Driving change through data and advocacy – CEO Report Autumn 2024

Phil Turnbull, APAL CEO, shared this update to industry in the Autumn 2024 edition of AFG.

Twenty twenty-four is in full swing, and the season is unfolding with a distinctive blend of challenges and opportunities. However, the dynamics at play extend beyond the amount of fruit on trees, the fluctuating weather conditions across the regions, the pre-harvest strategies and the biosecurity risks we continue to face.

Pressures from inflation and the cost-of-living crisis are intensifying the challenges related to fair pricing, and the correlating activities gaining momentum to drive change are also shaping the industry landscape.

Utilising the Orchard Census to inform our 2024 Crop Forecast has provided us with a more comprehensive understanding of the upcoming season than ever before and is anticipating valuable insights into 2025.

Despite anticipating a shorter domestic market season in 2023, orchard business decision-making and slow fruit sales rate has led to an abundant fruit supply through to the back end of the season. However, the transition from the 2023 crop to the 2024 crop presents its own set of challenges relating to quality and supply.

Considering our comprehensive analysis, the data underscores the importance of understanding yields, identifying unproductive, unprofitable blocks and focusing on saleable fruit. The data shows that higher marketable yields drive growth and profitability, and the scenario planning indicates that industry needs to reach a minimum of 50 tonnes of Class 1 fruit per hectare to break even. Continuing to invest in poor-performing blocks comes at a significant cost to growers and the broader industry when poor-quality fruit appears in the retail environment, potentially originating from unprofitable blocks in the first place.

Retail practices and behaviour have been under the magnifying glass in recent months, and the pressure on the ‘big two’ major supermarkets has intensified. As an active member of the National Farmers’ Federation (NFF) Hort Council Competition Taskforce, APAL, alongside representatives from various horticulture industries, has been diligently working to ensure that producers of perishable goods receive a fair price for their produce.

Through the efforts of the competition taskforce, including advocacy, media relations, transparency initiatives and recent Senate inquiries, the NFF Hort Council Competition Taskforce is shedding light on the practices and dealings of major retailers in Australia. It continues to highlight the power imbalance of the prominent retailers and the adverse effects they impose on growers and farmers across the horticulture sector.

We are advocating for the duopoly to be broken up and governing bodies like the ACCC to be granted increased authority to effectively manage and regulate the major retailers’ operations and purchasing practices.

While we continue to apply pressure and contribute to the inquiries regarding supermarkets and pricing, APAL has simultaneously been advancing industry accountability relating to fruit quality. Drawing inspiration from the achievements of the Pomewest quality reporting program, APAL has recently introduced a Packhouse Performance Dashboard, forming an integral part of APAL’s Quality Program. This initiative aims to provide a comprehensive understanding and measurement of packhouse performance.

Accessible via the new Quality Hub on the APAL website, the Packhouse Performance Dashboard presents Brix and pressure testing results, pinpointing instances where packhouses may fall short of industry standards. Limited to the packhouses included in the dashboard (determined by volume of fruit tested), these insights aim to help identify issues and foster change that will enhance the consumer experience and improve in-store retail presence.

We have designed an agenda for the upcoming 2024 APAL Industry Forum that delves into these core focus areas and APAL initiatives, aimed to assist the industry in navigating the dynamic and evolving orchard business life cycle. This year’s Forum will be held in Melbourne on Monday 3 June.

Preceding this at the Forum Welcome Drinks on Sunday 2 June, celebrate the success and achievements of the 2024 APAL Awards for Excellence recipients. Held at Morris House in the heart of Melbourne’s CBD, we hope you’ll join us to commend the remarkable contributions and talent we have across the Australian apple and pear industry.

This article was first published in the Autumn 2024 edition of AFG.