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Australian cherries: production is expected to reach 19,000 tons, air freight prices are still the main constraint

 Last Update: 2022-09-07
 Source: Internet
 Author: User

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USDA exports cherries to Australia amid pandemic

Cherry production

For the 2022/23 season, Australian cherry production is expected to increase to 19,000 tonnes from 16,000 tonnes in the 2021/22 season
.
Part of the upward revision in the forecast is due to the gradual increase in the acreage of cherries entering their full fruit season as varieties improve
.
The 2021/22 harvest is now underway due to unusual rains during the harvest season, and a recovery is expected this season
.
In all major cherry-producing regions, winter rains are abundant, temperatures in June and July 2022 are on par with or below average, and the low temperature period in winter is long enough for cherry trees to germinate
.

Cherry trade

Exports of fresh cherries from Australia are expected to increase modestly to 4,500 tonnes in the 2022/23 season, up from 3,900 tonnes in the previous season
.
Although production is expected to increase, exports will still be affected by persistently high freight rates
.

Over the past five years, more than 99% of Australia's cherries have been exported by air
.
Despite the easing of coronavirus-related international border controls and a significant increase in international flights in and out of Australia last year, industry reports show that airfreight costs have continued to rise
.
According to reports, the current air freight costs are about 3 times higher than before the epidemic
.
The previous flight had few passengers (in part due to Covid-19 risk management protocols), resulting in a much smaller load of people and luggage, freeing up additional cargo space for produce
.
Since the beginning of 2022, as Covid-19 restrictions have been eased, there has been more limited cargo space available to transport products such as cherries, despite more frequent international flights
.
The frequency of international flights needs to be further increased to increase the overall cargo capacity and reduce air freight costs
.

Despite limited airfreight capacity and high costs, the Australian cherry industry has maintained high export levels in the 2020/21 and 2021/22 seasons, with the 2021/22 season falling exports mainly due to a significant reduction in production
.

The main export destinations for Australian cherries are in Asia, which is relatively close to Australia, making it more cost-effective to ship by air to Asia than long-distance transport to other destinations
.
Hong Kong, Vietnam, Singapore, Taiwan and China are the top five export destinations, accounting for more than three-quarters of its total exports
.
Exports to mainland China, Hong Kong and Vietnam have remained at around 55% to 60% of total exports in recent years, but in the past two years, exports to mainland China have shifted to Hong Kong and Vietnam
.

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