Asian Vegetable Industry a Situation Assessment

Asian Vegetable Industry A Situation Assessment

A report for the Rural Industries Research and Development Corporation by Hassall & Associates Pty Ltd

February 2003

RIRDC Publication No 02/168 RIRDC Project No HAS-10A

ISBN 0 642 58567 9 ISSN 1440-6845

Asian Vegetable Industry Situation Assessment Publication No. 02/168 Project No.: HAS-10A

The views expressed and the conclusions reached in this publication are those of the author and not necessarily those of persons consulted. RIRDC shall not be responsible in any way whatsoever to any person who relies in whole or in part on the contents of this report.

This publication is copyright. However, RIRDC encourages wide dissemination of its research, providing the Corporation is clearly acknowledged. For any other enquiries concerning reproduction, contact the Publications Manager on phone 02 6272 3186.

Researcher Contact Details Hassall & Associates Pty Ltd Lvl 4, 52 Phillip Street, Sydney, NSW, 2000 (GPO Box 4625, Sydney, NSW, 1044)

Phone: 02 9241 5655 Fax: 02 9241 5684 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 1, AMA House 42 Macquarie Street BARTON ACT 2600 PO Box 4776 KINGSTON ACT 2604

Phone: 02 6272 4539 Fax: 02 6272 5877 Email: [email protected]. Website: http://www.rirdc.gov.au

Published in February 2003 Printed on environmentally friendly paper by Union Offset

ii Foreword

The Australian Asian vegetable industry is a dynamic, growing horticultural sector whose products appeal to Australian consumers. The industry has more than doubled in production value and grower numbers since 1995. It has also doubled its share of total Australian horticultural production. Many of the industry’s products are on the verge of becoming mainstream staples and product is available through a wide variety of outlets.

In 1995 Rural Industries Research and Development Corporation published an Audit of the Australian Asian Vegetables Industry. This study, completed in October 2002, highlights changes in the Australian Asian vegetable industry since that original audit report. It provides an assessment of the current Australian Asian vegetable industry situation and assesses the industry’s future directions.

The project was funded from RIRDC Core Funds which are provided by the Federal Government, with varying levels of co-funding from the cooperating institutions.

This report, a new addition to RIRDC’s diverse range of over 900 research publications, forms part of our Asian Foods R&D program, which aims to support industry in its drive to develop new products and markets and to gain competitive advantage through improving productivity in, and achieving price premiums for, Australian production.

Most of our publications are available for viewing, downloading or purchasing online through our website:

• downloads at www.rirdc.gov.au/reports/Index.htm • purchases at www.rirdc.gov.au/eshop

Simon Hearn Managing Director Rural Industries Research and Development Corporation

iii Acknowledgments

Hassall & Associates wish to acknowledge the assistance of the following individuals with the compilation of this report:

• Ralph Cadman, Cadman Agribusiness Services for profiling the Victorian Industry; • Wendy Morgan, Department of Natural Resources and Environment for advice and assistance with report editing; • Barry Lee, Connectica International for providing project advice and report editing; and • Grant Vinning, Asian Markets Research for profiling the Queensland industry.

Abbreviations

CQU Central Queensland University DBIRD Department of Business, Industry and Resource Development (Northern Territory) DPIWE Department of Primary Industry, Water and Environment (Tasmania) HAL Horticulture Australia Limited HACCP Hazard Analysis Critical Control Point IHD Institute of Horticultural Development, Knoxfield Victoria MAP Modified Atmosphere Packaging NORADA Northern Rivers Agricultural Development Association NESB Non English Speaking Background NRA National Registration Authority for Agricultural and Veterinary Chemicals NRE Victorian Department of Natural Resources and Environment PIRSA Primary Industries and Resources South Australia PLU Price Look Up categorisation system used by supermarkets

iv Contents

Acknowledgments iv Abbreviations iv Executive Summary vii 1. Introduction 1 1.1 Study Background 1 1.2 Purpose of the Study 2 1.3 Methodology 2 1.4 Report Structure 2 2. Industry Profile by State and Region 3 2.1 New South Wales 3 2.2 Victoria 11 2.3 Queensland 21 2.3 South Australia 30 2.4 Western Australia 33 2.5 Northern Territory 38 2.6 Tasmania 42 3. Key Characteristics of the Australian Industry 46 3.1 Industry Location 46 3.2 Major Vegetables 46 3.3 Industry Size – Wholesale Value and Grower Numbers 47 3.4 Industry Share of National Vegetable Production 47 3.5 Markets and Market Trends 47 3.6 Product Form 50 3.7 Seed Production 50 3.8 Product Yield and per Hectare Income 51 3.9 Market Chain and Practice 51 3.10 Farm Profile and Practice 52 3.11 Economics of Production 53 3.12 Production Trends and Grower Innovation Since the Mid 1990s 53 3.13 Grower Organisations and Communication 54 3.14 Government Support and Levies 56 3.15 SWOT- Description of Industry Positive and Negative Themes 56 3.16 Issues Impacting on the Supply of Produce 58 4. Review of Supply Chain Issues 59 4.1 Darwin growers shipping to southern markets 59 4.2 Sydney growers supplying Flemington markets 60 4.3 Exporters adopting HACCP principles 60 4.4 Spoilage rates and retail management in Victoria 61 4.5 Concluding comment on supply chain issues 61 5. Research Uptake 62 5.1 Research Uptake 62 5.2 Factors Inhibiting or Facilitating Research Uptake 63 5.3 Concluding comments on research 63 6. Capability, Future Direction and Study Conclusions 65 6.1 Industry Capability and Progress Since the Mid-1990’s 65 6.2 Study Conclusions, Future Direction and Recommendations 66 7. Reference List Including Websites 67 8. Industry Contacts 70 APPENDIX 1: MAJOR ASIAN VEGETABLES BY STATE 80

v List of Tables

Table 1: Industry Profile – An Industry with Two Types of Grower...... vii Table 2: Value Estimates for NSW Asian Vegetables for Financial Year 1993/94...... 4 Table 3: Flemington Markets (Sydney) Asian Vegetable Sales by Value and Volume 1993/94...... 5 Table 4: Flemington Markets (Sydney) Asian Vegetable Sales by Value and Volume 2000, 2001. 5 Table 5: Exports of Fresh Asian Vegetables from NSW (1997/98) ...... 6 Table 6: NSW Asian Vegetable Grower Association Membership...... 7 Table 7: Melbourne Asian Vegetable Sales by Value and Volume 1993/94 ...... 12 Table 8: Melbourne Asian Vegetable Sales by Value and Volume 2000/2001 ...... 13 Table 9: Exports of Fresh Asian Vegetables from Victoria (1997/98)...... 14 Table 10: Value Estimates for Queensland Asian Vegetables for Financial Year 1993/94 ...... 23 Table 11: Queensland Asian Vegetable Sales by Value and Volume – Brisbane Wholesale Markets and Estimated Queensland Total (2001) ...... 24 Table 12: Exports of Fresh Asian Vegetables from QLD (1997/98) ...... 26 Table 13: Inter-state Asian vegetables competing with Queensland Asian vegetables...... 27 Table 14: Value Estimates for South Australian Asian Vegetables for Financial Year 1993/94 ...... 30 Table 15: Adelaide Asian Vegetable Sales by Value and Volume Calendar Year 2000 and 2001.. 31 Table 16: Exports of Fresh Asian Vegetables from SA (1997/98)...... 32 Table 17: Value Estimates for Western Australian Asian Vegetables for Financial Year 1993/94 .. 33 Table 18: Perth Asian Vegetable Sales by Value and Volume Calender Years 2000 and 2001 (Perth Markets only)...... 34 Table 19: Sales Data from Perth Markets for Financial Years 1998/99 to 2000/01 ...... 34 Table 20: Exports of Fresh Asian Vegetables from WA 1997/98 and 2000/01 ...... 35 Table 21: Western Australian Grower and Farm Profile...... 37 Table 22: Value Estimates for Northern Territory Asian Vegetables for Financial Year 1993/94 .... 39 Table 23: Northern Territory Asian Vegetable Sales by Value and Volume 2000...... 39 Table 24: Value Estimates for Tasmanian Asian Vegetables for Financial Year 1993/94 ...... 43 Table 25: Estimated Asian Vegetable Sales of Value and Volume 2001...... 44 Table 26: Major Asian Vegetables by State 2002...... 46 Table 27: Industry Value and Grower Numbers 1993/94 and 2000/01 ...... 47 Table 28: Percentage of Asian Vegetables Sold through the Central Market System...... 48 Table 29: Exports relative to total production (tonnes) ...... 49 Table 30: Yield and Gross Income Estimates for Major Asian Vegetables Across All States - 200151 Table 31: Industry Profile – An Industry with Two Types of Grower...... 53 Table 32: Industry Organisations and Support ...... 55 Table 33: Constraints Identified in 1995 and Progress Made by the Industry...... 65

vi Executive Summary

Industry Structure and Production

The domestic market accommodates more than 80 Asian vegetable types. However, most demand centres around a limited number of major lines. These include leafy vegetables such as bok choi (white cabbage), kai laan (Chinese broccoli), choy sum (Chinese flowering cabbage) and bor choi (Chinese spinach) as well as Chinese cabbage, spring onion/shallot, taro, daikon, kabocha and herbs such as coriander and Chinese chives.

Industry value is estimated at $135.8 million up from $50.4 million in 1993/94. Grower numbers total 1,675 up from 679 in 1993/94. One half of the industry is located in NSW.

The industry has a presence in all Australian states and territories. As a general rule small-scale market gardens operate within the metropolitan area (group 1) while larger commercial holdings operate in the regions (group 2). Key features of both groups are summarised below in table 1.

Table 1: Industry Profile – An Industry with Two Types of Grower

Group 1 – Market Gardeners Group 2 - Scale Producers Recent migrants. Second generation Australians. Small scale market gardens (¼ to 5 ha). Large commercial operations (5 to 50 ha). Small volume production and a large number of Fewer high volume products such as Chinese different vegetable types. cabbage. Some seed saving for next year’s crop. Commercial seed including hybrid seed. Supply fresh produce, especially leafy bunch lines to Producers of boxed product that requires less labour. the domestic market. More likely to be involved in exporting. Traditional practice. Best practice. Members of ethnic based grower groups. Members of broadly based grower groups. Grow Asian and conventional vegetables. Difficulty with communication. Actively seek information. More likely to experience cool chain breakdown. Use of specialised refrigerated storage and transport, Poor profitability hampers capacity to invest in new packing cases, adherence to cool chain refrigeration. management and QA. Market to restaurants and smaller scale greengrocers. Market to larger scale retail (Western and Asian) and exports. More likely to bypass the central market system. Market through central market system and some Make use of aggregators. have sufficient volume to market direct to retailers.

As noted in the Lee audit, the combination of short growing times, multiple harvests and intensive landuse, make Asian vegetables a high yielding horticultural activity. Harvests of 60 tonnes per ha for crops such as Chinese cabbage and daikon are not atypical.

vii Key Changes Since the Mid 1990s

Of note since the Lee audit is the superior organisation of the industry and its increasing sophistication, especially amongst group 2 growers. Key trends and innovations include: • Improved chemical management, agronomy, superior hybrid seeds and yields • Larger farms in more remote locations • Adoption of QA/HACCP where this is required • Linkages between grower groups, government and research • More sophisticated supply chains and improved cold chain management • Alternative market outlets and wider product availability • New crops • Consolidation of production lines

The industry has been assisted in making these changes by researchers, extension and consumer interest channelled through the major supermarkets.

Market Situation

Since 1995, the domestic consumption of Asian vegetables has increased and the product range, quality and availability has substantially improved.

By far and away the majority of Australian grown Asian vegetables are sold fresh in boxes and bunched form. Pre-packed retail ready salad mixes containing Asian vegetables continue to grow in popularity. Other forms of processing, such as pickling, have had limited success. Modified Atmosphere Packaging is expected to play a greater role in the industry in the future.

Most growers sell on spot markets and there is a low level of forward contracting. No vertical integration activities were observed during the study. Grower packing cooperatives are being explored in the NT. Cooperatives have met with little success in Victoria.

Since the Lee audit, a role has emerged for Asian vegetable aggregators who consolidate large and tightly specified orders for the supermarkets. Farmer markets have also emerged in NSW and Queensland. These markets serve as an important outlet for Asian vegetables that fail to meet supermarket specifications. The development of these markets in other states would have important benefits for producers.

Exporting of Australian Asian vegetables has stagnated since 1995. Export volume and value has been adversely impacted by competition from China. Future competition is anticipated from Vietnam. Australia currently exports around 16% of Asian vegetable production volume. Qld and WA dominate Australian export sales. It remains to be seen whether current interest from Japan and Singapore in guaranteed low chemical residue Australian vegetables translates into sales with acceptable margins. Market research is required to investigate this opportunity and grower visits to export markets are suggested. Export marketing plans need to be founded on the back of sound domestic marketing practice.

Importing of fresh Asian vegetables is insignificant. A small amount of taro is imported from the Pacific. Processed product is sourced from Asian countries that enjoy an advantage in labour costs and a large domestic market.

Market outlook was reviewed on a state-by-state basis. In states with small Asian populations the industry is stagnant (SA and Tas). WA will also stagnate unless new and profitable export markets are identified. Exports of Chinese cabbage from this state have faltered. Growth is forecast in Queensland and the NT and increasing sales through supermarkets is expected to drive demand in Victoria and NSW.

viii Supply Chain Issues

Much has been done to improve domestic supply chain management and establish and implement appropriate cool chain management protocols since the mid-1990s. Cool chain management is critically important to the delivery of product acceptable to consumers and remains an ongoing and potentially profitable area of research and extension for this industry.

The NT initiatives in relation to a Vietnamese-speaking liaison officer and group-based activities provide useful lessons for the uptake of R&D in this area. The importance of R&D message repetition is highlighted in this report and liaison officers are one way of achieving this.

A dichotomy exists between exporters of Asian origin and established mainstream horticultural exporters. Exporters of Asian origin tend to operate on spot markets and are penalised for an absence of a thorough chain approach. This finding may be important for directing future supply chain research efforts.

Industry Future Directions

With consistent nomenclature, dietary and functional food quality research and product promotion, Asian vegetables have the capacity to be recognised by the Australian population as a major fresh produce retail category.

In particular, the future lies with group 2 commercial producers. The near mainstream lines they produce, will merge into the mainstream and loose their status as exotics. Group 2 growers will continue to adopt best practice production and supply chain delivery systems.

Group 1 producers will occupy relatively limited niches from which new mainstream products will sporadically emerge. Group 1 growers will face pressure to close their operations as their market gardens are affected by urban expansion. This will trigger investment in either group 2 style operations or fund entry into another sector.

Supermarkets will continue to set the domestic market agenda and their increasingly stringent requirements for cleanliness, packaging and shelf life will need to be met by growers. R&D will be required to contain these additional costs and deliver cost saving innovation. Grower markets, and potentially the food service sector, will provide alternative domestic outlets for group 1 growers.

Exporting of fresh Asian vegetables will continue to be very competitive and best returns will be achieved by a whole chain approach that bypasses agents and Asian central markets.

Recommendations

Study recommendations are made in relation to research. The most important of which relate to export market field studies for grower representatives, functional food quality investigation and consistent nomenclature for retail. The cost of establishing a system of consistent nomenclature might be part funded by supermarkets and wholesale market management. Industry development should focus on lifting group 1 growers into group 2 and advancing the capacity of group 2.

1. Introduction

1.1 Study Background

The term Asian Vegetable refers to vegetables commonly used in traditional Asian cuisine (RIRDC 2000) or vegetables of Asian origin. It has been used in this report to differentiate these species from mainstream horticultural produce (‘conventional vegetables’) that are also found in Asian cuisine. Surveys of fresh cut vegetables for ‘stir-fry’ have identified mainstream horticultural produce such as carrot, cabbage, cauliflower, broccoli and snow peas, but not vegetables of Asian origin (Thomson et al 2001).

Asian vegetables are classified here on the same basis as the Audit of the Australian Vegetable Industry1995 (referred to through throughout as the ‘Lee Audit’), that is: • Leafy vegetables – eg Chinese cabbage, bok choy (white cabbage), choy sum (Chinese flowering cabbage); • Leafy mustards – eg mibuna, mizuna; • Legumes – beans eg snakebean, yambean; • Cucurbits – melons eg bitter melon, kabocha; • Water vegetables – eg watercress, water chestnuts, lotus; • Herbs – eg shallots, spring onions, mint, basil, coriander; • Mushrooms – eg shiitake; and • Root crops – eg ginger, taro, daikon, wasabi, bamboo shoots.

A comprehensive listing of Asian vegetables grown in Australia, by state, is provided in Appendix 1. This listing is also modelled on the Lee audit and was updated with industry surveys. The listing prepared by Lee is retained for consistency. It contains some relatively arbitrary classifications. For example, Japanese pumpkin (kabocha) is included while Japanese carrot (karoda type red carrot) is not1.

The Australian Asian Vegetable industry is relatively new. The Audit of the Australian Asian Vegetable Industry (Lee 1995) has served as the foundation document of the industry. It is also the baseline against which this study has been completed. Whilst recent research has sought to address issues raised in the 1995 industry audit such as the lack of a cohesive structure, lack of a long-term industry focus, a generally low skills base, poor communication between growers and industry, quality, supply issues and a low level of market intelligence, little was known of how the industry has changed in the past eight years, or the influences which will drive it into the future.

1 The reasoning for this is that kabocha is a separate species from traditionally grown Australian pumpkin while karoda carrots are the same species as commonly grown Australian types (Wendy Morgan, pers. comm.).

1.2 Purpose of the Study

The purpose of this project was to analyse the current situation in the Australian Asian Vegetable industry, highlight changes since the original audit report and assess the industry’s future directions. To achieve this objective the following has been investigated and prepared: • An analysis of the key characteristics of the Asian Vegetable industry, incorporating: o The current structure of the Australian industry, including a description of market size, spatial distribution and organisation, main products, value and cost of production2 and trends in these indicators (update of the Lee audit); o Description of positive (opportunities, strengths) and negative (threats, weaknesses) themes within the domestic industry; and o The issues impacting on the supply of produce of a marketable quality, both within Australia and overseas (research uptake, post harvest handling and quality issues). • A summary of currently available literature relating to the Australian Asian Vegetable industry, including: o The composition of the industry; o The diversity of agricultural production systems; and o The variety of produce. • An understanding of the supply chain and the issues impacting on the supply of produce of a marketable quality; • An assessment of the uptake of research outcomes and factors contributing to successful uptake; • A database of key references and contacts suitable for consultation by current and prospective industry stakeholders; and • Conclusions on the capability of the Australian Asian Vegetable industry to meet the current and future requirements of the market.

In addition recommendations were prepared dealing with suggestions for further strengthening the Asian Vegetable industry in Australia.

1.3 Methodology

The project was completed in two phases. Phase One comprised an extensive literature review to define the physical parameters of the industry and identify gaps in the current knowledge base. The output from Phase One was an overview of the industry in its current form, at state and national level and a preliminary understanding of the manner in which the industry has changed since 1995. References and knowledge gleaned in Phase One is reported throughout the project report. Phase Two addressed the knowledge gaps identified in Phase One and was completed through targeted interviews and surveys with industry stakeholders. The output from Phase Two includes the extent to which the issues highlighted in the Lee audit have been addressed and identified issues that impact as constraints on the industry.

1.4 Report Structure

A state and region based profile of the industry is presented in Chapter 2. Key characteristics of the national industry are summarised in Chapter 3. Chapter 4 deals with supply chain issues and Chapter 5 with research uptake. Study conclusions are drawn in Chapter 6 and references presented in Chapter 7. A contact database is attached as Chapter 8.

2 Cost of production data provided very difficult to secure. Few departments of agriculture gross margins are prepared and growers interviewed were wary of providing financial data.

2. Industry Profile by State and Region

Industry structure and production profile is reported in the following chapter on a state-by-state basis. Where possible comment is also provided for individual production regions. State production data is aggregated in Chapter 3 to provide an Australian industry overview.

2.1 New South Wales

NSW is the dominant state producer of Asian vegetables accounting for around 50% of all production. NSW production has a first point of sale value of between $70 million and $75 million in 2000/01 (Hassall & Associates estimate).

Industry Location

The NSW Asian vegetable industry is dominated by activity in the Sydney Basin. Most Asian vegetables in NSW are produced on 350 small farms in Western Sydney in areas such as Liverpool, Hoxton Park, Austral, Rossmore, Annangrove, Leppington, Badgerys Creek, Kemp Creek, Kellyville, Windsor and Richmond (Nguyen 2000, David Chung, pers. comm.). Other less significant production areas include the Northern Rivers, Hunter Valley and Central Coast regions (Vong Nguyen, pers. comm.). There are also one or two growers in Canberra (Raymond Chu, pers. comm.).

Activity in the Northern Rivers region includes the grower members of the Northern Rivers Agricultural Development Association (NORADA)3. NORADA is currently completing trials of a range of root, fruiting and leaf type Asian vegetables in four local climatic zones (Access to Asian Vegetables June 2001). Taro and sweet potato have been grown in the Northern Rivers area for many years (Peter McLaughlin, pers. comm. on CQU website). Export focused taro production is expected to involve 50 Northern Rivers growers this financial year (Vong Nguyen, pers. comm.). Bitter melon, winter melon, luffa, yam, water chestnuts and lotus are also grown in the Northern Rivers (Grant Vinning and Vong Nguyen, pers. comm.). Lotus alone is anticipated to yield between 120 and 150 tonnes from 20 ha of production and generate a farm gate value of $0.5 million (Vong Nguyen, pers. comm.).

Asian vegetables in the Hunter include daikon4 (white radish), herbs and gourd seed for export to Japan. There are around six growers in the Hunter. The Central Coast includes two or three growers of daikon, kai Laan, Chinese cabbage, Shanghai Bok choy, choy sum, and shallot/spring onion. There is also an export focused kabocha seed producer in Griffith (Vong Nguyen, pers. comm.).

Major Vegetables

In 1993/94 the five major Asian vegetables produced in NSW were bok choy, choy sum, kai laan, Chinese spinach and spring onions (Lee Audit). Industry statistics collected from the Sydney Markets at Flemington (AusMarket 2002) for the 1993/94 financial year show the importance of Chinese cabbage, spring/onion shallots and watercress.

Current Sydney Market data would indicate that for calendar years 2000 and 2001 the major vegetables were Spring Onion/Shallots, Chinese cabbage and Chinese vegetables. Chinese vegetables include bok choy/white cabbage, kai laan/Chinese broccoli, choy sum/Chinese flowering cabbage and bor choi/Chinese spinach.

3 NORADA also includes growers in South East Qld. 4 Strictly speaking daikon refers to a particular Japanese style long white radish (Vong Nguyen, pers. comm.) In this study the term has been used generically to refer to white radish.

Value and Volume of Production5

Around one half of all Asian vegetables produced by Vietnamese growers pass through the Sydney Markets at Flemington (Vong Nguyen pers comm.). For all other growers around 85% of Asian vegetables sold in NSW pass through the markets system (David Chung, Raymond Chu, pers. comm.). Produce that bypasses the market system is sold direct to small Asian greengrocers or through daily retail markets at Cabramatta and Bankstown. Sales to restaurants are normally directed through an agent and are therefore included as Sydney Market sales (David Chung, pers. comm.). It is estimated that around 80% of total production is sold through the market system.

In 1995 Lee reported value and grower number estimates for the financial year 1993/94. These estimates are reported below in table 2.

Table 2: Value Estimates for NSW Asian Vegetables for Financial Year 1993/94

Asian Vegetable Value ($) Number of growers ASIAN VEGETABLES 28 million 300 CHINESE CABBAGE n/a 3 SHALLOTS/SPRING ONIONS 0.9 million 35 EXPORT SALES (FOB) 0.9 million Included above Source: Lee audit

To provide a comparison with current production estimates two sets of data were purchased from market reporting consultants AusMarket. The first data set was for financial year 1993/94, the second was for the most recent calendar years available i.e. 2000 and 2001. The data is not ideal. AusMarket reports that volumes of Asian vegetables sold are small compared to conventional lines and aggregation in their reporting system is necessary. The resultant data includes conventional and Asian vegetable aggregates such as herbs and parsley. However, the two sets of data do provide an objective comparison of how activity at Sydney Markets has changed since the Lee audit. From the tables and subsequent industry advice it can be seen that: • The overall volume of “Asian vegetables” sold has increased from 9,000 tonnes in 1993/94 to 22,000 tonnes in 2000 and 25,000 tones in 2001 (estimate includes some non Asian vegetables). • Chinese cabbage production is up from a total production of 400 tonnes in 1993/94 to an average of 5,000 tonnes in 00/01. • Kale (also known as Chinese broccoli or kai laan – Barry Lee, pers comm.) has appeared in the markets as a reasonable size crop. The importance of watercress would appear to have declined since 1993/94. • Taro and yams have also emerged as significant crops. Current taro production is estimated at 1,300 tonnes valued at $3.25 million and yam is estimated at 500 tonnes valued at $1.25 million (Nguyen in Gosbee 2002. Estimates indicate that large volumes of these crops bypass the Sydney markets). • Shallot/spring onion production has grown from 2,100 tonne in 1993/94 to 12,600 tonne in 2001. However production in 2000 shows a more modest increase to 5,700 tonne. Sydney Market data from 1994 would indicate a value of $4.3 million for shallot/spring onion. Data for 2001 shows a value of $33 million. Shallots and spring onions are a major component of Asian cuisine. • Sydney Market data for 2001 shows an approximate value of $60 million. If 20% of produce by- passed the market, then total NSW Asian vegetable industry value is $72 million (i.e. $60 million multiplied by 1.2).

5 Wherever possible first point of sale value has been estimated using independently collected wholesale market data as a base. AusMarket consultants advise that wholesale price is the price paid in the market by buyers (retailers, exporters, etc) and, as a long-term average, represents 85% of the price paid to growers. 15% is deducted for a wholesaler's margin, levies and handling and stacking charges where these costs apply. All other costs, including any allowance for transport are borne by the grower.

IHD (1997) estimate a NSW industry value of $60 million in RIRDC 2000 R&D Plan and NSW Agriculture (undated) estimated the NSW Asian vegetable industry at $64 million in 1998/99. The Hassall estimate of $72 million in 2001 would therefore seem to be consistent with these values, given an expanding industry.

As a further check on NSW industry value estimates the following, developed with Vong Nguyen, is proposed: • 1,000 Asian vegetable growers in NSW • Average farm size of 2 ha • Average yield of 15 tonne per ha • Average product price of around $2,500 tonne

Simple maths of the above estimates would generate a check value of $75 million.

Table 3: Flemington Markets (Sydney) Asian Vegetable Sales by Value and Volume 1993/94

Asian Vegetable Volume Sold Value of Sales Gross Value of Total (tonnes) ($/t) Sales ($) 1993/94 1993/94 1993/94 CHINESE CABBAGES 4,202.38 404 1,695,878 GINGER 1 1,403.23 1,005 1,409,930 PARSLEY 3 749.83 6,907 5,179,348 SHALLOTS 3 1,767.65 1,956 3,458,192 SPRING ONIONS 3 464.88 1,902 884,162 WATERCRESS 200.52 5,550 1,112,869 Total 8788.49 13,740,379 Source: AusMarket Consultants

Table 4: Flemington Markets (Sydney) Asian Vegetable Sales by Value and Volume 2000, 2001

Asian Vegetable Volume Sold Value of Sales Gross Value of Total (tonnes) ($/t) Sales ($) 2000 2001 2000 2001 2000 2001 BAMBOO na 0.00 na 0 na 0 SHOOTS 1 CHINESE 6,704.80 3,111.77 570 645 3,822,353 2,008,073 CABBAGES CHINESE 0.00 0.00 0 0 0 0 MELONS CHINESE VEG. 2 3,881.54 2,315.53 1,388 1,853 5,385,791 4,291,030 GINGER 1 2,280.60 2,481.77 2,854 2,117 6,509,011 5,254,854 HERBS 3 730.07 1,878.77 4,688 3,702 3,422,835 6,954,360 KALE na 375.35 na 692 na 259,857 LUFFAS 0.00 0.00 0 0 0 0 PARSLEY 3 1,976.75 2,275.98 3,120 3,154 6,168,436 7,178,737 SHALLOTS 3 4,617.97 11,389.71 2,648 2,654 12,227,524 30,227,899 SPRING ONIONS 3 1,166.10 1,242.16 2,640 2,510 3,078,958 3,118,044. TARO 140.33 143.76 3,242 2,871 454,972 412,708 WATERCRESS 41.67 60.82 7,368 5,914 307,004 359,716 Total 21,539.83 25,275.62 41,376,884 60,065,278 Source: AusMarket Consultants Notes: 1 likely to be grown in Queensland or the Northern Territory 2 No disaggregated data available believed to include bok choy and other leafy types 3 Data includes both Asian and conventional types and dominated by conventional production 4 NB only Brisbane provides actual throughput volumes – algorithm to provide estimates for other markets ie dollars actual, volume estimate

Markets – Domestic, Export and Import

Growers indicate that produce is most efficiently marketed through the Sydney Markets at Flemington (David Chung, pers. comm.). The markets serve as an aggregation point for agents filling supermarket6 orders and traditional fruit and vegetable shop purchases. A small amount of produce is direct marketed to Asian grocers and Vietnamese growers supply fresh product on a daily basis to regional markets at Cabramatta and Bankstown (Nguyen 2000).

Agents fill large supermarket orders from their bases at the Sydney Markets and these orders constitute 60%-70% of total sales. Increasing supermarket dominance of retailing and their corresponding need for large consistent volumes of product has seen a number of growers moving towards an agent/provedore role and away from production. Growers find it profitable to act as aggregators for the supermarkets (Bill McMahon, pers. comm.).

NSW does not have a strong Asian vegetable export culture. Exports of Asian vegetables from NSW, based on the most up-to-date data available7, are a mere 644 tonnes in a total production of between 10,000 to 20,000 tonnes. More than half the volume of NSW Asian vegetable exports is Chinese cabbage (more than 70% if wongbok is aggregated into the Chinese cabbage total). See table below.

Table 5: Exports of Fresh Asian Vegetables from NSW (1997/98)

Asian Vegetable Tonnes Major Destinations Basil 1 Hong Kong, Thailand Bok Choy 2 Singapore Chard 0.03 Saudi Arabia Chinese Cabbage 379 Hong Kong, Taiwan Chives 0.2 Vanuatu, Singapore Coriander 9 Sri Lanka, New Zealand Ginger 13 New Caledonia Mint 0.2 Hong Kong Okra 0.01 Hong Kong Parsley 64 New Zealand, Hong Kong Radish 11 Philippines, French Polynesia Shallot 18 New Caledonia Watercress 0.08 Hong Kong Wongbok 86 Hong Kong Total 602 Source: AQIS 1999

Reasons why NSW does not export a large volume of Asian vegetables include: • A strong domestic consumption base in Sydney, export markets are not needed. Sydney’s large Asian population base and health and trend conscious Caucasian population provide an ample consumption base (Raymond Chu pers comm.). • Small farm sizes. Exporting is associated with larger farms that are able to offer the volume of produce required by importers. Western Australia has a suitable large farm production base, which facilitates export (David Chung, pers. comm.). • Growers are disorganised (Phil Armbruster, pers. comm.). • Franklins International Purchase section at the Sydney markets was disbanded – loss of a major outlet for exports (Phil Armbruster pers comm.). • Competition from low cost Chinese producers (Phil Armbruster pers comm.).

6 In this report the term supermarket also includes large chains of fruit and vegetable “barns” 7 AQIS publication has been discontinued

Market representatives commented that very little in the way of Asian vegetables is imported fresh into NSW. The only obvious current example was garlic that is imported from China. Garlic has not been included as an Asian vegetable in this study. Historically, dried watercress and dried bok choy was imported into NSW but this has been replaced by consumption of fresh domestic produce. Pickled produce is still imported from China. Chinese pickled vegetables enjoy a low labour cost advantage over equivalent Australian products (David Chang, pers. comm.).

Grower Numbers and Ethnicity

Growers of Asian origin dominate the Asian vegetable industry in NSW. Growers are predominantly Chinese in origin but increasingly include Vietnamese and Cambodian Australians (Nguyen 2000).

In addition to Asian growers there are small numbers of Maltese Australians and Pacific Islander Australians growing Asian vegetables. The Maltese, being long established in the NSW vegetable industry, tend to have larger farms in more remote locations (eg Cowra in the Central West of NSW). Maltese Australians are currently trialling hydroponic production of Asian vegetables such as bok choy.

There is a tendency for each ethnic group to specialise in particular Asian vegetables although all ethnic groups will move in and out of production according to price signals. At the current time, growers of Chinese ethnic origin tend to grow leafy vegetables; Cambodians grow snake beans, herbs, bitter melon and luffa; Vietnamese grow gourds and leafy vegetables; Maltese grow bok choy and daikon; and Pacific Islanders grow taro (Alison Anderson, pers. comm.).

The Lee audit estimated that there were 338 Asian vegetable growers state wide in NSW. In 2000 the Asian Foods Newsletter estimated 350 growers in the Sydney Basin. In addition there are pockets of growers in each of the Central Coast, the Hunter Valley, Griffith and Far North Coast (Vong Nguyen pers comm.)

Grower number estimates are summarised by major industry association in table 6 below.

Table 6: NSW Asian Vegetable Grower Association Membership

Association Grower Membership Numbers Chinese Vegetable Growers Association 250 (plus 250 non member growers) Vietnamese Vegetable Growers 40 (plus 40 non member growers) Cambodian Vegetable Growers Association 60 (60 non grower members) NSW Free Growers Horticultural Council 50 (250 non member growers) including Pacific Islanders, Maltese and other Europeans Total Grower numbers 1,000 Source: Hassall & Associates estimate

Farm Profile and Practice

Farm size in Sydney Basin ranges between two and eight hectares (Nguyen 2000). With the average farm around two hectares (David Chung and Raymond Chu, pers. comm.). Some 250 farms in the Sydney Basin employ over 1,000 Chinese, Cambodian and Vietnamese Australian growers (Nguyen 2000). Production of bunching type vegetables is labour intensive and this has prevented the entry of large-scale operators (Bill McMahan, pers. comm.).

Typically each farm will produce around fifteen varieties of vegetable at any one time. Over a full twelve-month period as many as twenty to thirty different types of vegetable will be grown. Some vegetables are strictly seasonal while others can be grown throughout the year (David Chung, pers. comm.).

Successful production is highly dependent on farm site selection. Soils should be well drained with a pH in the range of 6 to 7 (Vong Nguyen, pers. comm.). Soils with high organic matter are preferred

and root crops require light sandy soils with a northerly aspect. Asian vegetables are particularly sensitive to water stress and in the early stages of growth they are poor competitors with weeds. Traditionally spring and autumn are the optimal growing times in NSW. Farms need access to machinery, power (for cool rooms and irrigation pumps) and a packing shed. Due to the relatively poor transportability of many leafy Asian vegetables proximity to market and export routes is valuable. The wide range of Asian vegetables on offer provide opportunity for crop rotation, diversified farm incomes and production systems that are compatible with traditional vegetable crops (NSW Agriculture, undated).

Production remains largely traditional in its focus; machinery, irrigation and agronomic practices are all relatively simple. A few growers save seed from one year to the next but most buy it in (David Chung, pers. comm.).

Farms in the Northern Rivers are larger than those found in the Sydney Basin but few are producing to their full capacity. Farms in this area are mainly run by Caucasians (Peter McLaughlin, pers. comm. on CQU website, Grant Vinning, pers. comm.).

Growers indicated that Sydney Basin farm size has not changed since the Lee audit, and they doubt whether increases in average holding size will be possible in the future. Land in the Sydney Basin is simply too expensive for farm aggregation and some indicate that the industry will need to move much further west to secure its future. There is already a strong trend amongst conventional vegetable growers to seek out larger, lower land and water cost holdings in places like Cowra (David Chung, pers. comm.).

For the move to the Central West of NSW to be possible growers will need to continue to improve post harvest handling and distribution systems. However, investment in scale, technology and relocation is of little interest to first generation Asian growers who are nearing the end of their working lives. The reluctance of the second generation to commit to a working life in vegetable growing, identified by the Lee audit, is still very much in evidence amongst growers contacted.

Grower Innovation Since the Mid 1990s

A reluctance to commit to future investment by aging first generation growers is not to say that first generation Asian growers have stood still since the Lee audit. Growers and their suppliers indicate that there has been a marked improvement in technology and agronomic application since the mid 1990s. Key innovations include: • Chemical control and use. Greater use of farm chemicals including use of chemicals for grass control. The certification of improved chemicals for use on small volume Asian vegetables has also been an important innovation (still more work to be done here – see SWOT below). • Higher yielding vegetable varieties and varieties that offer the potential for year round production of popular crops. New varieties are frequently imported from Japan, Taiwan and Korea. • A seed industry that supports Asian vegetable production, eight years ago there was very little commercial Asian vegetable seed available in Australia. The major seed companies like Yates and S&G imported Asian vegetable seed but did not have a distribution network to market it to Asian vegetable growers (Raymond Chu, pers. comm.) • Introduction of small cooler units for post-harvest refrigeration. All growers now have these units with resultant improvements in product life and sale options (David Chung pers. comm.). However, there is still some way to go in cool chain management. Cool rooms are small and relatively basic. None are fan forced and vehicles used to transport produce to market are open and non-refrigerated (Raymond Chu pers. comm.).

• Trials in the hydroponic production of Asian vegetables including leafy vegetables such as bok choy and choy sum and Asian herbs. • The broadening of the production base to include conventional vegetable growers such as the Maltese. Maltese Australians have incorporated Asian vegetables into their production mix and use agents or direct sales to restaurants to market their crops. • Improved industry communication. There are a number of well functioning growers associations that represent growers and convey important information between government and industry. All major facets of the ethnic production base are represented. • New crops such as lotus root, which is grown in Coffs Harbour and water chestnuts and bamboo shoots that are grown in Queensland and northern NSW. • The emergence of the grower/provedore/agent who aggregates supply to meet the needs of the large supermarket chains.

Growers also note improvements in cooperation between growers and outsiders. Information is exchanged between growers on production and cooperation is evident for the purposes of industry development. Bridges have also been built between growers and outsiders who offer assistance to the industry. Production assistance from NSW Agriculture and the University of Western Sydney’s assistance with training and chemical management are particularly noted.

NSW growers indicate that: • Training: there is mixed support for training amongst group 1 growers, with some participating in chemical use training, irrigation, Fresh Care and Farm Management courses and others reluctant to participate. • QA and Planning: growers have completed Fresh Care training; none have yet reached the point of audit. Growers who supply the supermarket chains hold QA/HACCP. Tags and sleaves are also required to supply this market. • Marketing: product is washed and bunched prior to marketing. Vegetables are brought to Sydney Markets for sale in non-refrigerated vehicles and normally sold on the same day as they are harvested. Product not sold is sometimes brought home for overnight refrigeration prior to attempted resale. Introduction of on-farm refrigeration and reduction in the number of small greengrocer buyers is the major change in marketing since 1995. • Contracting: there is a strong preference for spot sales over forward contracting, weather and other variables make forward contracting difficult (David Chung pers comm.). • Grower Cooperatives: typically growers do not act collectively in marketing groups to supply larger volumes of produce. Product is aggregated by agents for supply to large customers. • Spoilage rates: there has been an improvement in loss through spoilage with the introduction of on-farm coolers, however spoilage rates, including field loss, in the order of 40% are still typical (David Chung, Raymond Chu). Spoilage rates are lower in winter. In summer produce sweats after washing. Spoilage rates could be improved with fan forced cool rooms and refrigerated trucking but industry returns do not justify the investment. • Association Membership: Chinese Vegetable Growers Association field days held every second year are well attended. Vietnamese and Cambodian growers meet every two to three months through regular training sessions. Growers join their association for unity and an opportunity to discuss problems (Raymond Chu, pers. comm.) In the future it is hypothesised that growers will organise themselves along vegetable type (eg Brassica) or production method (eg hydroponic) rather than ethnic lines.

Industry Constraints • Constraints to further growth in production include: • Lack of suitable labour (Chinese growers want to work with Chinese immigrants). Labour for bunching produce is especially in short supply • Record keeping requirements of government for chemical management and taxation purposes. Some growers also noted interference in the industry by government and researchers as an issue. These growers express a wish to be left on their own to produce without having to contribute to surveys and being badgered to participate in industry development forums. In some ways the comment is tongue in cheek but needs to be noted by all from outside the industry wishing to contribute. • The high price of mains supply water required for production in the Sydney Basin. • Absence of affordable insurance products, especially crop insurance. • Urban encroachment on production areas, especially in the form of complaints from neighbours regarding smell and noise and unsympathetic local government. Camden, Penrith and Liverpool councils all have restrictive LEPs that constrain agricultural production. • Concentration of buyers. Asian vegetable buyers are typically small fruit and vegetable shops, which have declined in number as fresh produce sales in the supermarket sector have grown. • Static prices – Chinese cabbage was $5 a box in 1960s now $8 a box. However this is true of all commodities and growers must seek productivity improvements to maintain real incomes. • Lack of available crop protection products and information in non-English languages. (Alison Anderson, Industry Development Officer HAL is currently undertaking gap identification work). • Consumers who still are not sure what to do with some of the more exotic types such as angled luffa and bitter melon. • Competition from China limits the potential for production of processed product (cheap labour) and competes strongly for fresh producer export markets (cheap labour and proximity to Asian markets). • Supply chain – growers pick and place in cool room for a day, shops do not refrigerate (even in supermarkets) plus 1-2 days delivery time. Produce is three days old before it reaches consumers

Research Issues, Outputs and Priority Actions • High penetration of RIRDC Access to Asian Foods and Asian Foods Newsletter and Chinese language edition is appreciated. Growers indicated benefits arising from these publications included increased vegetable name recognition and hence capacity to supply buyer requests (David Chung). However, much of the information included is already known by growers (Raymond Chu). • Research on production techniques is needed but it is very difficult to get growers, especially older growers, to change their ways (Raymond Chu). • Other helpful research outputs included cool chain management advice from the HAL Industry Development Officer and NSW Agriculture and agronomic advice on specific production constraints such as club root from NSW Agriculture. • NSW Agriculture has invested heavily in field days and BBQs to extend message on the major issues for growers, i.e. Quality Assurance, chemicals, fertilisers and irrigation

2.2 Victoria

Double-digit growth in supermarket demand for Asian vegetables has been recorded over the last five years. Other retail outlets report static sales. Victoria accounts for around 10% of Australian Asian vegetable production.

Industry Location

There are three main groups of Asian vegetable producers in Victoria, with the distinction being ethnic origin.

• A Vietnamese group of approximately 20 growers who produce in the Geelong region. Growth of production and the number of growers entering the industry has doubled in the Geelong area in the last eight years. This area is exposed to winds but many of the vegetables are grown in polyhouses with overhead irrigation. • The second group of growers is Chinese in origin. Their farms are scattered within a 150 km radius of Melbourne. Chinese origin growers mainly market their vegetables to restaurants and greengrocers’ shops. • The third group of growers is of Caucasian background and are scattered throughout Victoria (Chew and Morgan, 1996). Concentrations of activity occur in the East Gippsland, South East metropolitan and Dandenong Ranges.

Broadly speaking, Vietnamese farms are smaller than those operated by Chinese and Caucasian growers. Traditional Caucasian vegetable growers mainly concentrate on growing Chinese cabbage (Vujovic et al 2002), however, more of these growers are starting to diversify into bok choy and other popular lines. Melbourne is now supplied with over 80 types of Asian vegetables (Wendy Morgan, pers. comm.), generally of good quality. Much product is supplied from NSW, particularly during the winter as Victorian production slows. Melons, snake beans, okra and many of the herbs are supplied from the Northern Territory and Queensland (Chew and Morgan, 1996).

Major Vegetables

The climate of Victoria, being cooler than most other states, limits the diversity of cultivars that can be grown. Production tends to concentrate on bunching lines particularly a selection of brassica species and a range of herbs and parsley. Victorian growers acknowledge that NSW and Queensland can grow a wider range of cultivars in the warmer climates similar to where they are grown in Asia.

The Lee audit identified the major Victorian vegetables as spring onions, Chinese cabbage white cabbage, Chinese flowering cabbage, Chinese broccoli and brown watercress. These vegetables, together with herbs such as coriander, are still important. However, bok choy has increased in importance while Chinese cabbage has decreased in importance in Victoria.

Value and Volume of Production

In 1993/94, Lee reported the total production of Asian vegetables in Victoria was valued at $4.4 million, with $0.2 million being exported. Melbourne Market figures for that period indicated that gross sales were $6.3 million (AusMarket 1993/94). These figures exclude ginger, which is produced interstate.

Table 7: Melbourne Asian Vegetable Sales by Value and Volume 1993/94

Asian Vegetable Volume Sold Value of Sales Gross Value of Total (tonnes) ($/t) Sales ($) 1993/94 1993/94 1993/94 GINGER * 759.73 1,259 956,431 PARSLEY 2,108.05 1,667 3,513,433 SHALLOTS 1,161.63 2,019 2,345,880 SPRING ONIONS 225.70 1,864 420,745 Total 4,255.11 6,809 7,236,489 Source: AusMarket Consultants * Likely to be interstate produce

Today, the majority of locally grown Asian vegetables by-pass the Melbourne Market and are sold directly to supermarkets, supply chain companies, Asian greengrocers and restaurants. It is estimated that fresh produce sales have declined by sixty percent in the Melbourne Market (Paul Sheppard, pers. comm.), and it is for this reason, that market statistics based on Melbourne Market sales do not accurately reflect total state production. Market sale figures tend to reflect direct sales to agents, as not as much is traded through the grower-seller section of the market. Also, a considerable volume of produce sold through the Melbourne Market is from interstate.

Even though Melbourne Market (AusMarket, 2000/01) figures do not reflect the entire picture, they do at least provide some comparisons of developments within the industry since 1993/94. Items such as parsley, spring onions and shallots are an amalgamation of traditional European and Asian varieties and this needs to be taken into account when comparisons are made. From the tables it can be seen that: • The overall volume of “Asian vegetables” sold has increased from 3,495 tonnes in 1993/94 to 10,570 tonnes in 2000 (excluding likely interstate produce). • Chinese cabbage production has increased to 3,795 tonnes (2000). • Shallot/spring onion production has grown from 1,387 tonnes in 1993/94 to 3,088 tonnes in 2000. AusMarket estimated the value of the Victorian shallot/spring onion crop in 1993-94 at $2.77million, compared to $9.1million in 2000.

When ginger, bamboo, Chinese melons, luffas and taro volume and value estimates are excluded from the above market data it would appear that the 1993/94 value of the industry was around $6.281 million from a production base of 3,495 tonnes. In 2001, market data would indicate a value of $11.631 million from a similar production base of 3,100 tonnes.

An accurate estimate of current Victorian industry value is difficult given the degree of uncertainty regarding both interstate imports and the production base in Victoria. The following was developed by the study team and checked with industry and NRE: • 110 Asian vegetable growers in Victoria (see grower numbers and ethnicity below) • Average farm size of 2.5 ha (see farm profile and practice below) • Average yield of 15 tonne per ha (derived from NSW estimates) • Average product price of around $2,900 tonne (derived from AusMarket data)

An approximate industry value of $12 million is suggested.

Table 8: Melbourne Asian Vegetable Sales by Value and Volume 2000/2001

Asian Vegetable Volume Sold Value of Sales Gross Value of Total (tonnes) ($/t) Sales ($) 2000 2001 2000 2001 2000 2001 BAMBOO SHOOTS * 0.00 1,720.27 0 792 0 1,362,186 CHINESE 3,794.71 0.00 683 0 2,592,908 0 CABBAGES CHINESE MELONS * 0.00 1,371.74 0 2,122 0 2,910,840 CHINESE VEG. 1,652.73 1,553.46 2,211 2,295 3,653,475 3,564,652 GINGER * 1,139.55 784.26 3,875 6,015 4,415,417 4,717,519 HERBS 390.94 1,720.27 5,939 792 2,321,894 1,362,186 LUFFAS * 0.00 na 0 na 0 na PARSLEY 1,607.78 1,597.47 2,603 3,048 4,184,385 4,869,728 SHALLOT BULBS 0.06 0.00 4,400 0 264 0 SHALLOTS 2,211.89 0.00 3,233 0 7,152,025 0 SPRING ONIONS 876.22 658.14 2,215 2,733 1,941,178 1,798,785 TARO * 108.82 85.90 2,836 3,259 308,632 279,964 WATERCRESS 36.79 44.38 5,661 5,498 208,258 244,016 Total 11,819.49 7,815.62 33,656 25,762 26,778,436 19,747,690 Source: Ausmarket Consultants * Likely to be interstate produce

Markets – Domestic, Export and Import

Since 1995, the domestic consumption of Asian vegetables in Victoria has increased and the product range, quality and availability in most supermarkets, greengrocers and restaurants have substantially improved. However, indications of oversupply during summer are starting to emerge. Retail sales in small Asian greengrocers are static, while growth still exists in supermarkets, especially with convenience, pre-packed baby Asian leaf lines.

Victoria’s main Asian vegetable export is Chinese cabbage to Taiwan. There are now only two growers in the Bairnsdale district who supply products to that market. Taiwan is primarily a spot market for Victorian Chinese cabbage, filling seasonal supply shortfalls. Ongoing political tension between China and Taiwan is presently depressing the Taiwanese economy, therefore reducing demand for Victorian produce. Victoria exported 450 tonnes of Chinese cabbage in 2000, worth $0.56m. (Wendy Morgan, pers. Comm.). This was an increase of 580% from 1994. Exports of kabocha pieces grown in Victoria started in 1998 (4 tonnes) and increased to 65 tonnes the following year. Since then, financial difficulties experienced by the export company have seen exports temporarily curtailed. Small spot markets also exist for mixed lines of vegetables such as Shanghai bok choy and kai laan and other products (see following export tables).

Airfreight transport is considered too expensive for exporting Asian vegetables. With the exception of Chinese cabbage to Taiwan, sea freight transport times of 10-14 days are considered too long for sensitive leafy vegetables. Even though Modified Atmosphere Packaging (MAP) would be an effective post harvest transport option for exporters, it is not considered a cost effective packaging system by the industry.

The main overseas vegetable imports into Victoria, apart from Chinese garlic are mushrooms. These are mainly supplied in the dried form.

Table 9: Exports of Fresh Asian Vegetables from Victoria (1997/98)

Product Tonnes Major Destinations Basil 000.30 Hong Kong Bok Choy 002.00 Hong Kong Chives 002.00 Hong Kong Coriander 000.04 Hong Kong Ginger 000.40 Lebanon, Nauru Mint 000.40 Thailand Mizuna 000.05 Malaysia Okra 000.03 Indonesia Parsley 052.00 Hong Kong, UAE Daikon Radish 017.00 Hong Kong Shallot 000.06 Fiji, Saudi Arabia Spring Onion 000.70 Thailand, Philippines Watercress 000.10 Bahrain Wongbok 071.00 Singapore Total: 146.00 Source: AQIS, 1999

Grower Numbers and Ethnicity

It is difficult to accurately estimate Asian vegetable grower numbers in Victoria. In the Geelong region (Corio, Lara, Anakie and Bacchus Marsh) grower numbers have doubled since 1994. There is now a cluster of 20 farms of mainly Vietnamese origin involved in the industry. In some cases, the second generation is now beginning to take a more prominent role in the management of these businesses.

As Asian vegetables become part of mainstream vegetable production in Victoria, more and more traditional vegetable growers (of European origin) are growing these lines on larger properties. Melbourne Market wholesalers report that one in every three growers in the grower-seller section of the wholesale market, is now selling at least one or two of these lines.

The Lee audit estimated that there were 114 growers producing Asian vegetables in Victoria. Despite growth in the Geelong region and the “take-up” of Asian vegetables by conventional growers, the total population of growers would still be in this order of magnitude (Wendy Morgan pers. comm.). A Victorian grower population of 110 is proposed.

Farm Profile and Practice

Broadly, farm practices are undertaken by two distinct groups of growers: Asian producers, and traditional vegetable growers of Caucasian origins.

As Asian vegetables move in to the main-stream, more traditional growers are producing high volume products such as Chinese cabbage and bok choy bunching lines, on a larger scale. Traditional grower properties are characterised by their large-scale, use of specialised refrigerated storage and transport, new packing boxes, adherence to cool chain management and industry sponsored quality management practices. These growers are mainly based around Bairnsdale and Cranbourne. Some of these growers are involved in incorporating production of Asian leaf vegetables and salad greens into their existing baby salad leaf mixes and new stir-fry product lines.

Asian vegetable growers in the Geelong region are producing vegetables in large household properties of up to 40 ha, with an average of 2.5ha. These farms tend to combine plastic/poly greenhouses (40%), shade houses (40%) and open ground production (20%). The average farm comprises twenty-five, 7 x 70m greenhouses and shade-houses. More growers are moving to field production, as the cost of maintenance and repair to greenhouses increases.

Highlights of the Geelong industry cluster include: • Increasing numbers of growers and strong competition resulting in sharp falls in grower returns. • Main varieties grown are: bok choy, Chinese broccoli, Shanghai bok choy, watercress, water convolvulus, water celery, Vietnamese lettuce, Chinese chives and basil. • In the last ten years, the types of vegetables grown have increased from ten to over thirty. • Industry-wide use of unlabelled second-hand boxes. • Crops are irrigated using high priced domestic water ($707/Megalitre). • Because of strong winds in the area, open field production is usually protected by poly-mesh windbreak structures. • Weed control in greenhouses and shade-houses is a significant production cost. • There is a lack of chemicals specifically registered for use on Asian vegetables. • Most growers do not have coolrooms, and if they do, they are usually inefficient, old truck tray refrigerated cooling boxes. • Perceived poor product quality is associated with poor cool chain management. • Growers are starting to consolidate and specialise in specific varieties in order to improve returns. • Other growers are looking to diversify into alternative forms of protective cropping that they believe are more profitable, such as hydroponic tomatoes. • Produce is often sold to larger Asian vegetable growers who act as aggregators for wholesale market agents or Asian greengrocers. Other growers sell directly to market agents and to Asian greengrocers. • Most growers prefer to sell to agents or supply chain companies rather than to greengrocers, because they receive better prices and prompt payments. • Limited training in growing and marketing of these crops.

Victorian growers indicate that:

Economics of Industry

Oversupply and increased competition are causing major financial difficulties for small Asian growers. Some Asian growers are talking about leaving the industry because of the declining economic outlook.

A major production cost is that of irrigation water. Most growers use local domestic water supplies.

Problems with labour were cited as a major problem for the industry. These problems include: the high perceived cost of labour ($7-$8/hour), recruitment and retention of trained farm labour, competition for labour with more highly paid manufacturing industry sector jobs (factory workers – $14-$16/hour).

Training The Geelong Asian Vegetable Growers Association was formed to assist growers in keeping up to date with the latest technical and market developments in the industry.

The main training undertaken by industry was in quality management and farm chemical user courses. On the whole, growers and wholesalers supplying supermarkets have undertaken quality assurance courses such as SQF2000. An important part of the Farm Chemical Users courses were the English courses that were run in conjunction with them, to help growers better understand what was written on farm chemical labels.

Product Quality

Some Asian growers identified quality issues as one of the industry’s major problems, which they believe to be associated with static domestic sales. These growers expressed the need for further training in quality and cool chain management, and the need for policing of regulations concerning the industry-wide practice of using unlabelled second hand boxes.

In respect to the use of boxes, specific legislation under Section 34 of the Victorian, Plant Health and Plant Produce Act, No. 51/1995 regulates the use of second-hand packages and their labelling; making it illegal for both growers and retailers to market produce in damaged and unlabelled packages.

Marketing and Promotion

Promotion of Asian vegetables has been very effective in increasing the demand for these products by Caucasian consumers. Promotion has been through incidental coverage in the media rather than a paid and planned approach.

A few important consumer issues are driving their increasing popularity. The first being, that stir- fried Asian vegetables fit well with increasingly busy modern lifestyles. They are convenient, simple, easy to prepare, and can be prepared in combination with other main-course meal ingredients such as pork, chicken, fish or red meat. Another strong promotional advantage of these vegetables is their perceived health and dietary attributes.

Growth in consumption has been driven by increased interest and demand from Caucasian consumers. Increasing exposure and promotion on television lifestyle cooking shows and feature recipes in popular women’s’ magazines is fuelling this demand. Retailers report strong sales for a period of two to three weeks following this type of media coverage.

Promotion has been identified across the industry as an important way of increasing sales of this category to broader sections of the population.

Grower Cooperatives

A number of attempts at cooperative marketing have been tried at both Geelong and Lindenow, near Bairnsdale. Unfortunately, difficulties associated with management arrangements and individual self interests combined in both cases to cause these approaches to be unsuccessful.

Spoilage Rates and Cool Chain Management

Product wastage is an issue on farm, in transit and in the retail chain.

Chinese cabbage is an especially difficult crop to grow. It is very sensitive to variations in growing and climatic conditions that do not normally affect other brassica crops. Cool wet or dry weather can affect the internal physiology of the head, leading to breakdown and losses in the field before harvest, in transit, or storage. Field losses can be as much as 40% (Daily and Tomkins 1998).

Poor, or no cool chain management at all, by growers can lead to rapid deterioration of shelf life of produce in the store and the home. As most Asian growers have only rudimentary cooling equipment, this problem is expected to remain until industry addresses the issue. On the other hand, the practice of small Asian greengrocers displaying leafy green vegetable outside shops on pavements exposed to the warm sun, wind and car exhaust fumes, also exacerbates the problem of poor cool chain management.

Seed

Demand for bok choy seed has tripled in the last three years in Victoria. Strongest demand is for bok choy seed for the production of more profitable pre-packed baby leaf, stir-fry and salad mix lines. The production turn-around time for these product lines is only six weeks.

Increasingly, seed is used for nursery-produced transplants in preference to direct seeding.

According to Victorian vegetable seed merchants, brassica species are the most popular Asian vegetables lines in the market. Bok choy represents 60% of seed sales, daikon, 17%, with choi sum, mustard greens and mixed herbs making up the balance.

Growers now collect very little open pollinated seed. The importance of hybrid seed, particularly bok choy, is now recognised by the industry for uniform product quality, lack of bolting, better market acceptance and prices.

Victoria also has a seed production industry. For example there are large green soybean (edamame) seed producers, producing for the Japanese market in Orbost.

Association Membership

Traditional vegetable growers are generally affiliated with the Victorian Vegetable Growers Association, a member of the Victorian Farmers Federation and AusVeg, while Asian vegetable growers in the Geelong area are members of the Geelong Asian Vegetable Growers Association.

Grower Innovation Since the Mid 1990’s:

The following innovations have been adopted by large sections of the industry: • Farm Chemical User certification. • Adoption by supermarket suppliers of quality assurance certification. • Flexibility in introducing and adjusting to specific management peculiarities of a wide range of new Asian vegetable cultivars. New innovations include: • Introduction of both field and nursery production of baby leaf Asian greens for the pre-pack trade.

Other Areas of Interest

Supply Chains and Wholesale Markets

Supply chain companies are now playing a more active role as consolidators of produce for the big supermarkets. Growers are increasingly either selling direct to supply chain companies, to wholesale agents operating on behalf of these supply chain companies, or selling directly to Asian greengrocers or restaurants. Whatever the case, less produce is reported as being sold through the grower/seller section of the Melbourne Market.

There are at least six main wholesalers of Asian vegetables operating out of the Melbourne Market.

Wholesalers report that the market for this category is good, doubling over the last five years. The top ten cultivars traded through wholesale agents are: bok choy, Chinese cabbage, Shanghai bok choy, baby bok choy, baby choy sum, choy sum greens, Chinese broccoli, kaai tsoi and mustard salad mixes.

Some agents report that, as the market stabilises they are looking to diversify further into Asian and exotic tropical fruits (rambutan, mango and banana).

Retail – Supermarkets

Nationally sales of Asian vegetables have doubled in supermarkets over the last five years to a point where they are now considered a special category line of their own, achieving mainstream vegetable category status. The growth in stir-fry cooking has been driving the demand for these vegetables. It is becoming evident that growth in sales of fresh lines is commencing to stabilize. However, expansion of pre-packed, stir-fry vegetables and baby leaf salad mixes is presently running in double-digit figures. The added feature of pre-packs is that consumers consider them to be ‘cleaner and safer’ than fresh produce.

Asian bunching lines are the strong category items, particularly bok choy. Supermarkets are using low, fixed pricing strategies to build buyer demand and interest in bunching lines. The popular varieties are: bok choy, Shanghai bok choy and Chinese broccoli.

Supermarkets have acknowledged and encouraged the increasing availability of the diverse range of varieties that have become available over the last five years. However, slow sales, and wastage of slow moving exotic lines are leading to policies of consolidation to the top ten most popular product lines.

Supermarkets tend to buy from supply chain companies, wholesale consolidators and increasingly from traditional vegetable growers. For growers to get supermarket contracts, it is almost mandatory that they are quality certified with HACCP and other industry endorsed quality assurance standards.

According to supermarket representatives, the key issue holding back increased expansion of sales, is the lack of standardised names for Asian vegetables and it was felt that supermarkets needed to work together to achieve this outcome. Common nomenclature standards would have to be aligned to the international Price Look Up (PLU) system.

Retail – Greengrocers

Growth of the market has been stabilising. However, expansion of sales is still developing with Caucasian consumers.

Greengrocers feel that quality standards in the industry have not changed and still remain mediocre, particularly with produce supplied by small growers. This was mainly thought to be due to poor cool chain management. Many small growers were reported by greengrocers to have no refrigerated storage or transport facilities. On the other hand, a number of growers were also critical of greengrocers’ adherence to cool chain management. Produce supplied from NSW is generally considered to be of better quality and more abundant in supply and variety diversity.

High prices and short supply in winter were considered to be another issue of concern for greengrocers.

Greengrocers are required to be registered under Food Safety and Handling and Food Safety Supervision certification and are required to have washing and cool storage facilities in their premises. Some greengrocers thought they were being over policed by local government health authorities for naturally occurring soil adherence to the bases of brassica vegetables.

Research Issues, Outputs and Priority Actions

According to some research officers, research into Modified Atmosphere Packaging (MAP) and other post harvest issues are well in advance of present industry needs. Some growers were critical that research undertaken on MAP was not asked for, or supported by industry, and this has hampered adoption of this technology.

Some research and extension officers commented that future technical commitments to the industry should focus on technology adoption or transfer programs.

Some growers expressed serious concerns about the need to address the perceived threat to the brassica industry from Albuga, White Blister fungal disease.

Extension

Communication through the Access to Asia Newsletter and its associated Department of Natural Resources and Environment (NRE) website were very favourably reported on by all segments of the industry.

Growers tend to use agricultural suppliers and fertiliser representatives as their primary source of technical information and support.

Geelong growers were strongly supportive of the role of a local NRE vegetable extension officer in the area.

NRE’s translation into Vietnamese of twenty of its forty Asian vegetable publications has been of great assistance to Asian growers.

Future Priorities

The following research, extension and plant standards priorities were identified by growers, supply chain managers, retailers and research and extension officers: • Selection and breeding of new cultivars – particularly of Chinese cabbage varieties with less production and seasonal variation traits. • Post harvest cool chain training for growers, supply chain managers and retailers. • Need for emphasis on quality not price – provision of quality assurance training to Asian growers. • A crackdown by plant standards inspectors on the use of second-hand boxes with no grower identification marks. • Replacement of the vacant NRE extension agronomist position in the Geelong area with a Vietnamese-speaking extension officer (similar to Virginia, South Australia and Northern Territory). • Assessment of Asian vegetable varieties for functional food attributes (including extract values, vitamin, mineral, dietary fibre and other content). • Continuation of research and development work on club root disease in brassicas. • Developing control and preventive measures for the Albuga, White Blister fungal disease in brassicas.

Industry Constraints

Constraints to further growth in production include: • Low profitability of growers. • Low profitability hampering ability to introduce new technology. • Low adoption and understanding of cool chain management by growers, supply chain companies and retailers. • High cost and limited availability of experienced farm labour. • Limited access to farm chemicals registered for use on Asian vegetables, eg herbicides. • Limited grower/industry technical and marketing cooperation and collaboration. • Need for market promotion strategies to regularly promote Asian vegetables.

2.3 Queensland

Asian vegetables are a minor part of Queensland’s horticultural industry. Whilst the absolute volume has grown significantly across a large number of Asian vegetables, this rate of growth is proportionate to that of conventional vegetables. Queensland accounts for around 12.5% of Australian production. Unlike NSW and Victoria it is a significant exporter of Asian vegetables.

Two streams of Asian vegetables can be considered.

One is the group of products that have an established position in the market place. That is, the crops have: • Commercial sources of seed, including hybrid seed varieties. • Established production techniques supported by some scientific material. • Are grown in clearly defined geographic locations. • Well-documented post-harvest preservation techniques. • Formal marketing channels through agents, wholesale markets, and supermarket outlets. Some products are even exported.

Asian vegetables that fit into this category would be: • Chinese cabbage, mainly the barrel shape but also the rocket type. • The group called “Chinese vegetables” that encompass the bunched green leaf lines of pak choi (white cabbage), Kai Laan (Chinese broccoli), and choy sum. • Daikon (or loh baak). • Sweet potato. • Ginger. • Spring onion. • Taro.

The second group is far less formal: • Production is scattered throughout Queensland. • Production is extremely small scale. • Planting material comes from a multiplicity of sources. • Production techniques are very individualised. • Post-harvest preservation is not well identified. • Marketing channels are very informal and usually undertaken directly by the producer.

Two aspects stand out since the Lee audit.

1. Increase: as noted above, a number of Asian vegetables can be considered to have become crossover products and entered both mainstream production and mainstream marketing. As part of the crossover phenomena, production of a number of these Asian vegetables is by mainstream Australia vegetable producers and not Asian producers.

2. This Study was undertaken in a period of poor sugar prices. As a result, a number of cane producers along the entire coast of Queensland are experimenting with Asian vegetables as a means of augmenting their cash flows. Their experiments are increasing the absolute volume as well as range of Asian vegetables. At the same time, their history of having all aspects of the their marketing regulated by the sugar industry has left them with very little marketing skills and even less exposure to physical marketing. As a result, they have a heavy dependence upon using others to conduct their

marketing. It remains to be seen if these short-term experiments will convert into long-term commitment to Asian vegetables8.

Industry Location

Production of Asian vegetables is spread throughout Queensland, albeit with pockets of concentration.

In terms of tonnage, the area producing the greatest volume of Asian vegetables is the Stanthorpe region. Stanthorpe production is driven by the Chinese cabbage industry. Output from Stanthorpe is directed to Brisbane and interstate wholesale markets as well as overseas. In addition, daikon production from the region is also exported. Production is on a commercial scale using broad area production technology, advanced post-harvest preservation, and sophisticated transport. Nearly all farmers are of Caucasian heritage.

Output from the Lockyer Valley would approximate that of the Stanthorpe largely on the strength of the region’s sweet potato and Chinese cabbage production. There is also an increasing volume of bunched leafy Chinese vegetables being grown in the Valley. Produce from the Lockyer Valley is directed mainly to the formal marketing system of agents and wholesale markets in Sydney, Melbourne, and Brisbane. Whilst production tends to be largely by Caucasian Australians, there are a growing number of Vietnamese farmers moving into the region.

The area with the greatest number of producers of Asian vegetables is the greater Brisbane area. This includes the market garden areas of Capalaba and Manly to the east, the Eight Miles Plains area to the south and the Goodna and Richlands area near Ipswich. To the north east the Deception Bay area, near the Sunshine Coast, produces Asian vegetables destined for Brisbane greengrocers and restaurants. The majority of growers in this region are Vietnamese but there are also some Cambodians. An emerging group of producers in this area is the Pacific Islanders, especially Samoans and Tongans.

In the north of the State there are two main producing areas. One is around Townsville and the other is the emerging Atherton Tablelands. An impetus for the development of an Asian vegetable industry on the Atherton Tablelands has been the demise of the region’s tobacco industry. Production from the Atherton Tablelands is destined for the retail and food service sectors servicing the region’s tourist trade and to the Brisbane and Sydney wholesale markets. In terms of volume, taro is the main Asian vegetable grown on the Atherton Tablelands. There are two types of taro: Taro Pacific or the large corm type, and Taro Supreme or the small corm type9. Taro Pacific from the Atherton Tablelands goes mainly to the Sydney markets with lesser volumes to Melbourne, Brisbane, and even Perth. Taro grown around the Townsville area by Islanders also tends to be directed to the Sydney market.

8 The experience of the sweet potato industry in the Bundaberg region suggests there will not be a large retention factor. Growing Asian vegetables is hard work, often-time labour intensive. It was pointed out that sugar producers come from a highly mechanised industry and the change to one less mechanised is a difficult move. Many of the current growers producing sweet potato are second, third and even fourth time producers who have moved in and out of the crop over the years. 9 Taro is Colocasia esculenta. Until recently, it was common to classify the two main varieties as C.esculenta var. antiquorom and C.esculenta var. esculenta. Due to modern analytical techniques it has been determined that there is not adequate consistency between the two varieties to maintain the nomenclature distinction. See Vinning (forthcoming). At a meeting convened by Central Queensland University in Brisbane in late July 2002 of those interested in the taro industry it was determined to call the large corm type taro as Taro Pacific and the small corm type as Taro Supreme. Previously, the latter was called Japanese taro or sato imo, the Japanese name for small corm taro.

The hinterlands immediately behind the Gold and Sunshine Coasts also produce Asian vegetables. Strong interest has been shown in Asian vegetables in the Bundaberg area. Product from these locations is largely destined for local open-air farmer markets.

Major Vegetables

Because of its climatic range, Queensland produces virtually the entire gamut of Asian vegetables noted in Appendix 1. The Lee audit identified Chinese cabbage, spring onion, leafy Chinese vegetables, snake beans and cucurbits as the five main types.

There is some product specialisation influenced by geographic location. A greater proportion of leafy vegetables are grown in the south mainly because of the proximity to the major market of Brisbane. In the north there is some specialisation due to geography: Pak choi (white cabbage) is grown on the Atherton Tablelands but not on the coast; Taro Pacific is grown on the coast but Taro Pacific and Taro Supreme on the Tablelands.

Value and Volume of Production

The Lee audit estimated the Queensland industry at a value of $5.7 million in 1993/94. This information is presented in table 10 below.

Table 10: Value Estimates for Queensland Asian Vegetables for Financial Year 1993/94

Asian Vegetable Value ($) Number of growers ASIAN VEGETABLES 1.5 million 15 CHINESE CABBAGE 2.2 million 28 SHALLOTS/SPRING ONIONS 2 million 21 EXPORT SALES (FOB) 2.2 million Included above Source: Lee audit

The area of production of all Asian vegetables is below the threshold of collection by the Australian Bureau of Statistics. The Queensland Department of Primary Industries does not collect production statistics10.

As surrogates, two principles were used to update the 1993/94 estimate of total production, they were: • Shop acquisitions – Vietnamese and Chinese greengrocers acquire around 80% of their needs directly from producers (Grant Vinning, pers. comm. from interviews with Asian shopkeepers); and • Wholesale market data. – Queensland production, incorporating exports, is approximately twice the throughput of the Brisbane Wholesale Market (Grant Vinning, pers. comm.).

Estimates for calendar year 2001 for both market throughput (AusMarket Consultants) and total sales (estimated by Grant Vinning) are provided in table 11 below.

10 The most recent edition of Prime Notes was May 2002. The only reference in that of production data for an Asian vegetable was for Chinese cabbage in the Lockyer Valley in DPI note dated April 1999. The date of the compilation of the data was 1997.

Table 11: Queensland Asian Vegetable Sales by Value and Volume – Brisbane Wholesale Markets and Estimated Queensland Total (2001)

Asian Vegetable Brisbane Wholesale Market Queensland Industry Estimate Volume Value of Gross Volume Value of Gross Value Sold Sales Value of Sold Sales of Total (tonnes) ($/t) Total (tonnes) ($/t) Sales ($) Sales ($) BANANA LEAVES 2.05 5,390 11,050 4 5,390 21,560 BITTER MELON 25.99 3,309 85,999 100 3,309 330,900 10,000* 506 5,060,000 CHINESE 1,418 506 718,454 CABBAGE 1,600 1,948 3,116,800 CHINESE VEG 788.03 1,948 1,535,254 DAIKON 134.92 1,083 146,145 500# 1,083 541,500 (LOHBOK) GALANGAL 0.05 7,500 375 0.1 7,500 750 GINGER 902 2,080 1,876,160 2,000 2,080 4,160,000 GOURDS 7.64 2,452 13,058 16 2,452 39,232 KALE 110.88 1,426 158,151 350 1,426 499,100 TARO 43.47 3,395 147,592 1,000+ 3,395 3,395,000 YAMS 1.79 3,758 6,708 4 3,758 15,032 Total 3,434.83 4,698,946 15,574 17,179,874 * Includes choi sum and flowering Chinese cabbage and includes exports and direct sales # Very large volume sold through farmer markets + Does not include Taro Supreme. Much product is traded between Pacific Islanders

The total industry is estimated to have grown from a total value of $5.7 million in 1993/94 to $17.2 million in 2001.

Markets – Domestic, Export and Import

Queensland’s Asian vegetables are sold on four major markets, they are: • Local farmer markets • Direct to stores and the food service sector • Wholesale markets • Export

Local Farmer Markets

Since the Lee audit there has been a major marketing development that has been to the advantage of Asian vegetable growers. This has been the development of what is called farmers’ markets or open- air markets. These are not of the “trash and treasure” and “flea market” genre where all and sundry is sold. Farmer markets are dedicated to food, both fresh and processed. The actual sales persons at the “farmer markets” need not be growers. In the markets in the Brisbane area three types of “farmer markets” were identified, they were:

• Farmers marketing their own products. • Farmers purchasing other farmers’ products in order to widen the suite of products that they deal in. • Sales persons with no direct connection with production.

The greatest number of stallholders appears to be the former, followed by farmers marketing a mix of their own and other farmers’ products. Marketing by those with no connection with the product is very much in the minority.

The entire gamut of Asian vegetables was observed at the farmers’ markets, from mainstream products to the exotic. This reflects the image that farmer markets have of being “clean and green,” direct from the farmer who really cares for the product.

The same comment made at two different farmer markets reflects their increasing popularity with both producers and consumers. That is, the markets give the farmers a chance to market sizes and grades that do not meet supermarket specifications whilst at the same time consumers are able to acquire the grades that they cannot get from the supermarkets. This observation was first made specifically in regard to sweet potatoes but was confirmed with daikon and Chinese cabbage.

Farmers’ markets also allow producers to collect direct feedback from consumers as well as the ability to respond directly to the question “do you grow ….?”. From a consumer’s perspective, farmers’ markets are a place where new and interesting products can be purchased.

Direct to stores and the food service sector

Direct grower sales to Vietnamese and Chinese greengrocers, restaurants and the food service sector account for around 70% to 80% of this sector’s total purchases of Asian vegetables. A nominal amount of product is purchased through the Brisbane Wholesale Market by this sector.

Wholesale markets

Queensland Asian vegetables are directed to wholesale markets in Sydney, Melbourne and Brisbane with a small volume going to Perth. Overall, both Sydney and Melbourne receive more Queensland Asian vegetables than Brisbane.

At the Brisbane Wholesale Markets a large number of agents handle Asian vegetables. There are two specialist Asian vegetable agents. Commonly, growers of conventional vegetables will ask their agents to handle experimental lines of Asian vegetables. Agents do this in order to retain good relations with their suppliers. Once the product is delivered to the agent it tends to be immediately on-sold to other agents.

At the same time there are agents who in reaction to their buyers’ requests have sought Asian vegetables from their established conventional vegetables growers. Assistance from agents to growers has been provided in the form of seeds, specification information and solid price support.

Interviews at the Brisbane Wholesale Markets indicate that the market has played a significant role in improving the overall quality of Asian vegetables. Ethnic and small shopkeepers who stock Asian vegetables support this comment. Casual and part-time producers have to compete with full time producers. Full time producers have had to improve quality and presentation if they wish to sell successfully to penultimate buyers. In some cases, penultimate buyers have quality assurance plans in place. Poor quality and inconsistent grading is punished by low prices and this product tends to be sold directly to the public. At the same time packaging has improved, as has post-harvest preservation. Both innovations translate into extended shelf life.

Export

Chinese cabbage, including Wongbok, dominates Queensland exports of Asian vegetables. Chinese cabbage is directed to Singapore, Malaysia and to a lesser extent Hong Kong. Ginger is the next most important crop. Exports were by larger Caucasian producers.

Table 12: Exports of Fresh Asian Vegetables from QLD (1997/98)

Product Tonnes Major Distributors Basil 0.4 Singapore Bok Choy 9 Hong Kong, Indonesia Chinese Cabbage 1,738 Hong Kong, Taiwan Chives 0.04 Philippines Coriander 0.2 Nauru Ginger 500 Japan, New Zealand Mint 0.008 PNG Parsley 11 Hong Kong Puk Choi 0.09 Hong Kong Radish 3 Hong Kong, PNG Shallot 0.1 PNG Watercress 0.01 Hong Kong Wongbok 1,113 Singapore, Hong Kong Total 3,375 Source: AQIS 1999

Import data in Hong Kong state that imports of “gourd” and “Chinese melon” come from Australia11, specifically Queensland. However, this was unable to be confirmed in the survey.

There would appear to be potential for additional export crops. It was reported from the Atherton Tablelands that a number of New Zealanders and a Fijian have visited the area recently with the intention of exporting taro to New Zealand. This is an estimated import market of 7 000 t12 but currently dominated by an exporter from Fiji. It was also reported that a number of Pacific Islanders have moved to the north of Queensland with the expressed intention of producing taro for export to New Zealand. A grower in the south of the State stated that she was exploring the potential for exporting taro to Samoa.

Exporters have also expressed an interest in yambeans for shipment to China. For the while, growers are wary because in their view, yambean is a soft fruit unsuitable to the rigors of export handling.

Concern was expressed that an export industry must be built on a sound domestic industry in order to absorb off-grades and an unexpected decline in the export sector. It was considered that for the while, sound domestic marketing does not exist for most Asian vegetables.

Imports – Interstate and Overseas

In 2001, Queensland grown Asian vegetables competed on the Brisbane markets with the following inter-state products.

11 Defined as “0707 0010: Gourd, hairy”, and “0707 0020: Chinese melon other than hairy gourd”. 12 See Vinning (forthcoming).

Table 13: Inter-state Asian vegetables competing with Queensland Asian vegetables

Asian Vegetable Queensland Northern Territory New South Wales

Bitter melon January to August, • Jan, Feb, Mar • Aug Oct to Nov …May…Oct

Chinese melons January to May June, July Zero …December

Chinese veg Year-round Zero Jan, Feb

Yambeans Feb, Mar May Zero

Lime leaves Year-round July Zero

Luffa Zero February Zero

Taro Jan…May to Jan to April Zero October, Dec Source: AusMarket Consultants

A number of Asian vegetables are imported into Australia, albeit in the processed and not fresh form. Ethnic stores in Brisbane had the following processed products:

• Taro – imported from China frozen, peeled in brine and combined with other products such as gobo. • Burdock, lotus, bamboo – frozen and semi dried.

Grower Numbers and Ethnicity

The Lee audit estimated that there were 65 Asian vegetable growers in Queensland.

Hard data was not available to update this estimate. However it is estimated that there are approximately 300 Asian vegetable growers in Queensland at the current time13. Around two thirds of these growers are Asian Australians while the balance is made up of Pacific Islanders and Caucasians. Grower numbers are at a historical high as sugar growers and dairy farmers, disillusioned with low sugar prices and dairy deregulation, seek alternative enterprise options.

An interesting feature of the Queensland Asian vegetable industry is the decline in the relative proportion of total output being produced by growers of Asian origin. A large number of producers are Caucasians who are exploring the commercialisation of Asian vegetables. Rootcrops, especially taro and yams, are being grown by Pacific Islanders.

In contrast to Asian growers, very few Caucasian growers dedicate their farms just to Asian vegetables. Most treat Asian vegetables as an add-on to their mainstream activities.

At the same time comment was made about the proliferation of Asians growing vegetables. Whilst a number of these have commenced farming in the Brisbane area, it is noted that some are moving into the Lockyer Valley, and the Bundaberg and Stanthorpe regions. Local comment was these are commercial scale operations rather than small plot holdings.

13 Estimate may not include all sugar producers currently experimenting with Asian vegetables.

An indicator of the ethnicity of the origin of the supplier of green leafy Asian vegetables to the Brisbane Wholesale Markets is that if the produce is in a bunch form it is likely to be grown by an Asian Australian and in the boxed/carton form it is likely to grown by a Caucasian Australian.

An Asian Vegetable Producers Group was formed in Year 2000.

A Taro Growers Association was formed in 2002. It has around 40 members, all of whom are Caucasian Australians. The Association has not been operating long enough for a survey to be undertaken of its members in terms of area, production, production techniques etc. This is planned for the near future14.

Pacific islanders are typically associated with rootcrop production even though their production does not dominate total production. The three crops are taro (Taro Pacific), yams (usually white – yellow fleshed) and cassava.

Farm Profile and Practice

Farm size is highly variable. It is only in the Brisbane region that whole farms are dedicated to Asian vegetables. These market gardens tend to be small, with the largest around 10 ha. It is more common throughout the rest of the state for Asian vegetables to be grown in conjunction with other agricultural activities.

Grower Innovation since the Mid 1990s

Comment was made that the greatest degree of innovation has come from conventional vegetable growers adapting existing techniques to the new Asian vegetables rather than from traditional growers. Mechanisation on a comparatively large scale is the main innovation.

A great deal of the innovation has come from conventional Australian farmers. In the Brisbane region where growers of Asian origin dominate the production of Asian vegetables, production is very labour intensive. In the other parts of the state where production is in conjunction with other vegetables, effort is being made to adapt existing equipment and techniques. A typical example is the addition of rows of bitter melon and hairy melon to conventional melon production and snake beans and luffa to conventional bean production in the Burdekin. Here the industry has benefited from developments in irrigation technology and on-farm agronomy.

Queensland general sensitivity to post harvest preservation has been of benefit to the industry. Co- production of Asian vegetables with conventional vegetables allows some crossover of information in an area where information relevant to the tropics is in short supply. Oddly, the further the production is from the major market the greater the likelihood of there being lower spoilage. Post harvest technology, especially refrigerated transport, is employed.

An example of the adoption of existing vegetable production techniques is with daikon. Here, the use of seed tapes (tapes of up to 100m long with seed impregnated) provides for precision planting and even product maturity. Even product maturity results in significant harvest cost savings.

Economics of Production

Production of Asian vegetable crops as an “add on” to conventional horticultural enterprises has potential to yield high returns for growers – fixed costs (land, harvest systems, etc) are covered by other enterprises. Higher returns seem to be achieved by the crops that have not been mechanised eg leafy vegetables. Where mechanisation has occurred product volumes have increased and unit prices have fallen.

14 Pers.com. Philippe Petiniaud, President, Taro Growers Association.

Research Issues, Outputs and Priority Actions

Seven major issues emerged from industry consultation. • Planting material: Acquisition of planting material is a problem for the newer less established Asian vegetables. For example, Australian quarantine regulations prohibit further importation of taro germ plasm for propagation. Growers face quarantine restrictions bringing in planting material from overseas. • Scientific endeavour: Asian vegetables growers have benefited from considerable focussed research. This includes: − Research into combating Diamond Moth in brassicas as part of an ACIAR15– DPI collaborative research project. Outputs have benefited the Queensland Chinese cabbage industry. − The RIRDC project “Development of taro, yam, yam bean and sweet potato exports to Japan and USA” managed by Central Queensland University has resulted in an upsurge in interest in growing Taro Supreme.

Nevertheless, mention was made of the considerable dependence on Victorian extension material and its general lack of relevance to the Queensland situation. • Movement: The Asian vegetable industry in Queensland is typified by a very high rate of growers moving in and out of the industry. This is particularly true for Caucasian Australian producers, less so for Asian producers, and even less so for Islanders. Part of the issue with Caucasian Australian producers is that they are used to a very high degree of mechanisation in their farming operations but, for the while at least, Asian vegetable production is comparatively labour intensive. • Future growth: It was considered that future growth would not come in a burst with the entry of new producers into the industry. Asian vegetable production requires a great deal of experience and access to information that can shorten the gaining of experience is hard to come by. This comment was particularly aimed at sugar growers in the Bundaberg region. • Labour: Concomitant with the lack of mechanisation within the industry was the concern about labour costs. • Value adding: It was noted that the marketing of a sweet potato crisp commenced in 2002. Similarly, it was noted that Hawaii has a useful taro chip industry. • Access to information: There is a dearth of extension material to assist growers. Particular mention was made of the lack of hands-on information by Departmental staff and especially the lack of detailed information relating to harvesting. None of the material that was available was available in a language other than English.

No unprompted mention was made of the two RIRDC publications – Access to Asian Vegetables and Access to Asian Food. Even with prompting not that many were aware of them.

Analysis of DPI extension material would indicate that the most number of articles was on Chinese cabbage followed by sweet potato. This reflects their commercial importance.

15 Australian Centre for International Agricultural Research, a program based on collabourative research between Australian scientists and scientists from developing countries.

2.3 South Australia

Vietnamese growers dominate vegetable production in South Australia. In the main their output is driven by conventional vegetable lines, Asian vegetables, as defined in this study, account for a very small percentage of total production. South Australia produces less than 3% of Australia’s Asian vegetables and is a minor export player.

Industry Location

Vegetable production in South Australia is concentrated on the Adelaide Plain between the coast and the northwestern suburbs of Adelaide. There are approximately 1,000 vegetable growers in the Adelaide Plains area and around 600 of these are Vietnamese Australians (Gerard Davies, pers. comm.). Small pockets of production occur at Murray Bridge and in the far south.

Major Vegetables

While Asian Australians dominate grower numbers, mainstream vegetables such as tomatoes, cucumber, capsicum, carrots, potatoes and celery dominate production. There are very few Asian vegetables grown in South Australia. A single known grower in the Adelaide Plains area produces bok choy and coriander on a large-scale commercial basis. Other growers produce product at a cottage industry scale (Gerard Davies, pers. comm.).

Growers indicate that there is very little commercial demand for Asian vegetables in South Australia, only a small amount of produce is sold through the Adelaide Markets (See table below) and most production is grown for personal use or bartered by growers who trade product for groceries. By way of comparison there were 369 tonnes of Chinese cabbage sold through the Adelaide Markets in 2001 compared to approximately 3,000 tonnes in each of Melbourne and Sydney.

The Lee audit identified spring onions, Chinese cabbage and Asian vegetable seed as the major SA Asian vegetables. Industry data would confirm that these are still the dominant types.

Value and Volume of Production

The Lee audit estimated the SA industry at a value of <$0.5 million in 1993/94. Audit estimates are reproduced in table 14 below.

Table 14: Value Estimates for South Australian Asian Vegetables for Financial Year 1993/94

Asian Vegetable Value ($) Number of growers ASIAN VEGETABLES 0.4 million 5 CHINESE CABBAGE na 3 SHALLOTS/SPRING ONIONS 0.1 27 EXPORT SALES (FOB) 0 0 Source: Lee audit

SA vegetable production was valued at approximately $75 million in 2000/01 (based on production values for Northern Adelaide, which is the major SA vegetable production region). Asian vegetables are thought to account for between $3 million and $4 million of this total. This estimate is derived from data detailed in the table below and adjusted for conventional vegetable types, estimates of product that bypasses the market system (direct sales to greengrocers) and “imports” from other states (product is sourced from Victoria eg leafy vegetables and the northern states eg ginger).

Table 15: Adelaide Asian Vegetable Sales by Value and Volume Calendar Year 2000 and 2001

Asian Volume Sold Value of Sales Gross Value of Total Vegetable (tonnes) ($/t) Sales ($) 2000 2001 2000 2001 2000 2001 CHINESE 744.01 368.85 862 914 641,389 336,954 CABBAGES CHINESE 222.56 261.82 2,750 2,750 612,051 720,033 VEG. GINGER 218.26 243.10 5,004 3,627 1,092,209 881,763 HERBS 84.29 138.01 6,814 8,455 574,350 1,166,939 KALE na 14.51 na 4,336 na 62,910 PARSLEY 280.70 372.00 3,250 3,238 912,244 1,204,590 SHALLOT 0.01 0.00 6,500 0 65 0 BULBS SPRING 198.51 184.72 2,603 2,832 516,648 523,207 ONIONS Total 1,748.34 1,583.01 4,348,956 4,896,396 Source: Ausmarket Consultants – data needs further clarification plus historical perspective

The industry has grown significantly since the 1995 audit but remains relatively small at an estimated $3.5 million.

Markets – Domestic, Export and Import

Most vegetables sold in South Australia pass through the Adelaide Markets. Indications are that 75% of total production is sold through the markets, a further 20% is sold direct to supermarkets or leaks out of South Australia to the Melbourne or Sydney Markets and approximately 5% is exported (Gerard Davies, Director Virginia Horticulture Centre).

Market channels for Asian vegetables in SA are somewhat different from conventional lines. Supermarkets source their Asian vegetable needs through the Adelaide Markets while greengrocers and restaurants secure supply direct from family groups or even produce their own. Suppliers of product to supermarkets practice formal QA while product destined for greengrocers and restaurants is of variable quality. There are two major agents at the Adelaide Markets who handle Asian vegetables. It is understood that a significant portion of the vegetables sourced through the Adelaide Markets is grown in Victoria while produce grown in South Australia is marketed in Victoria at various times of the year (Angelo Dimasi, pers. comm.).

Two large growers of leafy Asian vegetables in SA, one at Mt Gambier and the other at Murray Bridge, produce pre-packed salad mixes that include bok choy.

Exports of Asian vegetables from SA are small. In 1997/98, the most recent data set available, exports totalled a little over 10 tonne, were all destined for Singapore and all but a trivial amount was Chinese cabbage. See table prepared from AQIS data below.

There are no imports of Asian vegetables from overseas. Imports from Victoria include leafy Asian vegetables. Imports from the north of the country include small amounts of tropical types (luffa, snakebean and ginger).

Table 16: Exports of Fresh Asian Vegetables from SA (1997/98)

Product Tonnes Basil 0.002 Bok Choy 0.07 Burdock 0.01 Chard 0.003 Chinese Cabbage 10 Coriander 0.002 Ginger 0.02 Mint 0.001 Parsley 0.09 Radish 0.2 Wongbok 0.02 Total 9.95 Source: AQIS 1999

Grower Numbers and Ethnicity

Two types of grower are present in SA. The first are the small semi-professional suppliers who operate close to Adelaide and supply produce direct to greengrocers and restaurants. Asian vegetables are produced using traditional practice. The second group of growers are the larger scale operators who embrace best practice on larger commercial scale operations. These growers are found in areas more remote from the city and are strictly limited in number. Group one is estimated to include around 35 members, while group two might consist of another 5 growers. Ethnic Vietnamese dominate group one while group two includes Vietnamese and Caucasian growers.

Farm Profile and Practice

Group one growers produce in market garden style arrangements. Group two growers utilise groundwater irrigation. Group two are experimenting with hydroponic production of Asian vegetables. Group two growers mostly produce on properties of 2 to 4 hectares; two or three growers have properties between 16 and 24 hectares (Danny Deieso, pers. comm.).

Grower Innovation since the Mid 1990s

Group two growers have invested in improved irrigation management and have adopted QA practices in line with market requirements since the Lee audit (Danny Deieso, pers. comm.).

Economics of Production

Production economics is consistent with conventional vegetables, margins are modest and growers rely on the occasional high price year (Craig Feutrill pers comm.).

Constraints to Further Growth

Future growth is limited by local in state demand.

Research Issues, Outputs and Priority Actions

Virginia Horticulture Centre has made recent major efforts to engage Vietnamese growers on the North Adelaide Plan. The Centre has employed a Vietnamese-speaking liaison officer and has tapped into the Commonwealth FarmBis program to provide education and training to farmers. Training modules provided include production issue diagnosis, quality systems, basic literacy and so on.

2.4 Western Australia

Western Australia is almost self sufficient in the production of vegetables. It is also the nation’s largest fresh vegetable exporter. In 2001/02 Western Australia exported vegetables to the value of $87.9 million in a total industry worth $242 million. The major WA crops in order of importance are carrots, cauliflowers, potatoes, celery and Chinese cabbage (WA Department of Agriculture Trade and Development Report). WA produces around 13.5% of Australia’s Asian vegetables. Together with Queensland, WA dominates Asian vegetable exporting.

Industry Location

The Asian vegetable industry is located within a 350 km radius of Perth and mainly in the Wanneroo area, 50km north of the city. There are additional production regions in Carnarvon and Kununurra. There has been a significant Chinese cabbage industry in Manjimup over the last 18 years, however due to low export prices, production was insignificant for the first time in 2002 (John Burt, pers. comm.).

Major Vegetables

The Lee audit identified the major Asian vegetables in WA as Chinese cabbage, spring onions, daikon and Asian vegetable seed.

In 2002 the major Asian vegetables grown for domestic consumption were kabocha (Japanese pumpkin), Chinese cabbage, pak choi, choi sum and daikon. For export the major vegetables were Chinese cabbage, burdock and daikon (pers comm. Vynka McVeigh).

Value and Volume of Production

The Lee audit estimated the WA industry at a value of $5.6 million in 1993/94. Audit estimates are reproduced in table 17 below.

Table 17: Value Estimates for Western Australian Asian Vegetables for Financial Year 1993/94

Asian Vegetable Value ($) Number of growers ASIAN VEGETABLES 0.5 million 5 CHINESE CABBAGE 4.5 26 SHALLOTS/SPRING ONIONS 0.6 32 EXPORT SALES (FOB) 4.5 Included above Source: Lee audit

In 2001 domestic sales were estimated to be worth in the order of $9.5 million from a production base of around 4,500 tonnes (see AusMarket data provided in table below). Estimates of domestic value and production assume that all Asian vegetables are sold through the Perth Markets. This simplifying assumption is made in the absence of better data. John Burt (pers. comm.) indicates that some Asian vegetables, especially the more minor bunching lines, bypass the market system.

Table 18: Perth Asian Vegetable Sales by Value and Volume Calender Years 2000 and 2001 (Perth Markets only)

Asian Vegetable Volume Sold Value of Sales Gross Value of Total (tonnes) ($/t) Sales ($) 2000 2001 2000 2001 2000 2001 CHINESE 1,584.54 839.79 539 535 854,732 449,034 CABBAGES CHINESE VEG. 369.90 571.66 1,630 1,679 602,936 959,534 GINGER 232.12 364.61 2,607 3,223 605,073 1,175,058 KALE 9.83 na 1,334 na 13,109 na PARSLEY 596.65 562.51 2,312 2,854 1,379,347 1,605,264 SHALLOT BULBS 0.01 0.00 8,700 0 87 0 SHALLOTS 1,275.77 2,672.71 2,143 2,529 2,734,241 6,759,370 SPRING ONIONS 71.03 na 625 na 44,393 na Total 4,139.85 5,011.28 19,890 10,820 6,233,918 10,948,260 Source: AusMarket Consultants

The overall estimate of domestic sales is consistent with time series data provided by Vynka McVeigh and sourced from the Perth Market Authority. Asian vegetable production has been relatively stable over the last three years at between 3,000 and 5,000 tonnes. This is an increase over the 1,500 tonnes produced in 1997/98. See table 19 below.

Table 19: Sales Data from Perth Markets for Financial Years 1998/99 to 2000/01

Asian Vegetable Volume (tonnes) 1997/98 1998/99 1999/00 2000/01 Kabocha (Japanese 579 4,200 2,137 3,700 Pumpkin) Chinese Cabbage 697 611 608 725 Pak Choy (Green 20 55 70 79 Stem) Choy Sum 51 40 52 51 Daikon 20 28 32 50 Shallot 18 33 40 41 Bean Sprouts 77 22 28 36 Mizuna 0 0.3 18 30 Bok Choy 0 6.5 30 29 Okra 14 13 11 8 Bitter melon 0 0.1 5 4 Watercress 2 1.7 1.4 1.7 Chines broccoli (Kai 8 4.2 1.6 1 lan) Snakebean 0 1.9 2.8 0.2 Total 2000/2001 1,500 5,000 3,000 4,700 Data from Vynka McVeigh (She quotes Perth Market Authority)

In addition to domestic sales the WA industry exports around 3,300 tonnes of Asian vegetables per annum (see table below sourced from AQIS and the Department of Agriculture WA). This produce does not pass through the Perth Markets. While specific estimates of the value of Asian vegetable exports are not available, Department of Agriculture, WA estimates that in 1999/00 the value of “other vegetable exports” was $9 million. The “other vegetable export” category included minor crops such as broccoli, brussel sprouts, capsicum, celery, leeks, sweet corn and zucchini as well as the large volume Asian crops of Chinese cabbage and spring onion. An estimate of $9 million would therefore place an upper bound on the value of WA Asian vegetable exports. As a cross check a total export value of $9 million spread across 3,300 tonnes of sales (see table below) would result in a per tonne value of $2,700, an estimate consistent with values reported in eastern states.

Total industry value, domestic plus export sales is therefore estimated at approximately $18.3 million per annum. On this basis the industry is now approximately three times larger than the 1995 audit estimate of $5.6 million.

Markets – Domestic, Export and Import

The industry is roughly split in even proportions between export sales (around 3,300 tonnes) and domestic sales (4,500 tonnes).

Chinese cabbage dominates WA exports. Other important crops are burdock and daikon. AQIS data for 1997/98 and 2000/01 (provided by Department of Agriculture, WA) are presented in table 20 below along with information on export destination.

Table 20: Exports of Fresh Asian Vegetables from WA 1997/98 and 2000/01

Asian Vegetable Volume Exported Major Export Destinations (tonne)

1997/98 2000/01 Chinese Cabbage 1,893 2,566 Singapore, Taiwan, Hong Kong Burdock 0 387 Japan, Taiwan Daikon 532 310 Singapore, Taiwan, Hong Kong Chinese Leafy Vegetables 0 8.7 Singapore Bok Choy 0.03 5.6 Singapore, Middle East, Maldives Mizuna 20 0 Shallot/Spring onion 2.41 Brunei Tatsoi baby, Shallot (bulb), Okra, 0.01 < 5 Mauritius, Singapore, Middle East, Sprouts, Choy Sum, Watercress, Adzuki sprouts Other (basil, chard, chives, 29.16 0 Singapore, Brunei, Indonesia, Malaysia coriander,, mint, mushroom, parsley) Total 2,476 3,282 Source: AQIS and Department of Agriculture, WA

Current year estimates for WA Asian vegetable exports show a decline in shipments of Chinese cabbage (1,511 tonnes in 2001/02), a drop off in burdock (49 tonnes) and an increase in daikon (517 tonnes) exports (AQIS data, now discontinued, provided by John Burt).

Chinese cabbage has been a major export crop for WA for around 20 years. However, its importance has declined in the last 10 years. Exports peaked in 1992/93 at a value of $6 million (Lee audit) and have fallen to $1.7 million and $2.3 million in 1999/2000 and 2000/2001 respectively (John Burt, pers. comm.). Reasons for the decline in Chinese cabbage export from WA include: • Competition from China16 • Low prices received by growers • Competition from traditional vegetables (yielding better returns) • Production difficulties (the crop is relatively temperamental) • Low storage life for Australian product • Declining consumption in South East Asian countries (John Burt pers. com.) • Higher costs of production. Growers in built up areas are no longer allowed to use poultry manure in the warmer months and this has increased production costs.

16 Competition from China has driven down exports of Australian Asian vegetables over the last two to three seasons. However, recent concerns in Singapore and Japan regarding high chemical residue in product of Chinese origin may provide an opportunity for Australia to regain market share.

Comment received from the industry in WA would indicate that with the decline of Chinese cabbage, the future of the Asian vegetable industry is somewhat uncertain. There has been an over commitment of resources to production of Asian vegetables with little development of export or domestic markets (John Burt, David Ellement pers. com.).

On a positive note, a strong export trade exists with South East Asia for fresh WA vegetables and new opportunities are being identified in North Asia. There is an established export supply chain in WA and there are twelve established vegetable exporters (McVeigh 2000). Exporter details are provided in the contact database.

Exploitation by traders in Asian markets, identified by the Lee audit, is understood to still be an issue for the industry.

Asian vegetables are retailed in WA through a typical mix of greengrocers, restaurants and the national supermarket chains.

Grower Numbers, Ethnicity and Farm Practice

The Lee audit noted that Asian vegetable growers in Western Australia are Australian farmers with little experience with Asian vegetables. Since the audit, established conventional vegetable growers of Caucasian backgrounds have continued to diversify into Asian vegetable production (David Ellement, pers. comm.) Non-Asian Australians tend to be the large exporters of Asian vegetables (Grant Vinning, pers. comm.). However, it is also noted that much of the production entering the Perth domestic market is produced on small acreages in the Perth suburbs by Vietnamese Australians. Growers in Wanneroo also tend to be Vietnamese in origin (David Ellement, pers. comm.).

Grower numbers, ethnicity and farm practice data for the three key WA Asian vegetable production regions are summarised in the table below. In addition to the growers identified in the table a further sixty industry participants are thought to produce Asian vegetables in WA. This includes growers in areas such as Manjimup and brings the total industry grower base to 129.

There is no specialist Asian vegetable growers association in WA. The WA Vegetable Growers Association represents all growers, including Vietnamese Australians.

Table 21: Western Australian Grower and Farm Profile

Production Production Region Characteristic Kununurra Carnarvon Metropolitan (Perth) Crops Bitter melon Kabocha Burdock Kabocha Chinese cabbage Daikon Chinese cabbage Okra Chinese cabbage Okra Pak choi Bok choi Tatsoi Farm size Ranging from ¼ ha for 4 to 6 ha Ranging from backyard bitter melon to 500 ha size to 20 plus ha. for kabocha Farm Practice Market garden to modern Mostly field production, Labour intensive market large scale commercial some have shade houses gardens with larger scale for Chinese cabbage Number of growers 24 20 25 (Made up of 1 burdock grower, 9 daikon growers and an estimated 15 Chinese cabbage growers#) Main markets Perth market for bitter Perth market Burdock to Japan, melon, leafy Chinese daikon to Taiwan, Hong vegetables and okra. Kong, Singapore and Sydney and Melbourne domestic markets. for kabocha. Chinese cabbage to Darwin for Chinese export and local cabbage and okra markets. Other comments Growing season of Growers are well Statistics for small April to September for established and backyard operations bitter melon experienced. Most are difficult to obtain. Best over 50 years of age estimates only Additional Information Chris Robinson, Dept of Golam Azam, Dept of Dennis Phillips, Dept of Agriculture 08 91666 Agriculture (08) 9956 Agriculture (08) 9250 4037 3322 9432 Source: Department of Agriculture, WA # Chinese cabbage grower estimate prepared by Hassall & Associates

Economics of Production

All three major WA Asian vegetable export crops have experienced pressure on price over the last three years. Low prices, difficulties in production and competition from China have limited industry opportunity (John Burt pers. com.).

Grower Innovation Since the Mid 1990s

Historically the industry has been labour intensive, with family/community-based labour and with low degrees of technological development. However, there has been a move towards intensification in the last eight years as traditional growers have exited the industry. Innovative growers have introduced both hydroponics and protected cropping systems (John Elliot and Vynka McVeigh, pers. comm.).

Research Issues, Outputs and Priority Actions

The WA industry has targeted four key factors for future development and market expansion, they are: • Improved varieties; • Quality and food safety, • Sustainable production practices; and • Efficient supply chain linkages for domestic and international markets (McVeigh 2000).

The WA Department of Agriculture, with funding from HAL, has been working on burdock and daikon trials in the South West of WA. Production results have been encouraging. However, both fresh produce and semi-processed product face difficulties in competing on export markets with Chinese produce (Department of Agriculture media release 25 January 2002 updated by John Burt, pers. comm.).

2.5 Northern Territory

Asian vegetable production dominates the vegetable industry in the Northern Territory, accounting for 75% (3,205 tonnes) of vegetable production by weight and 90% of the value (Prime Stats: Horticulture Industry of the Northern Territory, 2001). In 2002 the industry is thought to have a gross value of approximately $11 million at first point of sale (Melinda Gosbee, pers. comm.). The NT industry accounts for 8% of Australian production.

Industry Location

Production takes place within 100km of Darwin, much of it within the metropolitan area of the capital. Katherine has a significant vegetable industry but currently produces only conventional vegetables. Kabocha has been trailed at Katherine (Gosbee in Gallacher, CQU website) but has not been established commercially (Kim Bui, pers. comm.).

Major Vegetables

The Lee audit identified the major Asian vegetables in the Northern Territory as bitter melon, snake beans, luffas, gourds, Chinese cabbage and herbs.

In 2000 the major vegetables were okra, bitter melon, snake bean, gourds and luffa, see table below. Okra, bitter melon and snake bean account for 60% of industry value. Few leafy Asian vegetables are grown in the Northern Territory (Kim Bui, pers. comm.). Chinese cabbage and taro would appear to have lost popularity with growers relative to the growth of other vegetables.

Value and Volume of Production17

The audit estimated the NT industry at a value of $2.5 million in 1993/94. Data supplied by the Horticulture Industry of the Northern Territory would indicate total production of 400 tonnes and a farm gate value of $1 million in 1994. A breakdown of audit estimates is not available.

17 Estimates based on farm value, rather than wholesale price.

Table 22: Value Estimates for Northern Territory Asian Vegetables for Financial Year 1993/94

Asian Vegetable Value ($) Number of growers ASIAN VEGETABLES 2.5 million 30 CHINESE CABBAGE na na SHALLOTS/SPRING ONIONS na 2 EXPORT SALES (FOB) 0 0 Source: Lee audit

In year 2000 the industry was estimated to be worth in the order of $9m or $140,000 per farm. There are approximately 60 farms in the NT. It is estimated that this value has now increased to $11 million or $180,000 per farm (Melinda Gosbee, pers comm.).

A breakdown by value and volume for 1994 and the year 2000 is provided in the table below.

Table 23: Northern Territory Asian Vegetable Sales by Value and Volume 2000

Asian Vegetable Volume Sold Gross Value of Sales (tonnes) ($) 1994 2000 1994 2000 Beans Snake 92 455 $271,000 $1,226,000 Bitter Melon 138 611 $254,000 $1,370,000 Gourds 20 230 $35,000 $461,000 Herbs 16 27 $68,000 $214,000 Luffas 24 142 $56,000 $284,000 Okra 23 890 $79,000 $3,113,000 Winter Melons 17 127 $30,000 $254,000 Others 79 723 $207,000 $2,340,000 Total Asian Vegetables 409 3,205 $1,000,000 $9,262,000 Total Traditional Vegetables 2,225 1,001 2,667,000 $1,613,000 Total 2,634 4,206 3,667,000 $10,875,000 Source: Prime Stats: Horticulture Industry of the Northern Territory, 2001

The industry in the Northern Territory has grown rapidly since the 1993/94 audit. To some extent growth has been at the expense of conventional vegetable production. Conventional vegetable production has slipped from 2,225 tonnes to 1,001 tonnes.

Markets – Domestic, Export and Import

Some 95% of NT Asian vegetable production is sold for consumption in Sydney and Melbourne (Kim Bui pers comm. and Prime Stats, Horticulture Industry of the NT). The NT is able to supply southern markets with counter-season produce and produce that will not grow in cooler climates. This is especially important in Victoria with its short vegetable growing season. The balance of local production that is not sold in southern markets is consumed locally.

Product is harvested, washed, cooled, packed into boxes and transported by road in refrigerated vans to southern markets. A lag of four to five days is incurred between harvest and sale. Herbs such as kang kong and basil are airfreighted to southern markets.

Distance from market is a major challenge for the NT industry. Distance from market results in the muffling of price signals, the transfer of market power to agents/wholesalers at destination and difficulties with packaging and transport.

Volume based contracts are negotiated with southern agents/wholesalers. However, price is normally subject to ruling market rates at the time of delivery. A few growers in the NT have supply contracts with agents to supply supermarkets. These contracts are both volume based and price fixed. These contracts are negotiated at the commencement of the growing season. Contracts of this type are held by less than 10% of the grower base.

Growers report difficulties with agents who manipulate supply to create artificial demand and downgrade produce on arrival in southern markets to lower the price paid to NT growers. A communications project funded partly by RIRDC has supported grower visits to southern markets to build bridges with agents and communicate the importance of supply chain management. Product has not always reached destination in an ideal state.

The cool chain that supplies southern markets has become more sophisticated since the Lee audit. Product condition is independently monitored at destination and transporters are more likely to have embraced best management practices.

Other changes in the market since 1995 noted in the Territory include increased consumption of Asian vegetables, supermarket interest in stocking Asian vegetables and additional demand from Asian Australians, particularly in Darwin.

At the current time the NT does not import or export Asian vegetables, although buyers in Singapore have expressed an interest in securing large volumes of leafy Asian vegetables from the Territory.

Grower Numbers and Ethnicity

Vietnamese growers are the predominant producers of Asian vegetables in the Northern Territory. Some 95% of all growers are Vietnamese while the remainder are either Cambodian or Thai.

The number of farmers producing Asian vegetables has grown rapidly from less than 10 in the late 1980s, to 42 in the mid 1990s (Lim 1998 in Gallacher 1998 web site). The industry is currently thought to total between 57 and 62 grower families (Kim Bui, pers. com.).

The recently formed Asian vegetable Growers Association of the Northern Territory has 36 members (Gosbee 2000).

There is a high turnover of Asian vegetable growers (Gosbee in Gallacher 1998 web site). Around one third of all growers are anticipated to exit the industry over the next two to three years. However, the grower base is expected to be replenished with new arrivals from the southern states. Total numbers are expected to remain at around 60 (Kim Bui, pers comm.).

Farm Profile and Practice

Production takes place on small acreages. The average farm size is around 3 ha and larger properties are between 5ha and 8 ha. Acreages are limited by labour availability and technological development. Historically, growers have had a low agronomic skill-base and difficulty with literacy (Melinda Gosbee, pers comm.).

Growers tend to be new to farming and Asian vegetables are seen as a short-term cash crop that is planted while tree crops such as mangos mature (Gosbee in Gallacher 1998 web site). Approximately one half of all NT growers fall into this category (Kim Bui, pers. com.).

Farms are labour intensive. Production takes place on trellises and is reliant on family and community based labour.

There is a low degree of technological development. Use of technology is limited to soil preparation implements, spray gear and some mulching (Melinda Gosbee pers comm.). Growers of kang kong and okra save seed for planting the next year’s crop. There is a low degree of adoption of new technology such as fertigation, growing of green manure crops (sorghum), soil testing or the use of plastic and paper mulches (Melinda Gosbee, 2000).

Most farms practice crop rotation and grow a wide variety of crops to cover market requirements and manage production risk. Spoilage rates, including field wastage are less than the 40% reported in East Gippsland. Snake beans have a high wastage rate but nothing like 40% (Kim Bui pers. com.).

Over time it is anticipated that the average size of farms will increase but production will always require large inputs of labour.

Grower Innovation since the Mid 1990s • Key changes in production and marketing since the Lee audit have been driven by effective industry extension including the creation of a Communications Officer funded by a pilot project involving RIRDC, NRE and DBIRD. This has resulted in growers seeking out information from DBIRD. • Improved agronomic practice including the gradual adoption of fertigation, mulching and improved vegetable varieties. Breakthrough vegetable varieties have recently been adopted for both bitter melon and okra. • Improved internal industry communication and grower cooperation. For example, seven growers are working on a business plan for a cooperative packing shed. A cooperative packing arrangement will be able to offer the market larger volumes of consistent product and potentially increase the market power of growers in what is currently a price taking arrangement. • Greater interest in market movements including subscription to fax advice on price from agents/wholesalers. • Creation of an Asian Vegetables Growers Association that meets monthly and whose activities include trips to southern markets, nutrition training, open days, agnotes and problem sheets. • Extension materials in dot point English or translated into Vietnamese. • Approved supply training as well as Chemcert and Farmcare courses. Growers are requesting training in these areas. Approximately half of all NT growers have completed QA training, others are awaiting course placements and a small number of growers have reached audit stage. Non- supermarket supply chains are not yet asking for QA audit results. • A formal process for securing independent advice on the quality of vegetables on arrival in southern markets is being investigated. Under this proposed arrangement agents would send an independent report, completed by an impartial market inspector, to the Northern Territory Horticultural Association for verification of vegetable condition. Growers would then be in a position to have vegetables independently assessed and take corrective action where this is required.

Constraints to the further growth in production in the NT include, in priority order: • Lack of suitable labour. Crops, especially trellis crops like snake beans, require large amounts of harvest labour that simply is not available at the current time. • High priced road transport. Anecdotal evidence is that transport costs to southern markets are three to four times higher in the NT than for equivalent distances in Queensland (this may be driven by lack of backloading opportunities in the NT). • Packaging costs, other states have been able to manage the high cost of packaging by using second hand boxes. This option has not been readily available in the NT and is a second best solution (see Victorian situation assessment).

Research Issues, Outputs and Priority Actions

• Market research is the priority action required for Asian vegetable industry of the NT. The production potential of the Territory is possibly three times current output and interest has been expressed in the supply of large volumes of leafy vegetables to Singapore. If cooperative arrangements could be secured between NT and southern growers a year round supply to Singapore would be possible. Current Singaporean supply is sourced from the Cameron Highlands of Malaysia and there is believed to be concern in Singapore about the quality of this supply (chemical residues are believed to be a problem). Threats to this opportunity include the availability of very good quality produce from China. Market intelligence and cooperation is needed to back this potential. • Research and strategy formulation to overcome labour shortages. Research on whether labour saving techniques for labour intensive crops are possible and strategies to secure a labour supply if they are not, is needed. • More cost effective transport. The Adelaide to Darwin railway line will assist with this issue by improving regularity, decreasing cost and shortening delivery times. • Grower’s representatives report a high penetration of RIRDC Access to Asian Foods and Asian Foods Newsletter. Growers appreciate the practical focus of the publication and are able to work around the limited relevance of temperate climate articles. • R&D outcomes being adopted by the industry include green manure crops, plastic mulching, fertigation and new varieties. Future research is being driven by DBIRD consultation with growers on grower needs.

2.6 Tasmania

The production of Asian vegetables in Tasmania is a relatively minor industry18. A small domestic market and failure to secure major mainland or export markets has constrained growth potential.

Industry Location

A minimal amount of leafy Asian vegetable production takes place in market gardens close to Hobart. Production in areas outside of Hobart, mainly in the environs of Devonport in the north-west and Scottsdale in the north-east, is driven by Kabocha (Japanese pumpkin) production. Kabocha is grown on large mixed cropping and grazing enterprises.

Major Vegetables

The Lee audit identified Kabocha and bunching onion bulbs as the major Asian vegetables produced in Tasmania. Tasmania also has some experience in the production of Japanese carrots. At the time of the Lee audit the industry was seeking Asian vegetable diversification options. Diversification of production remains an important goal for the Tasmanian vegetable industry (Joe Horak, pers comm.). The industry is seeking ways to diversify its reliance on processing vegetables and establish fresh overseas and interstate export markets (Department of Primary Industries, Water and Environment (DPIWE)).

18 The picture is changed somewhat if Japanese carrots are included but for consistency with the 1995 audit these are excluded from this study.

In 2002 the major vegetables are kabocha, spring onion/shallots (bunching onion bulbs), wong bok, bok choy, baby kaai laan and daikon. These vegetables are grown for fresh vegetable market stalls and other local vegetable outlets (Joe Horak, pers comm.).

Chinese cabbage, burdock, edamame, soromame and daikon have been trailed in Tasmania and while production has been successful the industry has failed to secure regular profitable markets outside the state. Profitable production of these crops on a minimal scale would appear to be limited to efficient market gardeners in and around Hobart. Production satisfies a small local market (DPIWE).

Asian vegetable seed production for export to northern hemisphere outlets, especially for leafy Chinese vegetable types, is emerging as a limited profitable niche in Tasmania. The industry is located in the northern midlands. Also emerging is the development of a specialty edible fungi market that includes oyster fungus, shiitake, maitake and truffles (the latter not considered to be an Asian vegetable). Trials and plantings are progressing on the culture of these crops (DPIWE).

Value and Volume of Production19

The Lee audit estimated total industry value at $2.8 million in 1993/94; some $2.3 million of this total was generated through export sales. Audit estimates are reproduced in table 24 below.

Table 24: Value Estimates for Tasmanian Asian Vegetables for Financial Year 1993/94

Asian Vegetable Value ($) Number of growers ASIAN VEGETABLES 2.8 million 20 CHINESE CABBAGE na na SHALLOTS/SPRING ONIONS 0.8 million 15 EXPORT SALES (FOB) 2.3 million Included above Source: Lee Audit

Reliable estimates of Asian vegetable industry value are difficult to establish for Tasmania. Individual Asian vegetable crops are grown in insufficient volumes to warrant stand-alone reporting.

Overall fresh vegetable production is estimated at between 5% and 10% of the total gross value of Tasmanian vegetable production (currently valued at approximately $180 million). An estimated value of between $9 and $18 million would place an extreme upper limit on the value of Asian vegetables. Conventional lines dominate Tasmanian production.

DPIWE advice is that Kabocha production currently totals some 1,500 tonnes. If a first point of sale value of $400 per tonne is applied to Kabocha production, then the Tasmanian industry is valued at approximately $0.6 million.

Since the 1993/94 audit the volume of spring onion/shallot production has fallen from around 449 tonnes per annum to around 234 tonnes (ABS figures reported in HAL Statistics Handbook 2000/01). If a farm gate value of $2,500 per tonne is applied to this output current production is valued at around $0.6 million.

There are approximately twelve market gardens in and around Hobart, which supply fresh bunching lines for domestic consumption. If each of these enterprises generates a farm gate income of around $50,000 (approximation developed with Joe Horak DPIWE), then this sector would be valued at approximately $0.6 million.

These ballpark estimates are reported in table 25 below.

19 Estimates based on farm value, rather than wholesale price.

Table 25: Estimated Asian Vegetable Sales of Value and Volume 2001

Asian Vegetable Volume Sold (t) Value of Sale ($/t) Gross Value of Total Sales ($) KABOCHA 1,500 400 600,000 SPRING ONION/SHALLOT 234 2,500 600,000 ASIAN VEGETABLE – 300 2,000 600,000 LEAFY PRODUCE Total 2,034 1,800,000 Source: Hassall & Associates estimate

Total current industry value is therefore approximated at $1.8 million. The overall impression is of an industry that has contracted.

Markets – Domestic, Export and Import

Tasmania lacks a sufficiently large population base, and in particular, a sufficiently large Asian population base from which to drive demand for Asian vegetables. Total state population is less than half a million. Consequently there are only a limited number of Asian restaurants and grocery stores in Tasmania with an interest in purchasing Asian vegetables from growers. What Asian vegetables that are produced (excluding kabocha) are grown locally around Hobart and sold through the markets at Salamanca or road freighted to Launceston for sale. It is understood that domestic production is “topped up” with product sourced from the mainland.

Exports of Asian vegetables from Tasmania are dominated by kabocha and product is centralised by two main exporters who direct product to Japan, Singapore, Hong Kong and other parts of Asia. New Zealand is the major competitor for Tasmanian kabocha and because of the dollar differential in New Zealand’s favour, it is necessary for Tasmania to produce a very high quality product to enter a niche at the top end of the market.

AQIS export statistics for 1997/98 (the most recent data set available) fail to show sale volumes for any Asian vegetables originating from Tasmania.

Grower Numbers and Ethnicity

There are two groups of Asian vegetable growers in Tasmania. They are market gardeners close to Hobart and Caucasian growers in the north of the state. There are around twelve growers in the Hobart group and a further twenty-four producing kabocha. Total grower numbers (36) are therefore similar to those estimated in the Lee audit (35).

Growers close to Hobart are predominantly of Asian origin and are mainly Hmuong people who originate from Thailand, Cambodia and Laos. Growers in the north of the state are Caucasians who mix kabocha production with mixed crops and livestock on holdings of between 100ha and 150 ha. There is no known Asian vegetable grower’s association in Tasmania.

Farm Profile, Practice and Infrastructure

Farm type differs markedly between the two groups of growers. Market gardeners near Hobart have small, market garden style holdings of up to five hectares. They are owned and operated by a single family. Production is labour intensive and reliant on traditional cultural/family knowledge. Production of kabocha in the north of the state is large scale and export focused.

Interstate capital city prices are often used as a yardstick in negotiations for the verbal agreements still common in the domestic trade, and these may bear little relationship to costs of production. Profit margins to the grower can be fairly small at times. Occasionally, however, during periods of severe mainland shortage, growers do benefit and realise high returns (DPIWE).

The industry is dependent on the Federal Government’s Tasmanian Freight Equalisation Scheme to offset shipping costs to interstate markets. Without this assistance, growers and exporters would find it difficult to compete with growers from mainland states (DPIWE).

Supply of vegetables to the mainland will be aided by additional ferry services that commenced operation in September 2002.

Tasmanian industry organisations cater for packers, wholesalers and exporters (Australian United Fresh Fruit and Vegetable Association) and greenhouse growers (Tasmanian Greenhouse Tomato and Vegetable Growers Association) (DPIWE).

Research Issues, Outputs and Priority Actions

Currently research is focused on wasabi, daikon, sorimame, shiitake and maitake mushrooms and various onion cultivars. RIRDC are currently funding a daikon value-adding project and Wasabi research. Research is being delivered by DPIWE. Wasabi research has advanced to the stage where two small volume producers (10m2 and 0.2 ha) at Launceston have entered commercial production.

3. Key Characteristics of the Australian Industry

The following chapter summarises state based research and analysis presented in Chapter 2 into a situation statement for the Australian Asian vegetable industry.

3.1 Industry Location

The industry has a presence in all Australian states and territories. As a general rule there are small- scale market garden style operations within the metropolitan area of the capital cities and larger scale “commercial” operations in the regions. Capital city based market gardens provide fresh produce, especially leafy Asian vegetables, to the domestic market while larger regional operations are more likely to have an export focus.

3.2 Major Vegetables

Climate and consumer preference dictate the range of species grown in each state. The most important species are listed in the table below.

Nationally the key Asian vegetables are those that have “crossed-over” into the mainstream for the longest period of time or have always been considered mainstream. These include spring onion/shallots, Chinese cabbage, various herbs including coriander, parsley and bok choy. Leafy vegetables encompass the bunched green leaf lines including kai laan (Chinese broccoli) and choy sum (Chinese flowering cabbage) and bor choi (Chinese Spinach).

Table 26: Major Asian Vegetables by State 2002

NSW Vic Qld SA WA NT Tas Spring Leafy Chinese Leafy Kabocha Okra Kabocha onion and vegetables cabbage vegetables shallot Herbs Herbs Leafy Spring Chinese Bitter Spring onion vegetables onion and cabbage melon and shallot shallot Leafy Parsley Ginger Chinese Leafy Snake Leafy vegetables cabbage vegetables bean vegetables Chinese Chinese Taro Herbs Daikon Gourds Daikon cabbage cabbage Taro Watercress Daikon Kabocha Burdock Luffa Mushrooms # and wasabi Source: Hassall & Associates estimates

NB: Leafy vegetables include the bunched green leaf lines of bok choy (white cabbage), kai laan (Chinese broccoli) and choy sum (Chinese flowering cabbage) and bor choi (Chinese Spinach) # Shiitake and maitake types.

Dominant Australian Asian vegetable species have remained relatively constant since the Lee audit. Taro, ginger and daikon would appear to have increased in importance in Queensland.

Industry observers have questioned the merits of continuing to include a number of the crossover vegetables in Asian vegetable assessments.

3.3 Industry Size – Wholesale Value and Grower Numbers

Industry size, gross value first point of sale, and grower number estimates for both the audit (1995) and the current time are presented in table 27 below. Estimates are inclusive of both domestic and export sales.

Table 27: Industry Value and Grower Numbers 1993/94 and 2000/01

NSW Vic Qld SA WA NT Tas Total 1993/94 Value 28.9 4.4 5.7 0.5 5.6 2.5 2.8 50.4 ($’million) Grower 338 114 64 35 63 30 35 679 Numbers 2000/01 Value 72 12 17.2 3.5 18.3 11(a) 1.8(a) 135.8 ($’million) Grower 1,000 110 300 40 129 60 36 1,675 Numbers Source: Lee audit and Hassall & Associates estimates. (a)Estimates based on farm value rather than wholesale value.

From the table it can be seen that: • Industry value and grower numbers have more than doubled since 1995. • NSW, Victoria, WA and Qld are the major Asian vegetable producers. Fastest growth in industry value has occurred in SA and NT. SA growth was recorded off a low base. The industry is understood to have contracted in Tasmania. • Farm gross value from Asian vegetable sales is estimated to average $81,000 per farm, from a high in NT of $183,000 per farm (predominance of large interstate exporters) to a low of $57,000 per farm in Queensland (part time and experimental growers many associated with the restructure of the sugar industry).

3.4 Industry Share of National Vegetable Production

In 1993/94 the Australian vegetable industry had a gross value at first point of sale of $1.4 billion (HAL advice, ABS data) and Australian Asian vegetables were valued at $50.4 million (Lee audit) or 3.6% of total vegetable value.

In 2000/01 the total value of Australian vegetables had grown to $1.8 billion (HAL Statistics Handbook 2000/01) and Australian Asian vegetables were valued at $135.8 million (Hassall & Associates estimate) or 7.5% of total vegetable value.

Asian vegetables have gained production share relative to conventional production types.

3.5 Markets and Market Trends

Domestic

Since 1995, the domestic consumption of Asian vegetables has increased and the product range, quality and availability in most supermarkets, greengrocers and restaurants have substantially improved.

Retail sales in greengrocers are static, however growth still exists in supermarkets, especially for pre- packed Asian leaf lines. Supermarkets are pleased with the growth rates achieved for Asian vegetables but are concerned about slow sales in exotic lines. They are currently consolidating shelf- space around their ten most popular product lines. These lines are focused on the Chinese leafy vegetables.

An emerging domestic market trend is the local “farmer market”. These markets provide an opportunity to showcase and explain the use of exotic Asian vegetables, direct consumer demand and serve as an outlet for product that does not meet supermarket-grading requirements. The trend is particularly advanced in Queensland and NSW.

Restaurants and greengrocers source product through both the market system and direct from growers. Direct grower purchases are often difficult to trace and account for in industry production and value estimates.

The importance of central wholesale markets varies between states. Generally speaking, central wholesale markets account for around half of total production. The exception is Sydney where Flemington market accounts for an estimated 80% of sales. Grower representatives indicate that exchange through the Sydney market is an efficient way of aggregating supermarket orders and for traditional greengrocers to purchase. Queensland market representatives comment that the centralised market system ensures competition and ever increasing product quality. The relative importance of the centralised market system, by state, is shown in table 28 below. There are no central markets in the NT or Tasmania.

Table 28: Percentage of Asian Vegetables Sold through the Central Market System

NSW Vic Qld SA WA NT Tas Wholesale 80% 45% 50% 50% 60% na na market sales Source: Hassall & Associates estimates

Trends in the domestic market therefore include: • Maturation of demand from greengrocers and restaurants • Supermarkets have increased their share of the retail vegetable market and their demand for Asian vegetables • The wide availability of Asian vegetables - even small supermarkets have an area dedicated to Asian vegetables • Former growers acting as aggregators to supply supermarket needs • The emergence of farmer markets as an outlet for odd lots and non graded Asian vegetable lines (especially Qld and NSW and potentially an opportunity for other states) • Supermarkets consolidating lines around the most popular vegetables

Export

The following table summarises Asian vegetable export data on a state-by-state basis. In most instances export data, the most recent available, is for 1997/98 while production estimates are for 2000. The data is therefore not strictly comparable.

Table 29: Exports relative to total production (tonnes)

NSW Vic Qld SA WA NT Tas Total Major Chinese Wongbok Chinese Chinese Chinese na Kabocha Export cabbage/ mushrooms#, cabbage/ cabbage cabbage Crops Wongbok parsley# Wongbok burdock Ginger daikon Exports 644 394 3,397 10 3,000* 0 1,000* 8,445 (1997/98) Total 15,000 9,000 15,500* 1,250 7,700 3,200 2,000 53,650 Production (2000) Exported 4% 4% 22% 1% 39% 0% 50% 16% Source: Hassall & Associates estimates based on AQIS data * data for 2001, # dominated by conventional types

Within the limits of the data set the following comments are offered: • By volume Australia exports 16% of total production. This compares to the Lee audit which estimated that 20% of the value of Australian Asian vegetables is exported. Potentially the share of production that is exported has declined as production has grown and competition from China, Vietnam and New Zealand has increased. • Exports are driven by Queensland and Western Australia, which together account for 76% of export volume. • Chinese cabbage, including wongbok, dominates Australian exports. • Key export markets are Singapore, Hong Kong and Taiwan (AQIS data). • Emerging export crops include daikon, burdock and taro.

Trends in Australian export markets include: • China is providing strong export competition for Chinese cabbage, burdock, daikon and the other mainstays of the Australian export sector. The Chinese have also increased exports of bunching onions (shallots and spring onions) and shiitake mushrooms. This will need to be offset with R&D that drives production efficiency. • Most recently Singaporean and Japanese markets have expressed concern regarding chemical residues in Chinese product and the desire to source from “clean” suppliers such as Australia. China’s established reputation as a clean supplier is currently under threat. While the Japanese in particular are very hard negotiators and compare Australian produce to Chinese on the basis of price, this emerging trend, driven by consumer health concerns, may overturn the recent decline in exports. Japan imports two million tonne of fresh vegetables per annum, half of which are currently sourced from China. • Vietnam is emerging as an increasingly important supplier of Asian export markets. New Zealand competes very effectively on Asian markets with cool climate products such as kabocha. • Strong Chinese competition has forced the Australian industry to consider new varieties and products based on processed or semi-processed vegetables. The search for new vegetables and preparation and sale of processed and semi-processed product is, in most instances, at the research stage. Early results indicate difficulties in competing with low cost Asian producers.

Lee (pers. comm.) notes that there is a strong dichotomy between exporters of Asian vegetables. Exporters of Caucasian background place strong emphasis on HACCP, residue management and product quality. While exporters of Asian origin are price focussed, sell to traders and do not think on a whole chain basis. Traders buy from growers of Asian origin on a low price/large volume basis and sell on spot Asian markets. Buyers based in Asia discount heavily on quality and poor returns are achieved. A whole chain focus would improve returns to this second group of exporters and provide effective competition for exports originating in China and Vietnam. This finding may be important for directing future research effort.

Import

Japanese taro imported from New Zealand and the Pacific Islands was the only fresh Asian vegetable identified as imported during the study. Semi-processed imports including dried watercress and dried bok choy have been replaced with fresh domestic produce. Pickled product is still imported from China where low processing labour costs ensure a competitive advantage. Market research completed by Weerasinghe et al (in Gosbee 2002) indicates that large quantities of processed products are imported from China, Thailand, Malaysia, Sri Lanka, India and the Philippines. Processed imports incorporating Asian vegetables include shelf stable and frozen goods packed in cans, plastic containers and pouches (Weerasinghe et al 2002).

Comment was received that there is some resistance amongst consumers to fresh Australian product when imported canned produce is always available. Shiitake mushrooms, water chestnuts and bamboo shoots fall into this category. Low cost labour intensive production in overseas countries will always make these products difficult to compete with here in Australia (Barry Lee, pers. comm.).

3.6 Product Form

By far and away the majority of Australian grown Asian vegetables are sold fresh. Product is marketed in bunched form and sold in boxes. Salad mixes in retail ready modified atmosphere packs (MAP) continue to rise in popularity. A small amount of pickled product, including pickled daikon, is prepared in Australia. The absolute volume of pickled product may have decreased since 1995 with the closure of a significant operation in Victoria (Wendy Morgan pers comm.).

3.7 Seed Production

Growers of mainstream Asian vegetables use hybrid seed in preference to open pollinated seed or retaining seed from their own crops. Seed for most Asian vegetable varieties is sourced from China and multiplied under contract in Australia (Raymond Chu pers. com.).

Contract multiplication is an important activity in South Australia, Tasmania, Victoria, NSW and Western Australia. Re-export of seed grown under contract is an increasingly important Australian industry. Australia is in a good position to produce disease-free seed for producers in Asia, particularly Japan. Off-season production in Australia minimises seed storage costs (Nguyen, 1994).

Details of the six major seed companies operating in Australia and supplying Asian vegetable seed are provided on the University of Central Queensland website.

3.8 Product Yield and per Hectare Income

Asian vegetable yields vary considerably between type, production technique (eg greenhouse versus field) and location of production. For example NRE Victoria estimate Chinese Flowering Cabbage yields at between 6 and 10 t/ha while QDPI estimate yields at between 11 and 18 t/ha in Queensland. Yield ranges for major Asian vegetable crops are presented along with a representative yield for gross per hectare income estimation purposes. Sale price is price first point of sale. Estimates of production costs or prepared gross margins were not uncovered during study research20.

Table 30: Yield and Gross Income Estimates for Major Asian Vegetables Across All States - 2001

Vegetable Yield Range Rep. Yield Sale Price Gross Sales (t/ha) (t/ha) ($/t) ($/ha) Burdock 5 to 39 10 2,000 20,000 Bitter Melon 20 to 30 25 3,300 82,500 Baak Choi 8 to 17 15 2,000 30,000 Chinese Cabbage 35 to 80 60 600 36,000 Chinese Flowering Cabbage (choy sum) 6 to 18 12 2,000 24,000 Chinese Broccoli (Kai Laan) 6 to 10 9 2,000 18,000 Daikon 40 to 50 45 1,100 49,500 Gourds 8 to 10 9 2,000 18,000 Kabocha 10 to 22 15 400 6,000 Luffas 4 to 12 7 2,000 14,000 Okra 5 to 12 7 3,500 24,500 Snake Beans 6 to 30 8 2,700 21,600 Spring Onion 7 to 23 12 2,700 32,400 Winter Melon 18 to 22 20 2,000 40,000 Simple Average 18 2,021 36,674 Source: UCQ, Lee audit, AusMarket data, NSW Agriculture, QDPI

3.9 Market Chain and Practice

Market Chain

The marketing chain for Asian vegetables may include the following steps. The chain described is more sophisticated than is typical for the industry: • On-Farm: harvesting, washing, bunching, packing into boxes, cool room storage • Transport: by road, cooled or non-refrigerated, rarely is produce air-freighted • Direct sale: Growers sell direct to all types of retail outlet • Central Market: sold direct to retailers (greengrocers, restaurants) or aggregator agents for preparing larger lines for supermarkets, shipment overseas or sale in another interstate central market • Retailing: supermarkets, greengrocers, restaurants and farmers markets • Export: limited airfreight direct to penultimate buyers and overseas wholesale markets

The generic chain described above varies between regions and in its degree of sophistication. For example, the chains from Rockhampton to Brisbane or Darwin to Melbourne are long and require sophisticated packing and cool chain management. The chain from Camden to the Sydney Wholesale Markets is short and low cost solutions are applied. Cool room storage and transport are not always practiced, especially for producers close to capital city markets. Resultant product quality, especially during the summer months, can be affected.

20 A single gross margin for daikon was uncovered on the NSW Agriculture web page.

Contracting Versus Spot Sales

There is a surprisingly low level of forward contracting to supply large buyers in this industry. For example, NSW growers prefer to operate on a spot sale basis and believe that weather variability makes forward contracting too risky. In the Northern Territory, volume based contracts are negotiated with southern agents/wholesalers but price is subject to ruling market rates at the time of delivery. Growers expressed concern in the Lee audit that agents manipulate supply and price to meet their own objectives and this would still appear to be an issue for growers on both domestic and export markets. It was also noted by industry observers that product often does not reach market in ideal condition and that agents often have legitimate concerns.

Vertical Integration

No vertical integration activities were observed during the study. Large retail buyers have not sought to “own” supply nor have growers reached sufficient size or inclination to be moving up the production chain. Some growers own their own transport. The notable change here since 1995 is the rise of the aggregator/provedore to service the buying needs of supermarkets.

Packaging

Packaging is a major expense for growers. NT growers identified other states capacity to utilise second hand boxes as a major strategic advantage for their industries. Advice from Victoria is that this needs to be managed with care if mislabelling and product quality perceptions are not to be adversely effected. It is illegal for produce to be sold interstate in second hand cartons and supermarkets will not accept product in this form.

3.10 Farm Profile and Practice

Historically, Asian vegetable farms are small and often described as market gardens. Management practices are characterised as labour intensive incorporating a low degree of technological input. Improvement in management practice is limited by difficulties in communication and understanding between growers and industry, poor comprehension of English and low levels of literacy.21

Generally speaking production is field based. However, in cooler climates poly-houses with overhead irrigation are employed. High maintenance costs are currently forcing a reconsideration of greenhouse-based production in Victoria. Other areas, including the Sydney Basin, are exploring greater use of controlled system production.

Farm size varies according to the production system employed. Larger areas are required for crops with narrow margins to be profitable (Midmore, 1997).

Since the Lee audit a clear division has emerged in the industry and two definable production bases can be described. The distinction was present in all states and territories. Differences are contrasted in table 31 below.

21 Comments by Wendy Morgan (NRE), Vong Nguyen (NSW Ag), Phil Armbruster (AgSell), Gerry Davies (Virginia Horticulture Centre) Melinda Gosbee (NTDBIRD) - 2002

Table 31: Industry Profile – An Industry with Two Types of Grower

Group 1 – Market Gardeners Group 2 - Scale Producers Recent migrants. Second generation Australians. Small scale market gardens (¼ to 5 ha). Large commercial operations (5 to 50 ha). Small volume production and a large number of Fewer high volume products such as Chinese cabbage. different vegetable types. Some seed saving for next year’s crop. Commercial seed including hybrid seed. Supply fresh produce, especially leafy bunch lines to Producers of boxed product that requires less labour. the domestic market. More likely to be involved in exporting. Traditional practice. Best practice. Members of ethnic based grower groups. Members of broadly based grower groups. Grow Asian and conventional vegetables. Difficulty with communication. Actively seek information. More likely to experience cool chain breakdown. Poor Use of specialised refrigerated storage and transport, profitability hampers capacity to invest in refrigeration. new packing cases, adherence to cool chain management and QA. Market to restaurants and smaller scale greengrocers. Market to larger scale retail (Western and Asian) and exports. More likely to bypass the central market system. Make Market through central market system and some have use of aggregators. sufficient volume to market direct to retailers.

3.11 Economics of Production

Establishing a cost of production and generating crop gross margins is limited by the availability of data and the cultural expectations of growers. For example, NSW Vietnamese Asian vegetable growers do not consider labour to be a cost of production. Profit is based on the gross return of the crop minus the cost a materials (seed, fertiliser, chemicals, rent, etc) (Vong Nguyen, pers. comm.). This perception of production returns is exacerbated by difficulties in obtaining labour costs, and yield data from growers wary of revealing financial information.

Typically the family or extended family provides farm labour. All growers contacted noted the difficulty with securing appropriately priced and hardworking labour. It is understood that research is attempting to address this issue, at least for root crops, at the current time.

The industry is experiencing price pressure as supply continues to grow and domestic and export markets mature. Strong price competition has placed downward pressure on product quality. The general perception from those that observe the industry is that an acceptable profit margin is still available for most crops, but that it is insufficient to retain the second generation of growers.

3.12 Production Trends and Innovation Since the Mid 1990s

The following production trends and innovations were identified from study consultation. • Larger farms in more remote locations (eg Lachlan Valley, NSW). • Greater use of farm chemicals and improved chemical management. • QA and chemical certification amongst those supplying the supermarket sector. • Improved agronomic practice including fertigation and mulching. • Improved varieties that offer high yields and year-round production. • New crops eg lotus root (Coffs Harbour), water chestnuts and bamboo shoots (Queensland and NSW). • An effective Asian vegetable seed industry, producing, importing and distributing appropriate seed. Use of hybrid seed, production incorporating nursery transplants and less reliance on open pollinated seed.

• Growers starting to consolidate production lines and specialise in specific varieties in order to improve returns (Victoria) • Tailored production systems to meet the needs of new Asian vegetable cultivars • Improved post harvest management – small unit refrigeration (NSW) but still work to be done. NT growers have been active and have achieved results • Experimentation with hydroponic production (bok choy, choy sum and Asian herbs), fertigation and protected cropping systems (but not finding these cost effective in Victoria) • A broadening of the production base to include conventional vegetable growers and conventional vegetables especially as prices fall for Asian vegetables • Expansion of further processed products such as bagged salad greens, baby salad leaf mixes and new stir-fry product lines • Improved communication – effective grower associations that hold well attended functions, disseminate information and represent growers (NT, NSW). Also improved communication with researchers and government agencies • Greater interest in market movements including subscription to fax advice services • Emergence of the grower/provedore to meet requirements of supermarkets. In NSW aggregation occurs at the central market, in Victoria aggregators/provedores bypass the market system

3.13 Grower Organisations and Communication

The Lee audit noted poor communication between growers, their industry and government. The audit went on to note that Asian vegetable growers lacked industry based organisation structures and that grower organisations were organised along ethnic lines. For example, in the Sydney Basin alone there is a Chinese Vegetable Growers Association, a Cambodian Vegetable Growers Association, a Vietnamese Vegetable Growers Association and the NSW Free Growers Horticultural Council representing Maltese, Islander and Anglo/Celtic members. These structures remain in place in 2002 and half of growers remain outside an organisation.

This form of ethnic origin based organisation potentially fragments the industry and isolates groups of growers from the rest of their industry. It restricts opportunity to present a united front to government, formulate grower policy, direct and implement R&D and exchange information freely on items as important as market intelligence and trends. At its best this form of structure may provide high-level internal trust and a basis for marketing cooperation.

In addition to concerns regarding organisation along ethnic lines, there is a body of thought that states that existing grower groups should merge with the conventional production sector. If the industry is to grow, Asian vegetables need to be accepted as part of the mainstream rather than pigeonholed as a fringe industry (Graeme Thomson, pers. comm.).

In the future, it is hypothesised that growers will organise themselves along vegetable type (eg brassica) or production method (eg hydroponic) rather than ethnic lines. This has already occurred with second-generation growers of European origin (Vong Nguyen, pers. comm.).

To overcome organisation based barriers the NSW Government22 and the Northern Territory Government23 (through a pilot project partly funded by RIRDC), have liaison officers to build relationships with growers and increase the level of understanding of farming management, legislation, market requirements, opportunities and so on. Grower consultation completed as part of this study would indicate that these initiatives have been highly successful and that other states wish to emulate this activity.

A summary of respective state organisations and industry liaison initiatives is provided in table 32 below.

Table 32: Industry Organisations and Support

State/Territory Grower Organisation Specialist Support Activities New South Wales • Chinese Vegetable Growers Project Officer, Market Gardening in a Association Culturally-Diverse Society (NSW • Vietnamese Vegetable Growers Agriculture funded) Association NSW Agriculture seeking funding for a • Cambodian Vegetable Growers Vietnamese speaking liaison officer Association • NSW Free Growers Horticultural Council • NORADA (also S.E. Qld) Victoria • Geelong Asian Vegetable Investigating the potential to fill the Growers Association vacant NRE extension agronomist • Victorian Vegetable Growers position for Geelong with a Vietnamese- Association (conventional veg speaking extension officer. NRE have growers) translated 40 Asian vegetable publications into Vietnamese Queensland ! Asian Vegetable Producers Extension material available on major Group (somewhat dormant) crops. Limited information in languages ! Taro Growers Association other than English (active) ! NORADA (also NSW) South Australia Bunchline Vegetable Growers Vietnamese Liaison officer with PIRSA Association Northern Territory Asian Vegetable Growers Association Vietnamese speaking Communication Officer, Northern Territory Horticulture Association (DBIRD/RIRDC/NRE/HAL funded) Also seeking support for an HAL Industry Development Officer Western Australia The WA Vegetable Growers Association No specialist Vietnamese, Cambodian or represents all growers Chinese speaker Tasmania Tasmanian Greenhouse Tomato and No extension activities specifically Vegetable Growers Association directed at small production base

In addition to grower based support and liaison initiatives researchers have also organised communications forums where research program leaders and industry meet to exchange information. The most recent initiative, funded by RIRDC (DNT-28A) included presentations of research findings, inspection of retail outlets and farm visits (Melinda Gosbee, pers. comm.).

22 Phil Armbruster pers comm. 2002 23 Melinda Gosbee pers comm. 2002

3.14 Government Support and Levies

Research and Development for the industry is supported by Commonwealth government funds through RIRDC and HAL, as well as state-based research and extension activities. RIRDC has a dedicated Asian Foods Program that includes Asian vegetables and processed foods (pickles, sauces, etc), and HAL funds research through funds collected using a production based levy. The horticulture production levy is very unpopular with growers. Neither organisation funds industry promotion.

3.15 SWOT- Description of Industry Positive and Negative Themes

A description of industry positive and negative themes is provided below in the form of Strengths, Weaknesses, Opportunities and threats analysis (SWOT). The analysis is reliant on industry stakeholder consultation and subsequent analysis. It updates the analysis presented in the Lee audit and the RIRDC R&D Plan.

Strengths of the Australian Asian Vegetable Industry • Strong domestic demand for Australian Asian vegetables. Interest driven by Asian immigrants, Asian visitors and changing domestic dietary habits. • Suitable production base for Asian vegetable types. • Capacity to supply high quality and volume production. • Production season that permits off-season exports. • Continued emergence of new varieties. • Overseas and domestic perception of a clean production base. • Growers embracing QA. • Appropriate infrastructure including domestic and export market supply infrastructure and technical support. • Asian immigrants with an understanding of production and market requirements. • Soils of superior quality to competitors in China and Vietnam. • Geographically close to Asian markets.

Weaknesses of the Australian Asian Vegetable Industry • Lack of suitable labour • Relatively high priced land and water for urban market gardeners. • Limited farm investment capabilities and responsiveness to technological change. • Lack of market research. • Cool chain breakdown with resultant produce quality problems. • Lack of economies of scale in production. • Plateau in demand through some outlets with resultant downward pressure on price. • Lack of standardised nomenclature for Asian vegetables. • High turnover of growers – children of first generation immigrants move into other endeavours and Caucasian Australian move in and out on an opportunistic basis. • Exploitation by traders in the spot markets of north and southeast Asia. • Use of second-hand packaging without identifying marks. • Costs of packaging and transport to domestic markets.

Opportunities for the Australian Asian Vegetable Industry • Supply of fresh Asian vegetables to north Asia (WA growers to Japan) and South East Asia (NT product to Singapore). Japanese and Singaporeans seeking new suppliers of chemical residue free produce. This potentially reverses a five-year trend of increasing market share for product sourced from China. Australia is well placed to meet this demand with a suitable production base and off-season supply capacity. Vegetables might include root types for Japan and fresh leafy varieties to Singapore. Potentially the grower associations could work collectively to negotiate market opportunities and aggregate produce. Product could be sourced from northern production areas and supplemented with product from other states during the rainy season. Market research must drive this potential opportunity. • Japanese farmers are aging and moving out of heavy root crops such as daikon and burdock. Burdock production has declined 20% in the last 30 years (McVeigh 2000). This may mean opportunities for additional Australian imports into Japan (Vong Nguyen pers comm.). Processed and semi processed exports of root crop have been found to be non economic (Burt and McVeigh, pers. comm.). • Taiwan is running out of land for food production and products such as bamboo shoots require large areas of land to crop. • RIRDC funded research (UCQ-13A) has identified potential for small corm taro in Japan. • Farmer markets for Asian and other vegetables. These initiatives have been very successful in NSW and Queensland. They provide an opportunity for other states, such as Victoria, to deal with an emerging oversupply of Asian vegetables and a very useful outlet for product that does not meet narrow supermarket specifications. • Exploration of the requirements of the food service sector. This sector requires large volumes of a small range of products. More grades of required vegetables are acceptable to this channel and the system is more forgiving in its requirements than is supermarket supply (Barry Lee pers. comm.). • Further supermarket sales of pre-packed Asian leaf lines, stir-fry vegetables and baby leaf salad mixes, sales currently growing at double-digit rates. • Hydroponic production for guaranteed quality and consistent low chemical residual supply. However this is a high capital cost approach to production and probably best suited to areas with poor soil and insufficient land. • Potential for taro crisp production similar to the successful Hawaiian industry. At best a small niche opportunity. • Opportunity to add value and replace imports through conversion of vegetables into sauces, ready made meals and snacks (watch labour/processing costs compared to low cost Asian processors) • A strategic approach to promotion- product needs consistent names, MAP packaging (especially for low turnover lines) and promotion at retail.

Threats to the Australian Asian Vegetable Industry • Export competition from China, Vietnam, Malaysia and New Zealand. • R&D that extends production seasons in competitor countries eliminating Australia counter- season advantage. This is happening in other horticultural products such as apples. • Albuga, white Blister disease in brassicas. • Loss of clean and green perception from uninformed misuse of agricultural chemicals (situation is improving and has improved since the 1995 audit). • Declining per capita consumption of traditional vegetables in South East Asia (John Burt pers. com.). • Ongoing access arrangements including access to wholesale and retail outlets (RIRDC R&D Plan).

3.16 Issues Impacting on the Supply of Produce

Issues impacting on the supply of produce of a marketable quality, both within Australia and overseas were identified during industry and stakeholder consultation and are listed below: • Chemicals: lack of appropriate registered chemicals for small volume crop use. • Training: reluctance to participate in training unless it is compulsory chemical use training. Growing and marketing training required. Growers seem to be less reluctant to participate in training where there is a liaison officer with grower language skills. • Spoilage rates: very high and could be improved with grower investment in cool chain management but returns do not justify the outlay. • Labour: lack of suitable labour at an affordable price or lack of appropriate industry mechanisation (eg root Asian vegetable crops are not supported with the same harvesting and washing technology as potato production). • Poor profitability: hampering investment in new technology. • Record keeping: paper work requirement is taxing, especially for first generation growers. This is also a training issue. • Water: High price of mains water (Sydney, Melbourne). • Urban encroachment: an issue in capital city areas. • Industry cooperation and collaboration: limited industry cooperation in Victoria but improving in other states (eg NSW, NT). Again this may be linked to an effective industry liaison officer with grower language skills. • Concentration of buyers: loss of small competing greengrocers and chains continue to concentrate the market. • Additional product requirements that are always borne by the producer eg QA, ChemCert. • Agents in remote locations (overseas or in Melbourne/Sydney for NT growers) who distort price and market signals. • Supply of planting material: acquisition of planting material especially for newer less established Asian vegetables is an issue. Import of germ plasm for taro propagation, for example, is prohibited. • Consumer education: consumers still not sure what to do with more exotic lines (angled luffa, bitter melon, etc). • Promotion: there are no market promotion strategies to capitalise on current high profile and consumer interest. • Competition from China: limits domestic opportunities for processing product and export opportunities for fresh produce. This may in fact be changing with north and South East Asian concerns in relation to chemical residues. • Supply chain breakdown: growers pick and place in cool room for a day, shops do not refrigerate. • Packaging: product marketed in damaged or unlabeled boxes. • High priced road transport and packaging costs.

4. Review of Supply Chain Issues

This chapter deals with the issue of supply chain management and in particular issues in relation to cool chain management. The following specific questions are addressed: • Has supply chain management improved since the Lee audit? • Are consumers receiving the quality they demand? • Has industry taken up research investment in this area? • Is more research required in this area?

The industry’s capacity to deliver on a thorough chain basis is illustrated by four case studies: • Darwin growers shipping to southern markets. • Sydney growers supplying Flemington markets. • Asian vegetable exporters adopting HACCP principles to secure improved prices. • Poor retail management and high spoilage rates in Victoria.

These case studies are outlined briefly below.

4.1 Darwin growers shipping to southern markets

Production of Asian vegetables in the NT for sale in Melbourne and Sydney has grown rapidly over the last 5 to 6 years. The industry has expanded from 30 growers producing around $2.5 million to 60 growers producing $11 million in farm gate value.

Reasons for the expansion of this industry include off-season market opportunity, improvement in supply chain management and developments in agronomic practice. Through the encouragement of the industry liaison officer, growers have formed an industry group to investigate constraints to their industry. The group, together with their Vietnamese-speaking liaison officer, have: • Visited Sydney and Melbourne markets to view the quality of produce on arrival. • Are investigating the potential of third party inspection of produce on arrival and preparation of independent product quality reports. • Have prepared and distributed Agnotes that meet grower requirements for simply presented relevant material in the Vietnamese language. • Have actively and enthusiastically participated in training. • Have or are adopting best practice in mulching, varieties, fertigation and irrigation. • Are exploring the commercial viability of a cooperative packing shed to provide larger consistent lines of produce to southern markets and wrest market power from distant agents. • Are examining the potential to supply Singaporean markets with fresh leafy vegetables during winter months and link up with southern growers to supply in the off-season.

As individual growers acting in isolation these initiatives would be beyond their resources. Collectively the group is improving supply chain management, offering the potential to deliver product that meets consumer requirements, taking up research outputs in relation to agronomic and supply chain protocols and is receptive to further research investment. Issues requiring research include cost effective transport and packaging and good quality market research.

In this case study the supply chain has improved since the Lee audit, consumers are receiving a better quality product, research investment has paid dividends (eg grower market visits) and more research is likely to provide useful outcomes (eg transport costs and packing materials).

4.2 Sydney growers supplying Flemington markets

Sydney Basin production for sale at Flemington Markets is a well-established supply chain for a comparatively mature market. The short duration supply chain means that cool chain breakdown has been less of an issue for Sydney growers than for growers in more distant locations.

This is not to say that cool chain management is not an issue in Sydney or that it does not affect the quality of produce supplied to Sydney consumers. Issues with supply chain management include inappropriate harvest times, inadequate on-farm cool rooms (where no coolers existed in 1995), non refrigerated transport, produce “sweating” in summer months, overnight storage of residual product and “fire sale” pricing of old or poor quality vegetables.

The supply chain is driven by growers on smallholdings with a low propensity to adopt new technology and the outputs of research. It is argued that this reluctance to adopt is driven by low profitability and hence low capacity. Research in this supply chain might profitably address low cost cool chain solutions and additional “working together in groups”. It is noted that current MAP technology is only effective with a fully functioning integrated cool chain. Perhaps R&D could be directed to “Warm Temperature MAP” that would tolerate temperature fluctuations but deliver a consistent quality longer life product.

In this case study the supply chain has improved since the Lee audit (eg adoption of small on farm coolers), the quality of the product received by consumers has improved but remains inconsistent, research uptake is limited by low profitability and future research investment will need to be mindful of this constraint. This supply chain is the major source of produce entering the Sydney market and future research targeting this supply chain is important. At this stage it is uncertain whether this supply chain will survive or succumb to land cost pressures and the movement of growers further west.

4.3 Exporters adopting HACCP principles

On the export front there has been a tradition of low cost/large volume commodity sales where the exporter has not followed produce through the supply chain and, as a result, has been at the mercy of distant Asian traders. Traders, aware of the market power that they posses over distant Australian suppliers have discounted Australian product for quick sale and poor grower returns have been realised.

It is understood that this supply chain is also becoming more sophisticated and that exporters are ensuring product has HACCP/QA accreditation and that produce bypasses central Asian wholesale markets wherever this is possible. Exporters are starting to deal directly with end users such as large Singapore based supermarkets. A whole chain approach to exports is being adopted. Constant innovation and improvement will be required in this chain if Australian producers are to displace Chinese production and meet the needs of increasingly discerning North and Southeast Asian consumers.

Supply chain management has improved since the Lee audit. North and South East Asian consumers are receiving product that better meets quality requirements. The study has not uncovered the uptake of research investment in this chain. Prospective areas of research include the applicability of MAP packing, grower market visits to follow through export shipments and market research to uncover whether recent consumer concern over the residue free status of Chinese product translates into demand for Australian Asian vegetables.

4.4 Spoilage rates and retail management in Victoria

The Victorian supply chain suffers many of the problems described above for the Sydney Basin- Flemington Markets chain. Independent surveys have shown very high rates of spoilage prior to sale through the market system and poor handling at retail, especially by small traditional greengrocers. There is limited grower/industry technical and marketing cooperation and collaboration. Suggestions for improvement in this chain are: • Training of growers, supply chain managers and trade outlets in storage and product presentation (identified as an issue in Victoria in 2002 and by Lee 1996). • A crackdown by plant standards inspectors on the use of second-hand boxes with no grower identification marks. This initiative is required to remove misidentification and poor quality perception. • Consumer research to establish requirements. • Assessment of Asian vegetable varieties for functional food attributes. • Consistent national Asian vegetable nomenclature to facilitate objective description and supermarket ordering aligned to the international Price Look Up merchandising system.

Some improvement in the supply chain is inevitable. However problems identified in 1995 remain. Product quality through small retail outlets is inconsistent and research uptake is constrained by capacity to invest. Prospective research is outlined in the case study.

4.5 Concluding comment on supply chain issues

Much has been done to improve supply chain management and establish and implement appropriate cool chain management protocols since the mid-1990s. Cool chain management is critically important to the delivery of product acceptable to consumers and remains an ongoing and prospective area of research and extension for this industry. The RIRDC five-year R&D plan is correct in specifying a research objective in this area. The NT initiatives in relation to a Vietnamese-speaking liaison officer and group-based activities provide a useful, replicable model for R&D uptake in this area. Expansion of this groups’ activities with a program of follow through of export shipments would seem like a useful R&D activity.

Other prospective areas for cool chain R&D might include investigation of supply chain efficiency to ensure product cost competitiveness and best practice documentation.

It is also noted that successful R&D uptake is dependent on extension24 and repetition of the message. Growers and other supply chain participants quickly forget messages on cool chain management and the industry has a high turnover of growers. It is therefore necessary to replicate activities associated with supply chain management to ensure both maintenance and improvement in the chain. The Asian foods newsletter is a useful low cost vehicle for reinforcing the R&D message.

24 It is noted that RIRDC’s role does not include extension. The point is made in a general sense.

5. Research Uptake

Chapter 5 addresses questions in relation to the success of research since the mid 1990s including: • To what extent has research resulted in industry development over the last eight years? • Has there been an increase in industry capacity linked to research investment by RIRDC, the departments of agriculture and others? • Is R&D a factor in determining industry position? • Has research contributed to the industry and if not why not?

General research on the commercialisation of projects supported by the RIRDC Asian Foods Program has shown poor results. The main limiting factors were not enough commercial partners, cross-disciplinary focus and projects of insufficient scale (Suku Bhaskaran, RIRDC AFM-4A). It needs to be noted that not all research is directed at outputs that can be commercialised. By its very nature RIRDC research has a public good component, for example projects that provide production information to growers.

5.1 Research Uptake

The first phase of public sector investment was directed at new industry projects. These included agronomic work, the establishment of ethnic grower groups, translation of extension materials, preparation of Agnotes, newsletter creation and the Internet database. Industry stakeholders have viewed all these outputs very positively.

Research Adopted by the Industry since the mid 1990s

Industry consultation revealed the uptake of the following research outputs since the completion of the Lee audit: • Research work leading to the certification of new agricultural chemicals for small volume Asian vegetable crops (still more work to be done) • Uptake of cool chain management protocols and advice provided through departments of agriculture and HAL (see case studies in chapter 4) • Preparation of production protocols leading to the adoption of new crops such as lotus root, water chestnuts, bamboo shoots, Japanese ginger (myoga), green soybean (edamame), burdock and yam (Vong Nguyen). • Wasabi research – two small growers have commenced production in Tasmania (Joe Horak) • Research into pests and diseases including club root and diamond moth in brassicas, the nutrition and diseases of root crops such as burdock and daikon and agronomic, variety and market research on taro (Grant Vinning) • Agronomic practice including green manure crops, plastic mulching, fertigation, and improved vegetable varieties (Kim Bui) • Extension advice resulting in the adoption of QA/HACCP • MAP research for fresh cut salad mixes – project funded by RIRDC. Whole vegetable MAP packing has been less successful (see below)

Research not yet taken up by industry • MAP packaging investigations that are too sophisticated for current industry needs. Comment is made in relation to bulk line whole vegetable MAP packing (Ralph Cadman) • Research on use of chemicals that are as yet unregistered and therefore not available for adoption. (Tim Clune)

5.2 Factors Inhibiting or Facilitating Research Uptake

Facilitating uptake • Industry Liaison officers in NT and NSW who are able to bridge communications gap with Non English Speaking Background (NESB) growers, build trust, explain research results and consult growers on their needs. • Publications in Asian languages such as Access to Asian Vegetables and NRE extension material and website. However, some growers question relevance of content and surveys of growers may be useful. Access to this information in Queensland questioned (Grant Vinning). Analysis of mailing list would indicate that 130 copies are mailed to this state (Wendy Morgan). Importance of NESB publications will decline in the future as grower language skills improve (Vong Nguyen), although this may be some way out for comprehension of technical information (Wendy Morgan). • Supermarkets: by driving requirements for QA, chemical certification and presentation, supermarkets force uptake of research results in relation to chemical management, product presentation and packaging • Government legislation in relation to chemical use – see above comments on supermarkets • English courses run in conjunction with Farm Chemical User training (Victoria)

Inhibiting uptake • Lack of profitability to fund investment e.g. growers know cool chain management practices are inadequate but marginal returns from small holdings and strong competition from growers prevent set aside for investment in coolers • Aging and conservative smallholding grower base – increasing production scale, adopting new technology or relocating operations is of little interest to these growers • Brain drain – skilled and innovative growers seek higher income occupations. High turnover of growers – second generation of immigrants want status and higher pay, conventional vegetable growers move in and out of the industry • Ethnic based grower organisations – fragments industry and isolates growers from the free exchange of ideas • Lack of suitable hands-on material for use by QDPI especially in relation to harvesting. There is no material available in Qld in a language other than English. This would seem to need urgent rectification is growth in grower numbers is as reported in this study

5.3 Concluding comments on research

Research effort expended would appear to have made a significant contribution to the Australian Asian vegetable industry over the last eight years – especially in the areas of agronomic and supply chain protocols.

Suggestions for future research emphasis include: • Future focus on technology adoption or transfer programs rather than the generation of new material. Perhaps the future focus of research should place more emphasis on extension of the message (communications officers) rather than commissioning new primary research – much of the industry still lags current best practice. It is noted that extension of R&D is not part of RIRDC’s role. • Initiatives aimed at transfer of knowledge would do well to target agricultural suppliers, as this is where growers seek advice on production and management process.

• Explore other models of participatory action learning to overcome grower language barriers. Action learning involves growers setting the research agenda and contributing to the investigation of problems. • Cool chain training and solutions would seem to remain a priority. Low technology/low cost solutions would appear to have the best chance of adoption. • Investigation of “Warm Temperature MAP” that would tolerate temperature fluctuations but deliver a consistent quality longer life product might be a low cost cool chain management option. • Documentation of case studies in supply chain management. • Replication of NT grower domestic market visits with inspection of markets and opportunities in potential export destinations. • Investigation of the functional food qualities of Australian Asian vegetables including nutritional values, vitamins, minerals, dietary fibre content, anti oxidants, capacity to fight diseases and so on. Information could be tied to promotion. • Product promotion is not the role of RIRDC, HAL or the departments of agriculture but it would seem that someone somewhere should be covering off promotion for this sector. • Specific technical issues including capacity building to respond to emerging pest and disease outbreaks such as white blister fungus and ongoing research into the management of club root. • Adaptation of conventional vegetable research for Asian vegetables e.g. adaptation of integrated pest management systems for conventional brassicas to Asian brassicas. • Documentation of best practice production regimes.

Research has been active in shifting the best of the industry from traditional practice employed by first generation immigrants to modern commercial practice. Research should continue to focus on this transition (new industry research) without neglecting those who have made the transition to commercial production and need constant innovation to deliver product competitively to world markets.

6. Capability, Future Direction and Study Conclusions

6.1 Industry Capability and Progress Since the Mid-1990’s

Table 33 below summarises industry constraints identified by the audit and progress made since 1995.

Table 33: Constraints Identified in 1995 and Progress Made by the Industry

Constraint Industry Progress Quality control and objective grading Where this is a requirement, such as for sale of produce to the supermarket sector, QA and grading has been adopted. Competition from Southern hemisphere countries With the exception of New Zealand competition for north Asian exports of kabocha, southern hemisphere competition has not been identified. Major competitors are China and Vietnam. The Cameron Highlands of Malaysia are also an important export production area for Singapore and Taiwan. Disparate organisation of the industry Much improved since 1995. Active ethnic origin based associations in each of the major states with the exception of Qld and WA. Lack of capital for investment in the industry Remains a major constraint and is an important limit on the implementation of cool chain and agronomic best practice. Lack of mechanisation Remains a major constraint in a highly labour intensive industry with difficulty sourcing employees. Current harvest mechanisation research is noted. Lack of post-harvest processing It would appear that Australia does not have a comparative advantage in post harvest processing and that this would be best undertaken by countries with a labour cost advantage. Recent research by McVeigh and Tan on Japanese processed and semi processed root crop would appear to confirm this finding. Lack of technology diffusion (R&D) into industry Still an issue, liaison officers have helped. Growers skill levels Have improved over time.

Significant progress has been made by the industry since completion of the audit in 1995. The following summary comments are offered on the capability of the Australian Asian vegetable industry to meet the current and future requirements of the market. • Production: More than adequate production and grower base to meet current and future market requirements. • Products: Industry has a broad range of products under commercial production. Comments from supermarkets, who dominate retailing, would seem to indicate a rationalisation of product range can be expected other the next few years. However, product diversity continues to be an important differentiation factor for non-supermarket outlets such as food service and grower markets. • Supply chain: Improved supply chain management but small end growers close to markets still have to improve cool chain management as do traditional greengrocer retailers. • Markets: Despite reports of seasonal oversupply in Victoria and contracting export sales, markets are clearing and prices have not collapsed. All important supermarket sales are growing. • Consumer requirements: Industry is meeting consumer requirements for an interesting, healthy product. The Australian market has grown at an average annual rate of 15% in value and 14% in volume since the Lee audit.

6.2 Study Conclusions, Future Direction and Recommendations

Study Conclusions

The industry has made strong positive progress since the Lee audit. It has trebled in size and produces a healthy product with growing domestic demand.

A clear division in the industry has emerged from this study. The division lies between traditional practice market gardeners (group 1) and commercial scale producers (group 2). Group 1 growers who have difficulty with literacy, have limited capital and occupy smallholdings dominate the industry.

Research has been effective in shifting the best of the industry from traditional practice employed by first generation immigrants to modern commercial practice. Research should continue to focus on facilitating this transition. This focus should not be at the expense of those who have made the transition to commercial production and require constant innovation (productivity improvement) to deliver product competitively to domestic and world markets.

Future Direction

With consistent nomenclature, dietary and functional food quality research and product promotion, Asian vegetables will be recognised by the Australian population as a major fresh produce retail category.

In particular the future lies with group 2 commercial producers. The near mainstream lines produced by both group 1 and group 2 growers (Chinese Cabbage, leafy bunched vegetables, daikon, etc), will merge into the mainstream and loose their status as exotics. Group 2 growers will continue to adopt best practice production and supply chain delivery systems. Group 2 growers are expected to reorganise along production system or vegetable lines as old ethnic allegiances breakdown.

Group 1 producers will occupy relatively limited niches from which new mainstream products will sporadically emerge. Group 1 growers will face pressure to close their operations as their gardens are affected by urban expansion. This will trigger investment in either group 2 style operations or fund entry into another sector.

Supermarkets will continue to set the domestic market agenda and their increasingly stringent requirements for cleanliness, packaging and shelf life will need to be met by growers. R&D will be required to contain these costs and deliver cost saving innovation. Grower markets, and potentially the food service sector, will provide alternative domestic outlets. These outlets are more likely to be serviced by group 1 growers.

Exporting of fresh Asian vegetables will continue to be very competitive and best returns will be achieved by a whole chain approach that bypasses agents and Asian central markets

Recommendations

Study recommendations have been made in relation to research. The most important of which relate to export market field studies for grower representatives, functional food quality investigation and consistent nomenclature for retail, the cost of which might be part funded by supermarkets and the wholesale markets. Industry development should focus on lifting group 1 growers into group 2 and advancing group 2 capacity.

7. Reference List Including Websites

Anonymous (1998). “Asian vegetable production expands”. Good Fruit and Vegetables 8(9): 15- 16.

Ausmarket Consultants (2002). Wholesale Market Data. Ausmarket Consultants.

Australian Centre for International Agricultural Research (ACIAR) (2001). Post-harvest Handling of Fresh vegetables, Proceedings of a Workshop, Beijing PRC, 9-11 May 2001.

Australian Quarantine and Inspection Service (AQIS) (1999). Australian Exports of Fresh Fruits and Vegetables July 1997 – June 1998. AQIS, Department of Agriculture Fisheries and Forestry Australia, Canberra.

Burt, J. (1997). Marketing periods for fresh vegetables in Western Australia. Farmnote No. 32/97, Department of Agriculture, Western Australia, South Perth.

Byrne, T. (2000) “New RIRDC R&D Plan for Asian Food” in Thompson, G. and Morgan, W. (eds). Access to Asian Vegetables Issue 7, Department of Natural Resources & Environment and Rural Industries Research & Development Corporation, Victoria.

Centre for International Economics (2001). Asian Foods – Development of Five Year Plan. RIRDC publication R00/128, RIRDC, Canberra.

Chew, M. and Morgan, W. (1996) Melbourne retail Asian vegetable survey. Agriculture Victoria, Melbourne, p. 143.

Crop Protection Approvals Ltd (2002) Minor Essentials, Volume 9. Crop Protection Approvals Ltd, Victoria.

Daly, P. and Tomkins, B. (1998). Asian vegetable industry In East Gippsland. RIRDC SR/23, RIRDC, Canberra.

Department of Agriculture, WA (2000) Western Australia's Agriculture, Food & Fisheries Industries 1999/2000. AGWEST Trade and Development. Lamb Print, Perth.

Department of Agriculture, WA (2002). “Horticultural Exporters in Western Australia at a Glance” in Bulletin 4428. Department of Agriculture Western Australia, South Perth.

Department of Agriculture, WA. Asian Vegetables grown in Western Australia. http://www.agric.wa.gov.au/programs/hort/asianvegs/botanical_names.htm. Accessed August 2002.

Department of Natural Resources and Environment, Victoria. Access to Asian Vegetables. http://www.nre.vic.gov.au/trade/asiaveg/. Accessed August 2002.

Department of Natural Resources and Environment, Victoria. Access to Asian Vegetables Thesaurus. http://www.nre.vic.gov.au/trade/asiaveg/thes-00.htm. Accessed August 2002.

Department of Primary Industry and Resources, SA (2001). Northern Adelaide Agri-Food Scorecard. Primary Industry and Resources, SA.

Dept of Agriculture, WA (1999). “New Asian vegetables at a Glance” in Bulletin 4384. Department of Agriculture Western Australia, South Perth.

Fairbank’s Selected Seed Co. Pty Ltd. (2002). Fairbank’s Descriptive Catalogue. Fairbank’s Selected Seed Co. Pty Ltd., West Melbourne.

Gallacher, D. (1998). Asian Vegetables Production Regions. Central Queensland University website, http://www.ahs.cqu.edu.au/info/science/psg/AsianVeg/AsianVeg.html. Accessed August 2002.

Gosbee, M. (2000). Pilot Project on Extension and Communication with Asian Non-English Speaking Background Vegetable Growers for the Adoption of Best Practice. Project Milestone Report, Department of Business, Industry and Resource Development, Darwin.

Gosbee, M. (2002). Improving Interaction and Communication between RIRDC Asian Foods Program Leaders and Industry (DNT-28a). Minutes of meetings, Melbourne and Geelong, 19-21 June 2002, RIRDC and Northern Territory Government.

Horticulture Australia Limited. Horticulture Australia limited. http://www.horticulture.com.au. Accessed August 2002.

Lee, B. (1995). Audit of the Australian Vegetable Industry. RIRDC Research paper No 95/13, RIRDC, Canberra.

Lee, B. (1996). Australian Asian vegetables: An assessment of market demand. RIRDC Research paper No 96/7, RIRDC, Canberra.

Lee, B. (1998). Potential Opportunities for Increased Production of Processed Asian Foods in Australia. RIRDC Publication R98/064, RIRDC, Canberra.

Lee, B. (1999). Assessing the Prospects for Selected Australian Asian Vegetables Australia (10 case studies). RIRDC Publication R99/135, RIRDC, Canberra.

Lee, B. and Prinsley, R.T. (1995). Asian Foods Research and Development. Proceedings of the Asian Vegetables Industry Conference (con 3a). RIRDC, Canberra.

Lim, T. K. (1998). "Loofahs, gourds, melons and snake beans". in Hyde, K. W. (ed) The New Rural Industries. RIRDC, Canberra

McVeigh, V. (2000). “Positive Future for Vegetable Production in Western Australia” in Thompson, G. and Morgan, W. (eds). Access to Asian Vegetables Issue 27, Department of Natural Resources & Environment and Rural Industries Research & Development Corporation, Victoria.

Midmore, D. Consolidating Asian Vegetables. http://www.ahs.cqu.edu.au/info/science/psg/AsianVeg/AsianVeg.html. Accessed August 2002.

Midmore, D. (1997). “Bringing Asian Vegetables Into One Basket” in The Australian New Crops Newsletter Issue 8. University of Queensland, Gatton.

Newley, P. D. (2002). Sustainable Horticulture. AgFact H1.1.27, NSW Agriculture, Orange.

Nguyen, V. (1994). “Prospects for export of Asian vegetables and their product to Asia, particularly Japan” in Farmer’s Newsletter, No. 174. Horticulture February 12-17, 1994.

Nguyen, V. (2000) “Asian Vegetable Industry in NSW” in Access to Asian Vegetables Issue 29. Department of Natural Resources & Environment and Rural Industries Research & Development Corporation, Victoria.

Northern Territory Office of Resource Development, Chief Economist (2001). Prime Stats: Horticulture Industry of the NT. Department of Business, Industry and Resource Development, Darwin.

NSW Agriculture (undated). Asian Vegetables – Huge Potential for NSW Growers. Industry Investment Opportunities brochure, NSW Agriculture, Orange.

NSW Agriculture. Asian Vegetables Suitable for Production in NSW (30 types). http://www.agric.nsw.gov.au/Hort/Fmrs/Asian_veg/. Accessed August 2002.

Queensland Department of Primary Industries. Horticulture and Fresh Produce: Asiatic Vegetables. http://www.dpi.qld.gov.au/thematiclists/1179.html. Accessed August 2002.

Rural Industries Research and Development Corporation. R&D Plan for the Asian Foods Program 2000-2004. http://www.rirdc.gov.au/pub/asianfd5yr.htm. Accessed August 2002. Rural Industries Research and Development Corporation. RIRDC Website. www.rirdc.gov.au. Accessed August 2002.

Sharp, K. (1997). NT’s growth has an Asian flavour. National Marketplace News October:25.

Stott, K. G., Gill, W., Brown, M. and Mohammed, C. (2002). “Specialty Gourmet and Medicinal Fungi in Australia” in Australian Mushroom Growers Association Journal, Autumn 2002. Australian Mushroom Growers Association, Windsor, NSW.

Tasmania Department of Primary Industries, Water and Environment (1999) Tasmanian Rural and Fishing Industry Profiles. Tasmania Department of Primary Industries, Water and Environment, Tasmania.

Tasmania Department of Primary Industries, Water and Environment. New Crops - the list goes on. http://www.dpiwe.tas.gov.au/inter.nsf/WebPages/EGIL-59W3BP?open. Accessed August 2002.

Thompson, G. and Morgan, W. (eds) Access to Asian Foods, Issue 11. Department of Natural Resources & Environment and Rural Industries Research & Development Corporation, Victoria.

Thomson, G. and Morgan, W. (eds) Access to Asian vegetables, Issues 8, 23, 44, 49 and 50. http://www.nre.vic.gov.au/trade/asiaveg. Accessed August 2002.

Thomson, G., Morgan, W., Winkler, S., Chew, M., Frisina, C. and Jaeger, J. (2001). Diversifying Asian Vegetable Markets, Volume 1. RIRDC Publication No 01/01, RIRDC, Canberra.

Thomson, G., Morgan, W., Winkler, S., Chew, M., Frisina, C. and Jaeger, J. (2002). Diversifying Asian Vegetable Markets, Volume 2. RIRDC Publication No 01/02, RIRDC, Canberra.

Victorian Government (1995). Plant Health and Plant Produce Act 1995 (Vic). Act No. 51-1995, Reprint No. 1, August 1997, Victorian Government.

Vinning, G. (1995). Market Compendium of Asian Vegetables. RIRDC R95/012, RIRDC, Canberra.

Vujovic, S., Chew, M. and Morgan, W. (2002) Melbourne Retail and Wholesale Asian Vegetable Survey, January 1997-June 2001 DNRE Publication ISBN 1 74106 097 461pp.

8. Industry Contacts

Asian Vegetable Industry Key Contacts (by State) STATE ORGANISATION SURNAME FIRST ADDRESS PHONE EMAIL SPECIALTY ACT RIRDC BYRNE Tony PO Box 4776 02 6272 5472 [email protected] Manager Research Kingston 2064 0413 840 931 NSW "Burlington' Chatswood and Importers / Asian Grocers Cabrammatta ABS CURTIS Paul 02 9268 4187 Information Consultant Ag NSW ADITYA Dipak Locked Bag 11 02 4577 0628 [email protected] Liaison. Project Officer - Market Windsor, 2756 Gardening in culturally diverse society Ag NSW JAMES Leigh Windsor 02 4577 0600 [email protected] Specialty vegetables 15 years 0412 429 418 experience 70 AgSell ARMBRUSTER Phil PO Box K220, 02 9372 0100 [email protected] Export Liaison Haymarket, 2000 Antico International MOLLOY Hugh Store G Flemington 02 9764 3833 Major exporters of produce, also Markets, 2129 traders and aggregators of lots at Sydney Markets. Suppliers of Asian vegetables to Woolworths

Arthur Yates & Co THOMAS Angela 02 9763 9321 [email protected] Seed contact Cambodian Vegetable HUOT Boran 0419 490 187 Grower association Growers Association of NSW Chinese Vegetable CHUNG David c/o Flemington 02 9822 5283 President of the Chinese Growers Association of Markets, 2129 0419 988198 Vegetable Growers Association NSW of NSW

STATE ORGANISATION SURNAME FIRST ADDRESS PHONE EMAIL SPECIALTY NSW Chinese Vegetable LEE Billy c/o Flemington 02 9724 9555 Vice President of the Chinese Growers Association of Markets, 2129 Vegetable Growers Association NSW of NSW. Operates as a trader

Chinese Vegetable SOO Garry 98 Kenthurst Rd 02 96541 607 Secretary of the Chinese Growers Association of Kenthurst, 2165 Vegetable Growers Association NSW of NSW Connectica LEE Barry PO Box 294 Gymea, 0418 230 393 [email protected] Market Research, management International 2227 Consulting Golden Harvest Farm CHU Raymond c/o Flemington 02 9746 3551 Providers of inputs to Chinese Supplies Markets, 2129 0408 968 705 vegetable growers Golden Harvest Farm NG Stephen c/o Flemington 02 9746 3551 Providers of inputs to Chinese Supplies Markets, 2129 0408 968 705 vegetable growers Grower HAR Tony 356 Eastwood Rd 02 960 66 595 Asian vegetable grower Leppington, 2171

71 Grower HOSKINS Peter 33 Hezlett Rd 02 96260 379 Asian vegetable grower Kellyville, 2155 HAL AHMED Dr Level 1, [email protected] HAL commissioned research Amani 50 Carrington St Sydney, 2000 HAL ANDERSON Alison Sydney Flemington 02 9746 1865 Vegetable Industry Development Markets, 2000 0409 383 003 Officer HAL ECCLES Jonathon Level 1, 02 9418 2200 Horticulture Australia 50 Carrington St 4072 42757 Sydney, 2000 Hassall & Associates CLARKE Michael GPO Box 4625, 02 9241 5655 [email protected] Agricultural consultants Pty Ltd CLUNE Tim Sydney, 1044 NORADA Northern MCLAUGHLIN Peter 02 6677 1365 President of NORADA. RIRDC Rivers Agricultural Consolidating Asian Vegetables Development project and trials for a range of Association root, fruiting and leaf type vegetables

STATE ORGANISATION SURNAME FIRST ADDRESS PHONE EMAIL SPECIALTY NSW NSW Agriculture HALL David Gosford Horticultural 02 42348 1944 [email protected] Researcher Research and Advisory Station

NSW Agriculture NGUYEN Vong Gosford Horticultural 02 4348 1927 [email protected] Researcher Research and Advisory Station

NSW Chamber of Fruit GRAY Colin Suite B24, 02 9764 3244 Agent and Exporter Contacts and Veg Industries Flemington

NSW Free Growers MCMAHON Bill 02 4578 1352 Grower association for Horticultural Council Europeans, especially Maltese (grower association) Purveyors International JOHNSON Robin 66/330 Wattle Street 20 9211 1555 Exporters of Asian vegetables Pty Ltd Ultimo, 2007 72

S&G SEEDS BURKE Dwane 0407 499 946 Asian vegetable seed Safeway Supermarkets BURROWS Michael Sydney 02 9892 7821 Supermarket - fresh produce

School Of Crop McCONCHIE Robyn University of 02 9351 4332 Post Harvest Physiology Lecturer Sciences Sydney Sydney, 2006 in Horticulture University SPS Seeds HANCOCK Mark Griffith, 2680 02 6962 7333 Seed supplier University of Western PARKER Frances 02 4570 1732 Working with growers in Sydney Sydney Basin for 15 years Vietnamese Vegetable HUA Su 0412 557 888 Grower association Growers Association of NSW Woolworths CONOMOS Kosta Fresh Produce Category Manager

STATE ORGANISATION SURNAME FIRST ADDRESS PHONE EMAIL SPECIALTY NT DBIRD WALDUCK Geoff 08 8999 2219 Business, Industry & Resource Development Officer

Horticulture Division, BUI Kim GPO Box 3000 08 8983 [email protected] Vietnamese Communications Department of Darwin, 0801 32330419 901 Officer Business, Industry & 554 Resource Development

QLD Asian markets VINNING Grant 157 Horizon Drive 07 3376 2244 [email protected] Asian markets Research AusMarket DAVIDSON Ivan PO Box 229 07 3379 4576 [email protected] Consultant Consultants Brisbane Market, 4106

73 Central Queensland GALLACHER David Author of material on CQU University web page DPI COLEMAN Eric 07 5466 2216 Extension - Heavy Vegetables - Tara, Sweet potato DPI DEVRIES Mr Jan 07 3362 9439 [email protected] Regulations Officer Horticulture Australia HERITAGE Samantha 07 3213 2425 Industry Development Officer Limited Horticulture Australia TELFORD Julia 07 3213 2425 Industry Development Officer Limited Mulgowie Farms EMERIC Lisa Gatton Asian vegetable grower

STATE ORGANISATION SURNAME FIRST ADDRESS PHONE EMAIL SPECIALTY QLD School of Biological MIDMORE David Rockhampton, 4702 07 4930 9770 [email protected] Professor of Plant Sciences, major and Environmental research outputs in Asian Sciences Vegetables eg "Bringing Asian Vegetables into one basket"

School of Natural and KEILAR Steven Gatton College, 4345 07 5460 1604 [email protected] Research (PhD) Rural Systems Management Asian Vegetable HARSLETT Alec Stanthorpe Exporters of Chinese cabbage and Exporter a major operation, also traders at markets - aggregate lots for export. Member of the board for Crop Protection Approvals Ltd

74 Virginia Horticulture DAVIES Gerard PO Box 847 08 8282 9200 [email protected] Director, Project Management Centre Virginia, 5120 0410 618 463 Adelaide Fresh Produce DIMASI Angelo [email protected] Vegetable Markets Markets Corporate Strategy and EISFELD Rob Level 16, Grenfell 08 8226 0475 [email protected] Economist Policy Branch Primary Centre 25 Grenfell Industries and St ADELAIDE, 5000 Resources South Australia

HAL FEUTRILL Craig Adelaide 08 8568 1824 Vegetable Industry Development 0418 831 089 Officer PIRSA Rural Solutions HOLLOW Howard Lenswood Research 08 8389 8800 [email protected] Senior Horticultural Extension SA Centre Swamp Rd Officer Lenswood, 5240

STATE ORGANISATION SURNAME FIRST ADDRESS PHONE EMAIL SPECIALTY Tas DPIWE HORAK Joe Rundle Road 03 6421 7662 [email protected] Market Development Officer DEVONPORT, 7310

DPIWE SPARROW Angela PO Box 46, 7249 03 6336 5349 [email protected] Horticulturalist - Wasabi 0418 319 673 DPIWE STOTT Karen New Town Research 03 6233 6833 [email protected] Specialty Mushroom Research Laboratories 13 St Johns Ave

Asian Vegetable READER P&J Bishopbourne 03 6397 3199 Asian vegetable grower - Daikon Grower SPS Seeds GARDLAND Craig Richmond 03 6260 2333 Sales representative 0418 447 861 SPS Seeds FRKOVIC Eddy Richmond 03 6260 2333 Sales manager Professor HAY Frank 03 6430 4907 Professor 75 VIC Cadman Agribusiness CADMAN Ralph PO Box 409 Black 03 9589 3235 [email protected] Consultant Services Rock VIC, 3193 04439 958900

Chan Phat Asian CHEN Victor 162-164 Victoria St, 03 9429 4768 Asian green grocery Groceries Richmond, 3121

Chen International Pty CHEN Stephen 19 Kaleno Rd, 03 9857 4627 Exporter Ltd Balwyn, 3101 Coleflex Pty Ltd CHANG Philip 19 Crows Lane, Glen 03 9887 8691 Exporter Waverley, 3150 0411 24 3899

Coles Supermarkets WALLACE Darryl 800 Toorak Rd, 03 9829 5646 [email protected] Supermarket - fresh produce Tooronga, 3146

STATE ORGANISATION SURNAME FIRST ADDRESS PHONE EMAIL SPECIALTY VIC EE Muir & Sons Pty MOORE Steven Werribee, 3030 03 9742 1778 Farm chemical supplier, Ltd support services. Also rep for Geelong Asian Vegetable Growers Ass. Fairbank's Selected SHEPHERD Paul 542 Footscray Rd, 03 9689 4500 [email protected] Seed supplier and merchant Seed Co. Pty Ltd West Melbourne, 0407 55 0990 3003 Gippsland Seedling INGRAM John C/O PO Lindenow, 03 5157 1650 Vegetable nurseryman and Company 3865 0427 557 155 grower Rijk Zwaan Seeds NATSIAS Steve PO Box 284, 03 5348 5528 Seed supplier Daylesford, 3460 0417 815 988

Melbourne Market STEWART Mary Box 1, 542 Footsray 03 9258 [email protected] Wholesale market manager Authority Rd, West 61020418 17 Melbourne, 3003 0056 76

N & M Kerton P/L KERTON Norm Bonnacord Rd, 03 5157 1336 Vegetable grower - Chinese Lindenow, 3865 0417 39 1460 cabbage Natural Resources & MORGAN Wendy Private Bag 15, 03 9210 9302 [email protected] Research scientist Environment Scorseby Business 0412 25 4832 Centre, 3176 NRE, Institute for DIMSEY Robert Calverts Rd, 03 5152 0400 [email protected] Research scientist and Horticultural Bairnsdale, 3875 extension officer Development NRE, Institute for THOMSON Graeme Private Bag 15, 03 9210 9259 [email protected] Research scientist Horticultural Scorseby Business Development Centre, 3176 OpalJade CHAN Charles Stall B, 183-184 03 9687 0488 Wholesaler Fresh Centre, 542 0411 38 7124 Footscray Rd, Footscray, 3011

STATE ORGANISATION SURNAME FIRST ADDRESS PHONE EMAIL SPECIALTY VIC OZGROW Pty Ltd BANH Steven Warehouse B, No. 1, 03 9533 7378 [email protected] Wholesaler to supermarket chains, Mail Box 47, 542 0411 12 3828 making sure 10 growers who Footscray Rd, supply Ozgrow understand new Footscray, 3011 record keeping regulations

Sea Food Smart Springvale Shopping Asian green grocer Centre, Buckingham Ave, Springvale, 3171

T. Dep - Trinh Geelong TRINH Throng 20 McGregor Crt, 03 5276 1354 Asian vegetable grower Farms Corio, 3124 Tan Thanh Hung XE VUI PHU Paul 200 Victoria St, 03 9421 Asian green grocery Supermarket Richmond, 3121 01880419 33 5009 Thanh Dat Chinese & Cnr. Buckingham Chinese and Vietnamese Vietnamese Restaurant Ave & Windsor Ave, restaurant

77 Springvale, 3171

Thanh Lqi Asian 7B - 258-260 03 9558 5848 Asian green grocer Grocery Springvale Rd, Springvale, 3171 Thy Thy 1 1/142 Victoria St, 03 9429 1104 Vietnamese restaurant Richmond, 3121 Asian Vegetable HAMMOND Philip Finley/Allexander 03 5157 6212 Vegetable grower - Chinese Grower Rd, Lindenow, 3865 0407 34 7969 cabbage

Asian vegetable grower NGUYEN Van PO Box 911, Bacchus 03 5367 7828 Asian vegetable grower Hien Marsh, 3340 0416 33 3773 (Minh) Asian vegetable grower TRINH Than 275 Stacey's Rd, 03 5276 1354 Asian vegetable grower Thanh Anakie, 3221

STATE ORGANISATION SURNAME FIRST ADDRESS PHONE EMAIL SPECIALTY WA Agritrade International PO Box 110 08 9398 8380 Exporter of Asian Vegetables - Pty Ltd THORNLIE, 6998 potatoes AgWA ELLIOT John Carnarvon 08 9368 3255 Extension Officer Aismik International Lot 8 Everette Way, 08 9437 1483 Exporter of Asian Vegetables Agro HOPEVALLEY, 6165

Austral Pacific Exports PO Box 875 08 9335 8866 [email protected] Exporter of Asian Vegetables - FREMANTLE, 6160 fruits and vegetables

Australian Seed Potato RMB 9424 Exporter of Asian Vegetables Company BORNHOLM, 6330 Seed potatoes

Bell Vista Fruit and PO Box 107 SOUTH 08 9335 9899 [email protected] Exporter of Asian Vegetables - Veg Co FREMANTLE, 6162 fruits and vegetables 78

Bullfrog international Mail Point 42, 08 9455 6477 Exporter of Asian Vegetables - Fruit and Vegetable Market City 280 fruits and vegetables Merchants Banninster Road, 6155

Carter And Spencer Po Box 285 08 9455 0155 [email protected] Exporter of Asian Vegetables - International Pty Ltd BELMONT, 6984 fruits and vegetables Center West Exports PO Box 1061, 6998 08 9409 7011 Exporter of Asian Vegetables - fruits and vegetables Department of BURT John Locked Bag 4 08 9368 3211 [email protected] Research Officer Green Tea and Agriculture BENTLEY Delivery New Crops Centre, 6893

Department of MCVEIGH Vynka PO Box 123 08 9780 6196 [email protected] Research Officer Agriculture Bunbury, 6231

STATE ORGANISATION SURNAME FIRST ADDRESS PHONE EMAIL SPECIALTY WA Department of TAN Soon PO Box 123 08 9368 3647 Research Officer Agriculture Chye Bunbury, 6231 Erimus International PO Box 112, 6153 08 9316 3677 [email protected] Exporter of Asian Vegetables - Pty Ltd fruits Fast Track Exports 30 Conti Road, 6065 08 9306 4200 Exporter of Asian Vegetables - fruits HAL ELLEMENT David 08 9456 4077 Industry Development Officer Manjimup Syndicate Po Box 1371, 6258 08 9771 1344 [email protected] Exporter of Asian Vegetables - Coolstrores fruits and vegetables Mooney Trading Co MP 16 'Market city' 08 9293 8238 Exporter of Asian Vegetables - Canning Vale, 6155 fruits and vegetables Paragon Produce MP 110 Market City 08 9455 4088 [email protected] Exporter of Asian Vegetables - 280 Bannister Road, fruits and vegetables CANNING VALE, 6155

Powerwide Enterprises 358c South Street, 08 9314 2989 [email protected] Exporter of Asian Vegetables -

79 Pty Ltd OCONNOR, 6163 fruits and vegetables Quality Produce PO BOX 1118 08 9455 2777 [email protected] Exporter of Asian Vegetables - International Canning Vale, 6970 fruits and vegetables Regal Marketing MP 58 Market City 08 9455 4966 [email protected] Exporter of Asian Vegetables - 280 Bannister Road, fruits and vegetables CANNING VALE, 6155

Trident Produce Pty Ltd PO Box 275 08 9456 1288 [email protected] Exporter of Asian Vegetables - WILLETON, 6155 fruits Wescory Fruits and PO Box 345 08 9336 1855 [email protected] Exporter of Asian Vegetables - Vegetables Int FREMANTLE, 6155 fruits and vegetables Asian Vegetable BORROMEI Sylvano 311 Lansdale Rd, 08 9409 7747 Asian Vegetable Grower Grower Lansdale, Waneroo Asian Vegetable NGUYEN TV Lot 77 Wattleup Rd, 08 9437 1238 Asian Vegetable Grower Grower Wattleup

APPENDIX 1: MAJOR ASIAN VEGETABLES BY STATE

Classification as per Lee 1995 updated through industry stakeholder survey by Hassall & Associates 2002.

Bold – common English name Normal – common Asian name Italics – Botanical name

ASIAN VEGETABLES NSW WA NT QLD VIC TAS SA Leafy Vegetables Chinese Cabbage Wong Bok/Michihli √ √ √ √ √ √ √ Brassica pekinensis RUPR White Cabbage Pak Choi, Baak Choi, Shanghai √ √ √ √ √ √ √ baak Choi, Tat Choi Brassica parachinensis Chinese Flowering Cabbage Een Sum √ √ √ √ √ √ √ Brassica alboglabra Chinese Broccoli Kai Laan √ √ √ √ √ √ Brassica alboglabra Chinese Spinach Bor Choi √ √ √ √ √ √ Spinacia oleracea L. Garland Chrysanthemum Tong Ho √ √ Chrysanthemum coronarium

Leafy Mustards Chinese Green Mustard Cabbage √ √ Kaai Choi Brassica juncea Japanese Mustard Mizuna, Mibuna √ √ √ Brassica rapa Spinach Mustard Komatsuna √ √ Brassica perviridis

Legumes Snake Bean, Asparagus Bean, Yardlong Bean √ √ √ Dol Gok Vigna sinsis Yam bean Jicama √ √ Pachyrrhizus erosus Green Soybean Edamame √ √ √ √ Glycine max Okra Lady Fingers √ √ √ √ √ Abelmoschus esculentus

ASIAN VEGETABLES NSW WA NT QLD VIC TAS SA

Cucurbits/fruits Angled Loofah Sze Kwa √ √ √ Luffa Acutangula Smooth Loofa Shui Kwa √ √ √ Luffa cylindrica Wax Gourd/Winter Melon Doong Kwa √ √ √ Benincasa hispida Jointed/Hairy Gourd Chic Kwa √ √ √ Lagenaria siceraria Bottle Gourd Calabash √ √ √ Lagenaria siceraria Bitter Melon/Bitter Gourd Foo Kwa √ √ √ Momordica charantia Japanese Pumpkin/ Squash/Melon Kabocha √ √ √ √ √ Cucurbita moschata

Water Vegetables Water Spinach/Kang Kong Ong Choi Tung Tsoi √ √ √ √ √ Ipomoea aquatica Watercress Say Yan Choi √ √ √ √ √ Naturtium aquaticum Water Chestnut Ma Tai √ √ √ Eleocharis dulcis Lotus Root Ling Ngul √ √ Nelumbo nucifera

ASIAN VEGETABLES NSW WA NT QLD VIC TAS SA

Herbs Chinese Chives Gullo Choi √ √ √ √ Allium tuberosum Japanese Honewort Mitsuba √ √ Cryptotaenia japonica Perilla Leaves Shisho √ √ Perilla arguts Lemon Grass Heung maau tso √ √ √ √ √ √ Cymbopogon citratus Coriander Yim Sai √ √ √ √ √ √ √ Coriandrum sativum Spring Onions/Japanese Bunching Spring Onions √ √ √ √ √ √ Choong/Choong Tol Allium fistulosum/Cepa

Mushrooms Shiitake/Black Mushroom Doong Koo √ √ Lentinus edodes Oyster/Abalone Mushroom Bao Yue Koo √ √ Pluerotus ostreatus

Root Crops Chinese/Japanese radish Loh Baak/Daikon √ √ √ √ Raphanus sativus Bamboo Shoot Jook Sung √ √ Dendrocalamus asper Taro Wu Tau √ √ √ Colocasia antiquorum Japanese Horse Radish Wasabi √ √ √ Wasabi japonica Japanese Ginger; Bud ' Zingiber officinale; Myoga √ √ √ Yam, Chinese Yam as Dioscorea batatas DECNE √ √ Burdock Gobo √ √ √ √ √ √ √ Arctium lappa