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In 2003-04 the fruit and nut industry production was $73.0 million accounting for 8.5 percent of the total value of Tasmanian agricultural production. Apples continue to be the dominant crop with a gross value of $32.5 million, followed by grapes at $18.1 million, then cherries at $9.1 million.

Graph 1: Fruit Production 2003-04

Source: Australian Bureau of Statistics, Value of Agricultural Commodities 7503.0 - 2003-04.

Apples

The main growing area for apples is the Huon Valley. Tasmania has cool winters, which are necessary for optimum chilling requirements and a long mild growing season from September to May, which offers ideal conditions for fruit development and ripening of a full range of apple varieties. Environmental conditions also limit pest and disease pressures compared with interstate and overseas apple growing regions

The apple industry reached its peak in the mid 1960’s. The major markets now are interstate sales and East Asia with exports also to the UK.

In 2004-05 apple production increased by 31.5 percent to 49,000 tonnes. This is similar to the five year average.

Tasmania is the main apple exporting state in Australia accounting for just under 50 percent of all apple sales.

Graph 2: Gross Value of Apples

Source: Australian Bureau of Statistics, Value of Agricultural Commodities 7503.0.

Grape Growing

The Tasmanian wine industry is benefiting from a shift in consumer preferences to cooler climate wines and Tasmania’s niche is as Australia’s most identifiable cool-climate wine region. The main varieties are Pinot Noir and Chardonnay, which accounted for 68 percent of production in 2004-05.

The grape industry is increasing in importance for Tasmania, with an annual average increase in production over the last 5 years. In 2005, the value of production increased by 48 percent, from $39 million to $76 million.

The Tasmanian wine industry has grown from 132 vineyards with an estimated yield of 3,263 tonnes in 2000 to 244 vineyards producing over 6,400 tonnes in 2005.

The grape-bearing area has more than tripled since the early 1990s due to the expansion of the wine industry. Tasmania had 1,265 hectares under vines in 2005, compared with 731 hectares in 2000. However, in comparison to the rest of Australia it is still a small player representing about 1 percent.

Graph 3: Grape Yield by Region

Source: Department of Treasury and Finance, Sectors of the Tasmanian Economy - Agriculture, December 2005.

Graph 4: Gross Value of Grapes

Source: Australian Bureau of Statistics, Value of Agricultural Commodities 7503.0.

Stonefruit

This industry sector covers the production of apricots, cherries, peaches/nectarines, and European/Japanese plums. Production is focused on the fresh fruit market and takes advantage of Tasmania’s late season of production (latest production season in Australia) and natural quarantine advantages (e.g. freedom from fruit fly).

Many market opportunities exist for fresh stone fruits and are under-exploited. A considerable quantity of fruit still enters Tasmania that could be produced locally. Mainland markets (Melbourne, Sydney, Adelaide, Perth and Brisbane) are also well under-supplied with produce during Tasmania’s peak period of production.

Cherries and apricots are the stone fruit crops with the greatest potential for development in Tasmania. Both crops have a clear, late season production advantage both within Australia and overseas.

A recent cherry orchard investment analysis identified an Internal Rate of Return for invested capital of 19 percent for a new four hectare development. Considerably higher rates of return may be achieved for orchard expansion. This opportunity underlies recent investment in capital-intensive orchard developments.

All recent orchard plantings have been at high plant densities using varieties specific to the fresh fruit market. Much of the expansion has occurred through newcomers entering the industry, with only limited expansion undertaken by traditional growers. A recent trend has been the establishment of cherry orchards by traditional apple growers as an increasing trend towards diversification.

Although small by mainland standards, the Tasmanian industry is significant in terms of the fresh fruit market and export potential.

The gross value of the stonefruit industry in 2003-04 was $11.9 million.

Graph 5: Gross Value of Stonefruit

Source: Australian Bureau of Statistics, Value of Agricultural Commodities 7503.0.