Queensland Fruit Fly Management in Victoria

Queensland Fruit Fly Management in Victoria

By

Victorian Farmers Federation

28 September 2012

Foreword

The Victorian Farmers Federation is Australia’s largest state farmer organisation, and the only recognised, consistent voice on issues affecting rural Victoria.

The VFF consists of an elected Board of Directors, a member representative Policy Council to set policy and eight commodity groups representing dairy, grains, livestock, horticulture, chicken meat, pigs, flowers and egg industries.

Farmers are elected by their peers to direct each of the commodity groups and are supported by Melbourne-based staff.

Each VFF member is represented locally by one of the 230 VFF branches across the state and through their commodity representatives at local, district, state and national levels. The VFF also represents farmers’ views atmany industry and government forums.

Peter Tuohey

President

Introduction

Victorian Farmers Federation (VFF) Horticulture welcomes the opportunity to provide comment on the Victorian Queensland Fruit Fly Industry Discussion Paper dated July 2012.

While the Department of Primary Industries (DPI) has taken a two region approach to deregulation (Greater Sunraysia Pest Free Area (GSPFA) and Greater Victoria), VFF Horticulture believes there are three distinct regions and we intend to provide comment on the three regions individually. These regions are:

1. Greater Sunraysia PFA
2. North East Victoria and East Gippsland and
3. Southern Victoria

To develop this submission VFF Horticulture has held several meetings across the state andconsulted widely with many growers and industry bodies in the different regions. We were disappointed to note that really the only consultation to growers directly has been when VFF Horticulture or other industry associations have requested it. There has been minimal move to consult with growers directly. DPI has chosen to consult with industry bodies expecting those bodies to talk to growers in a very short period.

Growers have told the VFF the rush to deregulate will see the potential for major losses including many hundreds of thousands in treatment costs, reduced fruit quality and loss of interstate and overseas market access.

With pest free status growth in horticultural commodities is possible.

Recommendations

Short term recommendations

1. That government provide funding for this coming season’s eradication programs to give growers in the Greater Sunraysia PFA 12 months to develop increased co-contribution models.
2. That government give growers in Southern Victoria 12 months to develop pest free options and co-contribution models before any deregulation occurs. This would require information and assistance from DPI as to costs and regulations.
3. That DPI seek access to the remaining Horticulture Australia Limited (HAL) funds for fruit fly eradication programs to minimise the need for additional industry contribution in the short term
4. That government implement Phase 1 at the earliest opportunity at the same time ensuring growers are informed directly of the implications
5. That the electronic ICA project be finalised and rolled out to growers as soon as possible
6. That government provide education material for growers (in line with non-commercial grower material already available) with advice on managing fruit fly in commercial and neglected orchards and make every effort to ensure growers receive this material. The HIN could assist in the distribution of this material.
7. That government hold workshops for growers wishing to get a better understanding of what is required to develop PFAs and PFPPs. VFF Horticulture would be willing to assist if sufficient funding was available.
8. That furtherinitiatives to remove neglected orchards which threaten biosecurity be developed.

Long term recommendations

1. That government go to the next CoAG meeting to urge Minister Ludwig, in line with our letter to him, to fund a cross industry HAL managed project into fruit fly eradication long term

Managing Fruit Fly in Regions

Region 1 – Greater Sunraysia PFA

VFF Horticulture supports the retention of the Greater Sunraysia PFA with the understanding that it has cross industry support from those industries that have been asked to make significant annual co-contributions to its retention.

VFF Horticulture calls on the government to provide industries in this region with 12 months to seek additional funds as current R&D and on-farm budgets for this coming season have already been determined.

We support DPI seeking access to the remaining Horticulture Australia Limited (HAL) funds for fruit fly eradication programs to minimise the need for additional industry contribution in the short term.

VFF Horticulture believes with 33 percent of all employment in the GSPFA reliant on horticulture, it is critical to retain the region’s pest free status in order to provide continued access to key markets and to seek new markets with minimal treatment requirements that can be costly and uneconomic for growers.

Case Study 1 – Citrus Industry
In March this year following a visit to Thailand and South Korea, new citrus exports valued at $3.5m are expected over the next two years.

Other industries in the GSPFA are also looking to increase exports to key markets. With the reopening of the Taiwanese market for stone fruit (although GSPFA is not currently recognised as a pest free area), exports are slowly increasing but are still some way off the original export figures before the market closed in 2006. Three countries currently account for the export of 88 per cent of the total volume of peaches and nectarines produced in Victoria.

Case Study 2 – Stone fruit Industry
The Swan Hill region produces approximately 35 per cent of Australia’s stone fruit production with an annual export turnover of $40-50m. As with many horticultural commodities the industry has high turnover but low profit margins.
Current export opportunities ensure the domestic market for stone fruit remains stable thus retaining and increasing export markets is to the entire industry’s benefit.
With access to New Zealand being finalised it is vital to have pest free status accepted. With pest free status the produce will take five days to reach NZ, without that status it will take 16. This will have a significant impact on the quality of the fruit. Access to NZ will also meet the government’s priority of doubling production with a clear market for the produce.
Low margins, short notice and without growers yet having made an income means it is very difficult for industry to raise significant funds in a short period.

Region 2 – North East Victoria and East Gippsland

VFF Horticulture supports the proposed Phase 1 (provided in a presentation to industry bodies) which would see the current permanent fruit fly zone in North East Victoria and East Gippsland extended to includeareas in north central Victoria, Bendigo and the Goulburn Valley.

Parts of this region have been in continuous outbreaks for some years and the current arrangements provide additional paperwork that should not be necessary to move fruit from essentially one permanent fruit fly zone to another.

Region 3 – Southern Victoria

Growers in Southern Victoria have expressed their shock at the sudden announcement of what seems to be a fait accompli. Their comments have assured us that this is not a consultation process but a decision based on short term financials without consideration of long term impacts.

VFF Horticulture believes it is premature to deregulate Southern Victoria without giving industries 12 months to consider the impact.

This decision will also have a major impact on those high value commodities that currently export to sensitive markets but have too small a shelf life to meet treatment requirements.

Case Study 3 – The Raspberry and Blackberry (Rubus) Industry
The government’s decision to declare Southern Victoria a permanent fruit fly zone will have a major impact on the state’s Rubus industry.
YV Fresh is the second largest supplier of raspberries and blackberries (rubus) in Australia and sources it fruit from many growers in the Yarra Valley and surrounding shires. This decision could affect market access to South Australia and Western Australia costing the company and local growers 25% of its sales annually. It will cost Victorian Rubus about $5M annually if they are unable to send fruit to South Australia and Western Australia.
This extra fruit, then entering the local market on the eastern seaboard, could lead to a reduction in prices of up to 40-50 per cent for the peak December to March window meaning growers will receive less returns than their cost of production.
Without fruit fly free status growers will have to comply with ICA 04 which will require fumigation with methyl bromide. Capital investment to set up an appropriate fumigation chamber with appropriate monitoring and environmental controls will cost approximately $400K per facility.
Fumigation will lead to a 25 per cent loss of shelf life from seven days to 4-5 days and breaks the cool chain. Fruit must be chilled when coming in from harvest, warmed to 16 degrees to fumigate then cooled again for transport to the buyer. This would downgrade the product too much for access to the WA market.
Area Freedom protocols of the type outlined in ICA-56 will take years to implement and will require additional burden through record keeping and monitoring by growers, impacting on the operating costs of their businesses.
The Rubus industry has been expanding, with 25 per cent expansion in Victoria alone. Only continued market access will encourage this continued growth in line with the government’s policy to increase productivity and profitability.

Growers in the Yarra Valley, West Gippsland and Warragul have expressed their need for time to consider their options. Yarra Valley and West Gippsland growers are very keen to look at developing a PFA for their respective regions and a large tomato grower in Warragul has indicated their interest in becoming a Pest Free Place of Production.

We have asked but are yet to receive any data on how many fruit flies have been trapped in the Southern Victoria region. Businesses that have had fruit fly traps on their farms for the last 15 years can demonstrate that QFF has never been found. It would be difficult for government to mount a case for deregulation when no significant populations have been found in the southern Victorian region.

The need for education

Growers in the North East and Southern Victorian regions in particular also have limited knowledge of fruit fly and the treatment options. It is critical that an education program be developed to inform growers of treatment options and requirements for market access.

Developing material for these options, establishing and enacting co-contribution models and gaining market acceptance will take up to 12 months.

To date we have seen little education at grower level. VFF Horticulture believes this should be a role for the Horticulture Industry Network (HIN) as most affected industries have an Industry Development Officer that knows the growers in their commodity.

Workshops on treatment options could also be held in conjunctions with chemical resellers.

Reducing regulatory burden

Department of Primary Industries in their presentations have made it quite clear that this proposal is about reducing regulatory burden on growers and the government’s decision to no longer fund vital eradication programs for Queensland Fruit Fly.

Other than the implementation of Phase 1 the proposal to deregulate the remainder of Victoria will in no way achieve this objective.

There has been no discussion around whether DPI has spoken to the major retailers about what their requirements will be. It is widely accepted that the major retailers sell the majority of Victoria’s produce and it would be likely that deregulated or not these major retailers will continue to want growers to provide clear evidence (through treatment and paperwork) that the fruit provided is fruit fly free.

VFF believes there is also currently a pilot project underway for the use of electronic ICAs. We would encourage government to finalise the pilot and roll it out to growers across the state. This will go a long way to reducing burden on growers.

Reduced availability of treatment options

Fruit Fly management in the past has relied on chemical intervention. Dimethoate use was severely curtailed in 2011 and Fenthion is likely to be withdrawn from use in the very near future. Trichlorfon, another organophosate has being listed for APVMA priority one review.

An education program, in light of Fenthion review, should also be undertaken to assist growers adjust to other methods of fruit fly control. This could be done in a series of workshops in conjunction with chemical resellers to allow informed decisions to be made.

Supply chain consultation

There has been no discussion around whether DPI has spoken to the major retailers about what their requirements will be. It is widely accepted that the major retailers sell up to 80 per cent of Victoria’s produce and it would be likely that deregulated or not these major retailers will continue to want growers to provide clear evidence (through treatment and paperwork) that the fruit provided is fruit fly free.

We also note that at grower meetings there has been discussion of advice needed by the Melbourne Markets for deregulation of Southern Victoria. We are yet to hear a satisfactory explanation as to what role either the Melbourne Market Authority or Fresh State plays in this debate. Whilst some fumigation facilities are located in the market, all costs and paperwork associated with any treatments to meet market access protocols are borne by growers. It is ultimately the grower’s decision as to whether they will sell fruit into sensitive markets based on whether there will be an economic return.

Long term research needed

DPI had advised Queensland fruit fly has now been found in areas previously considered too cold and there has been evidence of overwintering. Urgent research into other control methods such as sterile flies and lures is required to support all horticultural industries deal with this pest. VFF Horticulture has already written to Minister for Agriculture, the Hon Joe Ludwig and peak industry bodies seeking their support for research into long term eradication solutions.

Growers have reiterated our call for a cross industry HAL managed project to be developed to look at options to eradicate including the use of sterile flies which we believe is possible within three years. We ask the state government to take this call to the next COAG meeting and urge Minister Ludwig, in line with our letter to him, to support a cross industry project into fruit fly eradication long term.

Conclusion

VFF Horticulture urges government to allow industries 12 months to evaluate costs and other requirements to establish further area freedom or areas of low pest prevalence to continue access to sensitive markets. Deregulation prior to the recognition of new access could stall access to these markets with dire consequences for the domestic market and grower returns. Increase in production under numerous current industry projects in horticulture will require increased access to sensitive and other markets in the very near future.

The VFF believes deregulation will have a negative impact on the current government policy of doubling food and fibre production by 2020.

While some regulatory burden may be decreased, in most cases the treatment and paperwork requirements will still exist to satisfy continued supply to markets such as major retailers who will continue to require clear evidence the product is fruit fly free.

This decision clearly contradicts the government’s priority of increasing production and on-farm profitability. VFF believes this decision undermines support for the horticulture industry in Victoria.