meat. Kangaroo hides, skins and leather are now the largest component of the kangaroo export industry, with exports totalling $25.7million in 2011–12. There are only very limited country details available for these exports because of confidentiality requirements. The export market for pet food was worth $462 000 in 2011–12, with the major markets being Indonesia and New Zealand.

15 5

12 4

9 3

6 2

3 1

kt 2011–12 0 0 $/kg 1991–92 1996–97 2001–02 2006–07 2011–12 exports, meat exports, pet food export price, meat (right axis) export price, pet food (right axis) Data source: ABS (2013) Figure 22: Kangaroo meat: exports and export prices, Australia

Wallabies

Commercial harvesting of wallabies is undertaken on Flinders Island and King Island, which are both part of Tasmania. The species harvested are Bennett’s wallaby (Macropus rufogriseus) on Flinders Island and King Island, and Tasmanian pademelon (Thylogale billardierii) on Flinders Island. Under Commonwealth legislation (Environment Protection and Biodiversity Conservation Act 1999) exports of wallaby products are allowed only if there is a formal management plan agreed between the federal and state government aimed at ensuring the sustainability of the harvest. Agreed quotas and numbers of wallabies harvested since 2005–06 under various management plans are shown in Table 20. Numbers harvested have always been considerably less than the quotas. The last management plan for wallabies in Tasmania expired after 2009–10. Even without an agreed management plan between the state and federal governments, the Tasmanian Government allows harvesting of wallabies for disposal on the domestic market, provided the harvesting is within sustainable levels. Tasmanian production of wallaby meat was estimated to be around 29 tonnes in 2011–12, with a gross value of $250 000.

Table 20: Wallaby products: supply, disposal and value, Tasmania

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Harvest quotas – Bennett's wallaby no. 31 000 25 000 0 25 000 10 000 0 0 – Tasmania pademelon no. 3 750 2 000 0 1 000 0 0 0 Total no. 34 750 27 000 0 26 000 10 000 0 0 Harvest – Bennett’s wallaby no. 8 874 10 180 0 6 360 na na na – Tasmanian pademelon no. 180 0 0 0 na na na Total no. 9 054 10 180 0 6 360 9 223 9 500 10 000 Meat tonnes 20.9 23.7 20.7 22.1 22.1 27.7 28.6 Gross value $’000 226 255 0 129 231 238 250 Exports Meat – volume tonnes 5 0 0 0 0 0 0 – value $’000 59 0 0 0 0 0 0 – unit value $/kg 12.76 na na Na na na na Hides, skins, leather – volume pieces 0 0 250 0 0 0 0 – value $’000 0 0 6 0 0 0 0 – unit value $/kg na na 0.03 Na na na na Total export value $’000 59 0 6 0 0 0 0 Sources: ABARES; ABS (2013); DSEWPaC (2012); Forest Practices Authority (2012); Levies Revenue Service (2012)

Further information about kangaroos and wallabies

 Department of Sustainability, Environment, Water, Population and Communities (www.environment.gov.au/biodiversity/wildlife-trade/wild-harvest/index.html)—information on the kangaroo industry, including quotas and numbers harvested.  Kangaroo Industry Association of Australia (www.kangaroo-industry.asn.au).

Ostriches

The ostrich (Struthio camelus) is a flightless bird of the ratite family that is native to Africa. Ostrich are farmed in more than 20 countries for their meat, skin (leather), oil and feathers. Ostrich meat is a red meat that is low in cholesterol and calories and is almost fat free. Ostrich leather is durable with a distinctive quill pattern and is one of the most expensive leathers in the world. A range of cosmetic products, including soap, massage oils and hair products, use ostrich oil as the major active ingredient. Ostrich oil is claimed to be a natural moisturiser because of its excellent penetration and emollient properties when applied to the skin (Australian Ostrich Association 2001). Ostrich feathers are used extensively in feather dusters (because of their antistatic properties) and in the fashion and flower industries (Stables 2011). There were 193 000 commercial slaughterings of ostriches in South Africa in 2011–12, down from 352 000 in 2001–02 ( Figure 23). The production decline reflects outbreaks of avian influenza in ostrich flocks in South Africa in 2004 and 2011. There are also smaller commercial ostrich flocks in China, Canada, the United States, Pakistan and Australia, but these have also been declining in recent years with the exception of Pakistan.

400 400

300 300

200 200

100 100

'000 2011-12 0 0 US$/head head 2001–02 2003–04 2005–06 2007–08 2009–10 2011–12 slaughterings value of products per ostrich (right axis) Data sources: Department of Agriculture, Forestry and Fisheries, Republic of South Africa (2012); Klein Karoo International Limited (2012) Figure 23: Ostrich: slaughterings and returns, South Africa

Most ostriches in South Africa go to slaughter at 10–14 months of age, producing around 27 kilograms of meat, 4.2 square metres of leather and 1 kilogram of feathers. Klein Karoo International Limited, a cooperative that had statutory controls over the marketing of South African ostrich products until 1993, still accounts for around 65 per cent of world trade in ostrich products. Based on data in Klein Karoo International Limited (2012), the value to producers of a slaughter ostrich in South Africa in the three years to 2011–12 was broken up as approximately 63 per cent meat, 27 per cent leather, 8 per cent feathers and 4 per cent other products. Ostrich oil or fat apparently has little value. Annual exports of ostrich meat from South Africa averaged around 6200 tonnes in the three years to 2010, almost all of which went to the European Union and Switzerland (Department of Agriculture, Forestry and Fisheries, Republic of South Africa 2011). However, an outbreak of avian influenza in South Africa in August 2004 resulted in a ban by the European Union on imports of South African ostrich meat and eggs. The ban was lifted in late 2005 but re-implemented in April 2011 after a further outbreak of avian influenza. In 2007, 640 tonnes of ostrich feathers were sold by ostrich growers in South Africa at an average price per kilogram equivalent of US$11.09 or $A20.38 (Statistics South Africa 2009).

Australian ostrich industry

The gross value of ostrich production in Australia was an estimated $324 000 in 2011–12, based on slaughterings of 1001 ostriches (Table 21). Most ostrich meat and skins are exported. The total value of exports of ostrich and ostrich products in 2011–12 was $641 000.

Table 21: Ostrich products: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Slaughterings no. 8 124 6 973 4 165 1 685 1 361 1 576 1 001 Meat production tonnes 227 195 117 47 38 44 28 Gross value $’000 3 339 2 364 868 299 318 1 009 324 Exports Live ostriches – volume no. 0 8 0 210 0 0 315 – value $’000 0 25 0 19 0 0 24 – unit value $/head na 3 075.00 na 88.18 na na 74.92 Meat and edible offal – volume tonnes 150 118 102 78 46 37 29 – value $’000 1 969 1 400 783 798 579 717 462 – unit value $/kg 13.17 11.90 7.67 10.25 12.50 19.12 15.92 Hides and leather – volume pieces 12 269 8 667 21 017 6 000 6 000 2 364 5 999 – value $’000 856 409 814 20 18 213 156 – unit value $/piece 69.78 47.17 38.74 3.25 3.00 90.22 21.61 Total export value $’000 2 826 1 833 1 597 836 597 930 641 Sources: ABARES; ABS (2013); Levies Revenue Service (2012)

Export prices for Australian ostrich meat have improved since 2007–08 but exports have declined to low levels ( Figure 24). The market access problems facing South African ostrich meat in Europe because of avian influenza outbreaks contributed to stronger export prices for Australian ostrich meat. Australian exports of ostrich meat and edible offal averaged $586 000 a year in the three years to 2011–12 (Table 21). Export markets for ostrich meat were the United States (46 per cent of total volume), Canada (48 per cent) and Japan (6 per cent). Over the same period, the value of ostrich skin exports averaged $129 000 a year; the export markets were Thailand (65 per cent of total volume) and the Republic of Korea (35 per cent).

1000 25

800 20

600 15

400 10

200 5

tonnes 0 0 2011–12 2002–03 2005–06 2008–09 2011–12 $/kg production exports export price (right axis) Data sources: ABARES; ABS (2013); Levies Revenue Service (2012) Figure 24: Ostrich meat: production, exports and export prices, Australia

Further information about ostriches

 Klein Karoo International Limited (www.kleinkaroo.com), a cooperative that controls around 65 per cent of world trade in ostrich products.  South African Ostrich Business Chamber (www.ostrichsa.co.za)—information about the South African ostrich industry.  World Ostrich Association (www.world-ostrich.org)—range of information on the world ostrich industry including details of industry standards for ostrich products.  American Ostrich Association (www.ostriches.org)—information on the US industry and ostrich husbandry and products.

Possums

An industry based on harvesting brushtail possums (Trichosurus vulpecular (Kerr)) from the wild has been operating in Tasmania since the early days of European settlement. Possum harvesting is currently not allowed in any other Australian states or territories. There is also wild harvesting of brushtail possums for commercial purposes in New Zealand, where the brushtail possum was introduced from Australia in the mid-19th century and its possum population has now grown to pest proportions. New Zealand’s possum industry is largely based on fur production. Possum fur, which typically has a fibre diameter of around 16.5 micron and other desirable properties, is in growing demand for blending with wool. Around 1.7 million possums are harvested annually for this purpose (New Zealand Department of Conservation 2012). Prices for possum fur increased to around NZ$150 a kilogram in 2012, compared with around NZ$100 a kilogram in 2009. It takes 18 to 20 possums to produce 1 kilogram of possum fur. Around 40 per cent of New Zealand possum fur is exported to China. There has been resurgence in the world export market for raw and tanned animal fur skins over the past decade. The value of world exports was US$5.6 billion in 2011, 48 per cent higher than in 2007 (United Nations Statistics Division 2013). The main importers were Hong Kong (40 per cent of the total value of world imports in the five years to 2011), China (13 per cent), Italy (6 per cent), Denmark (6 per cent), Greece (5 per cent) and Finland (5 per cent).

Tasmanian possum industry

In Tasmania, harvesting for commercial purposes under permit is a component of the government arrangements for the control of the brushtail possum population that at one stage also included a bounty paid on skins and carcasses. Control measures are necessary because the establishment of crops, orchards and vineyards has seen brushtail possum numbers increase greatly (Tasmanian Parks and Wildlife Service 1999). Initially the Tasmanian possum industry was largely based on fur production. At its postwar peak in 1979 the industry harvested around 300 000 possums, but the industry nearly disappeared in the mid- 1990s after the collapse of the world market for animal furs ( Figure 25). A quota was first set in 1983 at 250 000 possums a year to ensure the brushtail possum did not become an endangered species through overexploitation (see Tasmanian Parks and Wildlife Service 1999). The quota includes possums harvested under commercial permits and shot or poisoned under crop protection permits. Before the quota, the season was simply closed for commercial harvest when populations were assessed to be under threat of overexploitation. The industry was re-established in 1995, mainly based on meat production. Its main outlet was the Chinese market, where possum is a close substitute in appearance and taste for a local delicacy, the civet cat (Paguma larvata). However, the civet cat was identified as a carrier of the Severe Acute Respiratory Syndrome (SARS) virus with the outbreak of this disease in China in late 2002. In 2004

the Chinese Government banned the consumption of civet cat. This severely affected demand for possum meat in the Chinese market and the Tasmanian commercial possum harvest fell again to low levels after reaching production of around 55 000 possums in 2000. Under Commonwealth legislation (Environment Protection and Biodiversity Conservation Act 1999) possum products can only be exported from Tasmania if an agreed wildlife management plan is in place between the state and federal governments. An agreed plan for brushtail possums expired on 31 December 2004; a new plan was not approved until October 2010 and did not come into effect until 1 March 2011 (see Department of Primary Industries, Parks, Water and the Environment, Tasmania 2010). The Tasmanian Government allowed commercial wild harvesting for domestic disposal in the period between the management plans, where possums were causing damage to crops. Only small numbers of possums were harvested in this period.

300

200

100

'000 0 1952 1962 1972 1982 1992 2002 2012

harvest quota

Data sources: Forest Practices Authority (2012); Tasmanian Parks and Wildlife Service (1999)

Figure 25: Brushtail possums: commercial harvest and quota in Tasmania

In 2011–12, the first full year of the current plan, 3949 possums were harvested, with a gross value of $49 000 (Table 22). Possum fur skins exported from Tasmania in 2011–12 numbered 670, and 536 possums were exported for meat (Department of Primary Industries, Parks, Water and Environment, Tasmania 2012).

Table 22: Possum products: supply, disposal and value, Tasmania

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Harvest quota no. 0 0 0 0 0 20 022 54 372 Harvest no. 14 497 4 832 1 558 4 680 1 375 4 379 3 949 Meat tonnes 1.1 0.9 0.4 0.6 0.8 8.8 7.9 Gross value $’000 145 39 12 37 11 42 49 Exports Meat – volume tonnes 0 0 0 0 0 0 1.1 – value $’000 0 0 0 0 0 0 11 – unit value $/kg na na na Na na na 10.00 Fur skins – volume no. 2 955 0 0 0 0 491 670 – value $’000 22 0 0 0 0 29 54 – unit value $/kg 7.54 na na Na na 60.00 80.00 Total export value $’000 22 0 0 0 0 29 65 Sources: ABARES; ABS (2013); Department of Primary Industries, Parks, Water and Environment, Tasmania (2012); Forest Practices Authority (2012)

Further information about possums

 Lenah Game Meats (www.lenah.com.au)—possum fibre prices.  Forest Practices Authority (2012) (www.fpa.tas.gov.au/__data/assets/pdf_file/0009/82872/State_of_the_forests_Tasmania_2012_rep ort.pdf)—information (including statistics) on possum populations and the commercial and non- commercial harvest.

Rabbits, farmed

Rabbits are mainly produced intensively in feedlot type farms but are also shot or trapped in the wild. The main product is meat, although rabbit underfur is also used extensively to make felt for hats. World production of rabbit meat is currently around 1.6 million tonnes and has grown at around 3 per cent a year over the 10 years to 2010. The main producers are China, Venezuela and countries in the European Union (Table 23). Only 2–3 per cent of rabbit meat production enters world trade (Table 23). The main exporters of rabbit meat are China, Argentina and countries of the European Union. European countries are the main importers of rabbit meat. There is only a very small international trade in rabbit fur skins and tanned rabbit skins. Average world export prices for rabbit meat have increased over the past decade ( Figure 26).

Table 23: Rabbit meat: key characteristics of the world market

Volume a Value a Key countries (share of total volume in the three years to 2010) Production 1 623 kt na China (39%), Italy (15%), Venezuela (15%), Democratic People’s Republic of Korea (8%), Spain (4%), France (3%), Germany (2%) World trade 39.8 kt US$206 Exporters: China (24%), France (17%), Belgium (14%), Hungary (11%), Spain million (9%), Argentina (7%), Italy (6%), Netherlands (4%) Importers: Germany (18%), Belgium (16%), Italy (13%), France (10%), Russian Federation (8%), Portugal (6%), Switzerland (5%), Netherlands (5%) a Average, three years to 2010. Sources: FAO Statistics Division (2013); United Nations Statistics Division (2013)

2000 8

1500 6

1000 4

500 2

2012 Kt 2012 kt 0 0US$US$/kg/Kg 1991 1996 2001 2006 2011 production exports export price (right scale) producer price, meat, France (right axis) Data sources: FAO Statistics Division (2013); United Nations Statistics Division (2013) Figure 26: Rabbit meat: world production, exports and export prices

Australian farmed rabbit industry

Australia’s farmed rabbit industry was established after the wild harvest industry collapsed as a result of the deliberate introduction into Australia of rabbit calicivirus in 1996. The industry’s establishment was enabled by the removal of state bans on rabbit farming in all states but Queensland and the Northern Territory. There are now rabbit farms in New South Wales, Victoria, South Australia and Western Australia. Australian production of rabbit meat in 2011–12 was 265 tonnes, down from 325 tonnes in 2006–07 (Table 24). In the initial stages of the farmed rabbit industry, meat production was contributed by many small producers but there has been a trend to fewer, much larger farms. Foster (1999) estimated that there were 115 rabbit farms in Australia in 1998–99 with an average of 57 breeding does each. By 2006–07 the number of farms had contracted to 44, but with an average size of 237 breeding does. Only around 22 rabbit farms operated in Australia in 2011–12 (although anecdotally, numbers in 2013 may be considerably less again). A number of large-scale rabbit farms have closed in New South Wales in recent years, due to disease problems and cost pressures. The first commercial rabbit farm in Australia, operating at Baldivis in Western Australia since 1988, continues to thrive, turning off 650– 750 rabbits a week. At this stage of its development, the industry is oriented toward supplying the domestic market that offers wholesale prices of over $20 a kilogram, compared with international prices of around $5–6 a kilogram. There have been small quantities of rabbit meat exported from Australia, including 1.1 tonnes in 2011–12, but it is not clear whether this is game (wild) rabbit meat or farmed rabbit meat.

In the five years before the release of rabbit calicivirus, Australian exports of game rabbit meat averaged more than 500 tonnes a year, with a peak of 1081 tonnes in 1990–91.

Table 24: Rabbit products: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Number of farms no. na 44 22 Average size (breeding does) no. na 237 300 Slaughter ’000 191 236 182 Farmgate price $/rabbit 9.76 11.00 12.00 Gross value $’000 1 860 2 599 3 181 Carcass weight kg a 1.39 1.38 1.3 Meat Tonnes 264 325 265 Exports Meat – volume Tonnes 0.2 2.5 0.2 0.1 0.2 0.1 1.1 – value $’000 2 18 2 1 2 1 34 – unit value $/kg 13.69 7.46 12.57 14.00 11.18 12.68 30.20 Skins, fur skins – volume no. 0 0 0 2593 0 0 0 – value $’000 0 0 0 2.6 0 0 0 – unit value $/skin na na na 1.00 na na na Total export value $’000 2.4 18.3 2.2 4.1 2.5 1.3 33.6 Imports Skins, fur skins – volume no. 297 7 42 0 94 190 735 – value $’000 16 4 16 0 4 9 7 – unit value $/skin 53.29 506.00 371.86 na 48.03 48.66 8.90 a Dressed weight. The dress out proportion with rabbits is assumed to be 50 per cent. Sources: ABARES; ABS (2013); Primesafe (2012); Western Australian Meat Industry Authority (2012)

The collapse of the Australian wild rabbit industry meant that rabbit fur skins had to be imported to meet demand from the makers of felt hats (Table 24). There were some initial problems with using fur skins from the Australia farmed rabbit industry because of the fattiness of the skins, but these problems now appear to have been overcome. The price for farmed rabbit fur skins in 2011–12 averaged $7 a kilogram, or around $0.70 a skin.

Further information about farmed rabbits

 Farmed Rabbit Industry of Australia (no website), industry representative body in Australia— provides a newsletter.  World Rabbit Science Association (world-rabbit-science.com)—information on all aspects of rabbit production, including proceedings of recent conferences.

Aquaculture and fisheries

World aquaculture is a rapidly growing part of world fish production at a time when world capture production of fish has levelled off. Aquaculture has grown from a share of 21 per cent of world fish production in 1995, to 40 per cent in 2010 (FAO Fisheries and Aquaculture Department 2012).

Freshwater aquaculture provided 58 per cent of world aquaculture by value in 2010, while marine and brackish water aquaculture provided 29 per cent and 13 per cent, respectively. The total value of production of the Australian aquaculture industry was $948 million in 2011–12. Marine aquaculture accounted for the bulk of the value of Australia aquaculture production—mainly salmonids, tuna, pearl and edible oysters and prawns ( Figure 27).

Total value: $948m other mussels abalone

molluscs pearl oysters edible oysters

other -

freshwater crustaceans crust aceans prawn other silver perch barramundi

finfish tuna salmonids $m 0 100 200 300 400 500

Data source: Skirtun et al. (2012) Figure 27: Aquaculture: value of production, by sector, 2011–12

The emerging fisheries and aquaculture industries examined in this report are carp, crocodile, freshwater crustaceans, mulloway, Murray cod and seaweed.

Further information about fisheries and aquaculture

 Australian aquaculture (www.aquaculture.org.au), website of the National Aquaculture Council— information on the Australian aquaculture industry.  FAO Fisheries and Aquaculture Department (2012) (www.fao.org/fishery/sofia/en).  Skirtun et al. (2012).

Carp

Carp (Cyprinus carpio or common carp) is a freshwater fish that is native to the inland river systems of Asia but has spread to many other areas of the world, where it is usually considered an invasive pest. World carp production (capture and aquaculture of silver, bighead, grass and common species of carp) was estimated to be 24 million tonnes in 2010 or 72 per cent of world production of freshwater fish (FAO Fisheries and Aquaculture Department 2012). Around 80 per cent of world carp production came from aquaculture, making it the world’s most important farmed fish. Common carp accounted for around 10 per cent of world production of freshwater fish in 2010. Only a very small part of carp production enters world trade. The European Union imported 958 tonnes of live carp and 1324 tonnes of frozen carp fillets in 2011 ( Figure 28).

2500 10

2000 8

1500 6

1000 4

500 2

2012 tonnes 0 0 €/kg 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 live fresh or chilled frozen import price, live (right axis) import price, frozen (right axis) Data source: European Commission (2013) Figure 28: Carp: European Union imports and import prices

Australian carp industry

Carp were introduced to Australia in the mid-1800s but widespread distribution in eastern Australian waterways began in the 1960s. Carp are now the most abundant large freshwater fish in the Murray– Darling Basin. More limited populations occur in Queensland, Western Australia and Tasmania. Invasive Animals CRC (2012) advances the idea that carp may not be the cause of environmental damage in Australia, as widely assumed. Rather, they say, the carp proliferation may be a symptom of the poor health of inland waters that has resulted from other causes. However, large populations of carp make it difficult to restore these systems to a healthy state. There are minor recreational fisheries for carp in Australia and an emerging commercial fishery. The commercial industry employs electrofishing and seine and gill nets. The domestic market for carp includes fresh table fish, rock lobster bait, pet food, raw ingredients for fertiliser and stock feed, and dried and smoked products. There is also an export industry based on carp fillets and trunks and carp products, such as roe, skins and livers. The main manufacturer in Australia of fertiliser from carp, Charlie Carp Limited, uses 150–200 tonnes of carp a year in its Deniliquin plant. K & C Fisheries is the main exporter of carp products. It harvests carp from the Gippsland Lakes of Victoria for export and for lobster bait. However, the carp catch in the Gippsland Lakes has declined from a peak of 658 tonnes in 1998–99 to only 61 tonnes in 2010–11 (Department of Primary Industries, Victoria 2011). Estimated Australian carp production was 710 tonnes in 2011, with a gross value of $585 000 (Table 25). Carp production in Victoria and South Australia has been much lower over the past 10 years than in the 1990s, although average prices have been higher in real terms ( Figure 29). Data are not available for New South Wales. The average price paid for carp has fluctuated around $1 a kilogram over the past 10 years. Much higher prices are paid for carp suitable for human consumption than for carp used for lobster bait and to make fertiliser. Small quantities of live carp and carp fillets were exported from Australia in 2012 (Table 25).

1500 3

1000 2

500 1

tonnes 2011-12 0 0 $/kg 1990–91 1995–96 2000–01 2005–06 2010–11

production, South Australia production, Victoria unit value, South Australia (right scale) unit value, Victoria (right scale) Data sources: Department of Primary Industries, Victoria (2011); Knight & Tsolos (2012) Figure 29: Carp: production and unit values, Victorian and South Australian waters

Table 25: Carp: supply, disposal and value, Australia

Unit 2006 2007 2008 2009 2010 2011 2012 Production Volume Tonnes 1 183 710 Gross value $’000 1 447 585 Exports Live – volume no. 501 0 0 0 0 0 12 345 – value $’000 18 0 0 0 0 0 44 – unit value $/kg 35.41 na na na na na 3.60 Fillets, fresh and frozen – volume Tonnes na na na na na na 2.2 – value $’000 na na na na na na 23 – unit value $/kg na na na na na na 10.57 Total export value $’000 na na na na na na 68 Sources: ABARES; ABS (2013)

Crocodiles

Skins are the main product from crocodiles; meat, feet, teeth and skulls are by-products (Northern Territory Department of Primary Industry and Fisheries 2012c). In Australia, tourism is an important activity for many crocodile enterprises, accounting for an estimated 30 per cent of total revenue of these enterprises in 2001 (Wondu Holdings 2002). Because of its attractive appearance, suppleness and durability, saltwater crocodiles skin produces a premium leather that is used in high quality fashion products such as belts, handbags, wallets and clothing. Crocodile meat is a succulent white meat that is low in fat and high in protein. On average, 1.19 million crocodilians (caimans, crocodiles and alligators) were harvested annually worldwide in the three years to 2010 (Caldwell 2012). Caiman species native to South America made up around 44 per cent of the total harvest ( Figure 30). Colombia accounted for 42 per cent of the total

harvest, the United States 26 per cent, Cambodia 6 per cent and Zimbabwe 5 per cent. Australian production represented slightly more than 1 per cent of the world total.

Other

New Guinea crocodile

Siamese crocodile

Estuarine crocodile

Nile crocodile

American alligator

Spectacled caiman

'000 0 200 400 600

a Average, three years to 2010. Data source: Caldwell (2012) Figure 30: Crocodilians: world exports of crocodilian skins, by species a

Trade in crocodilians is subject to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), to which Australia is a signatory along with around 177 other countries (as at June 2013). CITES permits are required in Australia for crocodile products exported to, or imported from, other countries. World trade in crocodilian meat and skins is summarised in Table 26. Most meat comes from crocodylus species. Alligator, caiman and Crocodylus niloticus species provide most of the skins.

Table 26: Crocodilian products: world trade in skins and meat a

Genus Volume Main exporters Main importers Meat (tonnes) Alligator 70 United States (99%) Hong Kong (91%), Canada (8%) Caiman negligible – – Crocodylus niloticus 455 Zimbabwe (52%), South Africa Hong Kong (56%), Switzerland (13%), (27%), Belgium (10%), Zambia (9%), Belgium (15%), China (5%), Netherlands Switzerland (1%) (7%), Germany (3%) Crocodylus porosus 29 Australia (64%), Papua New Guinea Japan (48%), United States (6%), New (17%), Indonesia (15%), Thailand Zealand (6%), Malaysia (11%), Taiwan (2%), Malaysia (2%) (2%), Hong Kong (8%) Other Crocodylus 262 Thailand (99%), Vietnam (1%) Hong Kong (92%), China (6%) Skins and pieces (’000) Alligators 232 United States (99%) Tunisia (28%), France (13%), Mauritius (9%), Hong Kong (7%), Switzerland (6%), China (6%), Singapore (9%), Madagascar (4%) Caiman 575 Colombia (92%), Bolivia (6%), Brazil Mexico (23%), Thailand (11%), United (1%) States (12%), Singapore (12%), Hong Kong (12%), Republic of Korea (7%), Taiwan (4%), China (6%) Crocodylus niloticus 160 Zimbabwe (48%), South Africa Singapore (29%), Vietnam (9%), China (24%), Zambia (20%), Kenya (3%), (10%), France (9%), Thailand (4%), Malawi (1%), Botswana (1%), Belgium (3%), Italy (7%), Hong Kong Tanzania (1%) (3%) Crocodylus porosus 52 Australia (56%), Papua New Guinea Australia (47%), Singapore (25%), France (27%), Indonesia (10%), Thailand (16%), Malaysia (2%), Republic of Korea (4%), Malaysia (2%) (1%), China (1%), Italy (1%) Other Crocodylus 89 Thailand (35%), Singapore (16%), Japan (39%), Singapore (24%), Thailand Papua New Guinea (20%), Indonesia (7%), China (9%), Vietnam (4%), Italy (10%), Japan (5%), Vietnam (8%), (4%), France (4%), Hong Kong (3%) China (3%), Colombia (1%) a Average, three years to 2010. Source: Caldwell (2012); CITES (2013)

Australian crocodile industry

There are a total of 14 commercial crocodile farms in the Northern Territory, Queensland and Western Australia. In the Northern Territory, there are seven farms in total comprised of two hatcheries, four production only farms and one production and tourism farm. In Queensland, there are six farms in total comprised of two production and tourism farms and three production only farms. There is one production and tourism farm in Western Australia. The crocodile industry in the Northern Territory and Western Australia involves captive breeding and regulated harvesting of eggs and live crocodiles from the wild. With the latest management plan for saltwater crocodile in the Northern Territory, which runs from 2009 to 2014, the ceilings for harvestings from the wild were initially 50 000 eggs, 500 hatchlings, 400 juveniles and 500 adults, but the ceiling for eggs is to be increased in stages to 70 000 eggs by 2014 (Leach et al. 2009). Crocodile farming in Queensland involves captive breeding and raising of crocodiles sourced from the Northern Territory; harvesting from the wild is not allowed. Farmed crocodiles are usually harvested between two and four years of age when belly skin width measures at least 35 centimetres (Northern Territory Department of Primary Industry and Fisheries 2012c). The total value of Australian crocodile product exports in 2011–12 was $15 million, 98 per cent of which was skins (Table 27). Prices for saltwater crocodile skins have increased strongly in recent years

due to demand from European fashion houses. Over the three years to 2011–12 the main export markets for Australia’s crocodile skins were Singapore (69 per cent), France (26 per cent), Japan (2 per cent) and Italy (2 per cent). The main export markets for Australian crocodile meat were Japan (69 per cent), Malaysia (11 per cent), New Zealand (9 per cent), the United States (6 per cent) and Canada (3 per cent).

Table 27: Crocodile products: supply, disposal and value, Australia

2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Meat Tonnes 114 116 204 210 151 257 243 Skins no. 22 780 23 278 40 761 41 907 30 288 51 370 48 532 Gross value $’000 6 786 10 179 19 032 19 281 16 912 28 759 51 859 Exports Raw hides and tanned skins, freshwater crocodiles – volume no. 0 3 961 0 0 0 516 – value $’000 0 4 405 0 0 0 312 – unit value $/skin na 1 337.67 421.78 na na na na Raw hides and tanned skins, saltwater crocodiles – volume no. 20 041 20 479 28 319 37 278 50 773 51 387 36 044 – value $’000 6 633 9 950 12 437 15 316 14 786 22 075 14 413 –unit value $/skin 330.99 485.89 439.16 410.86 291.22 429.59 399.87 Leather – volume Pieces 162 88 0 2 427 215 3 – value $’000 10 8 0 2 84 29 3 –unit value $/skin 61.42 85.40 na 1 089.00 196.84 136.05 933.33 Meat and edible offal – volume Tonnes 13.8 12.6 4.3 12.1 12.5 21.1 25.9 – value $’000 265 177 96 108 146 257 321 – unit value $/kg 19.16 14.03 22.53 8.92 11.65 12.16 12.36 Total export value $’000 6 908 10 139 12 938 15 426 15 016 22 362 15 048 Sources: ABARES; ABS (2013)

Further information about crocodiles

 Northern Territory Department of Primary Industry and Fisheries (www.nt.gov.au/dpifm/Primary_Industry/index.cfm)—a range of information about crocodile farming in the Northern Territory.  FAO’s online database (faostat.fao.org)—data by country for crocodile and alligator production.

Freshwater crayfish

Recorded world production of freshwater crayfish is growing rapidly, reaching a record 1.68 million tonnes in 2010 (FAO Statistics Division 2013) ( Figure 31). The main producing countries in 2010 were China (91 per cent of world production), the United States (3 per cent), Bangladesh (2.1 per cent), India (1.6 per cent) and Thailand (1.5 per cent). Recorded world exports in 2010 were 32 900 tonnes, valued at US$167 million.

1800 9

1200 6

600 3

2012 kt 0 0 US$/kg 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 production producer price (right scale) Data source: FAO Statistics Division (2013) Figure 31: Freshwater crayfish: world production and producer prices

A number of freshwater crayfish species are farmed in Australia, mainly:  marron (Cherax tenuimanus), a very large freshwater crayfish native to the river systems of the high rainfall areas of Western Australia  redclaw (Cherax quadricarinatus), a freshwater crayfish native to the turbid slow moving rivers of northern Australia that can tolerate a broad range of environmental conditions  yabby (mainly Cherax destructor and Cherax albidus), a semiaquatic freshwater crayfish indigenous to the inland waters and some coastal drainage areas of central and eastern Australia, but introduced to Western Australia around 1932. Marron have also been introduced to South Africa but only around 2 tonnes is produced annually (FAO Statistics Division 2013). There is also production of redclaw in New Caledonia, Mexico and South America, but Australia accounts for around 90 per cent of world production.

Australian freshwater crayfish industry

Marron is the largest freshwater crayfish farmed in Australia and earns considerably higher prices than yabbies and redclaw ( Figure 32). Marron and redclaw are usually farmed in purpose-built dams, while yabbies are mostly raised in existing farm dams. Marron accounted for only 27 per cent of Australian freshwater crayfish production in the three years to 2011–12 but 40 per cent of the total value, while yabbies and redclaw accounted for 38 per cent and 36 per cent of Australian production, respectively. In 2009–10 there were 407 licences for production of freshwater crayfish in Australia, less than half the level in 2005–06 (Table 28). A production advantage Australia enjoys compared with other countries is a relatively disease free environment In the three years to 2010–11 Western Australia (producing marron and yabbies) accounted for 46 per cent of Australian freshwater crayfish production; Queensland (producing redclaw), 36 per cent; South Australia (marron and yabbies), 10 per cent; New South Wales (yabbies), 7 per cent; and Victoria (yabbies), 1 per cent (Skirtun et al. 2012).

Table 28: Freshwater crayfish: supply, disposal and value, Australia

Unit 2004–05 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 Production No. of licences – marron no. 290 279 80 25 34 18 na – redclaw no. 233 317 240 201 241 239 na – yabbies no. 316 287 240 200 182 150 na – total no. 839 883 560 426 457 407 na Quantity – marron tonnes 77 64 88 73 76 77 88 – redclaw tonnes 99 105 100 67 68 57 52 – yabbies tonnes 120 91 116 84 60 59 42 – total tonnes 296 261 304 224 204 193 181 Gross value – marron $’000 2 072 1 637 2 215 2 091 2 040 2 094 2 451 – redclaw $’000 1 282 1 300 1 450 1 097 1 121 956 908 – yabbies $’000 1 866 1 314 1 753 1 351 1 019 1 059 637 – total $’000 5 220 4 251 5 418 4 539 4 180 4 109 3 996 Source: Skirtun et al. (2012)

In the early 2000s roughly 20–25 per cent of Australian freshwater crayfish production was exported, mainly to Europe and north Asia. However, exports have declined as production has declined. An estimated 14 per cent of total redclaw production was exported in 2005–06 (Lobegeiger & Wingfield 2007), but this proportion was only 1 per cent in 2009–10 (Wingfield & Willett 2012). An export accredited marron processing plant was built at Manjimup in Western Australia in 2006.

400 60

300 45

200 30

100 15

2011–12 tonnes 0 0 $/kg 1995–96 2000–01 2005–06 2010–11 yabby production marron production redclaw production yabby price (right scale) marron price (right scale) redclaw price (right scale)

Data source: Skirtun et al. (2012) Figure 32: Freshwater crayfish: production and producer prices, Australia

Mulloway

Mulloway (Argyrosomus japonicus) is a coastal fish mostly found in countries bordering the Indian Ocean, including Australia and those of the Indian subcontinent and the southern region of Africa.

There are small wild catch mulloway fisheries in Australia—for example in the Coorong, the estuary at the mouth of Murray River in South Australia. South Australian production has declined substantially in recent years and was only 22 tonnes in 2010–11 ( Figure 33).

50 10

40 8

30 6

20 4

10 2

0 0 2011–12 tonnes $/kg 2006–07 2007–08 2008–09 2009–10 2010–11 production unit value (right axis) Data source: Knight & Tsolos (2012) Figure 33: Wild catch mulloway: production and prices, South Australia

Mulloway were first bred in captivity in Australia in 1992. Guy and Cowden (2012) list the characteristics of mulloway that make them suitable for farming as: quick growth and high feed conversion rates; accepting of artificial food; highly fecund; tolerant of a wide range of water salinity, oxygen and temperature levels; not cannibalistic; and can be grown at high stocking rates. These characteristics indicate potential for farming in on-land saline ponds or tanks, including those parts of inland Australia where saline water is plentiful. Until recently virtually all commercial farmed mulloway production in Australia came from sea cage systems, but a pond-based mulloway farm was started in 2008 at Yamba, on the north coast of New South Wales, employing a disused prawn farm. Research is continuing into that system. Farmed production of mulloway reached 48.7 tonnes in New South Wales in 2011–12, with a gross value of $488 000. Farmed mulloway production increased when pond-based mulloway production commenced at Yamba in 2008 and this appears to have caused an initial sharp decline in farmed mulloway prices ( Figure 34). However, farmed mulloway prices rebounded as wider markets were found for the new production.

75 15

50 10

25 5

tonnes 0 0 2011-12 $/kg 2001–02 2003–04 2005–06 2007–08 2009–10 2011–12 production price (right axis) Data source: Department of Primary Industry, New South Wales (2012) Figure 34: Farmed mulloway: production and prices, New South Wales

Further information about mulloway

 Guy & Cowden (2012) (rirdc.infoservices.com.au/downloads/11-178).

Murray cod

Murray cod (Maccullochella peelii peelii) is a native Australian freshwater fish found in the Murray– Darling river system of eastern Australia. It is predatory and the largest freshwater native fish in Australia. The Murray cod is a premium priced fish with characteristics that make it suitable for aquaculture (Love & Langenkamp 2003). In the past there have been large commercial harvests of Murray cod from the wild. However, as a result of declining wild stocks, the last wild harvest fishery was closed in the South Australian section of the Murray River in July 2003. The Murray cod industry in Australia is now based on aquaculture, with hatcheries supplying juveniles to restock river systems and to aquaculture farms for grow out. Murray cod production varies according to the availability of irrigation water and was very low in the period around 2010 due to low stored water levels in the Murray–Darling river system. Aquaculture production of Murray cod in New South Wales was 14.1 tonnes in 2011–12, with a gross value of $291 000. Sydney market prices for Murray cod have varied around $20 a kilogram in 2011-12 dollars over the past decade ( Figure 35).

40 40

30 30

20 20

10 10

2011–12 tonnes 0 0 $/kg 1999–2000 2001–02 2003–04 2005–06 2007–08 2009–10 2011–12 production price (right axis) Data source: Department of Primary Industry, New South Wales (2012) Figure 35: Murray cod: aquaculture production and prices, New South Wales

Seaweed

Seaweed describes a range of marine algae. Seaweeds can be further categorised as red, brown and green types. Seaweed is part of the traditional diet of many coastal peoples throughout the world, particularly in north Asia. Alginate, agar and carrageenan extracted from seaweed are used by the food industry because of their gelling, water-retention and emulsifying properties. A range of other compounds are extracted from seaweed, including fucoidan compounds (used as dietary supplements and pharmaceuticals) and beta carotene (used as a food supplement, colouring agent and in pharmaceuticals). Seaweed is also widely used as fertiliser, animal feed and as ornamental plants in aquariums. Seaweeds are mainly foraged from the wild but are also increasingly farmed. World seaweed production averaged 16.2 million tonnes in the three years to 2011 (Table 29). Red seaweeds made up 55 per cent of world production and brown seaweeds 45 per cent; commercial production of green seaweeds was negligible. China produces nearly half of the world’s seaweed; Indonesia and the Philippines are the other main producers.

Table 29: Seaweed: key characteristics of the world market

Volume a Value a Key countries volume shares (average, three years to 2011) Production 16 232 kt na China (48%), Indonesia (24%), Philippines (11%), Republic of Korea (5%), Japan (3%), Democratic People’s Republic of Korea (3%), Chile (2%) World trade 362 kt US$692 Exporters: Indonesia (28%), Chile (17%), China (13%), Iceland (7%), million Philippines (7%), Peru (5%) and Ireland (4%) Importers: China (40%), Japan (15%), United States (8%), Ireland (6%), France (5%) and Republic of Korea (4%). a Annual average, three years to 2011. Sources: FAO Statistics Division (2013); United Nations Statistics Division (2013)

Around 2 per cent of world seaweed production enters world trade before substantial processing. Countries in north Asia account for around 60 per cent of world seaweed imports. Indonesia, Chile and China account for around 60 per cent of world exports.

World production of seaweed has grown at 8.4 per cent a year since 2000. Average world import prices of seaweed have eased in recent years from the high levels of 2008 and 2009 ( Figure 36).

20000 3

15000 2

10000

1 5000

kt 0 0 2012 US$/kg 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 production imports import price (right axis)

Data sources: FAO Statistics Division (2013); United Nations Statistics Division (2013) Figure 36: Seaweed: world production, imports and import prices

Australian seaweed industry

There are a number of industries in Australia based on harvesting wild seaweed or cultivating algae. According to Lee (2010) the main industries are:  alginate production on King Island, by Kelp Industries Pty Ltd, based mainly on harvesting stormcast bull kelp (Durvillea pototorum)  fertiliser and animal feed production at various coastal locations in Australia, based on wild harvesting of bull kelp (Durvillea sp.)  production of fucoidan compounds in Tasmania, by Marinova Pty Ltd, based on farming a brown seaweed, Undaria pinnatifida, a species introduced to Australia  beta-carotenoids and shrimp production, based on cultivating the micro-algae Dunaliella salina in open-air ponds in inland regions with highly saline water, mainly in Western Australia (Hutt Lagoon and Karratha) and South Australia (near Whyalla). Australia imported seaweed products (seaweed, agar and alginic acid) valued at $23.3 million in 2011– 12 and exported seaweed products with a value of $2.2 million (excluding beta-carotene for which no data are available) (Table 30).

Table 30: Seaweed products: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Volume, dry – cast kelp, King Island tonnes 2 406 2 223 1 922 1 606 1 900 Gross value – cast kelp, King Island $’000 950 Exports Seaweed a – volume tonnes na na na na na na na – value $’000 4 482 2 290 2 191 2 073 2 272 3 558 2 057 – unit value $/kg na na na na na na na Agar – volume tonnes 4.3 135.2 180.1 63.1 0.2 0.1 0.2 – value $’000 1 050 545 648 360 15 8 6 – unit value $/kg 245.89 4.03 3.60 5.70 77.01 154.31 39.33 Alginic acid – volume tonnes 49.6 11.4 8.9 2.4 8.3 77.5 7.2 – value $’000 138 142 33 26 160 292 150 – unit value $/kg 2.78 12.53 3.69 10.98 19.14 3.76 20.79 Total export value $’000 5 670 2 978 2 872 2 459 2 447 3 858 2 213 Imports Seaweed a – volume tonnes 3 325 5 316 4 106 5 036 4 481 6 307 7 840 – value $’000 11 139 14 210 12 897 17 165 15 413 17 331 17 347 – unit value $/kg 3.35 2.67 3.14 3.41 3.44 2.75 2.21 Agar – volume tonnes 59.2 55.9 48.1 96.8 74.4 36.0 39.1 – value $’000 772 816 1 040 1 190 1 121 923 972 – unit value $/kg 12.98 14.61 21.61 12.30 15.07 25.68 24.83 Alginic acid – volume tonnes 460.9 372.8 291.3 338.4 361.1 371.6 403.2 – value $’000 4 258 3 831 3 195 4 726 5 068 5 025 4 966 – unit value $/kg 9.24 10.28 10.97 13.97 14.04 13.52 12.32 Total import value $’000 16 169 18 858 17 132 23 081 21 603 23 279 23 284 a Edible and not edible. Sources: ABARES; ABS (2013); FAO Statistics Division (2013)

The bull kelp industry is a source of alginate (alginic acid). World alginate production was estimated to be 26 500 tonnes in 2009 and sold at an average price of around US$12 a kilogram (Bixler & Porse 2011). Production of cast kelp on King Island was 1900 tonnes, dry basis, in 2009–10 (DSEWPaC 2011d), with an estimated gross value of $950 000. Most bull kelp is dried and pulverised on King Island then shipped elsewhere for the alginate extraction process. Dried bulk kelp contains 30–50 per cent alginate. Significant quantities of King Island bull kelp are also used to produce fertiliser for plants. Collectors of kelp on King Island must be licensed and can only collect kelp that has become detached by water movement (storm cast) in a prescribed harvest season. There are 80–100 collectors of kelp on King Island and one licensed processor. The harvest is restricted to a maximum of 50 per cent of available cast material at each harvesting site.

Australian exports of alginate have declined to low levels, compared with the 1990s ( Figure 37). Imports of alginate have fluctuated around 300 tonnes over the past decade. Import prices have been generally declining over the past 20 years.

900 30

600 20

300 10

2011–12 tonnes 0 0 $/kg 1991–92 1996–97 2001–02 2006–07 2011–12 exports imports export price (right axis) import price (right axis) Data source: ABS (2013) Figure 37: Alginic acid: trade and prices, Australia

Marinova Pty Ltd extracts fucoidan compounds from around 300 tonnes of seaweed a year gathered from the coastline of Tasmania. It also sources seaweed from Canada, Patagonia and some South Pacific islands. The fucoidan compounds are used to make a range of nutraceutical, skin care and pharmaceutical products. Around 280 tonnes of nutrient-rich solid material left over after extraction is sold as potting mix. The company employed 15 persons in 2011 and had annual sales of around $5 million (Marinova Pty Ltd 2011). Inland farming of seaweed in Australia is based on microalgae (mainly Dunaliella salina) that thrive in highly saline water. The advantages of inland farming of microalgae in Australia are low cost land and brine and a 9 month growth season (Borowitzka 1990). The farming of microalgae at Hutt Lagoon in Western Australia is undertaken by the multinational company BASF. The company also has a processing facility in Melbourne. The farming produces natural carotenoids (mainly beta-carotene, but also alpha-catotene, lutein, zeaxanthin and cryptoxanthin) and shrimp and algae biomass for feed use in aquaculture. Most of the world’s beta- carotene is synthesized. Prices received for natural beta-carotene are around three times that of the synthesized product. The operation in Australia (including the processing plant) had an annual sales turnover of $83.7 million in 2009. Another more recent microalgae farming development is a pilot production plant near Karratha in Western Australia, owned by Aurora Algae. This plant produces 12–15 tonnes of algal biomass a month from six 4000 square metre ponds, using waste carbon dioxide from nearby industrial producers as a feedstock. The algae biomass is used to produce nutraceuticals, pharmaceuticals and renewable energy. Aurora Algae has plans to increase production capacity at Karratha to 600 tonnes of algae biomass a month, based on 100 hectares of ponds, with construction starting in 2014.

Further information about seaweed

 Lee (2010) (rirdc.infoservices.com.au/downloads/10-164).  The seaweed site: information on marine algae (www.seaweed.ie)—a range of information on types of seaweed and the nature of markets for seaweed products.

Emerging plant industries

The emerging plant industries in Australia are largely horticultural industries rather than broadacre cropping industries. The estimated value in Australia of emerging plant industries reported in this compendium was $530 million in 2011–12. This compares with a total value of horticultural industries in Australia in 2011–12 of $9.2 billion ( Figure 38).

Total value of production: $9 155m cut flowers, $300m Other horticulture, $92m cultivated turf, $300m nursery, $900m fruit excl. grapes, $2811m tree nuts, $320m

grapes, $1023m

vegetables, $3409m

Data source: ABARES (2013) Figure 38: Horticulture: value of production, Australia, by sector, 2011–12

A number of Australia’s emerging plant industries are based on using Australian native plants. The industries include foods, such as macadamias and bush tomatoes; native flowers, such as kangaroo paws and waxflowers; and essential oils, such as boronia and sandalwood. In 2011–12 these industries contributed 27 per cent of the total value of the plant-based emerging industries reported in this compendium. Like the emerging animal industries discussed earlier, production of some new crops is based on farmers wanting to diversify their production away from more traditional agricultural products. For example, in Queensland, growth in production of emerging tropical fruits appears to be related to a shift away from production of tobacco and sugar cane. Similarly, there is an important lifestyle element to some emerging plant industries, with hobby farms being important sources of products such as essential oils, olives and tree nuts. As discussed earlier for the emerging animal industries, Australia’s emerging plant industries are benefiting from income growth that is leading to demand for products that are more distinctive or having health benefits. This demand means, for example, that Australia’s emerging coffee industry can produce for premium-paying niche markets, despite having higher production costs than other coffee producing countries. Growing demand for emerging industry products, such as natural pyrethrum and essential oils, reflects a shift in consumer preferences toward natural products. Demand for tree nuts and green tea is being boosted by perceptions of their healthiness. Innovation has been an important reason for the successful emergence of most plant industries. For example, a viable coffee industry in Australia was virtually enabled by the development of mechanical harvesting. Australia faces considerable higher production costs for many emerging plant products compared with its competitors in other countries. For seasonal products such as tropical fruits, green tea and truffles,

Australia’s niche appears to be in supplying fresh products outside the production periods of the main world producers. Unlike emerging animal industries, many of the emerging plant industries face strong competition from imports in the Australian domestic market. For example, the emerging tropical fruit industry is facing increased imports from Thailand, which has gained access to the Australian market with a number of tropical fruits. There are environmental benefits associated with many emerging plant industries. For example, the oil mallee and sandalwood industries control salinity, preserve biodiversity and reduce greenhouse emissions. Some new and emerging industries are not covered in this compendium. A more complete range of new crops industries in Australia is described by Salvin et al. (2004).

Asian vegetables

More than 70 types of Asian vegetables are grown in Australia. Many of these vegetables have other common names and there is still confusion among consumers about names. The main Asian vegetable types and their prices in the Sydney produce market are shown in Table 31. Production of Asian vegetables in Australia grew strongly throughout the 1990s. By 2001 the estimated wholesale value of the total Australian market for Asian vegetables was $136 million (Hassall & Associates 2003), up from an estimated $60 million in 1993–94 (Lee 1995). The estimated number of growers in 2000–01 was 1675. There were 405 establishments in Australia in 2005–06 planting 1114 hectares to Asian vegetables, with an output of 17 266 tonnes (ABS 2012a). This puts the value of the Asian vegetable industry in Australia in 2005–06 at about $48 million. However, the ABS categorisation does not appear to include vegetables such as Japanese pumpkin, okra and taro. Including the other Asian vegetable types and using the prices for Asian vegetables reported in Table 31, the gross value of the Asian vegetable industry in Australia in 2005–06 is estimated at $57 million. The gross value of production of Asian vegetables in Australia in 2011–12 is estimated to be around $85 million. The industry is mostly oriented toward the domestic market.

Table 31: Selected Asian vegetables: average prices, Sydney wholesale market

Type and variety Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Bamboo shoot $/kg 5.03 5.18 4.83 4.87 5.58 4.42 5.39 Bitter melon $/kg 2.17 2.67 2.71 2.44 2.70 2.96 2.88 Chinese melon – hairy $/kg 1.69 1.73 1.51 1.47 1.66 2.25 1.83 – long $/kg 1.99 1.82 1.79 2.06 1.87 2.72 2.33 Chinese vegetable – buk choy $/bunch 0.63 0.60 0.66 0.60 0.61 0.69 0.79 – choi sum $/bunch 0.66 0.62 0.67 0.59 0.60 0.67 0.84 – drumstick $/kg 4.29 4.80 7.05 0.00 5.39 6.00 5.59 – gai choy $/bunch 0.76 0.75 0.71 0.73 0.72 0.81 0.92 – gai lum $/bunch 0.78 0.75 0.72 0.74 0.72 0.85 0.95 Kangkung $/kg 4.41 5.31 4.91 2.44 4.56 4.00 3.76 Luffa – angled $/kg 2.13 2.42 2.47 2.35 2.11 2.39 2.80 – round $/kg 1.85 2.25 0.00 0.00 1.77 2.23 2.04 Okra $/kg 5.20 5.39 6.00 5.14 5.33 5.97 5.96 Snake bean $/kg 1.16 1.34 1.24 1.10 1.16 1.16 1.35 Taro $/kg 3.30 3.55 4.15 3.91 4.87 4.24 4.53 Winged bean $/kg 7.85 6.81 0.00 0.00 13.94 12.78 8.25 Winter melon $/kg 0.87 1.36 1.57 0.89 1.18 1.93 1.91 Wombok, Chinese cabbage $/carton 15.95 11.96 14.31 13.24 13.89 15.15 12.97 Yambean $/kg 3.51 3.98 4.03 4.67 5.21 4.79 5.03 Source: Sydney Market Reporting Service (2012)

The value of Australian exports of fresh and processed Asian vegetables to the main Asian markets has declined steadily from a peak around 2000 ( Figure 39). Apart from strongly growing domestic demand, the steady appreciation of the Australian dollar over the past decade has been a factor in the decline of export markets in Asia for Asian vegetables grown in Australia. For example, Australian exports of wombok (Chinese cabbage) declined from a high of 6800 tonnes in 2001–02 to only 80 tonnes in 2011–12.

200

150

100

2011-12 $m 0 1991–92 1996–97 2001–02 2006–07 2011–12 South Asia South-East Asia North Asia Data source: ABS (2013) Figure 39: Asian vegetables (fresh and dried): value of Australian exports to Asia, by region

The diffuse nature of the Asian vegetable industry makes it difficult to source comprehensive data. The remainder of this chapter is a compilation of the data that are publicly available. A more complete statistical snapshot would require a survey of industry participants, which was beyond the scope of this project.

Further information about Asian vegetables

 Asian and world foods newsletter (www.rirdc.gov.au), a publication funded by RIRDC to maintain and strengthen knowledge among Australia’s Asian and world food producers.  Lee (2011) (rirdc.infoservices.com.au/downloads/10-211).  Hassall & Associates (2003) (www.rirdc.gov.au/reports/AFO/02-168.pdf)—provides profiles of the Asian vegetable industries in each state and territory, and a long list of industry contacts.  The ‘Asian vegetables’ section in RIRDC’s The New Crop Industries Handbook, pp. 15–105 (rirdc.infoservices.com.au/items/04-125)—provides information on Asian brassicas, bitter melon, burdock, Chinese water chestnut, culinary bamboo shoots, long white radish, edamame, Japanese ginger, Japanese taro, kabocha, lotus, luffa, Asian melon, snake bean, taro (large corm) and wasabi.

Wombok (Chinese cabbage)

Wombok (Brassica rapa var pekinensis), also known as Chinese cabbage, is the most frequently eaten vegetable in Asia and one of the most commonly consumed Asian vegetables in Australia (Clarke 2004). It is closely related to buk choy. Wombok is commonly eaten as a freshly cooked vegetable, for example in stir fry dishes, and is often further processed as a brined product or used in pickles such as kim-chi. Suited to temperate regions, it is grown in all Australian states but mainly in south-east Queensland and Western Australia. Australian wombok production has been oriented toward the export market but there is growing demand in the domestic market. Australian production of wombok is estimated to be around 11 000 tonnes in 2011–12, with a gross value of $9.3 million (Table 32).

Table 32: Wombok (Chinese cabbage): supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Volume tonnes 10 000 11 000 Gross value $’000 7 900 9 300 Exports Volume tonnes 2 508 1 286 467 500 339 233 80 Value $’000 2 585 1 500 488 569 417 308 129 Unit value $/kg 1.03 1.17 1.05 1.14 1.23 1.32 1.63 Sources: ABARES; ABS (2013)

Australian exports of wombok grew strongly in the late 1980s and early 1990s but declined to around 80 tonnes in 2011–12, though export prices have improved in recent years ( Figure 40). The export markets for Australian wombok in recent years were Singapore (63 per cent of the total volume of Australian exports in the three years to 2011–12), Papua New Guinea (15 per cent) and Indonesia (10 per cent). Queensland supplied nearly two-thirds of Australian wombok exports in the three years to 2011–12, while Western Australia and Victoria supplied 23 per cent and 12 per cent, respectively.

20000 2

15000 2

10000 1

5000 1

2011–12 tonnes 0 0 $/kg 1991–92 1996–97 2001–02 2006–07 2011–12

production exports export price Data source: ABS (2013) Figure 40: Wombok (Chinese cabbage): production, exports and export prices, Australia

Bitter melon

The fruit, leaves and flowers of the bitter melon (Momordica charantia) are consumed in many Asian and Indian foods. Australian bitter melon production occurs mainly in the Northern Territory (Table 33) but also in northern Western Australia and the Northern Rivers district of New South Wales. Bitter melon production in the Northern Territory was around 200 tonnes in 2011–12, with a gross value of around $1.1 million (Table 33). Production is sold throughout Australia. Sydney prices for bitter melon are shown in Table 31.

Table 33: Bitter melon: supply and value, Northern Territory

Unit 2005 2006 2007–08 2008–09 2009–10 2010–11 2011–12 Production tonnes 1 610 818 180 537 537 553 200 Gross value $’000 4 025 4 100 1 000 2 800 2 760 2 840 1 100 Unit value $/kg 2.50 5.01 5.56 5.21 5.14 5.14 2.88 Sources: ABARES; Northern Territory Department of Primary Industry and Fisheries (2012a)

Japanese pumpkin

There are two types of Japanese pumpkin: Cucurbita maxima (commonly called kabocha) and Cucurbita moschata (Morgan & Midmore 2003). Japanese pumpkin is mainly grown commercially in New South Wales, Victoria, Queensland, Western Australia and Tasmania. Japanese pumpkin is widely consumed in Australia and is also exported, particularly to Japan. However, because of quarantine restrictions against fruit fly, only pumpkins from Tasmania can be exported to Japan. Australian exports of pumpkins to Japan have declined sharply over the past decade, despite improving prices in real terms ( Figure 41). In volume terms, the Australian share of the total Japanese import market for pumpkins has averaged less than 1 per cent in the three years to 2011, a market dominated by New Zealand (62 per cent) and Mexico (35 per cent).

3000 1800

2000 1200

1000 600

2012 tonnes 0 0 $A/t 1992 1997 2002 2007 2012

imports import price (right scale) Data source: Ministry of Finance, Japan (2013) Figure 41: Japanese pumpkin: Japanese imports from Australia

Okra

Okra (Abelmoschus esculentus) is grown in the world’s tropical and warm temperate regions for its fibrous fruit. World okra production has increased steadily over the past decade to reach 7.8 million tonnes in 2011 ( Figure 42). The main okra producing countries are India (68 per cent of total world production in the three years to 2010), Nigeria (14 per cent), former Sudan (4 per cent) and Iraq (2 per cent).

Mt 0 1996 2001 2006 2011 okra taro Data source: FAO Statistics Division (2013) Figure 42: Okra and taro: world production

Northern Territory okra production was 200 tonnes in 2011–12, with a gross value of $1.3 million (Table 34). All Northern Territory okra is sold on the domestic market. Sydney market prices for okra are shown in Table 31.

Table 34: Okra: supply and value, Northern Territory

Unit 2005 2006 2007–08 2008–09 2009–10 2010–11 2011–12 Production Volume tonnes 900 31 24 276 276 284 200 Gross value $’000 2 160 1 129 2 300 4 000 4 000 4 100 1 300 Unit value $/kg 2.40 3.56 8.09 14.49 14.51 14.44 6.50 Sources: ABARES; Northern Territory Department of Primary Industry and Fisheries (2012a)

Snake bean

Snake/yardlong beans (Vigna unguiculata subsp. sesquipedalis)—also known as dau gok in Chinese and dâu que in Vietnamese—are an annual plant producing a pod that is olive green, round, up to 90 centimetres long and very thin. They are grown in frost-free areas of Australia, either as a dwarf bush or climbing plant. Snake beans are produced mainly in the Northern Territory, but also in northern Western Australia and northern Queensland. Northern Territory snake beans production was 201 tonnes in 2011–12, with a gross value of $1 million (Table 35). Production is sold on the domestic market and there are no imports. Sydney market prices are shown in Table 31.

Table 35: Snake bean: supply, disposal and value, Northern Territory

Unit 2005 2006 2007–08 2008–09 2009–10 2010–11 2011–12 Production Volume tonnes 690 300 244 537 537 553 201 Gross value $’000 3 105 1 400 2 700 2 800 2 800 2 900 1 000 Unit value $/kg 4.50 4.67 11.07 5.21 5.21 5.24 4.98 Sources: ABARES; Northern Territory Department of Primary Industry and Fisheries (2012a)

Taro (large corm)

Taro (Colocasia esculenta) is a perennial herbaceous plant grown throughout the humid tropics and parts of the subtropics, mainly for its starchy underground tuber. The leaves and stems are also edible. There are large and small corm forms of taro; the small corm form known as Japanese taro is not covered in this compendium. Taro is an important food crop in less-developed countries, particularly in Africa and the South Pacific islands. World taro production was 9.5 million tonnes in the three years to 2011, well down on the record 12.1 million tonnes produced in 2008. The main taro producers are Nigeria (36 per cent share in the three years to 2010), China (17 per cent), Ghana (15 per cent) and Cameroon (14 per cent). Only 1–2 per cent of world taro production enters world trade. World exports of taro peaked in 2005 and world taro export prices have been increasing in recent years as world exports have declined ( Figure 43).

180 1500

120 1000

60 500

kt 2012 0 0 $/t 1995 2000 2005 2010 exports export price (right axis) Data source: FAO Statistics Division (2013) Figure 43: Taro: world exports and export prices

China is the main exporter of taro, with a share of 84 per cent in the three years to 2010 (FAO Statistics Division 2013). The other main exporters are Fiji (8 per cent) and the United States (6 per cent). There is probably a considerable trade in taro not recorded in official statistics, particularly between countries in Africa.

Australian taro industry

Taro has been produced in Australia for many years and production has grown over the past decade. The main producing regions in Australia are on the wet tropical coast of north Queensland, with other producing areas in the Northern Territory, central and southern Queensland, and northern New South Wales (Daniells et al. 2009). According to Lemin (2006) there were around 150 taro growers in Australia in 2006 producing around 1000 tonnes a year, worth a gross value of $3.5 million. This production is consumed on the domestic market. Daniells et al. (2009) put annual Australian production at 1000–1500 tonnes. Australian taro production in 2011–12 is estimated to have been 1100 tonnes, with a gross value of around $5 million, up from an estimated $3.5 million in 2006–07. The Sydney wholesale market price for taro was $4.53 a kilogram in 2011–12, compared with $3.55 a kilogram in 2006–07 (Sydney Market Reporting Service 2012).

Australia imports more than 2000 tonnes of taro a year from Fiji ( Figure 44). Imports of taro (called dalo in Fiji) from Fiji grew strongly in the 1990s but have levelled off in recent years and import prices have fallen. These import prices are low compared with domestic prices (see Table 31).

2500 2.5

2000 2.0

1500 1.5

1000 1.0

500 0.5

tonnes 2011–12 0 0.0 $/kg 1991–92 1996–97 2001–02 2006–07 2011–12 imports import price (right axis) Data source: ABS (2013) Figure 44: Taro: imports and import prices from Fiji, Australia

According to Lemin (2006) sustained expansion of the Australian taro industry is constrained by a lack of mechanisation of production, harvesting and handling. Lemin highlighted the potential for mechanisation to reduce production costs by as much as 50 per cent, making Australian taro more competitive with imports and in export markets.

Further information about taro

 Taro chapter in RIRDC’s The New Crop Industries Handbook, publication no. 04/125, pp. 90–7.  Taro Growers Australia (www.tarogrowers.vze.com)—includes an industry newsletter Taro Topics.

Wasabi

Wasabi (Wasabia japonica syn. Eutrema japonica) is a spicy vegetable used in Japanese cuisine. More recently it has found widespread appeal in western cuisine due to its unique flavour. Wasabi can be kept fresh for around two weeks after harvesting. The stems, flowers, leaf stalks (petioles) and leaves of the wasabi plant are consumed. Wasabi is a cool climate crop, tolerating air temperatures ranging from mild frosts to 30 degrees Celsius (Sparrow 2004). This often means it must be grown in shaded conditions provided by trees or shade cloth. Wasabi can be grown in soil (under shade), hydroponically, or in clean running streams with gravel beds. Water grown wasabi is considered to be of superior quality and commands much higher prices than soil grown wasabi. The main producers of wasabi are Japan and Taiwan, although the unique environmental requirements of wasabi growing and shortages of cultivable land limit production in these countries to 880 hectares and 400 hectares, respectively (Savage n.d.). Japan produced 807 tonnes of wasabi root and 2626 tonnes of leaf-stalk in 2010 ( Figure 45). The bulk of Japanese wasabi root production in 2010 was

cultivated in water. Emerging producers include the Republic of Korea, New Zealand, Colombia and Canada (around Vancouver on the Pacific coast).

3000

2500

2000

1500

1000

500

tonnes 0 root leaf-stalk

cultivated in water cultivated in soil Data source: Statistics Bureau, Japan (2012) Figure 45: Wasabi: production, Japan, 2010

Australian wasabi industry

Commercial quantities of soil grown wasabi have been available from Tasmania since 2000, supplying the Sydney, Melbourne and Hobart markets (Sparrow 2009). The first water grown wasabi farm was established in Tasmania in 2004 but ceased production in 2006. There were 20 growers of wasabi in Australia, mostly in Tasmania but also Victoria, growing 0.15 hectares of hydroponic and soil cultivated wasabi. Farmgate prices in 2011–12 were around $200 a kilogram for wasabi stems and $35 a kilogram for wasabi leaves. With total Australian wasabi production of around 1.5 tonnes of stems and 1.5 tonnes of leaves, the gross value of the Australian wasabi industry in 2011–12 was around $240 000. Australian wasabi yields are still low compared with those achieved in Japan, so there is considerable scope for increased production through improved cultivation practices. The main wasabi producer in Australia is Shima Wasabi Tasmania, which was formed by four Tasmanian wasabi growers in 2007. The production system is based on hydroponics. Their production in 2011–12 was around 100 kilograms a month of leaf stalk.

Further information about wasabi

 Shima Wasabi Tasmania (www.shimawasabi.com.au), the main Australian wasabi producer.

Australian native foods

A range of native Australian plants are used as foods. Some of the main products from these plants are listed in Table 36. Australian native animals foods—emu, crocodile, kangaroo and possum—are discussed earlier in this report. Perceptions of the healthiness of Australian native foods are part of their attractiveness to consumers. Konczak et al. (2009) provides a summary of the levels of health beneficial constituents and the antioxidant capacities of commercially significant native fruits, herbs and spices.

Table 36: Major Australian native foods from plants

Common name Botanical name Some Indigenous names (tribe or Main use region) Anise myrtle Syzygium anisatum Leaf for spice, oil Bush tomato Solanum centrale akatyerr (Arrernte tribe), Berry fruit, dried as flavour additive, kampurarrpa (Pitjantjatjara), kati fresh sales kati (Anangu Uluru) and yakajirri (Walpiri) Davidson plum Davidsonia jerseyana orray (Queensland). Fruit used directly, preserved Desert lime Citrus glauca Fruit sold fresh or frozen, or made into jam and marmalade Dorrigo pepper Tasmannia stipitata Green leaf pepper Finger lime Citrus australasica Fruit used directly, frozen Illawarra plum Podocarpus elatus daalgaal (Barron River, Queensland) Fruit used directly gidneywallum (Gubbi Gubbi, Queensland) Kakadu plum Terminalia gubinge (Broome region), murunga Fruit used for food and ferdinandiana (East Arnhem lands) pharmaceutical applications Lemon aspen Acronychia acidula Flavour additive Lemon myrtle Backhousia citriodora Fresh or dried herb, teas, oil Mountain pepper Tasmannia lanceolata Tree berries dried as black pepper substitute, leaf as fresh or dried herb Muntries Kunzea pomifera Fruit berries fresh and processed Native currants Coprosmanitida Fruit used directly, dried Quandong Santalum acuminatum goorti (Narungga tribe, wanga Fruit used mainly in dried halved (Noongar)) form Riberry Syzygium luehmannii Fruit used directly and in processing Round lime Citrus australis Fruit used directly, frozen Sandalwood nuts Santalum spicatum Nuts consumed directly or crushed for oil Warrigal greens Tetragonia Salad leaf vegetable, pesto, sauce tetragoniodes Wattleseed Acacia spp ariepe (Arrernte tribe), ganabargu Roasted seed used directly and (Warlpiri ), ngatunpa (Pitjatjantjara), milled into flour and pulkuru (Pintupi) Sources: Abbott (1983); CSIRO Sustainable Ecosystems (2007); Merne Altyerre-ipenhe (Food from the Creation time) Reference Group, Douglas & Walsh (2011)

Clarke (2012) reports the results of a stocktake of the Australian native food industry in 2011 (Table 37). Clarke estimated the total gross value of production of a selected range of Australian native foods around 2011 at nearly $18 million (Table 37). Lemon myrtle leaf made up the bulk of the total gross value of production ( Figure 46). Foster (2009) estimated the value of production of Australian native plant foods in 2006–07 to be $6.8 million for a less complete range of Australian native foods.

Table 37: Selected Australian native foods: production, prices and value of production, around 2011 a

Volume (t) Gross value Unit gross value Growth prospects ($’000) ($/kg)

Anise myrtle, leaf 8 290 36 Stable Bush tomato 15 540 36 Modest growth Davidson plum 9 90 10 Modest growth Kakadu plum 12 240 20 Stable Lemon aspen 4 50 14 Stable Lemon myrtle, leaf 838 15 000 18 Stable Mountain pepper – leaf 3 180 60 Modest growth – berry 4 360 90 Modest growth – total 7 540 77 Muntries 8 160 20 Stable Native limes – desert lime 13 225 18 Strong growth – finger lime 10 350 35 Strong growth – round lime 0 0 0 – total 23 575 26 Quandong 6 180 30 Stable Riberry 5 100 22 Strong growth Wattleseed 6 150 25 Modest growth Total 939 17 915 – a Where Clarke (2012) reported only a range for production or value, the midpoint of the range is shown. Sources: ABARES; Clarke (2012)

$m 0

leaf

berry

round

desert finger

riberry

muntries

quandong

wattleseed

anise myrtle anise tomato bush

lemon aspen lemon

kakadu plum kakadu

lemon myrtle lemon davidson plum davidson mountain pepper native lime

Data sources: ABARES; Clarke (2012) Figure 46: Selected Australian native foods: value of production, around 2011

An important component of the Australian native food industries are Indigenous Australians. The knowledge of the food and medicinal value of native plants is derived from Indigenous Australians, who do much of the commercial harvesting of bush tomatoes, Kakadu plums and wattleseed.

There are a number of brands of native foods based on partnerships with Indigenous (and non- Indigenous) partners (Robins 2007). There are a number of other related initiatives to advance the development of Australia’s native food industries by involving Indigenous communities. One arrangement is the Coles Indigenous Food Fund (CIFF), established around 10 years ago by the Coles supermarket chain in partnership with the suppliers of particular brands of native food products that sourced their native food inputs from Indigenous communities or businesses. Funding comes from a contribution of the sale of each unit of particular brands of native food product sold by Coles, with Coles providing 10 cents and the suppliers of the native food products providing further amounts. CIFF is used for funding specific projects that assist Indigenous communities or businesses who are, or who wish to become, part of the native foods industry supply chain. CIFF has supported several research and development initiatives of the Australian Native Food Industry where direct indigenous benefits are realised.

Bush tomato

The bush tomato (Solanum centrale) is native to central areas of Australia with an annual rainfall of 150–300 millimetres (Northern Territory, South Australia and Western Australia). The Aboriginal names for the bush tomato vary according to tribe and include ‘akatjera’ (Arrernte tribe), ‘kampurarrpa’ (Pitjantjatjara) and ‘kati kati’ (Anangu Uluru) (CSIRO Sustainable Ecosystems 2007). The intense flavour of the bush tomato means it is largely used as food flavouring, sauce or in chutneys. The commercial harvest of bush tomatoes is gathered from the wild and increasingly from commercial plantings. Morse (2005) puts the annual bush harvest of bush tomatoes by Aboriginal communities in central Australia at 2–5 tonnes, with a return to gatherers of $12 a kilogram. Clarke (2012) estimated Australian production of bush tomatoes to be around 15 tonnes in 2011, with a gross value of around $540 000.

Davidson plum

There are two species of Davidson plum: Davidsonia jerseyana, a threatened species that is native to northern New South Wales; and Davidsonia pruriens, which is native to north-east Queensland. The fruit is bright burgundy in colour, sour plum-like in taste and varies in diameter from 2 to 5 centimetres. The fruit is eaten fresh or is preserved. Davidson plum is produced in small-scale orchards in northern New South Wales and Queensland. Clarke (2012) estimated Australian production of Davidson plum to be around 8–10 tonnes in 2010 with a gross value of around $90 000.

Kakadu plum

Kakadu plum (Terminalia ferdinandiana) is native to the Kimberly region of Western Australia and the Northern Territory. The fruit is a traditional source of food and medicine for Indigenous people in northern Australia. The fruit has very high vitamin C and dietary fibre content. The fruit is sold fresh or in powdered or frozen puree form. Most of Australian production of Kakadu plum comes from a wild harvest, but there is also production from a few small orchards. Wild harvesters must have government permits. Clarke (2012) estimated Australian production of Kakadu plum to be 12 tonnes in 2011 with a gross value of around $240 000. Well-established processors of Kakadu plum products in Australia include Coradji Pty Ltd, Loving Earth, Robins Foods Pty Ltd (‘Outback Spirit’ brand) and Wild Harvest NT.

Lemon myrtle

Lemon myrtle (Backhousia citriodora) is a tree that is native to the subtropical rainforests of Queensland. The leaves have a high content of citral that gives a distinctive lemon-lime fragrance. The leaves are dried or processed to extract an essential oil. The dried leaves are used as a tea, potpourri or spice; the essential oil is used as a food and beverage flavouring, air freshener, disinfectant and in a range of body care products. Since the early 1990s around 1.4 million lemon myrtle trees have been established in plantations in Australia, mainly in Queensland but also in northern New South Wales. The trees are formed into hedges that can be mechanically harvested. The leading producer of lemon myrtle is Australian Native Lemon Myrtle Ltd, which manages 1.2 million trees in an organically certified production system. Clarke (2012) estimated farmgate Australian production of lemon myrtle leaf in 2011 to be 575–1100 tonnes and of lemon myrtle oil to be 3–8 tonnes, with a gross value of $7–23 million. The farmgate price for lemon myrtle leaf has declined sharply as production has increased. Clarke (2012) says that 90 per cent of oil production is exported, mainly to the United States and the European Union. According to Biosecurity Australia, 57.4 tonnes of organically certified lemon myrtle oil were exported from Australia to the European Union in 2011, virtually all to Germany (Ian Lyall [Biosecurity Australia] pers. comm., 28 September 2012).

Mountain pepper

Mountain pepper (Tasmannia lanceolata) is a shrub that grows up to 10 metres in height and found in temperate rain forest from Tasmania through to northern New South Wales. Its leaves and berries have a spicy taste and aroma that makes them useful as food flavouring, in either fresh, crushed or milled forms. The berries also add a plum colouring to food. Most mountain pepper leaves and berries are harvested from the wild but there are also small plantations (Clarke 2012). According to Clarke (2012), mountain pepper production in Australia in 2011 was around 3 tonnes of dry leaf and 4 tonnes of dried berries, with a combined gross value of $540 000. Farm gate prices in 2011 were $40–80 a kilogram for dried and milled leaf and $60–120 a kilogram for fresh and dried berries. Around 40 per cent of leaf production and 60 per cent of berry production was exported.

Native limes

There are seven native limes in Australia but the three that are used as bushfoods are:  desert lime (Citrus glauca, previously called Eremocitrus glauca) is a tree that is native to the near desert west of Queensland and New South Wales  finger lime (Citrus australasica)—native to the subtropical rainforests of northern New South Wales and southern Queensland  round lime (Citrus australis)—native to the rainforests of south-east Queensland. A plantation near Roma in Queensland, operated by Australian Desert Limes, has 11 000 grafted desert lime trees that are trickle irrigated. A grafted desert lime tree begins fruiting after three years and, at maturity, can yield up to 30 kilograms of fruit annually under favourable conditions. Clarke (2012) estimated Australian production of desert limes to be 13 tonnes in 2011 with a gross value of around $225 000. According to Clarke (2012) Australian production of finger limes was an estimated 10 tonnes in 2011 with a gross value of around $350 000. Finger lime prices in the Sydney market have declined from

around $21 a kilogram in 2006–07 to only $11 a kilogram in 2011–12 (Sydney Market Reporting Service 2012).

Quandong

Quandong trees (Santalum acuminatum) occur naturally in the southern half of Australia but mostly in Western Australia and South Australia. The quandong tree is parasitic on other trees; plantings in orchards require companion plantings. The companion plantings may also be productive, such as acacias that produce wattleseeds. The quandong fruit is generally bright red in colour and contains a large stone that accounts for around 50 per cent of the total weight of the fruit in the wild but less than this in irrigated orchard plantings. The somewhat tart fruit is very high in vitamin C and is a traditional food of Indigenous Australians. It is eaten fresh or made into a range of food products, particularly preserves. Australian quandong production is sourced from wild harvest (particularly by Indigenous Australians) and from orchards. In 2001 there were around 26 000 quandong trees in orchards; the plantings were largely irrigated (Lethbridge 2004). Each irrigated quandong tree was expected to, at maturity, produce 3 to 5 kilograms of fruit a year, equivalent to 0.75 to 1.2 kilograms of dried flesh. However, difficulties in managing quandongs have seen many orchards no longer maintained; as few as three orchards with a total of around 2000 trees were still operating in 2006. It is uneconomic for the orchards to supply quandongs to the fresh market and instead they do their own processing. According to Clarke (2012), estimated Australian quandong production was 6 tonnes in 2010, with a gross value of $180 000. All of this production came from orchards; there was virtually no wild harvesting of quandongs (Clarke 2012).

Riberry

Riberry is an elliptical fruit around 13 millimetres long that comes from a medium-sized rainforest tree (Syzygium luehmannii) naturally found from northern New South Wales to tropical Queensland. Riberry usually ripens from December to February. The fruit tastes similar to a cranberry, with a hint of cloves. The fruit is eaten fresh or dried or is made into jams, sauces and syrups. The main producer in Australia is Galeru Pty Ltd, a partnership of growers with plantations in the hinterland of the Sunshine Coast of Queensland and around Coffs Harbour in northern New South Wales. Australian riberry production was estimated to be 5 tonnes in 2010, with a gross value of around $100 000 (Clarke 2012). The riberry industry was assessed by Clarke (2012) to have strong growth prospects.

Wattleseed

Acacia species are numerous and widely located throughout Australia. Many acacia species produce seeds that are edible though there are some species with toxic seeds. Wattleseeds are eaten whole or ground into a flour. Wattleseeds are high in protein and rate low on the glycaemic index, making them useful in diabetic and other specialty diets (CSIRO Sustainable Ecosystems 2007). The main edible wattleseed in Australia comes from Acacia victoriae. Aboriginal names for wattleseed include ‘ariepe’ (Arrernte), ‘ganabargu’ (Warlpiri), ‘ngatunpa’ (Pitjatjantjara), and ‘pulkuru’ (Pintupi). The commercial harvest of wattleseed is mainly gathered from the wild but there is also some production from plantations. Morse (2005) puts the annual bush harvest of wattleseed by Aboriginal communities in central Australia at 3–6 tonnes, with a return to gatherers of $10 a kilogram.

Australian wattleseed production was estimated to be 4–8 tonnes in 2010, made up of 1–4 tonnes of wild harvest and 3–4 tonnes of cultivated production (Clarke 2012). The estimated farmgate value was between $100 000 and $200 000 (Clarke 2012).

Further information about Australian native foods

 Clarke (2012), Australian native food industry stocktake (www.anfil.org.au/wp- content/uploads//12-0661.pdf)—a RIRDC report detailing the production, prices and value of production for a wide range of Australian native foods.  Australian Native Food Industry Limited (www.anfil.org.au), the peak national body of the Australian native food industry—provides a range of information, including the ANFIL Bulletin.  The ‘Native Foods’ section in RIRDC’s The New Crop Industries Handbook, pp. 337–84 (https://rirdc.infoservices.com.au/items/04-125).

Cocoa

Cocoa beans are the seed of the cocao tree (Theobroma cacao), a small tree that is native to the tropical areas of Central and South America. The beans are used to make cocoa powder, cocoa butter (40–50 per cent of the bean), paste and chocolate. Cocoa butter is used as a food and in cosmetics. The husks, skins and fibres of the cocoa bean are used as animal feed and fertiliser. The main cocoa bean producers are located in the tropical regions of Africa (Cote d’Ivoire, Ghana, Nigeria and Cameroon), Asia (Indonesia) and Central and South America (Brazil and Ecuador) (Table 38).

Table 38: Cocoa beans (raw and roasted): key characteristics of the world market

Volume a Value a Key countries shares of volume Production 4 218 kt na Cote d’Ivoire (30%), Indonesia (19%), Ghana (16%), Nigeria (9%), Cameroon (6%), Brazil (5%), Ecuador (3%) World trade 2 949 kt US$8.4 Exporters: Cote d’Ivoire (31%), Ghana (20%), Indonesia (16%), Nigeria billion (8%), Cameroon (7%), Togo (3%), Ecuador (3%) Importers: Netherlands (20%), United States (14%), Malaysia (12%), Germany (12%), Belgium (6%), France (5%), United Kingdom (4%), Spain (3%) a Average three years to 2010. Sources: FAO Statistics Division (2013); United Nations Statistics Division (2013)

Cocoa is one of the world’s most internationally traded agricultural commodities, with more than 70 per cent of world cocoa bean production entering world trade. The value of world trade of raw and roasted beans averaged US$8.4 billion a year in the three years to 2010. The main producers are also the main exporters of cocoa beans, particularly Cote d’Ivoire, Ghana and Indonesia. Importers of raw and roasted cocoa beans are mainly wealthy countries, such as the Netherlands and the United States, that manufacture value-added products, particularly chocolate, that enter world trade ( Figure 47).

paste, US$2.3b husks, skins, fibres, US$0.0b powder, US$2.1b

butter, US$4.2b

chocolate, US$17.5b

beans, raw and roasted, US$8.4b a Average, 2008 to 2010. Data source: United Nations Statistics Division (2013) Figure 47: Cocoa products: composition of the value of world exports

World prices for cocoa beans in real terms eased in recent years from their highs in the late 2000s ( Figure 48).

8 4000

6 3000

4 2000

2 1000

Mt 2012 0 0 US$/t 1992 1997 2002 2007 2012

production exports indicator price a (right axis)

a International Cocoa Organization cash price, cif United States and European ports. Data sources: FAO Statistics Division (2013); International Cocoa Organization (2013); United Nations Statistics Division (2013) Figure 48: Cocoa beans: world production, imports and import price

Australian cocoa industry

The Australian cocoa industry is in its very early stages with only five producers, which are all located in the Mossman region of Far North Queensland. Several growers are now establishing plantations and small processing plants in the Tully region of Far North Queensland. Production of raw beans was estimated to be 100 tonnes in 2011–12, with a gross value of $1.25 million (Table 39). The value of Australian imports of early stage cocoa products (beans, husks, butter, paste and powder) averaged more than $220 million a year in the three years to 2011–12.

Table 39: Cocoa products: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. 5 Area ha 15 Volume tonnes 100 Gross value $’000 1 250 Exports Cocoa bean, shells, husks – volume tonnes 0 0 1 0 0 0 4 – value $’000 0 0 32 2 1 0 42 – unit value $/kg na na 27.23 5.31 24.08 na 12.10 Cocoa bean, raw or roasted – volume tonnes 0 0 0 1 2 2 14 – value $’000 0 4 0 14 25 15 56 – unit value $/kg na 24.04 na 12.85 13.07 9.35 3.94 Cocoa powder a – volume tonnes 548 875 1 212 1 200 1 022 1 602 1 454 – value $’000 2 181 3 635 5 425 5 821 5 717 7 599 7 233 – unit value $/kg 3.98 4.15 4.48 4.85 5.59 4.74 4.97 Cocoa butter – volume tonnes 26 103 2 0 20 86 54 – value $’000 126 642 10 6 59 503 272 – unit value $/kg 4.83 6.25 6.45 14.00 2.92 5.86 5.03 Cocoa paste b – volume tonnes 41 0 0 5 0 0 0 – value $’000 57 0 0 31 0 0 0 – unit value $/kg 1.40 na na 5.95 18.60 na na Total export value $’000 2 364 4 281 5 466 5 873 5 802 8 118 7 603 Imports Cocoa bean, shells, husks – volume tonnes 4 1 26 7 38 38 8 – value $’000 31 12 15 23 69 74 68 – unit value $/kg 8.81 13.06 0.58 3.31 1.84 1.92 8.01 Cocoa bean, raw or roasted – volume tonnes 166 179 128 178 149 208 262 – value $’000 633 937 723 1 182 891 1 345 1 459 – unit value $/kg 3.82 5.22 5.67 6.65 5.97 6.46 5.58 Cocoa powder a – volume tonnes 11 795 11 903 11 957 12 151 13 687 13 718 14 527 – value $’000 23 324 21 066 20 525 26 603 40 608 56 318 69 331 – unit value $/kg 1.98 1.77 1.72 2.19 2.97 4.11 4.77 Cocoa butter – volume tonnes 21 798 15 533 15 595 13 892 13 706 16 621 15 103 – value $’000 102 688 81 752 93 473 115 268 103 801 96 054 55 200 – unit value $/kg 4.71 5.26 5.99 8.30 7.57 5.78 3.65 Cocoa paste b – volume tonnes 7 890 16 197 16 288 15 965 15 077 17 641 15 513

– value $’000 23 927 53 908 55 316 77 299 74 693 89 349 71 845 – unit value $/kg 3.03 3.33 3.40 4.84 4.95 5.06 4.63 Total import value $’000 150 602 157 675 170 052 220 375 220 063 243 140 197 903 a Pure and containing sugar. b Includes defatted. Sources: ABARES; ABS (2013)

Further information about cocoa

 International Cocoa Organization (www.icco.org)—a wide range of information about the world cocoa market, statistics on prices, production and trade.

Coffee

The two most important types of coffee grown commercially are Coffea arabica (arabica coffee), accounting for around 63 per cent of world production, and Coffea canephora (robusta coffee). Another type that is grown on a much smaller scale is Coffea liberica (Liberian coffee and excelsa coffee). Arabica coffee is produced in more temperate and elevated regions than robusta coffee (Table 40). Brazil, Vietnam, Indonesia and Colombia are the largest producers and exporters of green coffee beans. Countries in North America and Europe have strong export industries based on blending and roasting imported green coffee beans. Total world trade in coffee products averaged US$29.4 billion in the three years to 2011, around two-thirds of which was trade in green beans.

Table 40: Coffee: key characteristics of the world market

Volume a Value a Key country shares of volume Production, green beans Arabica 4 972 kt na Brazil (46%), Colombia (10%), Ethiopia (7%), Mexico (5%), Guatemala (5%), Peru (5%), Honduras (4%), Nicaragua (2%), El Salvador (2%), Costa Rica (2%), India (2%), Indonesia (2%) Robusta 3 140 kt na Vietnam (34%), Brazil (24%), Indonesia (16%), India (6%), Uganda (5%), Cote d’Ivoire (4%), Malaysia (2%), Thailand (2%), Cameroon (1%), Madagascar (1%), Togo (1%), Laos (1%), Guinea (1%), Tanzania (1%), Philippines (1%), Ecuador (1%) World trade Coffee, green 6 042 kt US$19 632 Exporters: Brazil (28%), Vietnam (18%), Colombia (8%), Indonesia million (7%), Peru (4%), Honduras (4%), Guatemala (4%), Germany (3%), India (3%), Ethiopia (3%), Uganda (3%) Importers: United States (22%), Germany (18%), Italy (8%), Japan (7%), Belgium (5%), France (4%), Spain (3%) Coffee, roasted 729 kt US$5 799 Exporters: Germany (21%), Italy (13%), United States (11%), million Netherlands (7%), Belgium (6%), Switzerland (5%), Poland (5%), Canada (4%), Sweden (3%) Importers: France (13%), Canada (10%), United States (9%), Germany (8%), United Kingdom (5%), Netherlands (4%), Poland (4%), Slovakia (3%), Austria (3%), Belgium (3%), Czech Republic (3%) Coffee, dry and 428 kt US$3 959 Exporters: Brazil (17%), Germany (12%), Spain (7%), India (6%), concentrated million Indonesia (6%), France (5%), Ecuador (4%), Netherlands (4%), Colombia (4%), Mexico (4%), Switzerland (4%), United Kingdom (4%), Malaysia (3%), United States (3%) Importers: Russian Federation (12%), United States (9%), Philippines (6%), Germany (6%), United Kingdom (6%), Ukraine (6%), Poland (5%), Japan (4%), France (3%), Australia (3%) a Average three years to 2011. Sources: United Nations Statistics Division (2013); USDA (2013a)

A niche market for decaffeinated coffee has arisen from health concerns over caffeine consumption. Coffee is usually decaffeinated through a chemical process, though some coffee varieties are naturally low in caffeine. Decaffeinated coffee makes up around 3 per cent of world trade in green beans and around 7 per cent of world trade in roasted beans (United Nations Statistics Division 2013). Mild arabica types command price premiums in world markets compared with robusta types ( Figure 49).

6 300

4 200

2 100

Mt 0 0 2011–12 USc/lb 1991–92 1996–97 2001–02 2006–07 2011–12 robusta production arabica production price, Brazilian type (right axis) price, Colombian mild arabicas (right axis) price, other mild arabicas (right axis) price, robustas (right axis)

Data sources: International Coffee Organization (2013); USDA (2013a) Figure 49: Coffee beans: world production and indicator prices

Australian coffee industry

The advent of machine harvesting techniques has enabled the re-establishment of the Australian coffee industry through reducing labour costs, a key barrier to its competitiveness (Drinnan & Peasley 1997). Australia has the advantage of being free from the main diseases and pests that affect many of the world’s coffee producing regions. Australian coffee is also relatively low in caffeine, which can be an advantage in some markets. However, land with suitable climate conditions, particularly freedom from frosts, limits the extent to which coffee can be grown in Australia. The Australian coffee industry is located in north-eastern New South Wales and in Queensland (Table 41). In 2011–12 there were around 520 hectares of coffee planted in Australia, producing 1040 tonnes of dry green beans. The main coffee producing areas were in northern Queensland, but subtropical regions in northern New South Wales and southern Queensland now account for nearly 60 per cent of Australian coffee bean production. The Australian coffee industry virtually grows only the high-quality arabica coffee beans used in the specialty or ‘roast and ground’ market. Premium prices have been consistently paid for Australian arabica beans. Australia imported coffee in various forms worth $596 million in 2011–12 (Table 41). Australia also exported coffee products valued at $169 million in 2011–12, but a large part of the export industry is based on the processing of imported coffee beans. Australian export prices for green coffee beans were more than double those for imported green beans in 2011–12.

Table 41: Coffee: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. 149 155 Area ha 590 590 520 Production, dry green beans tonnes 763 973 1 040 Yield t/ha 1.29 1.65 2.00 Gross value $’000 5 140 7 780 11 376 Exports Coffee, green – volume tonnes 447 410 306 148 107 173 134 – value $’000 2 589 2 819 1 687 1 245 1 038 1 321 1 259 – unit value $/kg 5.79 6.88 5.52 8.43 9.70 7.64 9.41 Coffee, roasted – volume tonnes 1 536 1 816 1 484 910 1 060 1 059 1 003 – value $’000 13 532 15 219 13 605 10 403 9 966 9 935 10 765 – unit value $/kg 8.81 8.38 9.16 11.43 9.40 9.38 10.74 Coffee, dry or concentrated – volume tonnes 9 071 8 327 7 158 8 847 10 223 8 958 9 818 – value $’000 83 119 95 720 97 376 134 523 140 856 139 802 156 664 – unit value $/kg 9.16 11.49 13.60 15.21 13.78 15.61 15.96 Total export value $’000 99 240 113 758 112 667 146 171 151 860 151 058 168 688 Imports Coffee, green – volume tonnes 49 462 55 534 542 39 54 561 63 515 64 905 67 742 – value $’000 119 103 149 032 161 492 190 803 193 196 260 940 306 793 – unit value $/kg 2.41 2.68 2.98 3.50 3.04 4.02 4.53 Coffee, roasted – volume tonnes 4 282 4 995 5 492 6 497 5 156 4 264 7 723 – value $’000 45 112 57 856 63 830 83 304 69 973 79 768 132 661 – unit value $/kg 10.54 11.58 11.62 12.82 13.57 18.71 17.18 Coffee, dry or concentrated – volume tonnes 9 071 8 327 7 158 8 847 10 223 8 958 9 818 – value $’000 83 119 95 720 97 376 134 523 140 856 139 802 156 664 – unit value $/kg 9.16 11.49 13.60 15.21 13.78 15.61 15.96 Total import value $’000 247 335 302 607 322 697 408 630 404 025 480 510 596 118 Sources: ABARES; ABS (2013)

Given the constraints on suitable land, only small increases in coffee plantings in Australia are likely in the future.

Further information about coffee

 Australian Subtropical Coffee Association (www.astca.org).  AustralAsian Specialty Coffee Association (www.aasca.com)—information on the coffee supply chain and coffee consumption in Australia.  International Coffee Organization (www.ico.org)—comprehensive market information on coffee.  NYSE Liffe (globalderivatives.nyx.com/nyse-liffe)—coffee (robusta) futures prices, London.

 IntercontinentalExchange Inc (www.theice.com)—coffee (arabica) futures prices.  The ‘Coffee’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 280–88 (https://rirdc.infoservices.com.au/items/04-125).

Culinary herbs

The market for culinary herbs is a growing one in Australia, fuelled by changes to traditional eating patterns and assisted by innovative packaging and processing (Parker 2004). Hayes (2012) attributes recent growth in the fresh cut culinary herb industry to the increased popularity of television cooking shows. In response, Australian supermarkets have broadened their offered range of fresh cut herbs and refrigerated wet packs (fresh herb pastes). According to ABS (2012a, 2012c), there were 430 establishments producing herbs in Australia in 2010–11, with estimated production of around 7361 tonnes and a gross value of $46 million (Table 42). The industry has grown since 2005–06, when production was 4947 tonnes with a gross value of $18.9 million. Queensland accounts for 58 per cent of Australian herb production ( Figure 50).

Western Australia, Tasmania, $0.2m Northern Territory, $0.7m $0.2m South Australia, $1.2m New South Wales, $4.4m

Victoria, $12.6m

Queensland, $26.7m

Data source: ABS (2012c) Figure 50: Culinary herbs: gross value of Australian production of herbs, 2010–11, by state

Table 42: Culinary herbs: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Establishments no. 553 430 Area hectares 1 049 509 Volume tonnes 4 947 7 361 Value $’000 18 863 46 000 Imports, dried herbs Volume tonnes 1 381 1 534 2 030 1 689 1 969 1 781 1 163 Value $’000 4 394 5 184 4 985 4 915 5 220 6 618 4 297 Unit value $/kg 3.18 3.38 2.46 2.91 2.65 3.72 3.70 Sources: ABARES; ABS (2012ac, 2013)

Average prices for most fresh culinary herbs in the Melbourne market were relatively stable over the seven years to 2011–12 (Table 43).

Table 43: Culinary herbs: prices, fresh product, Melbourne wholesale market

Item Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 $ $ $ $ $ $ $ Basil bunch 1.63 1.87 2.10 1.99 1.96 2.00 2.05 Chervil bunch 1.74 1.66 1.70 1.81 1.75 1.87 1.84 Chives bunch 1.65 1.72 1.70 1.60 1.76 1.84 1.78 Coriander bunch 1.10 1.32 1.42 1.29 1.19 1.43 1.17 Dill bunch 1.18 1.32 1.52 1.61 1.49 1.65 1.33 Mint bunch 1.66 1.64 1.55 1.45 1.60 1.59 1.62 Oregano bunch 1.62 1.76 1.66 1.66 1.54 1.81 1.84 Parsley, continental deck 7.69 8.03 9.04 10.48 10.44 12.15 10.94 Parsley, English deck 7.65 8.01 8.00 8.86 10.69 12.92 11.78 Rosemary deck 1.58 1.60 1.57 1.49 1.50 1.50 1.49 Sage bunch 1.66 1.67 1.75 2.02 1.66 1.94 1.97 Tarragon bunch 1.69 2.09 1.93 1.95 1.60 1.79 1.90 Thyme bunch 1.66 1.65 1.58 1.50 1.50 1.53 1.55 Source: Datafresh Market Reporting Service (2012)

It is difficult to import fresh herbs into Australia because of strict quarantine requirements. Australian imports of dried herbs reached record levels of over 2000 tonnes in 2007–08, but have been declining since then ( Figure 51). Australia also imports dried herbs for use in perfumery and medicines. No data on Australian exports of herbs are available.

2500 7

6 2000 5

1500 4

3 1000

2 500 1

2011–12 tonnes 0 0 $/kg 1991–92 1996–97 2001–02 2006–07 2011–12

imports import price (right axis) Data source: ABS (2013) Figure 51: Culinary herbs (dried): imports and import prices, Australia

Further information about culinary herbs

 Australian Herb and Spice Industry Association (www.ahsia.org.au).

 The ‘Culinary herbs’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 234–44 (https://rirdc.infoservices.com.au/items/04-125).

Dates

Dates are the edible fruit of the date palm tree (Phoenix dactylifera) that has been domestically cultivated for more than 5000 years. Most dates are consumed in ripe (rutab) or cured (tamar) form but fresh (khalaal) dates are also widely consumed, particularly in countries in the Middle East. Annual world production of dates averaged around 7.3 million tonnes in the three years to 2010. The main producers are countries in the Middle East and along the north African coast (Table 44). Annual world imports of dates averaged 713 000 tonnes in the three years to 2010, with a value of around US$750 million. Export prices declined in the 1990s as world production and exports increased, but have trended upward over the past six years.

Table 44: Dates: key characteristics of the world market

Volume a Value a Key countries (share of total volume in the three years to 2010) Production 7 302 kt na Egypt (18%), Iran (14%), Saudi Arabia (14%), United Arab Emirates (10%), Algeria (9%), Pakistan (7%), Iraq (7%); Sudan (former) (5%) World trade 713 kt US$751 Exporters: Iraq (29%), Iran (17%), Pakistan (15%), Tunisia (10%), Saudi million Arabia (7%), United Arab Emirates (7%), Algeria (3%) Importers: India (37%), United Arab Emirates (11%), Morocco (7%), Syria (4%), France (4%), Yemen (3%), Russian Federation (3%) a Average three years to 2010. Sources: FAO Statistics Division (2013); United Nations Statistics Division (2013)

World date prices have grown strongly in recent years ( Figure 52). Dates are differentiated in world markets according to the many different varieties that are grown. For example, Medjool dates that originated in Morocco, but are now widely grown in the United States, command price premiums in world markets.

8000 4

6000 3

4000 2

2000 1

2012 kt 0 0 US$/kg 1991 1996 2001 2006 2011

production exports export price (right axis)

Data sources: FAO Statistics Division (2013); United Nations Statistics Division (2013) Figure 52: Dates: world production, exports and export prices

Australian date industry

Dates have been grown in Australia for more than 120 years (Reilly et al. 2010). However, there were only 23 growers in 2011–12 (ABS 2012a). Commercial date production in Australia was only 13.1 tonnes in 2010-11 (Table 45). Australia imported nearly 7400 tonnes of dates in 2011–12 and exported around 144 tonnes (probably mostly repackaged imports).

Table 45: Dates: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. 23 Trees, year end ’000 12.5 Volume tonnes 13.1 Gross value $’000 Exports, fresh and dried Volume tonnes 27.7 38.2 97.5 62.5 55.3 66.9 143.8 Value $’000 76 101 200 167 176 215 380 Unit value $/kg 2.76 2.64 2.05 2.68 3.18 3.21 2.64 Imports, fresh and dried Volume tonnes 5 447.3 5 139.8 7 221.7 5 048.9 4 246.3 5 745.3 7 381.3 Value $’000 8 991 9 379 12 602 9 517 9 320 12 800 14 969 Unit value $/kg 1.65 1.82 1.74 1.88 2.19 2.23 2.03 Sources: ABARES; ABS (2013)

Further information about dates

 Reilly et al. 2010 (https://rirdc.infoservices.com.au/downloads/10-174).

Essential oils

There are many different essential oils, which are used in a range of ways, including in perfumes, cosmetics, therapeutic goods and insecticides. World trade in essential oils, terpenic by-products and resinoids was worth an average US$2.7 billion a year in the three years to 2010, of which Australia supplied US$39 million (United Nations Statistics Division 2013). Terpenes are the volatile organic compounds extracted from essential oils and generally associated with the characteristic fragrances of those oils. The composition of world trade in essential oils is outlined in Table 46. In value terms, terpenic by-products and lemon, orange and peppermint oils are the most traded worldwide ( Figure 53).

Table 46: Essential oils: characteristics of world trade

Volume a Value a Main exporters (share of total Main importers (share of total import export value) value) Citrus Lemon 13.1 kt US$320 Argentina (35%), United States (18%), United States (30%), United Kingdom million Italy (11%), Switzerland (5%), United (15%), China (10%), Japan (9%), Kingdom (4%), Germany (4%), Switzerland (5%), France (5%), Mexico (4%), France (3%), Canada Germany (4%), Ireland (3%), Canada (3%), Spain (2%) (3%), Brazil (2%) Orange 50.9 kt US$205 Brazil (40%), United States (21%), United States (22%), Japan (10%), million Germany (7%), United Kingdom Germany (8%), United Kingdom (7%), (5%), Italy (4%), Switzerland (3%), France (6%), China (5%), Ireland (5%), France (3%), Belize (2%), Mexico Switzerland (4%), Canada (3%), (2%), Netherlands (2%) Netherlands (3%) Other citrus 8.9 kt US$202 Italy (19%), United States (17%), United States (25%), France (9%), million Mexico (17%), Brazil (7%), United United Kingdom (8%), Japan (7%), Kingdom (6%), Germany (5%), Germany (7%), Switzerland (5%), China France (4%), Switzerland (4%), Peru (3%), Singapore (3%), Ireland (3%), (3%), Argentina (2%) Italy (3%) Mint Peppermint 7.2 kt US$184 United States (49%), India (27%), Singapore (14%), United Kingdom million China (6%), United Kingdom (5%), (13%), United States (9%), Germany France (3%), Germany (3%), Hong (8%), Japan (6%), Belgium (4%), China Kong (1%), Singapore (1%), Australia (4%), France (4%), Mexico (3%), Hong (1%), Netherlands (1%) Kong (3%) Other mint 7.8 kt US$165 India (48%), United States (21%), United States (33%), China (9%), million China (11%), Singapore (3%), France Germany (7%), Japan (7%), United (3%), Canada (3%), Germany (2%), Kingdom (7%), Brazil (6%), France Paraguay (2%), United Kingdom (5%), Mexico (4%), Belgium (3%), (1%), Mexico (1%) Guatemala (2%) Other 35.3 kt US$951 France (17%), Indonesia (13%), China United States (17%), France (14%), essential oils million (12%), United States (6%), India (5%), Germany (8%), Switzerland (7%), United Kingdom (4%), Spain (4%), United Kingdom (7%), Singapore (4%), Germany (3%), Switzerland (3%), Spain (4%), Japan (4%), India (3%), Australia (3%) Netherlands (3%) Terpenic by- 79.1 kt US$522 India (24%), United States (12%), United States (14%), France (10%), products, million China (11%), Germany (8%), Ireland Germany (7%), India (6%), United concentrates (6%), France (6%), Spain (4%), Kingdom (6%), Japan (4%), Spain (4%), United Kingdom (4%), Brazil (4%), Singapore (4%), China (3%), Republic Switzerland (2%) of Korea (3%) Resinoids 14.3 kt US$66 France (28%), India (14%), United Singapore (9%), Canada (8%), United million States (11%), Spain (8%), United States (8%), Spain (5%), India (5%), Kingdom (6%), Germany (5%), Italy United Kingdom (5%), Germany (5%), (3%), Australia (3%), Japan (3%), France (5%), Hong Kong (4%), China (3%) Netherlands (4%) a Annual average, three years to 2010. Data source: United Nations Statistics Division (2013)

Essential oils are part of a world flavour and fragrance industry that had an estimated sales turnover in 2011 of US$21.8 billion (Leffingwell & Associates 2012). The key players in this industry are the large multinational companies Givaudan, Firmenich, IFF, Symrise, Takasago, MANE SA, Sensient Flavors, T. Hasegawa, Frutarom and Robertet SA. The industry is characterised by highly sophisticated laboratories investigating new natural and synthetic flavours and fragrances. Many artificial substitutes for natural essentials oils have been developed and are widely used. The total value of world exports of essential oils, perfumes and toilet waters was US$16.3 billion in 2011 (United Nations Statistics Division 2013).

resinoids

concentrates other essential oils

other

mints peppermint other

lemon citrus orange

0 200 400 600 800 1000 1200

US$m Australia rest of world a Annual average, three years to 2010. Data source: United Nations Statistics Division (2013) Figure 53: Essential oils: composition of world trade value a

Australia is an importer and exporter of essential oils, but the value of exports is higher than the value of imports (Table 47). Tea tree and eucalyptus oil exports are the largest in value terms.

Table 47: Essential oils: Australian exports and imports, by type

Volume Value Unit value 2009–10 2010–11 2011–12 2009–10 2010–11 2011–12 2009–10 2010–11 2011–12 tonnes tonnes tonnes $’000 $’000 $’000 $/kg $/kg $/kg Exports Bergamot 0.3 0.5 0.3 6 10 16 20.71 20.01 51.89 Eucalyptus 113.6 225.1 148.7 3 511 6 071 4 458 30.91 26.97 29.98 Geranium 0.4 14.7 11.1 35 390 356 98.27 26.59 31.94 Jasmin 0.0 0.3 0.2 2 35 31 100.55 116.65 127.40 Lavender/lavandin 7.3 7.8 2.1 495 700 190 68.04 90.19 88.30 Lemon 3.6 12.7 1.9 140 154 121 38.71 12.12 65.40 Lime 0.0 0.0 na 6 3 na 124.17 73.42 na Orange 19.2 10.6 22.1 159 136 183 8.30 12.78 8.29 Other citrus 23.3 11.3 2.1 1 145 454 157 49.08 40.36 74.32 Other mint 0.4 0.6 1.9 29 13 91 78.71 20.94 47.39 Other a 528.5 399.0 141.6 16 668 13 120 7 851 31.54 26.88 37.58 Peppermint 9.7 72.2 21.7 157 612 343 16.15 8.47 15.77 Tea tree na na 249.5 na na 8 071 na na 32.35 Vetiver 1.8 0.1 1.8 564 25 1 003 306.62 233.04 553.87 Concentrates na na na 20 862 26 406 22 195 na na na Resinoids 321.7 49.3 20.9 523 137 300 1.62 2.77 14.35 Total exports na na na 44 301 45 873 42 833 na na na Imports Bergamot 1.6 3.6 1.0 110 166 60 68.54 46.71 58.56 Geranium 2.2 2.8 1.6 280 477 232 129.69 171.30 144.65 Jasmin 0.5 0.6 1.0 73 94 56 145.90 162.35 55.34 Lavender/lavandin 50.0 37.9 20.6 3 098 2 001 1 219 61.96 52.75 59.08 Lemon 103.8 43.3 67.9 2 538 1 366 1 508 24.46 31.52 22.20 Lime 45.3 16.6 20.3 726 642 348 16.02 38.72 17.14 Orange 481.2 476.1 513.4 1 659 1 859 3 165 3.45 3.90 6.16 Other citrus 40.9 124.2 96.3 625 1 157 1 684 15.27 9.31 17.47 Other mint 32.6 27.2 31.0 1 180 962 1 112 36.19 35.40 35.91 Other 842.2 862.3 1 612.3 12 674 16 851 17 341 15.05 19.54 10.76 Peppermint 40.3 41.3 30.3 1 578 1 537 1 165 39.20 37.20 38.42 Vetiver 0.3 0.2 0.1 34 69 5 134.09 423.23 108.74 Concentrates na na na 4 709 5 238 7 620 na na na Resinoids 3.6 1.7 1.0 244 179 102 68.10 104.67 104.94 Total imports na na na 29 527 32 598 35 617 na na na a Included tea tree oil until January 2011. na Not available. Source: ABS (2013)

In this chapter, information is provided on Australia’s most important essential oils in terms of value— boronia, eucalyptus, lavender, peppermint, sandalwood and tea tree oils.

Further information about essential oils

 The Essential Oil Producers Association of Australia (eopaa.com.au)—information about the Australian essential oils industry.

 The International Federation of Essential Oils and Aroma Trades (IFEAT) (www.ifeat.org)— information on the world essential oils industry, particularly through the proceedings of the annual IFEAT conference.  The ‘Essential oils’ section in RIRDC’s The New Crop Industries Handbook, pp. 105–64 (https://rirdc.infoservices.com.au/items/04-125)—includes sections on boronia, chamomile, eucalyptus, fennel, lavender, mint, parsley, sandalwood and tea tree oils.

Boronia oil

Boronia oil is a fragrant oil produced from the flowers of a perennial shrub endemic to Australia (usually Boronia megastigma (Nees)). The shrubs flower in spring. The oil is extracted using a solvent process and is further refined into either a waxy solid (a ‘concrete’) or a liquid (an ‘absolute’). Boronia oil is used in perfumery and as food flavouring. Traditionally boronia oil has been produced from flowers picked in the wild, but most boronia oil is now produced from plantations using selected clones and mechanical harvesting. The commercial life of a planting is around 15 years. The plantations are located mainly in Tasmania—in the north and on the east coast. In recent years, wild picking of boronia in Western Australia has been almost eliminated because of the possibility of disease being spread by pickers. There are currently 4 separate plantations, all in Tasmania, down from 13 in 2006–07. The total commercial plantings are likely to be around 30 hectares (Table 48). A mature plantation yields around 2 tonnes of flowers a hectare. Australian production of boronia flowers was estimated to be 60 tonnes in 2011–12, with a gross value of $780 000.

Table 48: Boronia oil: supply, disposal and value, Australia

Unit 2006–07 2011–12 Production Growers no. 13 4 Area hectares 44 30 Yield t/hectare 1 2 Volume – flowers 44 60 – absolute kg 111 151 Farmgate price, flowers $/t 11 000 13 000 Gross value $’000 488 780 Exports a Volume kg 100 na Value $’000 464 853 a Estimated by ABARES. Source: Robert McEldowney [Essential Oils of Tasmania] pers. comm. 13 February 2013

All but a small part of Australian production of boronia concrete and absolute is exported, mainly to Europe and the United States. The industry in Tasmania has been smoothing exports in recent years through releases from its stockholdings. The main player in the boronia industry is Essential Oils of Tasmania, which processes boronia flowers from its own plantation and from the other Tasmanian growers. Essential Oils of Tasmania also processes other essential oils and plant extracts including peppermint, fennel, parsley (herb and seed), lavender, blackcurrant bud and mountain pepper leaf (gathered from wild stands of the native plant Tasmannia lanceolata).

Eucalyptus oil

Eucalyptus oil is extracted by steam distillation from the leaves of a number of types of eucalypt trees, including blue mallee gums (Eucalyptus polybractea), narrow-leaved peppermint gum (Eucalyptus radiata var. Australiana) and Tasmanian blue gum (Eucalyptus globulus). In recent decades countries such as Spain, Portugal, India and China have taken over a eucalyptus oil market that once only Australia supplied (Abbott 2004). China is now the world’s largest eucalyptus oil producer, accounting for around half of world output. Most of these countries are using the Tasmanian blue gum as the source of their oil. The main component of eucalyptus oil is 1,8-Cineole, which makes up to 95 per cent of the oil content for mallee types and 60–70 per cent for blue gum types (Barton 1998). The main uses of eucalyptus oil are as a medicine, usually to be externally applied or inhaled. For example, it may be used to treat muscle soreness, arthritis and coughs and cold. It is also used in confectionery, as a disinfectant or fragrance, and Barton (1998) identified a number of potential industrial uses of eucalyptus oil, particularly as a solvent. Barton acknowledges that large-scale penetration in these markets would require prices around half of those currently prevailing for eucalyptus oil, but says this could be possible with large-scale production technologies. Apart from their oil producing qualities, eucalypts of this type are also grown to combat salinity, preserve wildlife diversity and to contain greenhouse gases through carbon sequestration. World consumption of crude eucalyptus oil is estimated to be about 3000 tonnes a year, with an ex-distillery value of around US$15 million (Abbott 2004; Davis & Bartle 2004).

Australian eucalyptus oil industry

Australian eucalyptus oil production was around 120 tonnes a year in 2011-12 (Table 49), considerably less than the 1000 tonnes a year that was produced in the 1940s (Abbott 2004). Two companies dominate the Australian eucalyptus oil market: G.R. Davis Pty Ltd in Sydney, and Felton Grimwade & Bosisto’s Pty Ltd in Melbourne. The main areas harvested in Australia are around Bendigo in Victoria, and West Wyalong in New South Wales. The harvesting process is a mechanical one in which each tree is cut off at the ground, then mulched. The trees regenerate from the stump and can be harvested every two years when they are 1–2 metres tall. Much of the harvest in Victoria is from public land; a royalty is paid to the Victorian Government for harvesting rights. There are holding licenses for around 12 000 hectares in central Victoria but only around 800 hectares is harvested every year. Increasingly there are private plantations of oil mallees. For example, in a program initiated by a Western Australian Government with the aid of funds from the Australian Government, oil-producing eucalypts (mainly blue mallee) have been planted on 14 000 hectares in the wheatbelt of Western Australia, mostly integrated with existing farm activities. The broad aim of this program is to address environmental degradation issues, particularly salinity and greenhouse gases, through profitable growing of mallee trees. Apart from eucalyptus oil, the intended outputs from the trees are activated carbon, charcoal and fuel for electricity generation. The program target is plantings of 500 million mallee trees by 2025. Potential annual output from these plantings would be 35 000 tonnes of eucalyptus oil and 75 megawatts of electricity (Oil Mallee Project 2004). A small demonstration plant for integrated production of bioenergy with eucalyptus oil was commissioned in Narrogin in 2006. At this stage only small amounts of eucalyptus oil are produced in the eastern wheatbelt of Western Australia, by Kalannie Distillers Pty Ltd. Eucalyptus oil production was estimated to be 120 tonnes in 2011–12, with a gross value of $1.26 million, based on a return to growers of $10.50 a kilogram for oil derived from their eucalyptus trees (Table 49). Most of Australian production is exported. Australian eucalyptus oil exports have fluctuated around 100 tonnes a year over the past 20 years but increased sharply to 225 tonnes in 2010–11 ( Figure 54).

Much of the increase is due to re-exporting eucalyptus oil imported from China (Richard Davis [G.R. Davis Pty Ltd] pers. comm. 7 February 2013). Australian export returns have generally been increasing over the past 15 years. The major export markets for Australian eucalyptus oil are the United States (18 per cent of total exports in the three years to 2011–12), New Zealand (18 per cent), Thailand (15 per cent), Hong Kong (8 per cent), Canada (8 per cent) and Malaysia (5 per cent).

Table 49: Eucalyptus oil: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Volume tonnes 125 103 120 Value $’000 1 250 1 100 1 260 Exports Volume tonnes 127.0 82.6 76.2 51.4 113.6 225.1 148.7 Value $’000 2 283 1 915 2 354 2 230 3 511 6 071 4 458 Unit value $/kg 17.97 23.19 30.88 43.39 30.91 26.97 29.98 Sources: ABARES; ABS (2013); Richard Davis [G.R. Davis Pty Ltd] pers. comm. 7 February 2013

250 50

200 40

150 30

100 20

50 10

2011–12 tonnes 0 0 $/kg 1991–92 1996–97 2001–02 2006–07 2011–12 exports export price (right axis)

Data source: ABS (2013) Figure 54: Eucalyptus oil: Australian exports and export prices

Further information about eucalyptus oil

 Oil Mallee Project (www.oilmallee.org.au)—information on the economics of oil mallee growing.  The ‘Eucalyptus oil’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 124–30 (https://rirdc.infoservices.com.au/items/04-125).

Lavender oil

Lavender oil is an essential oil used mainly in the fragrance, perfume and aromatherapy industries. It is derived from plants of the genus Lavandula by steam distillation of the flowers. There are several types of lavender oil. The mostly highly priced product comes from Lavandula angustifolia. Lavandin, the essential oil of the hybrid lavender plant Lavandula hybrida which has a much higher oil yield than true lavender, is considered to be of inferior quality because of a distinct camphor scent. Lavender is also widely used as fresh or dried flowers.

World lavender oil production has declined steadily from 225 tonnes in 2005 to only 90 tonnes in 2012, due to an insect-borne bacterial disease that is affecting the lavender industry in France. Bulgaria overtook France as the largest producer of lavender oil in 2012. Together Bulgaria and France account for 85 per cent of world lavender production. French distillers buy much of Bulgaria’s lavender oil production. France produced around 52 tonnes of lavender oil in 2012, down from 90 tonnes in 2005 ( Figure 55). Lavender oil prices in France have increased substantially over the past five years, in response to the lower French production and despite increasing production in Bulgaria. Lavandin oil production in France fluctuated around 1070 tonnes in the five years to 2012. Average lavandin oil prices in France were only around 20 per cent of average lavender oil prices over this period, reflecting the lower quality of lavandin oil.

100 160

75 120

50 80

25 40

2012 tonnes 0 0 US$/kg 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

production average price, distillery gate (right scale) Data source: FranceAgriMer (2012a) Figure 55: Lavender oil: production and prices, France

Data on world trade in lavender and lavandin oil have not been available since 2006. The largest exporter in 2006 was France, with a share in the total value of world trade of 63 per cent; the other main exporters were Bulgaria (6 per cent), Spain (6 per cent), the United Kingdom (4 per cent) and the United States (4 per cent). In recent years Bulgaria has markedly increased its share of world exports and it is probably now rivalling France. The main importers in 2006 in terms of value were the United States (19 per cent), Germany (11 per cent), the United Kingdom (11 per cent), Switzerland (10 per cent), France (6 per cent) and Japan (5 per cent).

Australian lavender oil industry

The Australian lavender industry consists of many small producers but relatively few commercial farms. Australia’s largest grower is the Bridestowe Estate in northern Tasmania, which produces around 5 tonnes a hectare a year of lavender flowers from 45 hectares of plantings. Around 70 per cent of Bridestowe flower production is distilled to produce around 1.5 tonnes of lavender oil, with most of the remaining flower production being marketed as sundried flowers. Australian lavender oil production is estimated at 3.5 tonnes in 2011–12, with a gross value of $1.3 million (Table 50). There were probably another 1–2 tonnes of lavandin oil and 5–10 tonnes of dried flower production (bunches and stripped flowers). Prices for good-quality Australian lavender oil in bulk were around $400 a kilogram in 2011–12, which is well above the price for lavender oil in France.

Table 50: Lavender oil: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production, oil Lavender/lavandin oil tonnes na 2.5 3.5 Gross value $’000 na 466 1 313 Exports Volume tonnes 66.4 11.1 10.4 5.9 7.3 7.8 2.1 Value $’000 1 248 392 301 336 495 700 190 Unit value $/kg 18.79 35.26 28.81 57.45 68.04 90.19 88.30 Imports Volume tonnes 41.9 47.5 48.6 36.0 50.0 37.9 20.6 Value $’000 1 336 1 387 2 069 1 912 3 098 2 001 1 219 Unit value $/kg 31.89 29.18 42.56 53.05 61.96 52.75 59.08 Sources: ABARES; ABS (2013)

The industry is oriented toward the domestic market. There were Australian lavender/lavandin oil exports of 2.1 tonnes in 2011–12 (Table 50) and lavender/lavandin oil imports of 20.6 tonnes in 2011– 12, with a value of $1.2 million.

Further information about lavender oil

 Lavender Australia (www.lavenderaustralia.com)—information on the Australian lavender industry, including a magazine Lavender Australia.  The Australian Lavender Growers’ Association (www.talga.com)—information from an industry organisation representing around 500 lavender growers in Australia.  The ‘Lavender oil’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 136–40 (https://rirdc.infoservices.com.au/items/04-125).  FranceAgriMer (www.franceagrimer.fr)—occasional information about lavender/lavandin production in France.  Comité des Plantes à Perfume Aromatiques et Médicinales (www.cpparm.org)—statistics and information about the promotion and regulation of lavender/lavandin production in France.

Peppermint oil

Peppermint oil is extracted from the leaves of the perennial plant Mentha piperita. It is mainly used as a flavouring, particularly in confectionery (mainly chewing gum) and toothpaste, but also in cosmetics and for medicinal purposes and aroma therapy. The United States is the main producer of peppermint oil in the world. US peppermint oil production has been fairly steady at around 3000 tonnes over the past five years but prices received by growers have increased sharply ( Figure 56).

7500 60

5000 40

2500 20

tonnes 0 0 2012 US$/kg 1997 2002 2007 2012 production grower price (right axis) Data source: USDA (2013c) Figure 56: Peppermint oil: production and grower prices, United States

The United States accounts for more than half of world trade in peppermint oil, with India and Thailand the other major exporters. World export prices for peppermint oil have risen sharply in recent years ( Figure 57).

12 40

9 30

6 20

3 10

2012 kt 0 0 US$/kg 1991 1996 2001 2006 2011

exports export price (right axis)

Data source: United Nations Statistics Division (2013) Figure 57: Peppermint oil: world exports and export prices

Australian peppermint oil industry

In Australia, peppermint is a perennial crop that is planted in autumn, has its major growth flush in spring and is harvested in late summer after it has dried off. The Australian industry was originally established in Tasmania and is now also located in north-east Victoria.

There appears to be only two major growers of peppermint in Australia in 2011–12, producing around 15 tonnes of peppermint oil annually (Table 51). Based on returns to US mint growers in 2012, the value of this production would be around $750 000.

Table 51: Peppermint oil: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production, oil Growers no. 10 13 2 Area hectares 136 140 Volume, oil tonnes 10 10 15 Farmgate price $/kg 33 18 50 Gross value $’000 332 187 750 Exports Volume tonnes 4.9 16.3 12.4 30.8 9.7 72.2 21.7 Value $’000 213 390 310 786 157 612 343 Unit value $/kg 43.76 23.98 25.01 25.48 16.15 8.47 15.77 Imports Volume tonnes 48.7 50.8 44.4 42.7 40.3 41.3 30.3 Value $’000 1 328 1 479 1 204 1 420 1 578 1 537 1 165 Unit value $/kg 27.26 29.13 27.15 33.22 39.20 37.20 38.42 Sources: ABARES; ABS (2013)

Australia exported 21.7 tonnes of peppermint oil in 2011–12, valued at $343 000 (Table 51). Australian import and export prices for peppermint oil have generally been declining over the past 20 years ( Figure 58).The main export markets for Australian peppermint oil were Hong Kong (44 per cent of total Australian exports in the three years to 2011–12), Taiwan (18 per cent), Indonesia (12 per cent), Malaysia (11 per cent) and Singapore (10 per cent).

100 100

75 75

50 50

25 25

tonnes 2011–12 0 0 $/kg 1991–92 1996–97 2001–02 2006–07 2011–12 exports imports export price (right axis) import price (right axis) Data source: ABS (2013) Figure 58: Peppermint oil: Australian exports, imports and prices

Sandalwood

Sandalwood has been a valuable traded commodity for thousands of years. Sandalwood oil is typically extracted from the heartwood or roots of sandalwood trees that are at least 30 to 40 years old. The oil is used in perfumes, cosmetics and therapeutic goods. The wood has a variety of uses including furniture, turned or carved woodworks, and incense and joss sticks. There are a number of commercially exploited species of sandalwood throughout the world. The most commercially important is Santalum album, believed to have originated in Indonesia and East Timor, but which is now also established in India and Sri Lanka. In Australia, there is Santalum spicatum, which is endemic in Western Australia and South Australia, and Santalum lanceolatum, which grows mostly in Queensland. Santalum austrocaledonicum is found mostly in islands of the Pacific, such as New Caledonia and Vanuatu. Santalum ellipticum (Hawaii), Santalum yasi (Fiji and Tonga), Santalum macgregorii, Santalum papuanum (Papua New Guinea), and Santalum insulare (French Polynesia) are other species. Other non-Santalaceae species pass to varying degrees as sandalwood in world trade. These include Amyris balsamifera (West Indian sandalwood), which grows in the West Indies and Central and South America, and Osyris lanceolata (African sandalwood), which is found in east African countries such as Kenya and Zimbabwe. Australia appears to supply around half of world sandalwood exports, with Indonesia, East Timor and India the other main exporters. The main importers of sandalwood are Taiwan, China and India, and the main importers of sandalwood oil are the United States and France. There is also demand from north Asia and the Middle East. Sandalwood has been overexploited in India and Indonesia. The Indian Government has responded by limiting exports of sandalwood and sandalwood oil to an annual quota. Indian exports of sandalwood oil have been declining and were only 1.1 tonnes in 2011–12 ( Figure 59).

75 900

50 600

25 300

2011–12 tonnes 0 0 US$/kg 1996–97 2001–02 2006–07 2011–12 exports imports export price (right axis) import price (right axis) Data source: Department of Commerce, India (2012) Figure 59: Sandalwood oil: import and export volumes and prices, India

Taiwan is the main importer of sandalwood in wood and powder form and the main destination for sandalwood from Australia. Taiwan’s imports of sawn sandalwood have fluctuated over the past decade at an average import price that has varied around US$2000 a tonne ( Figure 60).

6000 3000

4000 2000

2000 1000

2012 tonnes 0 0 US$/t 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 wood, chips and rough sawn powder powder, oil extracted import price, rough sawn wood (right axis)

Data source: Directorate General of Customs, Taiwan (2012) Figure 60: Sandalwood: imports of wood and wood powder, Taiwan

Australian sandalwood industry

The sandalwood industry was established in the 1850s in Western Australia. Virtually all of Australia’s current sandalwood production comes from the native tree Santalum spicatum, which is found throughout much of the lower half of Western Australia. Significant sandalwood production also comes from the Australian native species Santalum lanceolatum in Queensland. Sandalwood trees were extensively harvested in Western Australia during the clearing of land for agricultural enterprises. Near the height of this clearing process in 1924–25, 6600 tonnes of sandalwood was exported (Commonwealth Bureau of Census and Statistics 1926). Under the Sandalwood Act 1929 in Western Australia, sandalwood is a resource managed on state government owned (Crown) land by a government agency, the Forest Products Commission of Western Australia. Sandalwood is harvested both green and dead (including roots and bark). A maximum sustainable harvest has been set each year since 2001–02 of 1500 tonnes of green wood and 1500 tonnes of dead wood. Ten per cent of these quotas are allocated to sandalwood harvest from privately owned land. Harvesters on Crown land are contracted by the Forest Products Commission and are required to plant sandalwood seeds whenever they remove a sandalwood tree. Illegal harvesting of sandalwood does occur; 170 tonnes of sandalwood was seized by police in Western Australia in 2011 and 2012. Total legal harvesting of sandalwood (green, dead and roots) in Western Australia averaged 2829 tonnes a year in the three years to 2011–12 ( Figure 61). Processing and marketing of all Crown land sandalwood is done by Wescorp Holdings Ltd, a private company that was awarded the contract through a public tender process. Wescorp’s contract runs to 2016 to supply a Western Australian oil distiller (Mount Romance Australia Pty Ltd) with 550 tonnes of green sandalwood a year. The commission also has arrangements to encourage Western Australian farmers to re-establish sandalwood trees on their farms (Forest Products Commission 2007). Apart from providing income sources for farmers and regional communities, the plantings also help to control salinity and waterlogging, sequester carbon, and enhance native flora and fauna ecosystems. There are now more than 15 000 hectares of plantations of Santalum spicatum throughout Western Australia. Because the sandalwood tree is parasitic, it must be planted with other trees, for example acacia varieties.

3000 9000

2000 6000

1000 3000

2011–12 tonnes 0 0 $/t 1999–00 2001–02 2003–04 2005–06 2007–08 2009–10 2011–12 green wood a dead wood roots payments to harvesters b (right axis)

a Includes 3rd grade green wood. b Payments by the Forest Products Commission to contractors for harvesting, delivery, regeneration and associated research. Data source: Forest Products Commission (2012) Figure 61: Sandalwood: production and payments to harvesters, Western Australia

Around 130 tonnes of Santalum lanceolatum was harvested in Queensland in 2011–12, the smallest harvest since 2006–07 (Table 52). Sandalwood harvesting in Queensland is regulated by the state government and the annual production quota is around 550 tonnes. There were around 8250 hectares planted to Santalum album in commercial plantations in Australia in mid-2012. Most of the plantings are in the Kununurra region of north-west Australia, but there are smaller and more recent plantings in Queensland and the Northern Territory. The first large-scale commercial plantings of Santalum album in Australia were in 1999, implying first substantial harvestings around 2013 or 2014. The estimated supply and disposal of Australian sandalwood is shown in Table 52. Australia’s sandalwood harvest in 2011–12 was 2944 tonnes, of which around 500 tonnes was consumed domestically, producing around 15.7 tonnes of sandalwood oil (Table 52). Average payments to sandalwood harvesters by the Forest Products Commission were slightly more than $5000 a tonne, with payments varying according to quality. The estimated gross value of production of sandalwood in Australia in 2011–12 was around $14.7 million. The estimated value of Australian exports of sandalwood products in 2011–12 was $21.6 million (Table 52). Around 60 per cent of Australian sandalwood exports are to Taiwan (Forest Products Commission 2012). Australia supplied 43 per cent of Taiwan’s sandalwood imports and Tanzania and Indonesia supplied 20 per cent and 12 per cent, respectively (Directorate General of Customs, Taiwan 2012).

Table 52: Sandalwood products: supply, disposal and value in Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Wood, Western Australia tonnes 2 512 2 369 2 269 2 601 2 857 2 864 2 814 – green tonnes 1 521 1 419 1 326 1 678 1 714 1 621 1 433 – dead tonnes 726 758 729 666 873 963 1 179 – roots tonnes 228 192 214 258 269 230 202 – bark tonnes 38 0 0 0 0 50 0 Wood, Queensland tonnes 132 118 190 274 167 209 130 Total, wood tonnes 2 644 2 486 2 459 2 875 3 024 3 073 2 944 Sandalwood oil tonnes 14.0 14.0 12.0 10.6 19.2 19.6 15.7 Payments to harvesters a $/t 4 160 3 984 7 549 4 242 5 579 5 794 5 006 Gross value of production $’000 10 999 9 906 18 560 12 196 16 870 17 806 14 740 Exports Wood – volume tonnes 1 944 1 786 1 909 2 395 2 114 2 143 2 210 – value $’000 17 030 13 544 18 730 13 208 15 332 16 142 14 385 – unit value $/t 8 760 7 582 9 814 5 514 7 253 7 532 6 508 Oil – volume tonnes 12 12 11 10 18 19 15 – value $’000 9 600 9 600 5 775 5 117 8 673 8 920 7 252 – unit value $/kg 800 800 1 050 1 066 953 959 988 Total export value $’000 26 630 23 144 24 505 18 325 24 005 25 063 21 636 a Payments by the Forest Products Commission to contractors for harvesting, delivery, regeneration and associated research. Source: ABARES; DAFF Queensland (2012); Forest Products Commission (2012); TFS Corporation (2012a)

Further information about sandalwood oil

 Australian Sandalwood Network and Forest Products Commission Western Australia (2008) (www.fpc.wa.gov.au/content_migration/_assets/documents/plantations/industry_plans/sandalwood _idp.pdf).  The ‘Sandalwood oil’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 153–57 (https://rirdc.infoservices.com.au/items/04-125).  Australian Sandalwood Network (sandalwood.org.au)—information on growing and marketing sandalwood, including a regular free newsletter The Australian Sandalwooder.  Forest Products Commission of Western Australia (www.fpc.wa.gov.au).  Wescorp (www.wescorp.com.au), the main marketer of sandalwood in Western Australia.

Tea tree oil

Tea tree oil is extracted from the leaves of the Australian tea tree (Melaleuca alternifolia) by steam distillation. Reflecting its antifungal, anti-inflammatory and antibiotic qualities, the oil is used in a range of cosmetics, pharmaceuticals, toiletries, household products and industrial products (solvents and disinfectants). The residue after distillation is sold as mulch. The tea tree is native to northern coastal New South Wales and is also grown commercially in the Atherton Tablelands region of Queensland. Many coastal regions of northern Australia are potential growing regions for this tree. However, there is increasing competition in world markets from tea tree oil produced in China, Indonesia, Kenya and South Africa.

Australian tea tree oil industry

Australian production of tea tree oils was estimated to be around 400 tonnes in 2012, with a gross value of $12.1 million (Table 53). Tea tree oil production in Australia grew strongly throughout the 1990s, peaking at 625 tonnes in 1999–2000, but then declined in response to lower prices ( Figure 62). Two large tea tree plantations exited the industry around 2007. The farmgate price in Australia for tea tree oil averaged $30.33 a kilogram in 2012. This is substantially below the 2008–09 price of nearly $53 a kilogram (in 2011-12 dollars), but higher than the very low prices of the early 2000s ( Figure 62).

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2011–12 tonnes 0 0 2009-10 2011-12 $/kg 1999–00 2001–02 2003–04 2005–06 2007–08 2010 2012 production return, farm gate (right axis) Data source: Tony Larkman [Australian Tea Tree Industry Association] pers. comm., 7 February 2013 Figure 62: Tea tree oil: production and farmgate returns, Australia

Data for Australian exports of tea tree oil have only been available since January 2011; previously tea tree oil export data were included in an ‘Other essential oils’ category and were probably the dominant component of that category. Australian exports of tea tree oil were 373 tonnes in 2012, with a total value of around $11.5 million (Table 53). The main export destinations for Australian tea tree oil in 2012 were the United States (50 per cent), New Zealand (11 per cent), Germany (8 per cent), the United Kingdom (7 per cent), Hong Kong (5 per cent), Canada (3 per cent) and Taiwan (3 per cent). However, it is believed the exports to New Zealand were mostly soap, gel and shampoo containing tea tree oil, rather than tea tree oil (Tony Larkman [Australian Tea Tree Industry Association], pers. Comm., 11 July 2013).

Table 53: Tea tree oil: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2010 2011 2012 Production Growers no. 100 90 Volume tonnes 356 379 425 427 511 402 400 Farmgate price $/kg 18.58 29.08 43.83 49 37.17 33.50 30.33 Value $’000 6 614 11 021 18 628 20 923 18 994 13 467 12 132 Exports Tea tree a – volume tonnes na na na na na 190 373 – value $’000 na na na na na 6 452 11 458 – unit value $/kg na na na na na 33.89 30.70 Other essential oils – volume tonnes 673 623 518 364 549 111 268 – value $’000 20 225 22 571 20 979 15 744 18 670 5 008 11 012 – unit value $/kg 30.07 36.22 40.49 43.28 33.99 45.20 41.16 a Data only available since January 2011. Sources: ABARES; ABS (2013); Tony Larkman [Australian Tea Tree Industry Association] pers. comm., 7 February 2013

Further information about tea tree oil

 Australian Tea Tree Industry Association (www.teatree.org.au)—information on the Australian tea tree oil industry and development strategy.  The ‘Tea tree oil’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 158–64 (https://rirdc.infoservices.com.au/items/04-125).

Grains, seeds and plant fibre

A number of seed-based and fibre-based industries are emerging or prospective in Australia, including the chia, guar, industrial hemp and quinoa industries.

Chia

Chia (Salvia hispanica) is an annual plant related to mint that produces an oil rich edible seed. The chia plant is native to Central and South America. The oil yield of chia is around 25–30 per cent and this oil is rich in omega-3 fatty acids that are sought after for their healthiness in diets. Chia is also high in dietary fibre and protein as well as vitamins, minerals and antioxidants. Chia is consumed as a drink and as a tasty supplement in a wide range of food preparations. Chia has been consumed in South America for thousands of years but has only come to attention of the rest of the world as a healthy food in recent years. Chia is mainly grown commercially in Mexico, Australia, Argentina, Bolivia, Ecuador, Guatemala and Paraguay. Mexico is the largest chia producer and its production has increased sharply in recent years in response to booming chia prices ( Figure 63).

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production grower return (right axis) Data source: SIAP (2013) Figure 63: Chia: production and returns to growers, Mexico

Chia seed was recently granted novel food approval in the European Union, allowing up to 5 per cent of the mass of bread products. Approval is required in the European Union for new foods that do not have a significant history of consumption. The European Union is also considering approval of a wider range of applications of chia in food.

Australian chia industry

Commercial production of chia commenced in the Ord River Irrigation Area in the far north of Western Australia around 2005 as a dry season crop. Virtually all chia production in Australia is contracted to a single marketer, The Chia Co. Australian chia production data are confidential but plantings were believed to be 2000 hectares in 2011–12, producing around 2200 tonnes of chia with an annual gross value of about $3.9 million.

Further information about chia

The Chia Co (www.thechiaco.com.au), the main marketer of chia in Australia.

Guar seed

Guar (Cyamopsis tetragonoloba; also called locust or cluster bean) is a legume that is grown as a kharif (monsoon) crop in India (accounting for around 80 per cent of world guar production), but which also thrives as an irrigated crop in arid regions. Indian production varies widely from year to year according to the performance of the monsoon. The endosperm of the guar seed is used to produce a powdered gum that is used as a thickener in food and personal use products because of its high viscosity, cold water solubility and property of inhibiting ice crystal formation. The meal remaining after milling has a protein content of nearly 50 per cent, making it useful in animal feed mixes. Guar is also grown as a green manure crop. More than 40 per cent of all guar gum produced is used in the oil and gas industry to facilitate drilling and prevent fluid and gas loss. World trade data are not available for guar seed but most trade is in guar gum. India accounts for around one-third of the volume of world trade in guar gum powder, which has grown at more than 8 per cent a year over the past 20 years ( Figure 64).

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Data source: United Nations Statistics Division (2013) Figure 64: Guar gum powder: world exports and export prices

Guar seed production was very low in India in 2009–10, due to failure of the monsoon, but has recovered in recent years ( Figure 65). Prices of guar seed and guar seed products rose sharply in 2010–11 and 2011–12.

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kt 0 0 2011–12 US$/t 1996–97 2001–02 2006–07 2011–12 Indian production import price, United States (right axis) Data source: Department of Agriculture and Cooperation, India (2013); USDA (2013b) Figure 65: Guar seed: Indian production and US import prices

Australian guar industry

Guar growing commenced in Australia in 1910, but apart from some experimentation, guar has not become established as a viable industry. However, guar cultivation is suited to some of the summer rainfall or northern irrigated regions of Australia (Bryceson & Cover 2004). The Guar Industry Development Association was formed in Australia in 2002.

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Australia exported an average 160 tonnes of guar gum a year over the three years to 2011–12, with an export value of $633 000, but imported an average of around 5568 tonnes with a value of around $20.9 million (Table 54).

Table 54: Guar seed products: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Area – Volume – Gross value – Imports, guar mucilages and thickeners Volume tonnes 46 90 164 172 97 77 90 Value $’000 257 310 600 950 356 347 614 Unit value $/kg 5.54 3.46 3.66 5.53 3.68 4.53 6.80 Imports, guar gum a Volume tonnes 4 093 5 781 5 848 6 466 4 991 4 552 7 160 Value $’000 8 406 11 334 10 215 10 509 7 840 8 404 46 384 Unit value $/kg 2.05 1.96 1.75 1.63 1.57 1.85 6.48 a Includes dehulled guar splits. Sources: ABARES; ABS (2013)

Further information about guar seed

 Bryceson & Cover (2004) (https://rirdc.infoservices.com.au/downloads/04-165.pdf).

Industrial hemp

Industrial hemp is a form of Cannabis sativa, essentially the same plant as marijuana, except that its leaves and flowering parts are bred to be low in the psychoactive drug delta-9 tetrahydrocannabinol (THC). Industrial hemp is a source of both fibre and seed. The fibre is used for fabric, paper, biocomposite building materials and in a range of industrial applications, including plastics. The seed, oil extracted from the seed and the oilcake residues are used as food; the oil is also widely used in cosmetics. Industrial hemp production is either not permitted or strictly regulated in many countries to guard against the illegal production of marijuana. Production systems for hemp usually mean that either fibre or seed is produced, not both. The largest hempseed producers are France and China, while China and the Democratic Republic of Korea are the largest fibre producers (Table 55). There are also substantial hemp industries in Canada (Laate 2012) and Europe (Carus et al. 2013).

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Table 55: Industrial hemp: key characteristics of the world market

Volume a Value a Key countries shares of volume Production Area 41 236 ha na China (33%), Canada (32%), France (18%), Chile (5%), Ukraine (5%), Romania (3%), Hungary (3%), Russian Federation (1%) Hempseed 113.1 kt na France (46%), China (42%), Canada (9%), Chile (1%), Ukraine (1%) Hemp tow waste 80.9 kt na China (56%), Democratic Republic of Korea (17%), Netherlands (8%), Chile (5%), Austria (4%), Romania (4%), Russian Federation (2%) World trade Hempseed 18.3 kt US$23.5 Exporters: Netherlands (38%), France (29%), Spain (8%), Belgium (7%), million Germany (5%), Canada (5%), Italy (3%), Australia (2%), Chile (1%) Importers: Netherlands (30%), Belgium (18%), Italy (8%), Germany (8%), United Kingdom (6%), Chile (5%), Spain (5%), Japan (4%), Sweden (3%) Imports, hemp 14.6 kt US$11.7 Importers: Spain (46%), Czech Republic (15%), United Kingdom (15%), tow waste million Germany (8%), Switzerland (2%) a Average three years to 2010. Sources: Carus et al. (2013); FAO Statistics Division (2013); Laate (2012); Statistics Canada (2013)

Canada is an important producer and exporter of hempseed and fibre since hemp production in Canada was legalised in 1998 ( Figure 66). Total plantings of hemp in Canada in 2011 were over 15 000 hectares, around 80 per cent of which was for hempseed production (Laate 2012). In Canada average yields per hectare are around 785 kilograms of hempseed and 5.9 tonnes of straw (consisting of hurd and bast) that can be transformed into about 1.5 tonnes of fibre (bast) (Laate 2012). The hurd is made up of short absorbent fibres and is used to make products like absorbent materials, insulation, paper and biocomposite building materials.

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exports, fibre exports, seed export price, fibre (right axis) export price, seed (right axis)

Data source: Statistics Canada (2013) Figure 66: Industrial hemp products: exports and export prices, Canada

Australian industrial hemp industry

Industrial hemp can be produced under strict licensing conditions in Victoria (since 1998), Queensland (2002), Western Australia (2004) and New South Wales (2008). Production is not legal in South Australia and the Northern Territory.

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At present, industrial hemp in Australia can only be used for non-food purposes; use of the seed as food for humans is not allowed. Food Standards Australia New Zealand approved an application to allow hempseed to be sold for human food, but the application is subject to further review (Food Standards Australia New Zealand 2013). An estimated 185.5 hectares of industrial hemp was planted in Australia in 2011, most of which was irrigated, producing around 93 tonnes of hempseed (Crawford et al. 2012). The estimated gross value of Australian hemp production in 2011–12 was around $300 000. There are also Australian imports of hempseed products, particularly from Canada and the European Union, but import data from the Australian Bureau of Statistics are not available. According to Crawford et al. (2012), Canada exported 35 tonnes of hempseed products (mostly oilcake, but also seed and oil) to Australia in 2011, with a total value of around A$43 000. In 2012 Australia also imported 46 tonnes of ‘true hemp’ fibre and yarn, valued at $117 500 (ABS 2013), but there were no Australian exports of fibre or yarn.

Further information about industrial hemp

 European Industrial Hemp Association (www.eiha.org)—information about the European industrial hemp industry and the products of industrial hemp.

Quinoa

Quinoa is an edible seed that is produced from the annual plant Chenopodium quinoa, which originated in the Andes region of South America, around Peru and Bolivia. Quinoa has been consumed as a food for thousands of years in these regions. The inedible husk must be removed from the seed before consumption because of its bitterness. The seeds are usually cooked like rice and used in a range of food preparations, including breakfast cereals. Quinoa has become popular in recent years because of perceptions of its healthy properties (Vogel & Vogel 2008). An aspect of its attractiveness to consumers is that it is gluten free, making it an alternative to grains like wheat for those with gluten intolerance. It is also used in processed form in cosmetics because of its emollient properties. World quinoa prices have increased sharply in recent years in response to strong demand, despite increasing world quinoa production and exports ( Figure 67). The main producers and exporters are Peru (52 per cent of world production in the three years to 2010), Bolivia (46 per cent) and Ecuador (1 per cent).

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production exports export price (right axis) Data sources: ABARES; FAO Statistics Division (2013) Figure 67: Quinoa: world production, exports and export prices

Australian quinoa industry

The first Australian commercial crop of quinoa was grown in 2007 in Tasmania, where crops are planted in early spring and harvested in early autumn. Total Australian plantings of quinoa were estimated to be 50 hectares in 2011–12, producing around 45 tonnes of quinoa with an estimated gross value of $160 000. At this stage most Australian quinoa is based on organic production systems. Australia imported 934 tonnes of quinoa in 2012 (the only year for which Australian trade data are available), with a value of $3.1 million and an average price of $3319 a tonne (ABS 2013). Australian quinoa exports in 2012 were 2 tonnes, valued at $18 840 (ABS 2013).

Further information about quinoa

 FAO 2011 (www.fao.org/alc/file/media/pubs/2011/cultivo_quinua_en.pdf)—comprehensive information on the world quinoa industry.

Olives

The olive industry produces two main products: table olives and olive oil. World production of both olive oil and table olives reached records levels in 2011–12. The main producing countries of olive products border the Mediterranean Sea (Table 56).

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Table 56: Olive products: key characteristics of the world market

Volume a Value a Key countries Production Olive oil 2 811 kt na Spain (35%), Italy (26%), Greece (15%), Tunisia (6%), Syria (5%), Turkey (5%) Table olives 1 824 kt na Spain (26%), Turkey (14%), Egypt (11%), Syria (10%), Greece (7%), Morocco (5%), Algeria (4%), United States (4%) World trade Olive oil, virgin 1 041 kt US$3 315 Exporters: Spain (45%), Italy (24%), Tunisia (11%), Greece (11%), Syria million (2%), Turkey (2%) Importers: Italy (44%), United States (13%), France (9%), Spain (6%), Germany (4%), Portugal (5%), United Kingdom (4%)

Olive oil, other 388 kt US$1 064 Exporters: Italy (35%), Spain (33%), Turkey (10%), Greece (9%), million Portugal (3%) Importers: United States (26%), Italy (19%), Spain (8%), Portugal (6%), Australia (5%), United Kingdom (5%), Japan (4%), Canada (3%)

Table olives 607 kt US$1 020 Exporters: Spain (52%), Greece (14%), Morocco (12%), Turkey (7%), million Argentina (3%) Importers: United States (19%), Italy (13%), France (11%), Russian Federation (10%), Germany (7%), Canada (4%), United Kingdom (3%), Romania (3%), Brazil (3%) a Annual average, three years to 2011 for world trade, and to 2011–12 for world production. Sources: Australian Olive Association (2013); International Olive Council (2013a, 2013b); United Nations Statistics Division (2013)

Large increases in world production of olives over the past five years have caused olive oil prices to fall to very low levels. Around half of total world production of olive oil enters world trade, a proportion that has been growing steadily over the past 20 years. The total value of world exports of olives and olive oil averaged US$5.4 billion a year in the three years to 2011, 19 per cent of which was attributable to olives (mostly preserved). The main exporters of olive oil are Spain, Italy, Greece, Tunisia and Turkey (Table 56). Italy is also the largest importer of olive oil. Italy imports lower priced oil and exports higher priced oil. The other main importers are the United States, France, Germany and the United Kingdom. The International Olive Council, a United Nations agency created in 1959 under the auspices of the United Nations Conference on Trade and Development to administer the International Agreement on Olive Oil and Table Olives, lists internationally accepted classifications for olive oil (United Nations Conference on Trade and Development 2013). First, olive oil is defined as oil produced solely from the fruit of olive trees without the use of solvents or re-esterification processes. Any olive oil that is classified as ‘virgin olive oil’ must be obtained solely from olives using only mechanical or other physical means in conditions, particularly thermal conditions, that do not alter the oil in any way. To be classified as ‘extra virgin’, the olive oil must also have a ‘free acidity’ content, expressed as oleic acid, that does not exceed 0.8 per cent; ‘virgin’, 2 per cent; and ‘ordinary virgin’, 3.3 per cent. Olive-pomace oil is the oil obtained from olive pomace (pulp including seeds) using solvents or other physical treatments. The olive fruit has a bitter component (oleuropein) that means it is not usually consumed directly from the tree (International Olive Council 2013a). The bitter component is generally removed for the table olive market by soaking the fruit in sodium or potassium hydroxide, brine or by successive rinsing in water. Generally, green olives are olives harvested during the ripening cycle before colour change, while black olives are fully ripened ones. Green olives are processed in two principal ways: with fermentation (Spanish type) and without fermentation (picholine or American type). Sometimes they

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are stoned (pitted) and stuffed with anchovies, pimento or other edible material. Olives are preserved in a range of substances including salt, brine, acetic acid and vinegar.

Australian olive industry

Australian production of olive products has grown rapidly over the past decade as olive yields have matured with the extensive plantings that were undertaken in the late 1990s and early 2000s. Australian olive oil production reached a record 16 500 tonnes in 2010–11 (Table 57). Victoria accounts for more than half of the olive trees planted in Australia, with the other major producing states being New South Wales (15 per cent), South Australia (13 per cent) and Western Australia (11 per cent). Australia depends heavily on imports of olive products (Table 57). Australian olive oil imports peaked at around 40 000 tonnes in 2006–07 but have declined since then as domestic production has grown ( Figure 68).

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Table 57: Olive products: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers 1 062 Trees ’000 6 234 Olives – for oil tonnes 49 429 54 371 120 000 – for table olives tonnes 3 200 2 500 3 700 – total tonnes 52 629 56 871 123 700 Olive oil tonnes 8 650 9 515 16 500 Gross value – olives for oil $’000 39 092 51 048 – table olives $’000 17 249 13 011 – total $’000 56 342 64 060 169 300 Exports Table olives – volume tonnes 157 175 169 262 357 423 175 – value $’000 848 910 1 030 1 358 1 791 1 608 821 – unit value $/kg 5.39 5.20 6.11 5.19 5.02 3.80 4.69 Virgin olive oil – volume tonnes 1 983 1 975 2 555 4 233 6 314 5 723 4 756 – value $’000 10 664 12 286 14 536 26 212 29 282 21 143 17 415 – unit value $/kg 5.38 6.22 5.69 6.19 4.64 3.69 3.66 Other olive oil a – volume tonnes 461 680 361 590 346 236 314 – value $’000 2 579 3 732 2 368 2 656 1 844 1 312 1 593 – unit value $/kg 5.55 5.54 6.74 5.06 5.00 9.16 5.71 Olive pomace oil – volume tonnes 25 15 79 37 194 61 67 – value $’000 120 120 599 518 856 1 402 583 – unit value $/kg 4.82 7.84 7.60 14.07 4.41 23.14 8.71 Total export value $’000 14 210 17 048 18 532 30 744 33 773 25 464 20 412 Imports Table olives – volume tonnes 14 435 17 179 17 370 16 425 17 597 19 119 17 981 – value $’000 45 035 54 529 56 972 58 724 53 048 52 788 47 665 – unit value $/kg 3.12 3.17 3.28 3.58 3.01 2.76 2.65 Virgin olive oil – volume tonnes 11 905 14 358 15 091 11 241 16 383 18 071 15 945 – value $’000 74 057 82 736 77 916 62 316 77 779 76 963 61 064 – unit value $/kg 6.22 5.76 5.16 5.54 4.75 4.26 3.83 Other olive oil a – volume tonnes 18 474 25 947 16 795 12 524 19 030 17 227 14 509 – value $’000 103 250 141 225 81 228 65 176 85 292 62 407 49 395 – unit value $/kg 5.59 5.44 4.84 5.20 4.48 3.62 3.40 Olive-pomace oil – volume tonnes 427 666 337 479 330 113 165 – value $’000 1 414 2 699 1 444 2 117 1 233 171 391

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– unit value $/kg 3.31 4.05 4.29 4.42 3.74 1.51 2.37 Total import value $’000 223 756 281 188 217 561 188 333 217 352 192 328 158 514 a Not chemically modified. Sources: ABARES; ABS (2012a, 2012c, 2013); Australian Olive Association (2013)

Reflecting the increase in olive production in Australia, Australian exports of both table olives and olive oil have were much higher in 2011-12 than a decade earlier ( Figure 69). However, export prices have fallen, reflecting movements in world prices for olive products and the appreciation of the Australian dollar.

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Data source: ABS (2013) Figure 68: Olive products: imports and import prices, Australia

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Data source: ABS (2013) Figure 69: Olive products: exports and export prices, Australia

The largest producer of olives in Australia is Boundary Bend Limited, a publicly listed company that maintains 2.5 million producing trees or around 60 per cent of Australia’s olive trees.

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Further information about olives

 Australian Olive Association Ltd (www.australianolives.com.au)—information about the Australian industry, including a listing of more than 100 olive processors throughout Australia.  International Olive Council (www.internationaloliveoil.org)—comprehensive information on the agronomics, science and international market for olives and olive products, including a monthly market newsletter.  The ‘Olive Oil’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 295–301 (https://rirdc.infoservices.com.au/items/04-125).

Spices

There are many different types of spices that are used in cooking. Spices are usually the fruit, seeds, stems, roots, bark or flowers of plants, as distinct from herbs which are usually the leaves of plants. Only a selected range of traditional spices are covered here (Table 58). There are many other common plant products that could be considered in their dried form as spices, such as garlic, poppy seed, mustard seed, celery, liquorice and papaya seeds. The world’s many different regional cuisines are each characterised by their own distinctive blends of spices. Factors such as migration and increased incomes are leading to the spread of regional cuisines—for example, Chinese, Indian, Japanese, Thai and Spanish—beyond their traditional borders. Combined with population growth, this is leading to increased demand for virtually all types of culinary spices. Reflecting this increased demand, the value of world trade in constant US dollars of the selected spices grew strongly throughout the 1990s and even faster in the 2000s ( Figure 70). Around 2.6 million tonnes of these spices were traded worldwide in 2011, with a total value of around US$6.7 billion (in constant dollars). The structure of the spice trade is summarised in Table 58. The most important of the spices in terms of value in world trade are pepper, capsicum/pimenta, ginger, cardamom and saffron.

2012 0 US$b 1991 1996 2001 2006 2011

pepper capsicum/pimenta ginger cardamom saffron other

Data source: United Nations Statistics Division (2013) Figure 70: Spices: value of world trade

Table 58: Spices: characteristics of world trade

Spice Volume a Value a Main trading countries (share of total trade volume)

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Anise/badian 17.5 kt US$58 Exporters: Vietnam (28%), Syria (22%), China (18%), Turkey (18%) seed million Importers: India (27%), United States (13%), Germany (6%), Brazil (4%), Turkey (4%), Malaysia (4%), Netherlands (3%) Capsicum/ 468.9 kt US$949 Exporters: China (26%), India (16%), United States (9%), Mexico (9%), Spain pimenta million (7%) Importers: United States (25%), Mexico (12%), Malaysia (9%), Sri Lanka (8%), Spain (6%), Thailand (6%) Caraway seed 14.0 kt US$32 Exporters: Egypt (18%), Canada (17%), Afghanistan (12%), Finland (10%), million Poland (10%), Netherlands (8%), Czech Republic (6%), Lithuania (5%) Importers: United States (24%), Germany (19%), India (13%), Netherlands (7%), Algeria (4%), Tunisia (4%), Austria (4%), Pakistan (3%), Russian Federation (3%), Belarus (1%) Cardamom 40.2 kt US$362 Exporters: Guatemala (65%), Nepal (18%), India (6%), Indonesia (3%) million Importers: Saudi Arabia (34%), India (16%), Singapore (7%), Pakistan (7%) Cinnamon 109.6 kt US$218 Exporters: Indonesia (41%), China (28%), Sri Lanka (13%), Vietnam (7%) million Importers: United States (21%), India (12%), Mexico (7%), Brazil (5%), Netherlands (5%) Cloves 43.3 kt US$154 Exporters: Madagascar (32%), Indonesia (27%), United Republic of Tanzania million (11%), Brazil (7%), Sri Lanka (7%), Comoros (6%) Importers: Singapore (41%), India (23%), United Arab Emirates (5%) Coriander seed 107.5 kt US$137 Exporters: India (29%), Bulgaria (22%), Iran (8%), Canada (7%), Morocco million (5%) Importers: Sri Lanka (16%), Malaysia (13%), Pakistan (13%), United Kingdom (5%), United States (5%), Saudi Arabia (5%), Germany (5%) Cumin seed 100.6 kt US$239 Exporters: Syria (38%), Afghanistan (16%), Turkey (13%), India (11%), Iran million (9%) Importers: United States (12%), Pakistan (10%), Bangladesh (9%), Singapore (7%), Brazil (7%), Saudi Arabia (6%), Morocco (5%), United Kingdom (5%) Curry na na Exporters: India (29%), Pakistan (17%), Malaysia (11%), Thailand (9%), United Kingdom (7%), Brazil (5%) Importers: United Kingdom (19%), Saudi Arabia (16%), Singapore (10%), Germany (8%), United States (7%), Canada (6%), Australia (5%) Fennel/juniper 25.6 kt US$49 Exporters: Egypt (28%), India (23%), China (10%), Turkey (7%), Macedonia berry million (5%), Pakistan (5%), Bulgaria (5%) Importers: Germany (21%), United States (12%), Malaysia (9%), Sri Lanka (6%) Ginger 1034.7 kt US$541 Exporters: China (62%), Thailand (14%), Nepal (7%) million Importers: Japan (33%), Pakistan (13%), United States (10%), India (9%), Malaysia (6%) Mace 4.7 kt US$37 Exporters: Indonesia (71%), Netherlands (5%), Grenada (5%) million Importers: Netherlands (20%), Singapore (20%), Germany (15%), India (15%), United States (5%), Pakistan (5%) Nutmeg 20.0 kt US$112 Exporters: Indonesia (54%), Grenada (13%), Sri Lanka (6%), Netherlands million (6%), India (6%) Importers: Netherlands (14%), Singapore (12%), United States (11%), Germany (10%), Brazil (7%), Belgium (5%) Pepper 333.0 kt US$1 Exporters: India (17%), China (15%), Vietnam (14%), Indonesia (11%), Brazil 165 (8%), Peru (5%), Mexico (5%) million Importers: United States (24%), Malaysia (7%), Germany (7%), Spain (5%), Mexico (5%) Saffron 1.1 kt US$204 Exporters: United Kingdom (24%), Spain (21%), Iran (14%), China (9%), India million (8%) Importers: Spain (29%), United Kingdom (18%), Saudi Arabia (6%), France (5%), Oman (5%) Turmeric 95.4 kt US$122 Exporters: India (61%), United Arab Emirates (12%), Myanmar (8%) million Importers: Iran (15%), Japan (9%), Sri Lanka (8%), Bangladesh (7%), Malaysia (6%), India (6%), United Kingdom (5%), United States (5%) Vanilla 5.8 kt US$109 Exporters: Madagascar (31%), France (21%), Germany (9%), Indonesia (6%), million United States (6%), Papua New Guinea (5%) Importers: United States (28%), Netherlands (15%), United Kingdom (10%), France (10%), Germany (5%)

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Spices nes 213.8 kt US$674 Exporters: India (21%), Germany (10%), Turkey (10%), Pakistan (5%) million Importers: United States (20%), Saudi Arabia (6%), Belgium (6%), Netherlands (5%) a Average, three years to 2010. nes Not elsewhere specified. Source: Based on data from United Nations Statistics Division (2013)

Australian spice industry

The value of Australian spice exports has fluctuated around $25 million in constant dollars over the past 20 years. The value of Australian imports of spices reached record levels in 2011–12 ( Figure 71).

2011–12 0 $m 1991–92 1996–97 2001–02 2006–07 2011–12

exports imports Data source: ABS (2013) Figure 71: value of imports and exports, Australia

Ginger (both fresh and processed) accounted for around 45 per cent of the total value of Australian spice exports in the three years to 2011–12; vanilla 11 per cent; pepper 4.5 per cent; and coriander 3 per cent (Table 59). A large component of Australian export trade in spices other than coriander and ginger seems to be based on imports of spices in bulk, which are then packaged and re-exported. Pepper was the most important spice for imports, accounting for 30 per cent of the total value of imports in the three years to 2011–12. Other important components of the value of imports were capsicum or pimenta spice types (11 per cent), paprika (7 per cent), curry (6 per cent), ginger (4 per cent) and cumin (4 per cent).

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Table 59: Spices: exports and imports, Australia

Volume Value Unit value 2009–10 2010–11 2011–12 2009– 2010– 2011– 2009– 2010– 2011– 10 11 12 10 11 12 tonnes tonnes tonnes $’000 $’000 $’000 $/kg $/kg $/kg Exports Anise/badian seed 0.4 0.4 0.2 11 12 8 30.92 33.86 31.16 Capsicum/pimenta 109.5 58.3 56.7 277 154 923 2.53 2.64 16.29 Caraway 0.3 1.3 0.8 2 11 7 8.03 8.37 8.60 Cardamom 0.6 0.7 0.8 24 34 46 36.38 47.30 57.19 Cinnamon 11.7 3.6 33.2 124 69 210 10.53 19.18 6.32 Clove 0.6 0.1 0.1 7 1 7 11.72 12.26 66.83 Coriander 239.9 603.8 327.5 441 830 665 1.84 1.38 2.03 Cumin 1.8 2.0 2.1 35 29 53 19.98 14.67 24.95 Curry 46.5 61.0 47.0 481 559 369 10.34 9.16 7.86 Fennel/juniper 23.5 3.1 1.9 26 11 8 1.10 3.57 4.23 berry Ginger 2 065.5 2 133.0 1 431.5 10 677 10 723 8 566 5.17 5.03 5.98 Mace 1.1 1.1 1.0 20 22 32 17.70 20.45 32.31 Mixed spices 339.2 384.5 701.7 3 002 3 335 4 826 8.85 8.67 6.88 Nutmeg 51.2 5.3 6.5 134 108 165 2.62 20.25 25.40 Pepper 108.5 107.1 136.2 949 958 1 080 8.75 8.94 7.93 Saffron 0.8 1.1 1.1 123 179 148 154.48 167.01 136.71 Turmeric 1.4 1.6 19.8 37 42 98 26.01 26.91 4.94 Vanilla 137.3 198.4 46.4 2 493 3 507 1 318 18.16 17.67 28.44 Spices nes 486.1 395.1 339.3 3 575 2 581 1 907 7.35 6.53 5.62 Total exports 3 625.8 3 961.4 3 153.7 22 438 23 165 20 436 6.19 5.85 6.48 Imports Anise/badian seed 132.8 100.9 81.3 572 438 289 4.30 4.34 3.56 Capsicum/pimenta 1 510.9 1 593.2 2 041.6 5 575 5 780 7 739 3.69 3.63 3.79 Caraway 46.2 75.3 35.5 151 205 79 3.27 2.72 2.22 Cardamom 83.0 121.0 116.9 1 276 2 803 1 933 15.38 23.17 16.54 Cinnamon 777.7 716.6 705.7 1 729 1 770 1 957 2.22 2.47 2.77 Cloves 95.1 90.3 104.1 480 533 1 166 5.04 5.90 11.21 Coriander 344.0 370.5 364.7 790 721 753 2.30 1.95 2.06 Cumin 668.8 623.8 740.2 2 204 2 186 2 488 3.29 3.50 3.36 Curry 928.8 851.9 592.7 4 033 3 129 2 409 4.34 3.67 4.06 Fennel/juniper 82.6 98.1 52.0 230 288 163 2.79 2.94 3.13 berry Ginger a 685.2 797.8 810.8 1 586 2 347 2 348 2.31 2.94 2.90 Mace 19.9 2.7 8.2 237 66 232 11.90 24.05 28.24 Mixed spices 621.4 796.4 781.8 3 004 3 867 3 205 4.83 4.86 4.10 Nutmeg 156.0 204.8 181.6 1 138 1 562 2 366 7.29 7.63 13.03 Paprika 1 169.3 1 257.9 1 196.3 3 551 3 708 3 753 3.04 2.95 3.14 Pepper 2 890.7 2 989.6 2 990.2 12 377 16 176 21 278 4.28 5.41 7.12 Saffron 1.3 2.3 3.5 1 287 1 319 1 165 961.24 584.49 330.84 Turmeric 494.7 625.6 669.4 1 258 2 309 1 811 2.54 3.69 2.71 Vanilla 51.8 50.0 42.9 1 313 1 317 1 405 25.38 26.34 32.78 Spices nes 1 524.1 1 475.5 1 414.5 5 560 5 189 5 514 3.65 3.52 3.90

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Total imports 12 284.1 12 844.2 12 933.8 48 349 55 713 62 051 3.94 4.34 4.80 a Includes processed ginger. nes Not elsewhere specified. Source: ABS (2013)

Further information about spices

 The ‘Herbs and spices’ section in RIRDC’s The New Crop Industries Handbook, pp. 222–68. (https://rirdc.infoservices.com.au/items/04-125)—information on capers, coriander and fenugreek, culinary herbs, ginseng, medicinal herbs and paprika.  Australian Herb and Spice Industry Association (www.ahsia.org.au).

Coriander seed

The coriander plant (Coriandrum sativum) is believed to be of Mediterranean origin but is now widely cultivated throughout the world both for its leaves and seeds. The seed is crushed to provide oil or a powder that is used in curry powder and other spice mixes (Jongebloed 2004). Other names for fresh green coriander leaves include cilantro or Chinese parsley. World trade in coriander seed has grown strongly in recent years with prices above US$600 a tonne in 2012 dollars ( Figure 72). India is the main producer, consumer and exporter of coriander (dhania) seed, accounting for around half of world production and nearly 30 per cent of world exports. Indian production of coriander seed averaged 525 000 tonnes in the three years to 2011–12 (Department of Agriculture and Cooperation, India 2013). The main participants in world trade of coriander seed are summarised in Table 58.

150 1500

100 1000

50 500

2012 kt 0 0 US$/t 1991 1996 2001 2006 2011

exports export price (right axis)

Data source: United Nations Statistics Division (2013). Figure 72: Coriander seed: world exports and export prices

Australian coriander seed industry

Annual Australian production of coriander seed reached around 5 000 tonnes in the early 1990s but declined to 1 154 tonnes in 2010–11 (Table 60). This is despite export returns being higher in constant dollars in recent years than in the 1990s. Disease problems that have caused large fluctuations in yields have contributed to the loss of interest in growing coriander for seed (Hooper & Dennis 2002). South

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Australia typically accounts for around 40 per cent of Australian coriander production; the other major producing states are Western Australia, New South Wales and Victoria.

Table 60: Coriander seed: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. 46 Area hectares 1 148 1 718 Volume tonnes 1 642 1 154 Gross value $’000 991 1 400

Exports, seeds Volume tonnes 1 896 1 493 922 444 240 604 327 Value $’000 2 497 1 759 1 305 895 441 830 646

Imports, seeds Volume tonnes 269 279 335 440 344 371 183 Value $’000 426 461 686 1 336 790 721 404

Sources: ABARES; ABS (2012a, 2013); Levies Revenue Service (2012)

Australian exports of coriander seed reached nearly 4000 tonnes in the early 1990s but declined to only 327 tonnes in 2011–12. The main export markets for Australian coriander seed are Vietnam (43 per cent of the total volume in the three years to 2011–12), Reunion (13 per cent), and Sri Lanka (12 per cent). Australia also imports coriander in seed form.

Further information about coriander seed

 The ‘Coriander and fenugreek’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 229– 35 (https://rirdc.infoservices.com.au/items/04-125).

Ginger

Ginger is the rhizome of the perennial plant Zingiber officinale and is used widely as a culinary spice and medicine. The main participants in world ginger trade are summarised in Table 58. World ginger trade has been growing strongly over the past 20 years.

Australian ginger industry

The Australian ginger industry is mostly located on the Sunshine Coast and, to a lesser extent, in the Wide Bay–Burnett region of Queensland (Camacho & Brescia 2009). There is also smaller scale production in New South Wales and the Northern Territory. Around 55 per cent of Australian ginger production goes to processing and the other 45 per cent is sold on the fresh market (Camacho & Brescia 2009). The processing mainly involves drying and preservation (usually using sugar). Less than half of Australia’s ginger production is exported, mainly in processed form. The main processor is Buderim Ginger Limited, which operates a production quota system with prices linked to the prices received for its ginger products. Australian exports of ginger products peaked in 2002–03 but have been lower in recent years because of declining prices, a number of drought years and pythium (fungal) disease (Table 61). Australia’s main export markets for ginger products are the United Kingdom (34 per cent of the total value of Australia’s exports in the three years to 2011–12), the United States (27 per cent), Germany (19 per

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cent), Canada (6 per cent) and New Zealand (3 per cent). There are also significant imports of processed ginger products, mainly from China (50 per cent of the total value of Australian imports in the three years to 2011–12), India (32 per cent) and Thailand (5 per cent). Australia does not currently permit the importation of fresh ginger rhizomes for human consumption from any country. An application for imports of fresh ginger from Fiji is currently in the approval process (DAFF 2013a).

Table 61: Ginger: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. 46 Area hectares 232 Volume tonnes 7 575 Gross value $’000 22 726 21 442 Unit gross value $/tonne 3 000 Exports Ginger a – volume tonnes 204 199 155 191 135 140 152 – value $’000 844 883 722 613 451 609 831 – unit value $/kg 4.13 4.44 4.66 3.22 3.34 4.35 5.46 Ginger, preserved by sugar – volume tonnes 994 1 025 947 796 895 825 806 – value $’000 6 946 7 330 6 954 5 633 6 519 5 985 5 998 – unit value $/kg 6.99 7.15 7.34 7.08 7.29 7.26 7.44 Ginger, in syrup – volume tonnes 1 293 1 448 1 180 973 1 036 1 168 473 – value $’000 4 869 5 661 4 896 3 718 3 707 4 129 1 737 – unit value $/kg 3.76 3.91 4.15 3.82 3.58 3.53 3.67 Total export value $’000 12 659 13 874 12 572 9 964 10 677 10 723 8 566 Imports Ginger a – volume tonnes 820 671 763 652 685 798 811 – value $’000 2 043 1 533 1 501 1 605 1 586 2 347 2 348 – unit value $/tonne 2.49 2.28 1.97 2.46 2.31 2.94 2.90 Ginger, prepared or preserved – volume tonnes 329 706 878 833 268 768 916 – value $’000 943 1 631 1 361 1 650 591 1 053 1 641 – unit value $/tonne 2.87 2.31 1.55 1.98 2.21 1.37 1.79 Total import value $’000 2 986 3 163 2 862 3 256 2 177 3 400 3 989 a Includes crushed and ground. Sources: ABARES; ABS (2013); Levies Revenue Service (2012)

Further information about ginger

 Buderim Ginger Limited (www.buderimginger.com), the major ginger processor and marketer in Australia.  Camacho & Brescia (2009) (www.daff.qld.gov.au/documents/BusinessAndTrade_BusinessDevelopment/Australian-ginger- industry-report.pdf).

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Saffron

Saffron is a high-priced spice derived from the dried stigmas and styles of the flower of the plant Crocus sativus (commonly known as the saffron crocus) that are orange-red in colour. The saffron crocus thrives in Mediterranean climates and can survive frosts to –10 °C. Saffron is used as a seasoning and colouring agent in a range of regional cuisines, particularly in Mediterranean countries and south-west Asia; a dye; and a traditional medicine. It takes around 150 000–250 000 saffron flowers, each with one three-pronged stigma, to produce 1 kilogram of dried saffron. The stigma and styles are handpicked, making the harvesting process very labour-intensive. Iran accounts for around 85–90 per cent of world saffron production (Table 62). Iran produced around 150 tonnes of saffron and exported 133 tonnes in 2011–12 (April to March), valued at US$409 million. Iranian saffron production is down from a peak of 235 tonnes in 2005 (Aghdaie et al. 2012). Spain is also a large exporter, based on its own production and the repackaging of imports from Iran. Other producers are Greece, Italy, India, Afghanistan and Morocco.

Table 62: Saffron: key characteristics of the world market

Volume a Value a Key countries (share of total volume in the three years to 2010) Production 129 tonnes na Iran (88%), Greece (3%), Spain (2%) World trade na US$199 Exporters: Spain (26%), France (14%), Iran (11 %), China (7%), million Vietnam (6%), India (5%), Italy (5%) Importers: United Kingdom (26%), Portugal (13%), France (9%), Ireland (7%), Spain (5%), Belgium (3%), United Arab Emirates (3%) a Average three years to 2010. Sources: ABARES; United Nations Statistics Division (2013)

Spain produced 240 tonnes of saffron in the early 1990s but this declined to only 2 tonnes in 2011 in the face of strong competition from Iran, despite increasing world saffron prices ( Figure 73). Saffron yields in Spain averaged 13.5 kilograms a hectare in the three years to 2010. World saffron prices, as measured by returns to Spanish producers, have increased in recent years ( Figure 73).

25000 3500

3000 20000 2500

15000 2000

1500 10000

1000 5000 500

kg 2012 0 0 €/kg 1991 1996 2001 2006 2011 production producer price (right scale) Data source: Ministerio de Agricultura, Alimentación y Medio Ambiente, Espana (2013)

Figure 73: Saffron: production and producer prices, Spain

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Australian saffron industry

There are around 80 growers of saffron throughout Australia, mostly in Tasmania and Victoria. The largest grower is Tas-Saff Pty Ltd, which produces from around 0.8 hectares in Tasmania and also sources saffron from a network of over 50 growers throughout Australia to make saffron products. Saffron corms are planted from December to January in Tasmania. The harvest period for the flowers starts in late March and extends for around 40 days. Australian saffron production was estimated to be 10 kilograms in 2011–12, with a gross value of around $150 000 (Table 63). Australia imported 3.5 tonnes of saffron in 2011–12 but the low unit import price suggests it is not pure saffron. Australia also exported 1.1 tonnes of saffron in 2011–12, which may not all be locally produced.

Table 63: Saffron: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. 80 Volume kilograms 10 Gross value $’000 150 Unit gross value $/kg 15 000 Exports Volume kilograms 250 1 342 55 388 799 1 070 1 079 Value $’000 2 11 3 72 123 179 148 Unit value $/kg 7 8 55 186 154 167 137 Imports Volume kilograms 14 744 8 186 6 201 1 229 1 339 2 257 3 522 Value $’000 440 538 943 917 1 287 1 319 1 165 Unit value $/kg 30 66 152 746 961 584 331 Sources: ABARES; ABS (2013)

Further information about saffron

 Gregory & Menary (2007) (https://rirdc.infoservices.com.au/downloads/07-141.pdf).  Tas-Saff Pty Ltd (www.tas-saff.com.au), Australia’s largest saffron producer.

Stevia

Stevia (Stevia rebaudiana) is the common name for the native South American plant from which a number of no calorie, high-intensity sweeteners are derived. The steviol glycosides responsible for the sweetness are mainly contained in the leaves. The three main steviol glycosides found in stevia plant tissue are stevioside (5–10 per cent of the dried leaf matter), rebaudioside A (1–2 per cent) and rebaudioside C (1–2 per cent), the first two of which have taste closest to sugar (International Sugar Organization 2012). Rebaudioside A, the most commonly used, is 250–300 times sweeter than sugar (International Sugar Organization 2012). Stevia is typically used in food and beverages to reduce sugar content, rather than completely replace sugar, because sugar is needed to mask the bitter aftertastes of stevia sweeteners (Baginski 2011). For example, a major brand soft drink recently released in Australia claims to contain 30 per cent less sugar.

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Stevia-based sweeteners were first commercialised as sweeteners in Japan in 1971 but have faced regulatory hurdles in other countries. They have been approved as a dietary supplement in the United States for many years but approval for use in all foods did not occur until 2008. Other countries with unrestricted approval include Australia, European Union (from December 2011), China, Republic of Korea, Taiwan, Indonesia, Thailand, Paraguay, Brazil, Argentina, Israel and the Russian Federation. Apart from no calories, a selling point with stevia is that it is naturally produced, unlike the artificial high-intensity sweeteners that currently dominate the market, such as acesulfame-k, aspartame, cyclamate, neotame and sucralose. The only serious competitor to stevia as a natural high-intensity sweetener is one derived from luo han guo (monk fruit or Siraitia grosvenorii) that received approval for use in food and beverages in the United States in early 2010. Stevia is mainly grown in China but there is also production in Argentina, Paraguay, Thailand, Kenya and the United States. Stevia plants are established through transplanting, rather than seeding. The plants are grown on a three-year cycle, but the first harvest does not take place until the second year of establishment. According to Zenith International (2011), world production of stevia sweeteners was 3500 tonnes in 2010, with a value at the processing plant gate of US$285 million. Zenith International projected production to reach 11 000 tonnes by 2014. Consumption of stevia products in 2010 was estimated to have replaced around 800 000 tonnes of white sugar consumption (International Sugar Organization 2012).

A stevia industry in Australia?

There is currently no field production of stevia in Australia, although there have been field trials (Midmore et al. 2012). According to Midmore et al. (2012), the regions in Australia suitable for stevia growing include the coastal regions of New South Wales and Queensland, the more temperate inland regions of New South Wales and the warmer cropping regions of Victoria, Western Australia and South Australia. They see stevia as a possible diversification crop for many farmers who have access to irrigation, including vegetable and herb growers, dairy farmers, sugarcane growers and growers of summer crops such as sorghum, cotton, lucerne and maize. The retail value of sugar substitutes in Australia was $44.5 million in 2011–12, compared with retail sugar sales of $186.3 million (Retail Media 2012). The sugar substitutes segment of the Australian retail market is rapidly growing, recording an 8.1 per cent increase in the value of retail sales in 2011– 12, compared with only 1.2 per cent for sugar. Australia imports steviol glycosides mainly from China. Australian imports of glycosides have jumped since use in food and beverages was approved in Australia in October 2008 ( Figure 74). These data suggest that the turnover of the market is currently less than $1 million a year. No import volume data are available.

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1.2

1.0

0.8

0.6

0.4

0.2

2012 $m 0.0 1992 1997 2002 2007 2012

Data source: ABS (2013) Figure 74: Glycosides: import value, Australia

Further information about stevia

 International Stevia Council (www.internationalsteviacouncil.org).  GLG Life Tech Corporation (www.glglifetech.com), a leading producer of stevia products— provides information on the supply chain from production to purification.  PureCircle (www.purecircle.com), a leading producer of high purity stevia ingredients for the global food and beverage industry.  Midmore et al. (2012) (https://rirdc.infoservices.com.au/downloads/12-051)—information on production potential of stevia in Australia.

Tea

Overview

Tea is produced from a shrub Camellia sinensis that can live for over 100 years. Tea comes from harvesting the new shoots of the shrub, usually consisting of two leaves and a bud. Traditionally tea has been handpicked, but mechanical harvesters have also been developed. Tea is consumed in three broad types—black, green and oolong. For black tea, processing involves crushing or tearing the leaves, exposing them to oxygen, causing a natural enzymatic (often called fermentation but actually oxidation) process. For green tea, the green leaves are typically steamed to stop any enzymatic process and then dried. For oolong tea, the processing is broadly the same as for black tea, except the period over which fermentation is allowed is shortened. Green tea makes up roughly 15 per cent of world tea consumption.

World tea market

India and China contribute more than half of the world’s tea production (Table 64). World trade in black and green tea is worth around US$3.8 billion and US$734 million a year, respectively. Kenya, Sri Lanka and India are the main exporters of black tea in volume terms, and the Russian Federation and the United Kingdom are the main importers. China dominates world trade in green tea with a share

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of around 72 per cent, while the main importers are Morocco, the United States and the Russian Federation.

Table 64: Tea: key characteristics of the world market

Volume a Value a Key countries (share of total volume in the three years to 2011) Production 4 487 kt na China (33%), India (22%), Kenya (8%), Sri Lanka (7%), Turkey (5%), Vietnam (4%), Iran (4%), Indonesia (3%), Japan (2%) World trade Black tea 1 186 kt US$3 818 Exporters: Kenya (27%), Sri Lanka (15%), India (13%), Argentina (6%), million Indonesia (6%), China (5%), Vietnam (4%) Importers: Russian Federation (14%), United Kingdom (12%), Egypt (9%), Pakistan (9%), United States (9%), Poland (3%), Germany (3%), Japan (3%)

Green tea 216 kt US$734 Exporters: China (72%), Vietnam (5%), Germany (3%), Sri Lanka (2%), million Indonesia (2%), United Kingdom (2%), Japan (2%), India (1%) Importers: Morocco (17%), United States (9%), Russian Federation (8%), Germany (6%), Algeria (6%), Mauritania (4%), France (4%), Niger (3%), Mali (3%), Senegal (4%), Japan (3%)

Concentrates of 220 kt US$750 Exporters: Canada (26%), Netherlands (11%), Switzerland (8%), United tea, mate million States (7%), Germany (5%), China (4%), Croatia (4%), Ireland (3%) Importers: United States (34%), Ireland (11%), Germany (10%), Canada (4%), Philippines (4%), Slovenia (4%) a Average, three years to 2011. Sources: FAO Statistics Division (2013); United Nations Statistics Division (2013)

World production of tea and world exports of black and green tea have increased over the past 20 years ( Figure 75). World export prices of black and green tea were generally declining until around 2002, but since then have generally risen.

6000 6

5000 5

4000 4

3000 3

2000 2

1000 1

kt 2012 0 0 US$/kg 1991 1996 2001 2006 2011 production exports, black tea exports, green tea export price, black tea (right axis) export price, green tea (right axis) Data sources: FAO Statistics Division (2013); United Nations Statistics Division (2013) Figure 75: Tea: world production, exports and export prices

Australian tea consumption

Over the past decade Australian imports of black tea have declined at an average annual rate of 3.1 per cent but imports of green tea have grown at an average annual rate of 15.8 per cent. Over the three years to 2011–12 Australia’s annual imports averaged around 12 360 tonnes of black tea and around

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1035 tonnes of green tea. The total value of Australian tea imports was around $104.2 million a year over the same period. The total value of grocery sales of tea (including herbal teas) in Australia in 2010–11 was $304 million ( Figure 76). Green tea had a 9 per cent share of the total value of tea sales and a 34 per cent share of the health/flavoured tea segment that includes herbal teas.

175

150

125

100

$m 0 mainstream health/flavoured premium

black green herbal other all types

Data source: Retail Media (2012) Figure 76: Tea: value of grocery sales in Australia, by type, 2011–12

Black tea

In Australia tea is grown mainly in northern New South Wales and Queensland (in the Cairns and Mossman regions), with small areas planted specifically to green tea production in Victoria, Western Australia and Tasmania. Queensland growers benefit from higher yields than New South Wales growers and account for nearly 90 per cent of Australian tea production. The tea industry in Queensland and New South Wales is mainly oriented toward black tea production but also produces ‘Chinese style’ green tea. Most of Australia’s black tea production is sold on the domestic market and benefits in this highly competitive market from its ‘Made in Australia’ label (Chudleigh 1999). Despite this, the main Australian tea brands—Nerada and Madura—sell in the mid- priced categories of tea in Australian supermarkets (based on Retail Media 2012 data). The main tea processors in Australia—Nerada and Madura—package tea as leaf tea or tea bags, also using imported teas. In 2011–12, the Nerada brand had a 6.6 per cent share in volume terms of Australian supermarket sales and the Madura brand a 3.5 per cent share (Retail Media 2012). Tea plantings in New South Wales, Victoria and Queensland were around 506 hectares in 2011-12, producing 1254 tonnes of processed tea, with a gross value of nearly $2 million (Table 65).

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Table 65: Tea: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production a Growers no. 19 19 Area hectares 616 616 506 Volume, green leaf – green leaf tonnes 7 333 5 649 5 647 – processed tonnes 1 627 1 255 1 254 Gross value $’000 2 382 1 808 1 984 Exports Black tea – volume tonnes 454 279 819 1 518 809 604 449 – value $’000 3 007 2 484 3 077 4 463 3 607 3 797 3 436 – unit export value $/kg 6.63 8.91 3.76 2.94 4.46 6.29 7.65 Green tea – volume tonnes 72 47 161 243 395 701 416 – value $’000 1 584 725 1 493 1 958 3 636 3 968 2 614 – unit export value $/kg 21.98 15.32 9.27 8.07 9.21 5.66 6.29 Total export value $’000 4 591 3 209 4 570 6 421 7 243 7 764 6 050 Imports Black tea – volume tonnes 12 437 12 900 12 820 13 313 12 423 13 050 11 610 – value $’000 80 695 88 948 89 404 103 959 94 082 100 971 87 959 – unit export value $/kg 6.49 6.89 6.97 7.81 7.57 7.74 7.58 Green tea – volume tonnes 1 097 983 1 052 965 1 043 996 1 066 – value $’000 7 940 8 652 9 171 10 121 9 460 9 823 10 355 – unit export value $/kg 7.24 8.80 8.71 10.49 9.07 9.86 9.72 Total import value $’000 88 636 97 599 98 575 114 079 103 542 110 794 98 313 a Includes black and green tea. Sources: ABARES; ABS (2013)

Japanese green tea

The Australian green tea industry in Victoria is based on production for the Japanese market. The Australian industry can supply fresh green tea in Japan’s off season. The Japanese market is a growing one due to health conscious consumers and innovations such as canned tea products. Production of crude tea in Japan has fluctuated around 90 000 tonnes over the past decade ( Figure 77). Producer prices in Japan for crude green tea and raw green tea leaves have generally declined in real terms over the past 20 years. Based on price data from Statistics Bureau, Japan (2012), the producer price for raw green tea leaves in Japan averaged US$2.28 a kilogram over the three years to 2010.

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120 45

100

80 30

40 15

kt 0 0 2012 US$/kg 1991 1996 2001 2006 2011 production producer price, crude tea (right axis) producer price, green leaves (right axis) Data sources: FAO Statistics Division (2013); Ministry of Agriculture, Forestry and Fisheries, Japan (2012); Statistics Bureau, Japan (2012) Figure 77: Japanese green tea: production and producer prices, Japan

In Australia the Japanese green tea industry is located mainly in the Alpine Valleys region of Victoria, but there is a 5 hectare plantation at Mangrove Mountain in New South Wales that yielded its first commercial harvest in 2011–12. There are also small trial plantings around Manjimup in Western Australia and in Tasmania. There are usually four harvest periods in each year in Victoria, corresponding to flushes of plant growth, starting around November. The yield and quality of green tea is highest with the November flush and declines with each subsequent harvest. In late 2004, ITO EN Australia Pty Ltd, a subsidiary of a major Japanese beverage company, opened a green tea processing plant at Wangaratta in Victoria with the aim of supplying the Japanese market with crude green tea that is further processed and blended in Japan. Green tea imports by Japan are subject to an ad valorem tariff of 17 per cent. ITO EN Australia initially contracted 11 farms with combined plantings of 72 hectares to supply fresh green tea leaves from Japanese tea varieties (mainly yabukita, sayamakoari and okukaori). The first commercial harvest was in November 2004. Frost and drought severely curtailed production in 2006– 07, with virtually no harvested production. Since then the industry has put in place frost protection measures, mainly temperature activated sprinkler systems. Another Japanese processor of green tea, Kunitaro Company, has participated in a 1 hectare trial at Somersby on the central New South Wales coast since 1998. In 2004 Kunitaro established its own plantation of 5 hectares at Mangrove Mountain and has plans in the short term to increase this to 10 hectares. Kunitaro opened a processing plant at its plantation in 2012. Kunitaro is reported to have a long-term vision of 4000 hectares of tea plantings in the central coast area of New South Wales (New South Wales Department of Primary Industries 2012). Victorian production of green tea was an estimated 1300 tonnes of wet green leaf in 2011–12, with a gross value of $819 000, producing 280 tonnes of crude tea (aracha) (Table 66). Prices paid to growers contracted to ITO EN Australia are confidential; for the purposes of this analysis informed estimates were made based on movements in world tea prices and prices paid to Japanese producers of green tea.

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Table 66: Japanese green tea: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Area hectares 72 72 72 72 72 72 77 Volume, wet a – green leaf tonnes 114 60 450 700 1 300 – processed tonnes 23 12 90 168 280 Gross value $’000 72 38 284 441 819 Unit value a $/kg 0.63 0.63 0.63 0.63 0.63 Exports to Japan Volume tonnes 25.3 13.3 64.6 86.0 153.6 219.8 100.5 Value $’000 756.5 196.5 1 065.0 1 232.6 2 062.7 2 807.3 1 625.6 Unit export value $/kg 29.95 14.77 16.48 14.33 13.43 12.77 16.18 Imports from Japan Volume tonnes 59 72 59 66 61 77 61 Value $’000 1 138 1 199 988 1 159 1 191 1 198 1 314 Unit import value $/kg 19.43 16.73 16.63 17.44 19.63 15.58 21.68 a ABARES estimate. Sources: ABARES; ABS (2013)

There are longer-term plans for further green tea farms to be established in north-east Victoria, with a target of 250 hectares producing up to 18 tonnes a hectare from four harvests a year. ITO EN Australia hopes eventually to export 1000 tonnes of green tea a year to Japan. However, plans for industry expansion in Victoria are on hold due to issues with marketing foreign-produced green tea in Japan.

Further information about tea

 International Tea Committee (www.inttea.com)—detailed statistics, but by subscription only.  The ‘Japanese green tea’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 289–94 (https://rirdc.infoservices.com.au/items/04-125).

Tree nuts

The main tree nuts are generally considered to be almonds, brazil nuts, cashews, chestnuts, coconuts, hazelnuts, macadamias, pecans, pistachios and walnuts. Worldwide demand for tree nuts is benefiting from increasing consumer perceptions of their healthiness as part of a balanced diet. Generally tree nuts are valuable protein sources and are high in unsaturated fats and some important vitamin and minerals. Each nut has specific nutritional characteristics that are being used by marketers to boost demand. For example, walnuts are marketed as containing high levels of omega 3 fatty acids; almonds as being high in vitamin E; or brazil nuts as being a valuable source of selenium. The Australian tree nut industry has established a website ‘Nuts for Life’ (www.nutsforlife.com.au) to provide information to consumers about the nutritional and health benefits of tree nuts.

World tree nut market

World imports of tree nuts averaged US$13.1 billion a year in the three years to 2011, of which almonds and cashews comprised nearly half ( Figure 78). The value of world imports of tree nuts in real terms grew at around 10 per cent a year over the 10 years to 2011.

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US$b 0 cashew almond pistachio hazelnut walnut coconut macadamia chestnut brazil other

in shell shelled both in shell or shelled a Annual average, three years to 2011. Data source: United Nations Statistics Division (2013)

Figure 78: Tree nuts: value of world imports, by type a

The main exporter of tree nuts in value terms is the United States; Turkey, Vietnam, India and Iran are the other major players ( Figure 79). Australia accounts for around 1.5 per cent of the total value of world trade, but is the largest exporter of macadamias and the third largest exporter of almonds.

United States Other 31% 35%

China Turkey 3% 8% Indonesia 3% Spain Vietnam 3% Iran India 7% 5% 5% a Average share, three years to 2011. Data source: United Nations Statistics Division (2013) Figure 79: Tree nuts: country shares of the total value of world trade a

Further information about the world tree nut industry

 International Nut and Dried Fruit Council (www.nutfruit.org)—information about the world nut and dried fruit industry, including the freely available Nut and dried fruits global statistical review, 2006–2011

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Australian tree nut industry

The estimated gross value of the Australian tree nut industry in 2010–11 was $282 million, of which almonds made up around 61 per cent and macadamias 28 per cent (ABS 2012c). Domestic prices for tree nuts in the Melbourne wholesale market in recent years are shown in Table 67.

Table 67: Tree nuts: prices, Melbourne wholesale market

2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 $/kg $/kg $/kg $/kg $/kg $/kg $/kg Almond 15.70 12.63 9.48 15.00 15.00 15.00 13.06 Brazil 15.29 15.25 15.05 15.00 15.00 15.00 16.17 Cashew 15.29 15.25 15.05 15.00 15.00 15.00 13.83 Chestnut 3.79 5.93 5.71 6.23 5.39 5.47 4.86 Coconut 20.79 23.27 24.85 26.66 26.54 26.45 26.51 Hazelnut 15.29 15.25 15.05 15.00 15.00 15.00 15.00 Macadamia 25.20 25.25 24.28 22.50 22.50 22.50 22.50 Pecan 18.29 18.25 18.05 18.00 18.00 20.54 22.37 Pistachio 9.82 8.00 na 18.56 19.00 19.00 20.75 Walnut 6.14 6.50 6.60 6.46 7.15 7.11 7.31 Source: Datafresh Market Reporting Service (2012)

Average annual value of Australian tree nut exports was $219 million in the three years to 2011–12, compared with average imports of $269 million. Australia is a net exporter of almonds, macadamias and pecans, but net importers of other tree nuts ( Figure 80).

other walnut pistachio b pecan b macadamia hazelnut chestnut cashew brazil nut almond

$m 0 20 40 60 80 100 120 140 imports exports a Annual average, three years to 2011-12. b Imports included in 'other' category. Data source: ABS (2013) Figure 80: Tree nuts: value composition of trade, Australia a

Further information about the Australian tree nut industry

 Australian Nut Industry Council (www.nutindustry.org.au), national body representing seven tree nut industries—range of information, including the Australian Nutgrower Journal.  Australian Nut Industry Council (2011) (nutindustry.org.au/files/EJBRROBTQH/Nut_Booklet_2011_HR.pdf).

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Hazelnuts

Hazelnuts are produced from trees from the species of Corylus. The main source of hazelnuts is the common hazel (Corylus avellana), which is native to Europe and Asia. Hazelnut production is suited to regions with well-drained soils, mild winters and cool summers, with yields being susceptible to environmental stresses (Baldwin 2004). Hazelnut trees begin bearing 3 to 6 years after planting. Hazelnuts are consumed directly as a snack food or used in a range of bakery and confectionery products. They are rich in protein, vitamin E and monounsaturated fatty acids. Turkey typically accounts for nearly two-thirds of world production and is also the main exporter of shelled hazelnuts (Table 68). European countries, Hong Kong and China are the main importers.

Table 68: Hazelnuts: key characteristics of the world market

Volume a Value a Key countries shares of volume Production 792 kt na Turkey (64%), Italy (14%), Azerbaijan (4%), United States (4%), China (3%), Georgia (3%), Iran (3%), Spain (2%) World trade In shell 31 kt US$94 Exporters: United States (56%), Chile (11%), France (9%), Georgia (7%), million Italy (5%), Turkey (4%), Canada (2%) Importers: Hong Kong (48%), Italy (14%), Germany (9%), Canada (4%), China (4%), United States (2%), Spain (2%)

Shelled 135 kt US$1 330 Exporters: Turkey (59%), Brazil (9%), Italy (7%), Georgia (5%), Azerbaijan million (5%), Luxembourg (4%), Germany (2%), France (2%) Importers: Germany (28%), Italy (13%), Egypt (11%), France (8%), Russian Federation (5%), Belgium (5%), Switzerland (4%), Canada (4%), Spain (2%) a Annual average, three years to 2011. Sources: FAO Statistics Division (2013); United Nations Statistics Division (2013)

Grower prices hazelnuts (inshell)in the United States have trended upward since the early 2000s ( Figure 81).

60 3000

40 2000

20 1000

2011–12 kt 0 0 US$/t 1991–92 1996–97 2001–02 2006–07 2011–12

production grower price (right axis) Data source: USDA (2013c) Figure 81: Hazelnuts (in shell): production and prices, United States

World import prices for hazelnuts increased strongly around 2005 in response to production shortfalls in key producing countries, but have declined as world production and trade have recovered ( Figure 82).

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400 10000

300 7500

200 5000

100 2500

2012 kt 0 0 US$/t 1991 1996 2001 2006 2011 imports, in shell imports, shelled import price, in shell (right axis) import price, shelled (right axis) Data source: United Nations Statistics Division (2013) Figure 82: Hazelnuts: world imports and import prices

Australian hazelnut industry

Australian hazelnut production was estimated to be 95 tonnes (shelled) in 2011–12, with a gross value of around $708 000, based on import price parity (Table 69). Hazelnuts in Australia are harvested in February and March. Australian hazelnut production is projected to increase to 343 tonnes by 2020 (Australian Nut Industry Council 2012).

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Table 69: Hazelnuts: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. 105 Area hectares 140 Volume (shelled) tonnes 35 30 79 95 Unit gross value $/kg 13.00 12.96 6.81 7.45 Gross value $’000 455 389 538 708 Exports In shell, fresh or dried – volume tonnes 5.4 0.0 0.0 0.0 17.0 25.7 0.0 – value $’000 60 0 0 0 140 79 0 – unit value $/kg 11.16 na na na na 3.09 na Shelled, fresh or dried – volume tonnes 77.4 79.0 106.2 21.6 10.9 46.7 38.6 – value $’000 1 170 692 930 188 191 484 414 – unit value $/kg 15.11 8.77 8.75 8.72 17.52 10.37 10.72 Total export value $’000 1 231 692 930 188 331 564 414 Imports In shell, fresh or dried – volume tonnes 11.7 46.6 55.5 10.0 4.1 18.8 15.0 – value $’000 36 207 171 39 15 75 54 – unit value $/kg 3.05 4.45 3.08 3.88 3.56 3.99 3.60 Shelled, fresh or dried – volume tonnes 2 595 2 086 2 410 1 829 2 279 2 521 2 581 – value $’000 28 896 15 510 18 898 14 894 16 780 17 161 19 229 – unit value $/kg 11.13 7.43 7.84 8.14 7.36 6.81 7.45 Total import value $’000 28 931 15 717 19 069 14 933 16 794 17 236 19 283 Sources: ABARES; ABS (2013); Australian Nut Industry Council (2012)

Australia imported around 2600 tonnes (shelled equivalent) of hazelnuts in 2011–12, valued at $19.3 million. Most of Australia’s hazelnut imports come from Turkey, with the bulk of the remainder from the United States.

Further information about hazelnuts

 Hazelnut Growers of Australia (www.hazelnuts.org.au), the peak industry body—provides a regular newsletter.  The ‘Hazelnut’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 393–401 (https://rirdc.infoservices.com.au/items/04-125).

Walnuts

Walnut trees require a climate with a winter chill period to benefit flowering; freedom from frosts during flowering; and a summer that is warm but not excessively hot (Adem 2003). The common English or Persian walnut (Juglans regia L.) is the main species in walnut production but the Northern Californian black walnut (Juglans hindsii) and the eastern black walnut (Juglans nigra) are popular as rootstocks for grafted trees because of their increased vigour (Adem 2003). There are alternate ‘on’ and ‘off’ production years with walnut production.

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Walnuts are eaten fresh and used in baking and confectionery. A particular characteristic of walnuts is that they are high in omega-3 fatty acids that are widely considered to offer health benefits. China accounts for nearly half of world walnut production, virtually all of which is consumed domestically (Table 70). Iran and the United States are the other major walnut producers. The value of world trade in walnuts (in shell and shelled) averaged around US$1.4 billion a year in the three years to 2011. The United States is the dominant exporter of both shelled and unshelled walnuts. There are countries, such as the Republic of Moldova, that import unshelled walnuts and re-export them as shelled walnut.

Table 70: Walnuts: key characteristics of the world market

Volume a Value a Key country shares Production 3 020 kt na China (48%), Iran (14%), United States (12%), Turkey (5%), Ukraine (3%), Mexico (3%) World trade In shell 170 kt US$502 Exporters: United States (68%), France (14%), Chile (6%), Ukraine (5%), million Argentina (1%), Uzbekistan (1%), Bulgaria (1%), Spain (1%), Germany (1%) Importers: Hong Kong (17%), Turkey (15%), Italy (15%), Mexico (10%), Spain (9%), China (8%), Germany (7%), Russian Federation (2%), Republic of Moldova (2%) Shelled 144 kt US$890 Exporters: United States (43%), Ukraine (16%), Chile (6%), India (6%), million Republic of Moldova (5%), Romania (3%), China (2%), France (2%), Uzbekistan (2%), Germany (2%) Importers: Germany (10%), Russian Federation (10%), Japan (7%), Republic of Korea (6%), Spain (6%), France (5%), Canada (5%), United Kingdom (4%), Australia (3%), Italy (3%), Turkey (3%), Israel (3%), China (3%) a Annual average three years to 2011. Sources: FAO Statistics Division (2013); United Nations Statistics Division (2013)

Almost all walnut production in the United States comes from California. The California Walnut Commission and Walnut Marketing Board oversee generic marketing (including promotion) and research activities for the 5500 walnut growers and 45 walnut handlers that make up the California walnut industry. Grower prices for walnuts have increased sharply in California in recent years, despite increased production ( Figure 83), driven by growing demand from consumers due to perceptions of the healthiness of walnuts.

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600 4000

450 3000

300 2000

150 1000

2011–12 kt 0 0 US$/t 1991–92 1996–97 2001–02 2006–07 2011–12

production grower price (right axis) Data source: USDA (2013c) Figure 83: Walnuts (in shell): production and grower prices, California

World imports and import prices for walnuts have also been growing strongly in the 2000s ( Figure 84).

180 9000

120 6000

60 3000

2012 kt 0 0 US$/t 1992 1997 2002 2007 2011 imports, in shell imports, shelled import price, in shell (right axis) import price, shelled (right axis) Data source: United Nations Statistics Division (2013) Figure 84: Walnuts: world imports and import prices

Australian walnut industry

There has been a large expansion of walnut plantings in Australia in recent years. Australia’s advantages in walnut production are being able to supply fresh walnuts (harvested in March and April) in the northern hemisphere off season and being relatively free from many of the diseases that affect other walnut producing countries. Until the recent plantings most of Australia’s walnut production was in Tasmania, but now the bulk of production takes place in New South Wales and Victoria. South Australia and Western Australia are also small producers of walnuts. Australian planting of walnut trees has expanded over the past decade to 2790 hectares in 2011 (Australian Nut Industry Council 2012). Most of the increase occurred in the Riverina area and was

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undertaken by two large companies—Webster Limited and Gunns Limited. Websters Ltd has since taken over the Gunns Ltd plantings and now owns or manages the bulk of the walnut plantations in Australia. To accommodate the expected increased production, new processing plants have been built at Violet Town and Koraleigh in Victoria. Australian walnut production in 2011–12 was an estimated 6117 tonnes (in shell), with an estimated gross value of $37.3 million (Table 71). Australian walnut production is projected to reach nearly 15 000 tonnes (in shell) by 2020 (Australian Nut Industry Council 2012).

Table 71: Walnuts: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. 174 Trees ’000 929 Volume (in shell) tonnes 1 300 2 493 6 117 Unit gross value $/kg 4.28 5.94 6.10 Gross value $’000 5 561 14 800 37 334 Exports In shell, fresh or dried – volume tonnes 0.0 30.1 48.3 456.3 732.4 1 527.1 2 998.5 – value $’000 0 30 186 1 451 2 690 5 643 11 027 – unit value $/kg na 1.00 3.85 3.18 3.67 3.70 3.68 Shelled, fresh or dried – volume tonnes 78.0 3.1 37.0 1.6 1.9 30.5 9.3 – value $’000 574 44 332 49 14 270 124 – unit value $/kg 7.36 13.93 8.98 30.74 7.65 8.85 13.30 Total export value $’000 574 74 518 1 499 2 704 5 913 11 150 Imports In shell, fresh or dried – volume tonnes 161.8 315.5 230.9 91.6 100.6 71.9 84.1 – value $’000 693 1 311 1 038 380 308 266 316 – unit value $/kg 4.28 4.15 4.50 4.15 3.06 3.71 3.76 Shelled, fresh or dried – volume tonnes 3 871.0 3 886.4 3 875.2 3 880.3 4 679.6 4 885.5 4 972.4 – value $’000 26 031 27 333 28 964 29 158 26 367 30 894 41 634 – unit value $/kg 6.72 7.03 7.47 7.51 5.63 6.32 8.37 Total import value $’000 26 724 28 644 30 002 29 539 26 674 31 160 41 949 Sources: ABARES; ABS (2012a, 2012c, 2013); Australian Nut Industry Council (2012); Webster Limited (2012)

Australian exports of walnuts (in shell and shelled) have been growing rapidly in recent years to reach over 3000 tonnes (in shell equivalent) in 2011–12, reflecting increasing Australian walnut production. The main markets for Australian walnut exports are Italy (30 per cent share of total exports in the three years to 2011–12), Vietnam (18 per cent), Turkey (14 per cent), Hong Kong (12 per cent), China (9 per cent) and New Zealand (8 per cent). However, Australia still imported record quantities of walnuts in 2011–12, mainly in shelled form. Country details for walnut import data in ABS (2013) are confidential, but US walnut export data provided by USDA (2012b) show that most Australian walnuts are sourced from the United States. The increase in Australian production and imports in recent years suggests rapidly growing domestic consumption of walnuts in Australia.

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Further information about walnuts

 Australian Walnut Industry Association (www.walnut.net.au).  California Walnuts (www.walnuts.org)—information on the Californian walnut industry, including a regular newsletter Walnut news that provides an export market update.

Tropical exotic fruit

The northern regions of Australia are suited to growing a wide range of exotic tropical and subtropical fruits, many of which originated in Asia and are, therefore, familiar to Asian consumers. More details about these exotic fruits are available at www.australiantropicalfoods.com. In this chapter, information on seven tropical and subtropical fruits is reported: durian, jackfruit (jackfruit), longan, lychee, papaya, mangosteen and rambutan. Prices received in the Sydney market for these (and other) exotic tropical fruits are shown in Table 72.

Table 72: Selected tropical exotic fruit: average prices, Sydney wholesale market

Type Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Carambola $/SL tray 21.42 22.27 24.87 25.07 21.23 24.62 na Durian $/kg 13.50 na na na 8.68 6.10 5.90 Custard apple – African pride $/SL tray 16.94 18.20 21.77 18.74 21.48 22.09 na – pink’s mammoth $/SL tray 21.81 26.25 24.73 24.14 24.58 24.42 31.41 Guava – pink $/kg 14.00 14.93 16.26 13.00 21.43 35.00 10.50 – white $/SL tray 4.64 5.18 4.96 4.80 4.27 6.02 5.14 Jackfruit $/kg 3.08 3.18 2.71 3.46 3.61 3.03 3.50 Longan $/kg 5.37 5.72 3.34 7.82 7.02 7.46 6.22 Lychee – fei zi xiao $/kg 10.72 9.78 10.10 10.53 10.74 12.69 11.49 – kwai mai pink $/kg 5.24 4.03 4.59 6.81 5.14 5.87 6.24 – salathiel $/kg 7.18 7.74 5.96 10.50 6.84 8.92 7.89 – tai so $/kg 5.16 4.99 5.35 7.44 5.22 7.77 6.31 – wai chee $/kg 4.57 3.82 3.85 6.26 4.41 4.91 3.97 Mangosteen $/kg 8.34 7.92 9.26 9.47 8.15 10.54 10.93 Papaya/pawpaw – red flesh, Hawaiian $/18L carton 17.73 22.77 19.32 20.83 20.00 20.61 22.53 solo – yellow flesh $/22L carton 21.93 28.70 16.96 20.48 20.26 21.32 23.44 Pitaya/dragon fruit – red flesh $/5kg carton 17.89 20.37 24.75 16.90 20.53 12.94 20.25 – white flesh $/3kg carton 29.06 30.46 25.67 28.47 25.08 38.25 31.06 Pomelo – green $/kg 3.25 3.16 2.98 2.91 2.68 2.93 2.95 – red $/kg 1.50 3.15 2.45 1.50 0.00 2.66 3.15 Rambutan $/kg 6.44 7.75 10.84 7.15 6.33 8.30 8.70 Soursop $/kg 3.94 5.58 5.29 4.50 0.00 0.00 0.00 Source: Sydney Market Reporting Service (2012)

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Thailand is a large producer of these tropical fruits and the main world exporter of many of them ( Figure 85). Australia signed a free trade agreement with Thailand in 2004 in which mangosteen, durian, lychee and longan are explicitly specified as market access priority products (DFAT 2004).

1000

800

600

400

200

kt 0 1997 2002 2007 2012

durian longan rambutan mangosteen lychee Data source: Office of Agricultural Economics, Thailand (2013) Figure 85: Selected tropical exotic fruit: production, Thailand

Australia’s strict quarantine barriers aimed at preventing the introduction of exotic diseases and pests have worked against imports of some tropical fruits, particularly fresh fruits. While Australia has been importing papaya for a number of years, access has only been possible for fresh durian from Thailand since 1999, for mangosteens from Thailand since July 2004, and for lychee and longan from Thailand and China since April 2004. Fresh rambutan imports are yet to be allowed from any country and no applications have yet been received. The ICON database maintained by Biosecurity Australia provides details on the conditions under which more than 18 000 plant, animal, mineral and human production can be imported into Australia—see DAFF (2013b) for a searchable database. Cyclone Larry, which crossed the north Queensland coast on 20 March 2006, caused extensive loss and damage to fruit trees and many tropical exotic fruit industries are still recovering. An industry peak body, Tropical Exotic Fruit Australia, was established in 2007 with the merger of the Rambutan and Tropical Exotic Growers Association and the Tropical Exotic Fruit sub-groups of the Northern Territory Horticultural Association.

Further information about tropical and exotic fruits

 Diczbalis (2012)—contains a range of information about Australia’s tropical exotic fruit industry.  The ‘Fruits and berries’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 165–97 (https://rirdc.infoservices.com.au/items/04-125)—includes sections on durian, lychee, longan, rambutan and minor tropical fruits (mainly pitaya, pomelo, jackfruit, hog plum and carambola).  Australian Tropical Fruits Portal (www.australiantropicalfruits.org.au)—information about the Australian tropical and exotic fruit industry.  Northern Territory Horticultural Association (www.ntha.com.au)—information on tropical exotic fruit, including Tropical Exotic Fruit Australia’s newsletter.

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Durian

Durian (Durio zibethinus L.) is a tree-borne tropical fruit with a complex flavour. It also has a strong odour that many people find offensive. Durian is believed to have originated in Borneo and is now extensively cultivated in South-East Asia, particularly in Thailand, Malaysia, Indonesia and Cambodia. Durian fruit is mostly eaten fresh but can be frozen, dried or canned. Harvesting before it is ripe can mean a shelf life of 2–3 weeks with refrigeration but can be as little as 2–3 days if the fruit is damaged. World durian exports have grown strongly over the past decade, reaching a record 590 000 tonnes in 2012 ( Figure 86). The average export price fluctuated around US$550 a tonne in real terms over the past decade. Thailand typically provides more than one-half of world durian exports, with Malaysia providing the bulk of the remainder. Most of the Thai durian crop is harvested in the period April to August, with peak production in May. The major importers were Hong Kong (47 per cent in the three years to 2011), China (37 per cent) and Singapore (13 per cent).

600 750

400 500

200 250

2012 kt 0 0 US$/kg 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

exports, Thailand exports, other export price (right axis)

Data sources: ABARES; United Nations Statistics Division (2013) Figure 86: Durian: world exports and export prices

Australian durian industry

Commercial growing of durian fruit has only recently commenced in the Northern Territory and north Queensland. Harvest times are November to February in the Northern Territory and January to April in north Queensland. There are ‘on’ and ‘off’ years for yields. Over 60 per cent of durian production occurs in the Northern Territory, with Queensland accounting for the remainder. Before Cyclone Larry in early 2006, there were 36 durian growers in Australia with around 13 000 trees. Despite re-plantings after widespread damage inflicted by Cyclone Larry, there were only around 5000 durian trees in Australia in 2011–12. Based on tree numbers and average yields in Diczbalis (2012), durian production in Australia in 2011– 12 was around 60 tonnes, with an estimated gross value of $480 000, up from only 3 tonnes produced in 2006–07 in the immediate aftermath of Cyclone Larry. There were small quantities of Australian exports of durian in the past but almost none in recent years (Table 73). There are larger quantities of imports, all provided by Thailand and Malaysia. Market access for frozen durian was granted to Thailand and Malaysia in 1999 and 2004, respectively, after import risk assessments.

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Table 73: Durian: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. 36 Trees, year end ’000 13 5 Volume tonnes 20 3 60 Gross value $’000 250 64 480 Exports a Volume tonnes 0.0 0.0 0.0 0.5 1.6 0.0 0.0 Value $’000 0 0 0 6 17 0 0 Unit value $/kg na 2.97 na 13.33 10.58 na na Imports a Volume tonnes 105.1 108.1 12.1 122.1 76.2 42.1 0.6 Value $’000 163 236 62 301 271 305 4 Unit value $/kg 1.55 2.18 5.13 2.47 3.56 7.25 7.62 a Fresh or frozen. Sources: ABARES; ABS (2013); Diczbalis (2012)

Further information about durian

 Australian Tropical Fruits Portal (www.australiantropicalfruits.org.au).  The ‘Durian’ section in RIRDC’s The New Crop Industries Handbook, pp. 166–73. (https://rirdc.infoservices.com.au/items/04-125).

Jackfruit

Jackfruit (Artocarpus heterophyllus Lam.) is a tropical fruit tree believed to have originated in the rainforests of the Western Ghats in India but has now been adapted to frost-free and humid tropical and subtropical climates. The tree typically bears fruit around three years after planting. The fruit are very large, ranging in size from 5 to 30 kilograms. Jackfruit is a major cultivated fruit throughout tropical Asia, particularly in Bangladesh (0.9 million tonnes), India (1.4 million tonnes), Indonesia (0.3 million tonnes) and Thailand (0.4 million tonnes) (Sidhu 2012). Jackfruit is an emerging export industry in Thailand ( Figure 87).

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20 400

15 300

10 200

5 100

2012 kt 0 0 US$/t 2007 2008 2009 2010 2011 2012 exports export price (right axis) Data sources: Customs Department, Thailand (2013); Office of Agricultural Economics, Thailand (2013) Figure 87: Jackfruit: exports and export prices, Thailand

Australian jackfruit industry

Jackfruit is produced in the Northern Territory and Queensland. The peak harvest period is from December to February. There are around 9250 trees in Australia, nearly 80 per cent of which are located in the Northern Territory (Diczbalis 2012). Based on tree numbers and average yields in Diczbalis (2012), jackfruit production in Australia in 2011–12 was around 742 tonnes, with an estimated gross value of around $2.6 million (Table 74). There is strong domestic demand for Australian-produced jackfruit and all production is consumed domestically. Australia imported 2 tonnes of processed jackfruit from Thailand in 2011–12. Imports of fresh jackfruit into Australia are not permitted.

Table 74: Jackfruit: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. 25 67 Trees, year end ’000 9.2 Volume tonnes 300 400 742 Gross value $’000 800 1 102 2 600 Price, Sydney market $/kg 3.08 3.18 2.71 3.46 3.61 3.03 3.50 Imports, processed, from Thailand a Volume tonnes 0.0 0.0 1.3 1.8 2.0 3.3 2.0 Value $’000 0 0 3 6 6 7 5 Unit value $/kg na na 2.09 3.26 3.20 2.28 2.44 a fob Thailand, converted to Australian dollars. Sources: ABARES; ABS (2012a, 2012c, 2013); Customs Department, Thailand (2013); Diczbalis (2012); Sydney Market Reporting Service (2012)

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Further information about jackfruit

 Australian Tropical Fruits Portal (www.australiantropicalfruits.org.au).  The ‘Minor tropical fruits’ section in RIRDC’s The New Crop Industries Handbook, pp. 182–90 (https://rirdc.infoservices.com.au/items/04-125).

Longan

Longan (Dimocarpus longan or Euphoria longan) is a fruit closely related to the lychee. It is adapted to production in monsoonal regions and is mainly grown in China, Thailand, Vietnam and Taiwan. Longans are mainly consumed fresh but are also dried and canned. Thailand is the main exporter of longans. Thailand’s production and exports of longans reached record levels in 2012, in response to increasing export returns ( Figure 88). Harvesting of longans in Thailand is usually from late June to August but there are techniques, such as soil drenching with potassium chlorate, which can be used to produce off-season fruit.

900 750

600 500

300 250

2012 kt 0 0 US$/t 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 production exports export price (right axis) Data sources: Customs Department, Thailand (2013); Office of Agricultural Economics, Thailand (2013) Figure 88: Longan: production, exports and export prices, Thailand

Australian longan industry

Longans are grown in the subtropical regions of the eastern coast of Australia as far south as northern New South Wales. The picking season extends from January to April. Estimated Australian production of longans in 2011–12 was 2000 tonnes, with an estimated gross value of $12.5 million (Table 75).

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Table 75: Longan: supply, disposal and value, Australia

Item Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. Trees, year end ’000 Volume tonnes 320 2 000 Gross value $’000 1 100 12 500 Price, Sydney market $/kg 5.37 5.72 3.34 7.82 7.02 7.46 6.22 Imports, fresh, from Thailand a Volume tonnes 153.9 128.5 312.0 153.3 233.2 131.6 167.2 Value $’000 274 294 609 458 559 344 324 Unit value $/kg 1.78 2.29 1.95 2.98 2.40 2.62 1.94 a fob Thailand, value converted to Australian dollars. Sources: ABARES; ABS (2013); Customs Department, Thailand (2013); Sydney Market Reporting Service (2012)

Australian longan production is consumed domestically. Australia imports substantial quantities of longans from Thailand—167 tonnes in 2011–12 (Table 75). China is the only other country that has access to the Australian market for fresh longans.

Further information about longans

 Australian Tropical Fruits Portal (www.australiantropicalfruits.org.au).  The ‘Lychees and Longans’ section in RIRDC’s The New Crop Industries Handbook, pp. 174–81 (https://rirdc.infoservices.com.au/items/04-125).

Lychees

Lychee (Litchi chinensis Sonn.), or lychee nut or litchi, is a tree-borne fruit with sweet, fragrant and juicy fruit and a translucent flesh. The lychee tree is native to southern China, northern Vietnam and Myanmar. It is difficult to grow, requiring frost-free conditions, and does not produce a substantial crop until 6–8 years after planting (Menzel 2002). The fruits are very susceptible to browning and rotting so they have a relatively short shelf life as fresh fruit. Lychees are also canned whole or made into a range of jellies, jams, preserves and lychee tea. Lychees are now grown in many subtropical regions of the world. According to GHD (2013) annual world lychee production is around 2.3 million, only 1.4 per cent of which enters world trade. The main producers are China (1.4 million tonnes), India (0.4 million tonnes), Vietnam (0.2 million tonnes), Madagascar (0.1 million tonnes), Taiwan (0.1 million tonnes) and Thailand (0.07 million tonnes). Other small producers of lychees include Australia, Bangladesh, Nepal, the Philippines and South Africa. Key exporters are Madagascar, Thailand and South Africa (GHD 2013). Thai lychee export prices in real terms have exhibited a downward trend over the past decade ( Figure 89).

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100 1000

75 750

50 500

25 250

2012 kt 0 0 US$/t 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 production exports export price (right axis) Data sources: Customs Department, Thailand (2013); Office of Agricultural Economics, Thailand (2013) Figure 89: Lychee: production, exports and export prices, Thailand

Australian lychee industry

Lychees have been grown commercially in Australia since the 1970s. The harvest period in Australia is November to February but the main production period is December to January. There are many different varieties of lychees grown in Australia, with differing agronomic and quality characteristics. Australian domestic prices (Sydney market) for a range of lychee varieties are shown in Table 72. There were around 267 lychee growers in Australia in 2010-11 and more than 90 per cent of Australian lychee production occurs in Queensland. Australian lychee production was 2294 tonnes in 2011–12, with a gross value of $15.2 million (Table 76).

Table 76: Lychee: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. 250 250 267 Trees, year end ’000 24 22 196 Volume tonnes 1 673 3 014 2 045 1 221 2 171 1 557 2 294 Gross value $’000 9 088 13 378 10 500 15 177 Price, Sydney market a $/kg 5.43 4.44 4.91 7.04 5.36 6.40 6.28 Exports, fresh Volume tonnes 163.3 1 907.2 469.9 0.0 0.0 1.4 0.0 Value $’000 969 9 418 2 542 0 0 10 0 Unit value $/kg 5.93 4.94 5.41 7.54 5.86 6.90 6.78 Imports, fresh, from Thailand b Volume tonnes 40 60 13 51 80 0 18 Value $’000 134 149 208 166 246 0 48 Unit value $/kg 3.38 2.50 15.52 3.27 3.08 na 2.71 a Weighted average, giving the weights of 0.7, 0.15, 0.1 and 0.05, respectively, to the kwai mai pink, tai so, wai chee and fei zi xiao varieties. b fob Thailand, value converted to Australian dollars.

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Sources: ABARES; ABS (2012a, 2012c, 2013); Customs Department, Thailand (2013); Levies Revenue Service (2012); Sydney Market Reporting Service (2012)

Until recently approximately 20–35 per cent of the Australian crop was exported, mainly to China (via Hong Kong), Singapore and Europe. However, exports have been almost non-existent in recent years, after reaching a peak of 1907 tonnes in 2006–07. Growing domestic demand, market access issues with China (via Hong Kong) and the strengthening of the Australian dollar have contributed to the decline. Australia imported 18 tonnes of fresh lychees from Thailand in 2011–12, but annual imports were as high as 80 tonnes -in 2009–10. Imports of fresh lychees are also imported from China, South Africa and Taiwan.

Further information about lychees

 Australian Lychee Growers’ Association (www.australianlychee.com.au), peak industry body.  The ‘Lychees and Longans’ section in RIRDC’s The New Crop Industries Handbook, pp. 174–81 (https://rirdc.infoservices.com.au/items/04-125).  Australian Tropical Fruits Portal (www.australiantropicalfruits.org.au).

Mangosteen

Mangosteen (Garcinia mangostana L.) is a tree-borne tropical fruit with a thick reddish-purple rind and a flesh that is segmented like that of an orange. The fruit is usually eaten fresh, but can also be canned, frozen or made into juice, preserves and syrup. The tree is believed to have originated from the Malay archipelago. Thailand accounts for more than 90 per cent of world mangosteen production and almost all of world exports. Annual Thai mangosteen production averaged 202 000 tonnes in the three years to 2012, but varies considerably from year to year ( Figure 90). Malaysia, the Philippines and Indonesia also produce relatively small quantities of mangosteens.

400 800

300 600

200 400

100 200

kt 2012 0 0 US$/t 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 production exports export price (right axis) Data sources: Customs Department, Thailand (2013); Office of Agricultural Economics, Thailand (2013) Figure 90: Mangosteen: production, exports and export prices, Thailand

The Thai mangosteen industry has become increasingly export-oriented in recent years in response to favourable export returns ( Figure 90).

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Australia mangosteen industry

In Australia mangosteen plantings take around nine years to fruit and up to 12 years to provide commercial fruit, but once they are established they are low maintenance trees. The harvest period in Australia is January to March. Australia had plantings of around 14 000 mangosteen trees in 2005–06, more than 98 per cent of which were in Queensland, with the remainder in the Northern Territory. Around 9 per cent of the plantings in Queensland were destroyed by Cyclone Larry in March 2006 (Diczbalis 2012). Estimated Australian production of mangosteens in 2011–12 was 176 tonnes, with a gross value of around $1.9 million (Table 77). Small quantities of mangosteen fruit were exported from Australia in the early 2000s but the crop now appears to be entirely sold on the domestic market. Imports of mangosteens into Australia have been allowed from Thailand since April 2004. Around 238 tonnes of fresh mangosteens were imported from Thailand in 2011–12, equivalent to around 60 per cent of total Australian consumption.

Table 77: Mangosteen: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. Trees, year end no. 14 13 12 Volume tonnes 36 120 176 Gross value $’000 300 950 1 924 Price, Sydney market $/kg 8.34 7.92 9.26 9.47 8.15 10.54 10.93 Exports, mangosteen and guava a Volume tonnes 1.5 6.1 1.3 2.8 1.1 0.8 18.2 Value $’000 9 68 39 71 19 6 67 Unit value $/kg 5.66 11.10 28.94 25.19 16.94 7.49 3.69 Imports, fresh, from Thailand b Volume tonnes 178.4 103.0 216.4 239.2 247.5 168.9 237.9 Value $’000 590 419 800 1 103 902 624 982 Unit value $/kg 3.31 4.07 3.70 4.61 3.64 3.69 4.13 a Fresh or dried. b fob Thailand, converted to Australian dollars. Sources: ABARES; ABS (2013); Customs Department, Thailand (2013); Diczbalis (2012); Sydney Market Reporting Service (2012)

Further information about mangosteens

 Australian Tropical Fruits Portal (www.australiantropicalfruits.org.au).

Papaya and pawpaw

Papaya and pawpaw (both Carica papaya L.) are slightly pear-shaped fruit with yellow or golden skin and yellow flesh (pawpaw) or orange to red flesh (papaya). The papaya is believed to have originated in Central America but is now extensively cultivated throughout the tropical and subtropical regions of the world. The papaya plant lives for around five years but is replanted more often than this in commercial plantations (Chay-Prove 2003). Papaya is consumed mainly as a fresh fruit but is also canned (usually as pulp), made into jams, or dried and crystallised. World production and exports of papayas have grown strongly since the early 1990s ( Figure 91). World production of papayas averaged 6.6 million tonnes in the three years to 2006, produced mainly

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by Brazil (24 per cent of total production), Mexico (12 per cent), India (12 per cent), Nigeria (12 per cent) and Indonesia (9 per cent). World papaya production peaked in 2002 at 6.9 million tonnes, twice the level of production in 1985. Around 4 per cent of world papaya production typically enters world trade as fresh or dried papayas; a large but unknown quantity is further processed for export. The main exporters of fresh or dried papayas are Mexico (34 per cent of world exports in the three years to 2011), Malaysia (22 per cent), Brazil (17 per cent) and Belize (11 per cent). The United States accounts for nearly half of world imports of fresh or dried papayas, with China (11 per cent) and Singapore (10 per cent) the other major importers.

400 800

300 600

200 400

100 200

2012 kt 0 0 US$/t 1996 1999 2002 2005 2008 2011

exports export price (right scale)

Data source: United Nations Statistics Division (2013) Figure 91: Papaya: world exports and export prices

Australian papaya industry

Australia’s papayas are grown mainly in the tropical regions of Innisfail and Mareeba in northern Queensland. Small amounts are also grown in the Northern Territory, southern Queensland, the Kimberly and Carnarvon regions of Western Australia, and northern New South Wales. Fruit are harvested year-round in Australia, but there are production peaks in autumn and spring. Estimated Australian production of papaya in 2011–12 was 7639 tonnes (Table 78), down from a record 11 893 tonnes in the previous year. Very small quantities of Australia’s papayas are exported but imports were around 286 tonnes in 2011–12. Almost all of the imports were from Fiji, with a small amount from Thailand.

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Table 78: Papaya: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. 130 100 Area hectares 650 500 474 326 na 402 Volume tonnes 11 606 7 968 10 240 9 393 10 331 11 893 7 639 Yield t/ha 17.9 15.9 21.6 28.8 na Gross value $’000 17 061 17 370 18 938 23 121 24 410 322 17 22 625 Unit GVP $/kg 1.47 2.18 1.85 2.46 2.36 2.71 2.96 Sydney market prices Red flesh, Hawaiian $/18L carton 17.73 22.77 19.32 20.83 20.00 20.61 22.53 solo Yellow flesh $/22L carton 21.93 28.70 16.96 20.48 20.26 21.32 23.44 Exports, fresh Volume tonnes 2.1 5.7 5.1 0.4 1.2 1.0 0.0 Value $’000 7 18 12 2 4 4 0 Unit value $/kg 3.49 3.11 2.43 5.20 3.59 3.69 na Imports, fresh Volume tonnes 173.8 448.5 224.1 163.0 45.7 419.2 286.2 Value $’000 412 918 585 471 201 796 590 Unit value $/kg 2.37 2.05 2.61 2.89 4.41 1.90 2.06 Sources: ABARES; ABS (2013); Levies Revenue Service (2012); Sydney Market Reporting Service (2012)

Further information about papaya

 Australian Tropical Fruits Portal (www.australiantropicalfruits.org.au).

Pitaya (dragon fruit)

Pitaya (various Hylocereus spp), also called dragon fruit, is a tropical cactus from the rainforests of Central America and northern South America (Diczbalis & McMahon 2004). It is suited to a dry, tropical climate. In the Americas the pitaya is grown commercially from Argentina to Texas in the United States. Vietnam is also a large commercial producer and Malaysia is an emerging producer.

Australian pitaya industry

The pitaya was introduced to Queensland in the 1970s and its commercial production has spread to the Northern Territory, Western Australia and New South Wales (Diczbalis & McMahon 2004). The peak production period is from January to March but fruit can be available as early as September. In Australia, there is a white-fleshed pitaya (Hylocereus undatus) and red-fleshed pitaya (Hylocereus. polyrhizus). The red-fleshed pitaya earns higher prices (Table 72). There were around 40 000 pitaya trees in Australia in 2011–12, nearly 70 per cent of which were in the Northern Territory, with the remainder in Queensland (Diczbalis 2012). Based on these tree numbers and average yields (also in Diczbalis 2012) Australian production of pitaya in 2011–12 was around 740 tonnes, with a gross value of $2.2 million. Australian production is sold on the domestic market and no country has access to the Australian market for fresh pitayas.

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Further information about pitaya

Rambutan

Rambutan (Nephelium lappaceum) is a red or yellow tropical fruit that is round to oval in shape, with hairlike protrusions. The rambutan is highly perishable, which makes it difficult to handle and gives it a short shelf life. Fruiting may occur twice in one year. The main producers and exporters are Thailand, Malaysia and Indonesia, with Honduras emerging as a significant exporter in recent years. Thai rambutan production has generally been declining over the past decade though exports have picked up in recent years ( Figure 92).

750 900

500 600

250 300

2012 kt 0 0 US$/t 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 production exports export price (right axis) Data sources: Customs Department, Thailand (2013); Office of Agricultural Economics, Thailand (2013) Figure 92: Rambutan: production, exports and export prices, Thailand

Canned rambutan is an important component of the world rambutan trade. Singapore is the largest importer of rambutan products, with growing demand from other Asian countries, the United States and Europe.

Australian rambutan industry

The harvest period in Australia is from November to January, with small quantities around June from a secondary fruiting. Around 85 per cent of Australian production takes place in northern Queensland, with the remainder in the Northern Territory. Australian rambutan production in 2011–12 was an estimated 637 tonnes, with a gross value of $3.8 million (Table 79). Rambutan production in Queensland is still recovering from Cyclone Larry in early 2006 that destroyed an estimated 23 per cent of all rambutan trees (Diczbalis 2012). In 2000 Australian rambutan growers gained access to the Japanese market, where fresh rambutan is considered a luxury item. Most Australian rambutan exports go to this market. Australian rambutan exports to Japan peaked at 85 tonnes in 2002–03, with an estimated value of $1.2 million . In recent years Australian rambutan exports to Japan have declined to almost nothing because of markedly lower Australian production and the strength of the Australian dollar compared with the Japanese yen.

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Australian imports of fresh rambutan are not permitted. Imported canned rambutan is available in Australian supermarkets (no data available).

Table 79: Rambutan: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Growers no. 110 110 Trees, year end ’000 29 23 25 Volume tonnes 270 140 637 Gross value $’000 2 503 1 204 3 760 Price, Sydney market $/kg 6.44 7.75 10.84 7.15 6.33 8.30 8.70 Exports, fresh to Japan Volume tonnes 1.9 0 0 0 0.8 0 0 Value $’000 44 0 0 0 13 0 0 Unit value $/kg 23.51 na na na 12.67 na na Sources: ABARES; Diczbalis (2012); Ministry of Finance, Japan (2012); Sydney Market Reporting Service (2012)

Further information about rambutan

 Australian Tropical Fruits Portal (www.australiantropicalfruits.org.au).  The ‘Rambutan’ section in RIRDC’s The New Crop Industries Handbook, pp. 191–97 (https://rirdc.infoservices.com.au/items/04-125).

Truffles

Truffles are the fruiting body of fungi that typically form in a symbiotic relationship on the roots of particular trees. Truffles are used as food flavouring. Fresh truffles have a shelf life of around two weeks at 4oC, although this can be slightly lengthened through processes such as vacuum storage. Truffles are also canned, bottled or snap frozen. The most common high quality truffle is the French black or Perigord truffle (Tuber melanosporum), named for the region in France where it is thought to have originated. The other main truffle types are the white truffle of Piedmont (Tuber magnatum), the most expensive of all truffle species; the whitish Italian or bianchetto truffle (Tuber borchii); the Asiatic truffles (Tuber sinensis, Tuber indicum, and Tuber himalayensis); and the black summer truffle (Tuber aestivum/uncinatum), most most common truffle in western Europe; and Tuber brumale (sometimes called the winter truffle) which can be a troublesome contaminant where black truffles are found. The Chinese truffle (Tuber sinensis) is relatively plentiful and much lower in quality and price than the truffles that originate in Europe. Several other Tuber species are native to north America and some of these have commercial value. Black Perigord truffles are gathered from both cultivated and naturally occurring woodlands in France, Italy, Spain and, to a lesser extent, Portugal. Truffles were first cultivated in the early 1800s in France by planting acorns under productive trees then transplanting the seedlings. In the early 1970s a technique was developed for inoculating the roots of oak and hazelnut trees in the nursery. With this method the first truffles may be found four to seven years after planting and maximum yields are reached after around 12 to 18 years. The Australian truffle industry focuses on the black Perigord truffle, although many growers are now producing the summer truffle (Tuber aestivum) and/or the bianchetto truffle (Tuber borchii). The black Perigord truffle typically grows on the roots of oak and hazelnut trees. The truffles mature during the winter months, emitting an intense perfume that enables female pigs or trained dogs to be used to detect them. Properties from which truffles are gathered are called truffle orchards or truffières.

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World truffle industry

The characteristics of the world trade in high quality truffles are summarised in Table 80. There are few reliable production statistics for the world truffle industry. The main producers of black truffles in 2012 were France (25.4 tonnes), Italy (20.8 tonnes), Spain (11.4 tonnes) and Australia (4.5 tonnes), with China a large producer of the much lower-priced Chinese truffle. There are increasing numbers of truffières in Australia, New Zealand and the United States but, apart from Australia, aggregate production is still small. Most high-quality truffle production in France and Italy is consumed domestically.

Table 80: Truffles: key characteristics of European Union trade

Volume Value Key countries (share of total volume) Trade Fresh or chilled, 156 US$44.5 Exporters: Italy (66%), Spain (13%), France (12%) 2012 tonnes million Importers: France (34%), Germany (13%), United Kingdom (10%), United States (10%), Japan (6%), Belgium (4%), Italy (3%)

Prepared, 269 US$15.4 Exporters: Italy (66%), France (24%), Spain (3 %) preserved, 2011 a tonnes million Importers: United States (34%), Germany (15%), France (9%), Japan (8%), Switzerland (6%), Spain (3%) a Data not available in 2012. Sources: Eurostat (2013)

French black truffle production was around 1000 tonnes at the beginning of the 20th century, but has declined to only 8–40 tonnes over the past decade due to destruction of natural growing areas, particularly as a result of the two world wars (Amaranthus 2007) and climate change (Buntgen et al. 2012). Recorded sales of truffles in France in 2011–12 were 13.2 tonnes, with an average price of €461 a kilogram (FranceAgriMer 2012b). The monthly pattern of production and prices in France over the past six seasons ( Figure 93) shows production peaked in either December or January of each year. Prices are usually relatively low at the beginning of the season when quality is poor. Another trough in prices is usually evident in January when supply is high.

9 900

6 600

3 300

2011–12

tonnes 0 0 €/kg

March March March March March March

January January January January January January

February February February February February February

December December December December December December

November November November November November November 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 quantity price (right scale)

Data source: FranceAgriMer (2012b). Figure 93: Truffles: production and prices, monthly, France

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Australian black truffle industry

The Australian truffle industry was established in 1992 when trees inoculated with the spore of Tuber melanosporum (French black truffle) were planted in Tasmania. The first Australian grown black truffle was found in Tasmania in 1999. In 2012 there were around 150 truffières established in Tasmania and the cooler parts of the Australian mainland, but only 50 to 60 were producing truffles (Duell 2012). The mainland truffières are located as far north as Killarney in Queensland but are mostly located in the Southern Highlands and Central and Southern Tableland regions of New South Wales, the Central and Gippsland regions of Victoria and the Manjimup region of Western Australia. Estimated production of black truffles in Australia in 2012 was 4480 kilograms, around 70 per cent of which was produced in Manjimup. The estimated gross value of production in 2012 was $5.2 million (Table 81). Domestic consumption was an estimated 500 kilograms in 2012, leaving around 4 tonnes available for export. To provide an indication of export prices received for high-quality Australian black truffles, only exports from Western Australia and Tasmania are reported in Table 81. Changes to Australia’s export and import codes applying from 1 January 2012 mean that truffles are included in codes that contain all mushroom and truffle trade other than mushrooms from the genus Agaricus.

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Table 81: Truffles: supply, disposal and value in Australia

Unit 2006 2007 2008 2009 2010 2011 2012 Production Truffières no. 30 >200 Area hectares 600 Trees ’000 >300 Volume kg 184 800 na na 1 700 3 300 4 480 Gross value $’000 377 1 640 na na 2 465 3 630 5 152 Unit gross value $/kg 2 050 2 050 na na 1 450 1 100 1 150 Exports, Western Australia and Tasmania Fresh or chilled – volume kg 0 66 127 255 412 988 1 833 – value $’000 0 99 211 430 575 1 039 1 479 – unit value $/kg na 1 503.88 1 658.22 1 685.80 1 394.48 1 051.94 807.07 Prepared or preserved – volume kg 0 5 299 0 0 772 0 – value $’000 0 3 9 0 0 152 0 – unit value $/kg na 660.00 31.05 na na 196.76 na Total export value $’000 0 103 220 430 575 1 191 1 479 Imports Fresh or chilled – volume kg 279 468 958 231 321 198 na – value $’000 260 281 343 267 310 253 na – unit value $/kg 932.01 600.86 357.82 1 154.56 966.01 1 277.64 na Provisionally preserved – volume kg 0 1 55 0 0 0 0 – value $’000 0 1 2 0 0 0 0 – unit value $/kg 1 498.00 30.24 na na na na Dried, whole or pieces – volume kg 781 2 278 2 943 953 155 na – value $’000 35 16 3 22 18 29 na – unit value $/kg 44.32 7.04 1 355.00 23.64 18.82 188.86 na Prepared or preserved – volume kg 5 012 2 484 2 178 2 273 923 2 742 3 177 – value $’000 197 141 157 102 91 186 136 – unit value $/kg 39.40 56.63 71.90 44.66 98.40 67.67 42.86 Total import value $’000 492 438 502 390 419 468 na Sources: ABARES; ABS (2013)

The main producers in the Australian black truffle industry are The Wine & Truffle Company and Manjimup Truffles (Western Australia); and Tamar Valley Truffles, Perigord Truffles of Tasmania, Truffles Australis and Tasmanian Truffle Enterprises (Tasmania). The Wine & Truffle Company is Australia’s largest producer and operates the Hazel Hill truffière in Manjimup in Western Australia. From around 13 000 oak and hazelnut trees established in 1999 on 21 hectares, annual truffle production has grown from 0.5 kilograms in 2003 to 2400 kilograms in 2012. Prices received for Australian-produced truffles benefit from being able to supply fresh truffles in the off season for northern hemisphere producers. However, Australian truffle prices have been declining as truffle production increases.

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Based on the number and age structure of inoculated trees growing in Australia in 2012, Australian truffle production is projected to rise to around 10 tonnes in 2016 (Duell 2012). The steady increase in production is likely to continue to put downward pressure on prices for Australian-produced black truffles.

Further information about truffles

 Australian Truffle Growers Association (www.trufflegrowers.com.au), industry representative body.  Perigord Truffles of Tasmania (www.perigord.com.au)—information on the Australian truffle industry.  The Wine & Truffle Co. (www.wineandtruffle.com.au)—information on truffle growing in Western Australia, including a listing of its current wholesale prices.  Truffles Australis (www.trufflesaustralis.com.au)—a range of information on truffle growing, including production costs.  The ‘Truffles’ chapter in RIRDC’s The New Crop Industries Handbook, pp. 331–36 (https://rirdc.infoservices.com.au/items/04-125).  The Sainte Alvère market (www.sainte-alvere.com)—market prices in France for various grades of Perigord truffles.  FranceAgriMer (www.franceagrimer.fr)—weekly information on truffle prices in France and quantities offered, by region of production.

Wildflowers and native plants

The annual value of world imports of cut flowers (fresh and dried), foliage (fresh and dried) and mosses and lichens averaged around US$9 billion in the three years to 2011, with fresh cut flowers making up more than 80 per cent of the total. The Netherlands accounted for around 44 per cent of the value of world trade in the three years to 2011; the other major exporters were Colombia (12 per cent of the total value in the three years to 2011), Ecuador (7 per cent), Kenya (7 per cent), Germany (3 per cent) and Israel (2 per cent). The main importers were Germany (15 per cent of the total value in the three years to 2011), the United States (13 per cent), the United Kingdom (12 per cent), the Netherlands (11 per cent), the Russian Federation (7 per cent), France (7 per cent) and Japan (5 per cent). The value of world imports in real US dollars has grown at a trend rate of 2.3 per cent a year since the early 1990s ( Figure 94). Around this trend, there is some evidence of a cyclical pattern.

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2012 US$b 0 1991 1996 2001 2006 2011

cut flowers, fresh cut flowers, dried foliage, fresh foliage, dried mosses, lichen

Data source: United Nations Statistics Division (2013) Figure 94: Cut flowers and foliage: value of world imports

The beauty and novelty of many of Australia’s native plants and foliage make them a valued component of floral arrangements in many parts of the world. A wide range of Australian native plants are now being grown commercially in countries other than Australia, particularly Israel, Colombia, Kenya, South Africa and Zimbabwe. The most popular plants grown in these countries are waxflower, kangaroo paw, banksia and eucalypt (for foliage).

Australian wildflower industry

The Australian wildflower and native plant industry was initially based on harvesting from the wild but most production is now from artificial propagation on commercial farms. Each of Australia’s states and territories has in place arrangements to ensure the wild harvesting of Australian native flora is undertaken in sustainable ways. For example, Western Australia—a state with a rich and diverse native flora—has a management plan agreed with the Australian Government Department of Sustainability, Environment, Water, Population and Communities, under state and Commonwealth legislation, that enables native flora to be exported (Department of Environment and Conservation, Western Australia 2008). The arrangements include licensing systems, quotas for specific areas and species, and monitoring of harvested and traded quantities. A list of Australian wildflower and native plants (by species and common name) in rough order of their importance as an export is shown in Table 82. Some plants from the proteaceae family that are native to Southern Africa, such as proteas, are widely grown in Australia and are usually included in the wildflowers category. There are also plants from the proteaceae family that are native to Australia, such as the Telopea genus.

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Table 82: Wildflowers: Australian species

Importance as export Botanical name (Genus) Common name(s) 1 Chamelaucium spp. Geraldton wax, waxflower 2 Anigozanthos spp. Kangaroo paw 3 Thryptomene spp. Thryptomene 4 Stirlingia spp. Blueboy, stirlingia 5 Protea spp. Protea 6 Banksia spp. Banksia 7 Leucadendron spp. Leucadendron, conebush, 8 Caustis spp. Koala fern foliage 9 Scholtzia spp. Scholtzia 10 Eucalyptus spp. Eucalyptus foliage 11 Boronia spp. Boronia 12 Leucospermum spp. Leucospermum, tea tree 13 Ozothamnus spp. Rice flower, sago bush, mountain daisy, tick bush 14 Eriostemon spp. Eriostemon, waxflower 15 Telopea spp. Waratah 16 Verticordia spp. Feather flower 17 Dryandra spp. Dryandra, bush rose 18 Blandfordia spp. Christmas bell 19 Conospermum spp. Smokebush 20 Cryptandra spp. Corroboree flower, cotton bush, snow balls 21 Ixodia spp. Ixodia, South Australian daisy, hills daisy, mountain daisy 22 Geleznowia spp. Yellow bells 23 Hypocalymma spp. Myrtle 24 Crowea spp. Crowea 25 Grevillea spp. Grevillea 26 Podocarpus spp. Emu bush 27 Taxandria spp. Tea tree, juniper myrtle, swamp wattle 28 Persoonia spp. Barker bush, cherry bush, geebung, snottygobble 29 Adenanthos spp. Adenanthos 30 Beaufortia spp. Swamp bottlebrush, swamp flame flower Source: Adapted from Australian Flower Export Council (2003) and Faragher et al. (2010)

There are few statistics on the volume and value of production of flowers and foliage in Australia. Karingal Consultants (1997) estimated the total value of the fresh cut flower and foliage domestic market to be $142 million wholesale and $285 million retail. Of this total, wildflowers were estimated to make up 10–15 per cent. The most recent data indicate there were 980 establishments growing cut flowers in Australia in 2010– 11, on 4750 hectares, around 300 hectares of which were undercover (ABS 2012a). Most of the area planted was in Victoria (52 per cent), New South Wales (14 per cent) and Western Australia (12 per cent). The total value of the cut flower industry in Australia in 2010–11 was $291 million, down from $323 million in 2006–07 (ABS 2012c). Western Australia accounts for the bulk of Australian exports of wildflowers. The number of wildflower stems harvested from the wild has been declining, due to drought and low returns, but the seed harvest has been fluctuating around 12 000 kilograms a year ( Figure 95). The decline in the wild harvest in Western Australia is being partially offset by increases in nursery-raised wildflowers in that state.

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12 24000

9 18000

6 12000

3 6000

million 0 0 kg 2004 2005 2006 2007 2008 2009 2010

stems harvested seed collected (right axis)

Data source: Conservation Commission of Western Australia (2012)

Figure 95: Wildflowers: flower and seed harvest from native environments of south-west Western Australia

The gross value of the wildflower industry was an estimated $30 million in 2011–12, down from $40 million in 2006–07. The Australian wildflower industry was adversely affected by seasonal conditions in the first decade of the 2000s, but seasonal conditions in 2010–11 and 2011–12 were generally favourable. The main reason for the decline between 2006–07 and 2011–12 appears to be the loss of market share, both in domestic and export markets, due to the strong Australian dollar.

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Table 83: Wildflowers: supply, disposal and value, Australia

Unit 2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 Production Gross value $’000 42 280 40 028 30 000 Exports Kangaroo paws a – volume ’000 stems 1 203 707 725 781 405 462 432 b – value $’000 502 268 404 500 224 192 202 b – unit value $/stem 0.42 0.38 0.56 0.64 0.55 0.42 0.47 Proteas a – volume ’000 stems 5 804 5 053 3 674 4 744 3 940 3 858 1 978 b – value $’000 3 340 2 685 1 679 2 186 1 546 1 389 704 b – unit value $/stem 0.58 0.53 0.46 0.46 0.39 0.36 0.36 b Waxflowers a – volume ’000 stems 14 995 12 251 7 333 9 292 7 829 7 315 7 678 – value $’000 4 291 3 851 2 805 3 936 2 630 2 223 2 193 – unit value $/stem 0.29 0.31 0.38 0.42 0.34 0.30 0.29 Other Australian native species a – volume ’000 stems 18 266 19 497 15 225 12 397 7 690 5 223 2 890 – value $’000 6 654 6 526 4 593 5 001 3 915 2 463 1 088 – unit value $/stem 0.36 0.33 0.30 0.40 0.51 0.47 0.38 Wild picked, fresh – volume ’000 stems 5 184 3 465 1 769 1 477 1 332 114 894 – value $’000 867 477 864 776 741 30 199 – unit value $/stem 0.17 0.14 0.49 0.53 0.56 0.27 0.22 Wild picked, dried or preserved – volume ’000 stem 2 098 3 822 5 844 3 554 2 238 3 121 933 b – value $’000 1 129 1 184 1 200 589 82 487 182 b – unit value $/stem 0.54 0.31 0.21 0.17 0.04 0.16 0.20 b Foliage – volume na na na na na na na na – value $’000 6 781 7 145 7 836 7 416 6 062 5 466 2 493 b – unit value na na na na na na na na Total export value $’000 23 563 22 135 19 381 20 404 15 200 12 250 7 060 a Artificially propagated. b Six months data only due to export code changes from January 2012. Sources: ABARES; ABS (2013)

The real value of Australia’s exports of cut flowers, foliage and live plants and bulbs (exotic and native, here called ‘flower’ exports) grew strongly to nearly $62 million in 2001–02, but has since declined to $11 million in 2011–12. The steadily strengthening Australia dollar throughout this period contributed to the decline. Sutton (2002) concluded that the export statistics used here from the Australian Bureau of Statistics could considerably understate the value of exports to at least some countries. This is because prices received are not known with any certainty until the flowers are sold at auction in the destination country. The share of wildflowers in the total value of Australian flower exports has grown from 17 per cent in 1988–89 to a peak of 76 per cent in 1999–2000, but declined steadily to 63 per cent in 2011–12. The real value of Australian exports of wildflowers, native plants and foliage peaked in 2001–02 at $43.5 million dollars, but was only $7.1 million in 2011–12 ( Figure 96). The export shares of foliage,

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waxflowers and proteas are larger than in the mid-1990s, while wild picked and cultivated Australian native flowers and plants have declined substantially.

2011–12 $m 0 1996–97 2001–02 2006–07 2011–12 kangaroo paws, artifically propagated wax flowers, artificially propagated proteas, artificially propagated other Australian native flowers wild picked, fresh and dried foliage Data source: ABS (2013) Figure 96: Wildflowers: value of exports, Australia

The most important export markets for Australian wildflowers, foliage and native plants are Japan (36 per cent of the total value of exports in the three years to 2011–12), the Netherlands (30 per cent), the United States (16 per cent), Germany (6 per cent) and Canada (4 per cent). Western Australia accounted for 34 per cent of the total value of exports in this period, Queensland 28 per cent, Victoria 24 per cent, and New South Wales 13 per cent. The value in real terms of Australian imports of cut flowers, mosses, foliage and live plants (including seeds and bulbs) grew strongly in the 1990s but growth has slowed markedly over the past decade. Australia’s flower imports were mostly sourced from the Netherlands (38 per cent of the total value in the three years to 2011–12), Singapore (15 per cent), Kenya (7 per cent), Malaysia (5 per cent), Colombia (5 per cent), China (4 per cent) and the United States (4 per cent).

Further information about wildflowers and native plants

 WildFlowers Australia (www.wildflowersaustralia.com.au), national industry organisation aimed at improving the profitability and sustainability of the Australian wildflower industry.  Flower Auction Japan (www.faj.co.jp)—weekly flower prices and volumes (including Australia natives) in the Ohta Market (located in southern Tokyo).

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Appendixes

Appendix A: Value of Australian farm and fisheries production and exports

Table A1: Gross value of Australian livestock production

2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 $m $m $m $m $m $m $m Livestock slaughterings Cattle and calves a 7 281 7 491 6 813 6 806 6 567 7 164 7 244 Sheep b 444 380 400 428 499 484 383 Lambs bc 1 378 1 387 1 481 1 725 1 832 2 029 1 950 Pigs 890 944 902 976 965 919 934 Poultry 1 223 1 294 1 637 1 862 1 785 2 077 2 078 Live exports Cattle exported live d 404 497 541 646 701 660 651 Sheep exported live d 297 290 287 340 298 348 345 Total livestock e 11 966 12 336 12 104 12 834 12 722 13 762 13 670 Livestock products Wool g 2 054 2 282 2 309 1 806 1 928 2 673 2 857 Milk h 3 341 3 178 4 572 3 988 3 371 3 932 3 986 Eggs 376 388 468 447 428 572 578 Honey and beeswax 66 70 63 86 80 66 79 Total livestock products 5 836 5 917 7 412 6 326 5 807 7 243 7 500 a Includes dairy cattle slaughtered. b Excludes skin values. c Lamb saleyard indicator weight 18–22 kilograms. d Includes animals exported for breeding purposes. e Total livestock slaughterings includes livestock disposals. g Shorn, dead and fellmongered wool and wool exported on skins. h Milk intake by factories and valued at the farm gate. Notes: The gross value of production is the value placed on recorded production at the wholesale prices realised in the marketplace. The point of measurement can vary between commodities. Generally the marketplace is the metropolitan market in each state and territory. However, where commodities are consumed locally or where they become raw material for a secondary industry, these points are presumed to be the marketplace. Prices used in these calculations exclude GST. Sources: ABARES (2013); ABS (2012c)

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Table A2: Gross value of Australian fisheries products a

2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 $m $m $m $m $m $m $m Tuna 175 161 210 187 125 150 174 Salmonids b 231 291 302 326 369 409 516 Other fish c 382 415 431 463 464 424 451 Prawns 305 267 272 290 325 305 277 Rock lobster d 463 461 426 415 381 390 416 Abalone 225 217 189 189 173 178 166 Scallops 23 29 33 26 23 22 8 Oysters 75 91 89 93 101 99 104 Pearls e 122 124 114 90 105 120 114 Other molluscs g 66 70 52 49 32 31 38 Other crustaceans 74 63 63 66 65 65 76 Total fish 2 167 2 217 2 207 2 214 2 191 2 231 2 374 a Value to fishermen of product landed in Australia. b Includes salmon and trout production. c Includes an estimated value of aquaculture. d Includes Queensland bugs. e Includes Northern Territory aquaculture production from 2009–10. g Also includes fish and aquaculture values not elsewhere included. Notes: The gross value of production is the value placed on recorded production at the wholesale prices realised in the marketplace. The point of measurement can vary between commodities. Generally the marketplace is the metropolitan market in each state and territory. However, where commodities are consumed locally or where they become raw material for a secondary industry, these points are presumed to be the marketplace. Prices used in these calculations exclude GST. Sources: ABARES (2013); ABS (2012c)

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Table A3: Gross value of Australian crop production

2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 $m $m $m $m $m $m $m Grains and oilseeds Winter crops Barley 1 417 1 039 2 244 1 850 1 356 1 729 1 636 Canola 473 227 659 1 011 840 1 283 1 562 Chickpeas 56 137 195 199 211 207 269 Field peas 130 40 109 82 86 105 79 Lupins 251 125 222 198 205 216 227 Oats 249 180 423 251 186 221 256 Triticale 119 44 113 93 120 65 102 Wheat 5 099 2 619 5 292 6 021 4 765 7 052 7 540 Summer crops Maize 71 60 100 106 88 92 94 Rice 284 55 7 34 90 174 254 Grain sorghum 276 274 977 553 296 412 446 Soybeans 18 11 23 44 33 15 41 Sunflower seed 31 8 44 38 29 24 26 Other oilseeds a 28 21 31 28 34 27 29 Total grains and oilseeds 8 852 5 048 10 788 10 778 8 662 12 134 12 974 Industrial crops Cotton lint and cottonseed b 995 542 254 693 828 2 025 2 889 Sugar cane (cut for crushing) 1 032 1 221 861 1 021 1 382 1 036 1 200 Wine grapes 1 154 1 243 1 446 887 709 712 723 Total industrial crops 3 181 3 005 2 560 2 601 2 919 3 771 4 812 Horticulture Table and dried grapes 206 240 202 286 273 308 300 Fruit and nuts (excl. grapes) 2 627 3 499 2 758 2 871 2 950 3 013 3 206 Vegetables 2 833 3 165 3 363 3 012 3 023 3 338 3 418 Other horticulture 1 675 1 730 1 693 1 556 1 649 1 606 1 680 Total horticulture 7 341 8 633 8 015 7 725 7 895 8 265 8 604 Other crops nei c 1 536 1 683 2 858 1 665 1 660 1 706 1 550 Total crops 20 909 18 369 24 222 22 769 21 136 25 876 27 767 a Linseed, safflower seed and peanuts. b Value delivered to gin. c Mainly fodder crops. nei Not elsewhere included. Notes: The gross value of production is the value placed on recorded production at the wholesale prices realised in the marketplace. The point of measurement can vary between commodities. Generally the marketplace is the metropolitan market in each state and territory. However, where commodities are consumed locally or where they become raw material for a secondary industry, these points are presumed to be the marketplace. Prices used in these calculations exclude GST. Sources: ABARES (2013); ABS (2012c)

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Table A4: Value of exports of crops and crop products

2005–06 2006–07 2007–08 2008–09 2009–10 2010–11 2011–12 $m $m $m $m $m $m $m Grains and oilseeds Winter crops Barley a 1 108 833 1 496 1 321 1 093 1 295 1 875 Canola 331 108 303 595 583 866 1 344 Chickpeas 106 168 139 275 255 213 385 Lupins 99 38 31 61 115 89 65 Oats 47 20 37 64 53 37 47 Peas b 43 80 61 62 60 85 93 Wheat c 3 296 2 765 2 990 5 028 3 692 5 516 6 381 Summer crops Cottonseed 53 31 8 19 46 85 195 Corn (maize) 4 4 5 13 8 6 24 Rice 171 347 110 143 59 151 417 Grain sorghum 33 13 76 405 116 146 299 Other oilseeds d 21 22 27 27 24 14 10 Total grains and 5 312 4 430 5 283 8 015 6 102 8 502 11 135 oilseeds Industrial crops Raw cotton e 1 137 823 466 500 755 1 367 2 736 Sugar 1 454 1 510 1 006 1 338 1 887 1 436 1 718 Wine 2 799 2 990 2 683 2 428 2 164 1 957 1 859 Total industrial 5 391 5 323 4 155 4 266 4 805 4 760 6 312 crops Horticulture Fruit 629 600 590 688 589 460 507 Tree nuts 204 174 181 233 212 211 240 Vegetables 457 436 422 487 542 607 712 Nursery 35 33 32 29 23 20 15 Other horticulture g 207 283 274 280 274 293 258 Total horticulture 1 532 1 527 1 500 1 717 1 640 1 592 1 732 Other crops and crop 1 639 1 678 1 876 2 368 2 346 2 461 2 517 products Total crops 13 874 12 957 12 813 16 367 14 894 17 315 21 695 a Includes the grain equivalent of malt. b Field peas and cowpeas. c Includes the grain equivalent of wheat flour. d Includes soybeans, linseed, sunflower seed, safflower seed and peanuts. Excludes meals and oils. e Excludes cotton waste and linters. g Other horticulture includes mainly coffee, tea, spices, essential oils and other miscellaneous horticultural products. Sources: ABARES (2013); ABS (2013); DAFF (2013c)

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Appendix B: Levies applicable to emerging industries in Australia

A range of levies are applied to emerging industry commodities produced in Australia. The levy rates and levy purpose are as follows:

Commodity Levy rate Purpose Almond In shell, 1c/kg Funding for research and development carried out Shelled, 2c/kg by Horticulture Australia Limited Nonpareil, in shells, 1.5c/kg Buffalo $5.33/head on Australian produced buffaloes that Funding for research and development by RIRDC, are exported live and the activities carried out by the Brucellosis and $10.33/head on buffaloes slaughtered for human Tuberculosis Eradication Council consumption at Australian abattoirs Chestnut Domestic, 10c/kg Funding for promotion, research and development Export, 10c/kg carried out by Horticulture Australia Limited Deer $7.75/head payable on live deer produced in and Funding for research and development by RIRDC, exported from Australia and residue testing administered by the National 10.5c/kg (hot dressed weight) on deer slaughtered at Residue Survey an abattoir and intended for human consumption 3.5 per cent of the sale (or declared) value of deer velvet produced and sold in Australia 3.5 per cent of the sale (or declared) value of deer velvet produced in Australia and exported Goat 1.5 per cent of the sale value of shorn goat fibre Funding for research and development by RIRDC 37.7c/head for all transactions where ownership of and Meat & Livestock Australia, and residue testing the goat changes hands administered by the National Residue Survey 3c/head for all wild (game) goats killed for human consumption and processed at a licensed establishment Game pig 25c/head Funding residue testing administered by the National Residue Survey Ginger 0.5 per cent of the sale value of fresh ginger, seed Funding for research, development and marketing ginger and processing ginger activities of Horticulture Australia Limited Horse $5/head for horses slaughtered for human Funding for the residue testing program, which is consumption administered by the National Residue Survey Kangaroo 7c/head for all wild (game) kangaroos killed for Funding for research and development by RIRDC, human consumption by shooting and that are and residue testing administered by the National processed at a licensed establishment Residue Survey From 2004, 3c/head for all macropods killed for pet food Lychee 8c/kg for fresh lychee Funding for research, development and marketing 1c/kg for processing lychee activities of Horticulture Australia Limited 8c/kg for export lychee Macadamia Dried kernel, 25.21c/kg Funding for research, development and promotion Nut-in-shell, 8c/kg by Horticulture Australia Limited, and residue testing administered by the National Residue Survey Papaya Fresh, 2c/kg Funding for research, development and promotion Processing, 0.25c/kg by Horticulture Australia Limited Export, 2c/kg Pasture seed Category 1 (medics), $10/t Funding for research and development by RIRDC Category 2 (lucernes), $15/t Category 3 (clovers), $15/t Category 4 (subclovers), $11/t Category 5 (serradella), $10/t Pulse Levy calculated as a percentage of the farmgate Funding for research and development activities of value at the rates of 1.015 per cent for field peas, the Grains Research and Development Corporation, lupins and chick peas; and 1.000 per cent for mung and residue testing administered by the National beans, pigeon peas, peanuts, navy beans, vetch, cow Residue Survey for field peas, lupins and chick peas peas and lentils

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Ratite (emu Applied to all ratites slaughtered for human Funding for research and development by RIRDC, and ostrich) consumption in Australia at the rate of $0.75/head and residue testing administered by the National for emus and $1.25/head for ostriches Residue Survey

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