Citrus Forum 2017 From the Market to the Tree John Chavarria Mildura, 01-March-2017

Presentation Notes This presentation is based on my practical experience and my current knowledge of markets and varieties and I apologise if any relevant details and varieties have been overlooked unintentionally Global market approach combined with local knowledge Holistic understanding of new varieties rather than a detailed description of all current varieties

Presentation Notes Acknowledgements: Great job done by Citrus Australia, DOA (AQIS), government officials,… granting access to new markets Good follow up by the exporters developing the markets Dynamic breeders and commercialises of varieties making new varieties available to the industry Strong evaluation and local knowledge of the new varieties to transfer onto growers Very dynamic growers taking on board the new varieties

John Chavarria Background Horticultural Science degree and Masters in Citrus from the University of Valencia in Spain Working in Australia since 1993 (24 years) Working for MFC with Bill Robinson (Grower Services Manager) for 22 years Have formed a very strong relationship with MFC growers Have taken 8 MFC grower trips to Spain including one in two weeks time of 44 people Spanish Industry is 10 times the size of the Australian Industry Spain is the largest fresh Citrus exporter in the World, although not the biggest grower

John Chavarria Background During this time – worked in the field, packing shed (post harvest) & marketing Last 15 years have been visiting and working with MFC growers 2-3 times per year Consulted in a number of other Countries including – Spain, USA, Chile, Mexico, China Manage citrus export program from Spain to USA and also to Asian markets Lived in the USA (Florida) for 2 years in 2014 and 2015

Changing Markets Markets drive varieties & ultimately the profitability in the orchard Varieties, cultural practices and rootstocks to meet market requirements TALK TO YOUR PACKER before deciding on new varieties The need for new markets was triggered by the decline of the USA market a number of years ago due to competition and poor exchange rates The economic down-turn and exchange rate in Japan (1st class to composite) This market has now recovered for 1st class and composite The Citrus Industry had to look for other markets to remain viable

Changing Markets Need a good balance of markets NEED FOR DIFFERENTIATION good quality high brix good colour clean (low residue) New and exciting markets that we have; China Phillipines/Vietnam/South Korea/Thailand MFC strongly committed to these markets and for 2016 sent 600 containers to China

Changing Markets - Export Markets Opportunities High demand and better prices Different varieties & sizes Favourable exchange rate Threats Competition (low cost of production – Southern Hemisphere) Phytosanitary restrictions Political decisions eg. Trump – Argentina Lemons Unfavourable exchange rate MFC Export 80% - 25 Countries, Domestic 20%

Varieties, General Notes Navels Preference of navels over valencias Strong interest in Asia Declining consumption in the Western markets Growth opportunities in China

Varieties, General Notes Pigmented oranges (red) Interest in Asia and US/Canada: Cara Cara & Blood types The market is looking for a Cara Cara with a blush and early and late to extend the season Need for bloods with more consistent colour and better size Potential opportunities for pigmented valencias

Varieties, General Notes Tango/Afourer – Domestic market and continue to build export markets – Europe, USA, Japan Seed counts in the future will be crucial for most markets and will impact grower returns Not a preferred variety in China, but could change Imperial Mandarins - Domestic There is a lot of production of Imperials for a marketing window that is being squeezed by newer varieties

Varieties, General Notes Lemons Currently world shortage – good prospects, although a lot of new plantings worldwide Interest in seedless Lemons Will need export in future – CT could restrict markets (chilling injury)

Varieties, Internal Pigmented Oranges Asian and Western markets: Red colour is very important, not yet in Europe. Markets: Asia, US, Canada. Tables to follow, key; Variety order by maturity Knowledge 1 – Good knowledge 2 – Some knowledge 3 – Minimum knowledge WIP – Work in progress NA – Not available in Australia SL – Seedless, LS – Low seeds, LS-I – Low seeds in isolation, SD – seeded

Varieties, Internal Pigmented Oranges Variety Knowledge Seeds Early Cara Cara WIP-NA SL Cara Cara 1 Kirkwood Red 2 Late Cara Cara 3-NA Torocco Ippolito Blood LS Ruby Valencia

Varieties, Navel Oranges Asian markets: Sustainable interest on navels overall. Western markets: declining consumption. Markets: Asia, Domestic and some Western markets.

Varieties, Navel Oranges Variety Knowledge Seeds M7 Navel 2 SL FJ Navel Washington, Fisher, Atwood Navel 1 All Late Navels Brown Navel 3

Varieties, Western Markets - Mandarins Seedless most important Easy to peel (relatively soft) Good brix but not necessary high brix (10-12+) Markets: Domestic, US, Europe, Japan.

Varieties, Western Markets - Mandarins Variety Knowledge Seeds Tango 1 SL Nadorcott SL (SA) 2-NA Afourer SL (QLD) 3-NA Nadorcott (Afourer) LS-I

Varieties, Asian Markets - Mandarins High brix (generally 13+) most important (or low acid) Firm fruit for imports (not so easy to peel) Seedless is not a priority yet Smooth skins, good colour, medium size Markets: Asia, Domestic

Varieties, Asian Markets - Mandarins Variety Knowledge Seeds Daisy LS (US) 2-NA LS Daisy LS (QLD, others) WIP-NA RHM 2 LS-I Orri LS Murcott Selections (QLD) Murcott 1 SD Kinnow LS (US) Summerina 3 SL

Varieties, Domestic Markets - Mandarins Unknown or poor ability to sea freight. Markets: Domestic.

Varieties, Domestic Markets - Mandarins Variety Knowledge Seeds Imperial and its selections 1 SD Dekopon 2 SL-I Gold Nugget SL

Varieties, Lemons Asian and Western markets. Markets: Domestic, Asia. Anticipated interest of seedless lemons in the Western markets. Markets: Domestic, Asia.

Varieties, Lemons Variety Knowledge Seeds 2PH SL Lemon 2 SL Eureka SL (SA)

Cultural Practices Pest Control Navels – smooth rind Growth Regulators Fruit Damage – lower pack-outs KCT – Fullers Rose Weevil & other pests of concern Control of Queensland Fruit Fly – female traps Navels – smooth rind Growth Regulators GA – crop regulation, fruit set, creasing and extended harvest 2,4-DP (Corasil) - thinning & sizing 3,5-6 TPA (Tops) - thinning & sizing 2,4-D (Stop Drop) - fruit condition Pruning for size and quality Girdling (Cincturing) MFC Orchard Protocol

Rootstocks To adapt to soil conditions Biggest challenge is HLB Research on resistant/tolerant rootstocks Market not accepting GMO rootstocks No solution yet for HLB Different rootstocks to extend the season and/or to improve brix Some interesting rootstock selections could be; C22 – marginal soils Patricia Barkley (Malcolm Smith) Chinese Selections (Tahir Khursid) IVIA Selections (Maria Forner)

Take Home Messages Market driven rather than production driven Before deciding on new varieties talk to your packer Spread your risk across different markets and varieties Be open to new varieties and gather information Be prepared that some varieties may not adapt to certain growing conditions Rootstocks and cultural practices for best quality and yields

Ending Notes Very dynamic industry and good to be a part of Exciting times ahead Thanks to MFC to facilitate my presentation Thanks to MFC growers to allow me to work with them over the years Best wishes for the new season THANK YOU