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The traditionally domestically-oriented Australian apple industry has achieved a major breakthrough for market access in China, which has historically only been available to Tasmanian growers as well as select international producers.
Australia's apple growers produced a 393,731-tonne crop last year that was worth $680.2 million, according to the Australian Horticulture Statistics Handbook, but only $8.7 million of that income came from export.
This represents a paltry percentage of the nation's $1.45 billion worth of fresh fruit exports last year, of which more than $1 billion was split between citrus and table grapes, with other key commodities including avocados, cherries, berries, nectarines, peaches and plums.
Today's announcement of a new biosecurity protocol for mainland Australian apples to be exported to China comes more than a decade after the first shipment of Tasmanian apples to the country, and almost eight years after then Deputy Prime Minister Barnaby Joyce put apples at the top of the priority list for access talks.
Joyce announced a 'two and two' agreement with China whereby market access negotiations would involve two horticultural products at a time for each country, with fresh blueberries as Australia's second-ranked commodity in the arrangement - a crop that is now expected to gain 'active priority' status for discussions.
After achieving market access in India last year, Avocados Australia has also been pushing for a deal in China, leading the Shanghai Huizhan Markets to commit to $300 million worth of pre-orders of Australia avocados in November 2024 for when the market eventually opens.
Such talks were stalled over the pandemic years, but an improvement in trade relations between Australia and China has reactivated shipments of a range of goods from barley to beef to wine. The ABC reports that over the weekend China approved 10 Australian abattoirs for lamb and mutton.
Following the latest protocol signed by the Department of Agriculture, Fisheries and Forestry (DAFF) and China's General Administration of Customs (GACC) in Canberra, it is expected that mainland-grown Australian apples will start shipping to China in the 2026 season.
Industry group Apple and Pear Australia Limited (APAL) describes the opening as a "fantastic opportunity", tapping into China’s strong demand for premium, high-quality imported fresh fruit.
"Market access for Australian mainland apples into China is a significant milestone that will provide Australian growers with a valuable opportunity to expand beyond the domestic market and establish a presence in one of the world’s most lucrative fresh produce market," says APAL CEO Philip Turnbull.
"The Australian apple industry has traditionally been domestically focused. However, shifting supply and demand dynamics, coupled with increasing competition in the snack food category, mean that developing strong export pathways is more critical than ever.
"Access to China offers Australian growers an exciting opportunity to showcase the quality, crispness, and flavour of our apples to an entirely new audience."
New Zealand is currently by far the leading exporter of apples to the mainland Chinese market, earning US$156 million last year from shipping 64,787 tonnes of the fruit.
The second-leading source was Hong Kong which serves as an intermediary market bringing more than $60 million to mainland China, followed by South Africa with US$14.8 million, Chile with US$11.6 million, and the United States with US$10.5 million.
According to the China: Fresh Deciduous Fruit Annual report published by the USA's Foreign Agricultural Service (FAS), the country is expected to consume 47 million metric tonnes of domestically-grown apples in 204-25, supplemented by 105,000 tonnes of imported apples.
Whilst the report notes that apple consumption growth is not keeping pace with production growth in China, it also points to consumers increasingly demanding "high quality, flavour, and nutritional value in their fruit" - attributes Australia's fruit industry is known for in targeting the premium end of the market.
New Zealand shares a similar reputation for premium quality in the Chinese market, and its average return per kilo is around double that of its competitors from Chile and South Africa.
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