avocado industry report

20
These projects have been funded by HAL using the avocado levy and/or voluntary contributions from industry with matched funding from the Australian Government for all R&D activity. The avocado industry is currently in a phase of significant growth with new plantings coming into production. This strong increase in production is putting the domestic market under some pressure with prices responding to supply and demand forces. However, the current avocado levy investment is very focused on building consumer demand through effective promotion activities and through research and development projects to help the industry meet consumer needs and expectations. Levy income in 2007/08 was significantly higher than previous years due to the steady increase in production as well as an increase in the levy rate which was implemented in April 2007. Total levy collection for 2007/08 was $3,375,903. Total program expenditure was $2,809,326 with $1,572,707 invested in promotion activities and $1,236,619 in research and development projects. Following the recent levy increase, the implementation of the new avocado industry strategic plan, developed in 2005, is well on track. There are three key platforms of the plan which are being addressed through various projects: Projects to drive revenue growth 1. Projects to improve production and 2. marketing systems, and Projects to facilitate sound industry 3. management. This annual report provides a snapshot of the key avocado projects undertaken during 2007/08 through the HAL avocado investment program. The program is well balanced across a range of activities with a strong consumer and market focus. The second year of the new ‘add an avo’ marketing campaign has been completed. Consumer research was undertaken during 2007/08 to assess the effectiveness of the marketing components. This research confirmed all creative elements of the program are hitting the mark with the target audience. There is no question, based on the research findings that the key messages of versatility and health are being delivered effectively through the creative executions. The research also confirmed that the strategy of the campaign is very sound with the focus on recipes fitting very well with the needs of the target audience. A high proportion of the research and development projects are aimed at meeting AVOCADO INDUSTRY REPORT 07 y 08 Avocado program targets the consumer Climate Change is becoming an ever more important issue for the industry. In 2007/08 the industry began contributing to the horticulture component of the National Climate Change Research Strategy for Primary Industries (CCRSPI) as part of HAL’s across industry program (see page 18). HAL is contributing to the project in collaboration with other Rural RDCs, CSIRO and Federal, State and Territory Governments. The aim is to develop a comprehensive research strategy that will allow our industries to be informed by good research and be prepared to respond to the opportunities and risks presented by climate change. The scope of the strategy will be broad, covering any issue that needs consideration over the short (3 years), medium (5+ years) and long term (10+ years). continued on page 2

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Page 1: Avocado Industry Report

These projects have been funded by HAL using the avocado levy and/or voluntary contributions from industry with matched funding from the Australian Government for all R&D activity.

The avocado industry is currently in a phase of significant growth with new plantings coming into production. This strong increase in production is putting the domestic market under some pressure with prices responding to supply and demand forces. However, the current avocado levy investment is very focused on building consumer demand through effective promotion activities and through research and development projects to help the industry meet consumer needs and expectations.

Levy income in 2007/08 was significantly higher than previous years due to the steady increase in production as well as an increase in the levy rate which was implemented in April 2007. Total levy collection for 2007/08 was $3,375,903. Total program expenditure was $2,809,326 with $1,572,707 invested in promotion activities and $1,236,619 in research and development projects.

Following the recent levy increase, the implementation of the new avocado industry strategic plan, developed in 2005, is well on track. There are three key platforms of the plan which are being addressed through various projects:

Projects to drive revenue growth1.

Projects to improve production and 2. marketing systems, and

Projects to facilitate sound industry 3. management.

This annual report provides a snapshot of the key avocado projects undertaken during 2007/08 through the HAL avocado investment program. The program is well

balanced across a range of activities with a strong consumer and market focus.

The second year of the new ‘add an avo’ marketing campaign has been completed. Consumer research was undertaken during 2007/08 to assess the effectiveness of the marketing components. This research confirmed all creative elements of the program are hitting the mark with the target audience. There is no question, based on the research findings that the key messages of versatility and health are being delivered effectively through the creative executions. The research also confirmed that the strategy of the campaign is very sound with the focus on recipes fitting very well with the needs of the target audience.

A high proportion of the research and development projects are aimed at meeting

AVOCADOINDUSTRY REPORT 07 y 08

Avocado program targets the consumer

Climate Change is becoming an ever more important issue for the industry. In 2007/08 the industry began contributing to the horticulture component of the National Climate Change Research Strategy for Primary Industries (CCRSPI) as part of HAL’s across industry program (see page 18). HAL is contributing to the project in collaboration with other Rural RDCs, CSIRO and Federal, State and Territory Governments.

The aim is to develop a comprehensive research strategy that will allow our industries to be informed by good research and be prepared to respond to the opportunities and risks presented by climate change. The scope of the strategy will be broad, covering any issue that needs consideration over the short (3 years), medium (5+ years) and long term (10+ years).

continued on page 2

Page 2: Avocado Industry Report

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Consumer tracking study for avocados

AVOCADO PROgRAm TARgETS ThE CONSUmER continued from page 1

A recently launched ‘on line’ research study is continuously tracking the attitudes, behaviours and perceptions of consumers towards a range of fruits, vegetables and nuts including that of avocados. The main objective for carrying out the study was underpinned by significant factors faced by many horticultural industries.

Some of these factors were:

Understanding consumption, attitudinal •and purchase behaviour and category perceptions of consumers.

Track effectiveness of product •promotional activity.

Understanding the impact of these •changes on key performance indicators.

Preliminary results available after the first two waves of the study have already shown findings of interest, which will assist in developing ongoing promotional strategies. It is clear that respondents consider all fruits and vegetables are healthy but they do not differentiate which fruits should address the ‘two fruits and five vegetables’ a day recommendation. Each fruit occupies a different position

in the market in terms of perceptions, purchasing, purchase criteria and target.

While the ‘Go for 2&5’, campaign is driving up consumption, tailored approaches to marketing avocados has also increased their perceived value among consumers. Current advertising of avocados has shown a significant impact on consumers, with 38 per cent of the respondents stating that the current advertising would influence them in their future purchases. Television commercials, in-store advertising and magazines having the highest recall rate amongst the mediums.

The study reveals that determining factors amongst buyers are currently:

the look and feel of the fruit •

the price and quality of past purchases•

colour•

The study so far has shown that the bulk of all avocados have been bought from either a major supermarket (46 per cent) or a greengrocer (40 per cent).

There is also considerable evidence that consumers do not have much knowledge

regarding the different types and brands of avocados, as well as its health benefits for infants. This in turn may bring about new opportunities for positioning avocados among the wider non-purchasing market in the future.

The tracking study will be reporting on the third and fourth phases in the coming months, and will further help develop an understanding on the situation of consumers within the industry.

Project MT07065

For more information contact:

David Chenu, HAL Marketing Manager

T 02 8295 2300

E [email protected]

consumer needs. Retail quality surveys have been initiated and are continuing to measure, at retail level, exactly how effectively the avocados on offer at the retail shelf match consumers’ expectations. This information will provide a benchmark to assess improvements over time and will help to identify priority R&D projects to better meet consumer expectations.

Other projects are underway to continually improve the quality of fruit through the entire supply chain. On farm quality (and yield) improvement is being addressed through projects developing better disease management strategies, better rootstocks and better canopy management strategies.

A project is also underway to develop a test that aims to assess the robustness of fruit prior to harvest. If successful, this test will provide a level of confidence for

predicting the ability of the fruit from different orchard blocks to withstand the stresses through the supply chain.

Better information on product flow through the supply chain and production forecasts are also being generated through projects such as Infocado.

Other market options are also being explored such as the food service sector and niche export markets.

It is intended that, through these well targeted investments using marketing and R&D funds, markets for Australian avocados can continue to be developed to keep pace with the increasing production in the industry.

For more information contact:

John Tyas, HAL Industry Services Manager

T 07 3394 8220

E [email protected]

Page 3: Avocado Industry Report

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Study groups aim for a globally competitive avocado industry

The combined experience, knowledge and resources of the Australian avocado industry are being harnessed to improve production efficiency and fruit quality, and meet competition from anticipated imports.

While these challenges need to be considered at all levels of the supply chain, this project is directed mainly at the production levels.

Among Australian avocado growers, consultants, resellers, research and development and extension officers there already exists a valuable source of knowledge, experience, practical know-how and solutions to production and quality problems. Quite often the solutions to production problems are already within the industry.

The project brings these people together to share, learn from each other, receive new information, observe and debate in order to implement better production techniques across the industry and achieve improved productivity, fruit quality and competitiveness at a global level.

Study groups have been established in the main production regions of Australia and each group meets once or twice per year. The project team designs and delivers workshops on production issues that have been identified by members of the study groups. Meetings are typically held on-farm and involve a packshed and a field component.

So far, 20 workshops have been held –

16 of these in the past year.

Each group chooses the topics for their workshops and in the past 12 months these have included: integrated Phytophthora root rot control, irrigation, canopy management, biennial bearing, flowering and pollination, integrated pest management, composting, nutrition and coping with wet conditions, maximising yields, and supply chain (quality/marketing/quality assurance). Guest speakers have been arranged to address the chosen topics.

Minutes were prepared after each meeting and sent out to all known growers for that region.

Attendance has been growing and feedback has been very positive. Growers

have gained new information and 70 per cent of attendees have indicated that they may change their management practices as a result of the workshops. Key performance indicators are being exceeded.

A ‘Positive Points’ self assessment exercise covering key orchard management practices has been developed. It creates awareness of critical orchard practices, allows growers to rate their management, and helps the group identify topics for future workshops.

Project AV06003

For more information contact:

Simon Newett, QLD DPI&F

T 07 5444 9619

E [email protected]

Study group at FreshCuts factory, Brisbane

Canopy management workshop on the Sunshine Coast

Page 4: Avocado Industry Report

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Improved management of avocado diseases

The avocado industry continues to search for methods to improve the way it manages diseases in orchards. This project has provided some clear guidelines to manage several common avocado diseases.

Research has shown that clonal rootstocks are superior to seedling rootstocks in their tolerance to Phytophthora. Substantial progress has been made in evaluating a range of new and traditional avocado rootstock varieties for their tolerance to Phytophthora root rot, already showing that clonal rootstocks tolerate root rot far better than seedling rootstocks. Considering their uniform growth, which allows for easier orchard management, this makes clonal rootstocks very attractive. Avocado growers have been keenly anticipating these results. Ultimately, this program will provide data to help a grower decide on the best type of rootstocks to use when planting a new orchard.

The devastating pathogen, Phytophthora cinnamomi, continues to cause root rot which reduces tree health and eventually kills the tree. If an avocado grower has soil infested with this pathogen, it is essential that they use an integrated approach to controlling the disease.

Although these approaches can be effective, it is still possible to reduce the need to rely on chemicals.

We have shown that a single injection of phosphonate in late autumn provides adequate levels of phosphonate in the roots of the avocado tree to maintain tree health in the presence of P. cinnamomi in the soil. This is great news for growers, who often find injecting twice yearly time consuming, costly and ultimately, damaging to the trunks of their trees. Another positive outcome of our phosphonate studies is the prospect of being able to spray phosphonate onto the trunks of trees with the assistance of a bark translocating agent. In our studies, this method still achieved adequate levels of phosphonate in the roots.

There are also ongoing problems with fruit quality in the ‘Hass’ variety due to anthracnose, pepper spot and stem-end rot. These diseases are caused by microbial pathogens, the most important of which is the fungus, Colletotrichum gloeosporioides. This pathogen infects the fruit on the tree throughout the season from fruit set to harvest. However, the sunken, black lesions which render the fruit unmarketable only appear once the fruit starts to ripen on the shelf. This can lead to

fruit being wasted in the marketplace and can make consumers think twice before buying an avocado.

It appears that a new fungicide treatment, Cabrio®, has the potential to be added to the line-up of control measures against the insidious disease, anthracnose. With some chemicals falling out of favour and the increased desire for less chemical use, adding a more effective treatment is desirable. Applying silicon, as is commonly done to boost disease defences, provided inconsistent results in our trials. The relationship between the fungus and the avocado tree is extremely complex and so silicon applications cannot be recommended.

Throughout the project, important information was gathered from growers from several areas concerning their key issues. This information will be used for future R&D projects.

Project AV04001

For more information contact:

Fiona Giblin, QLD DPI&F

T 07 3896 9299

E [email protected]

QUANTIfYINg AVOCADO SUNblOTCh VIROID INCIDENCE IN AUSTRAlIAWhile Australia appears to have progressively eradicated Avocado sunblotch viroid (ASBVd), evidence is being gathered to support claims of area-freedom.

ASBVd causes a serious disease of avocados resulting in yield reductions of about 30 per cent and additional losses through the disfigurement of fruit. ASBVd is mainly spread in planting material through the inadvertent use of infected rootstocks or scions for propagation.

To address this issue, the Avocado National Voluntary Accreditation Scheme commenced in the late 1970s and obliges registered nurseries to test nuclear stock for ASBVd on an annual basis.

The last official record of ASBVd was in 1989, raising the possibility that Australia may be nearing area-freedom from

ASBVd. According to the International Plant Protection Convention, claims of area-freedom should be evidence-based.

Area-freedom surveys require high throughput diagnostic systems, and for this purpose, methods utilising a liquid-handling robot (Beckman Coulter Biomek 3000) have been developed, utilising magnet beads for nucleic acid extraction. Two commercial bead chemistries were compared, both of which successfully purified ASBVd RNA, although the Agencourt Chloropure system provided marginally better sensitivity of detection.

To reduce the number of manipulations during the real-time PCR assay, two commercial, one-step reverse transcriptase (RT-)-PCR kits were trialled but both kits were less sensitive than the existing two-step RT-PCR protocol and therefore no changes have been made to

this part of the assay.

Surveys for ASBVd have commenced in south east Queensland and northern NSW, targeting older trees (>20 years old) that would have been exposed to infection for a longer time and which would have been planted at a time when ASBVd-indexing methods were less reliable. Thus far, 809 trees from four different properties have been sampled with no trees found to be infected with ASBVd, supporting the original hypothesis of progressive eradication of the pathogen from Australia.

Project AV07001

For more information contact:

Andrew Geering, QLD DPI&F

T 07 3896 9353

E [email protected]

Page 5: Avocado Industry Report

Improving yield and quality in avocado through disease management

5

A continuing project is improving the efficiency of avocado fruit production via sensible and sustainable disease management.

Tree health and fruit quality in Australian orchards are compromised by soil-borne diseases such as Phytophthora root rot and brown root rot, (caused by Phytophthora cinnamomi and Phellinus noxius respectively), and postharvest diseases anthracnose (Colletotrichum gloeosporioides) and stem end rot (C. gloeosporioides and Botryosphaeria spp.).

A rootstock selection and screening program to select for resistance to Phytophthora root rot has been an integral part of research since 2005 conducted in collaboration with Dr Tony Whiley.

One clonal and three seedling rootstocks have demonstrated outstanding survival and growth under severe Phytophthora disease pressure. Until such material becomes available, the industry will continue to rely on potassium phosphonate to limit loss in productivity due to this

omnipotent root disease. Another component of research focuses on optimising rates, the delivery method and timing of potassium phosphonate applications, ensuring that the maximum residue levels in fruit are not exceeded.

Of increasing concern to industry is the impact of brown root rot, particularly on the Atherton Tablelands. A survey was conducted in this production area in May 2008, and the disease was confirmed on 17 out of 18 properties visited.

Phellinus has also been confirmed on properties in the Bundaberg area and in northern NSW. There are currently no chemical control options available.

Trials are planned for the upcoming season to evaluate some postharvest chemical approaches to minimising the major fruit diseases, anthracnose and stem end rot. One approach is to acidify prochloraz dips as a means of reducing the amount of active ingredient required. If successful, this would result in a more sustainable and cost effective postharvest management strategy.

A SYSTEmATIC APPROACh TO mARkET ACCESS R&DMarket access is a key priority for Australia’s horticulture industries including the avocado industry. The HAL Market Access Research and Development (R&D) Strategic Plan administered by the Working Group for Market Access R&D (WGMARD), has been revised during 2007/08 under a Strategic Framework termed ‘Pathways to Market’. The revised plan will provide improved focus directly on market access related R&D for a wide range of pests using a multi industry approach, where possible.

The revised R&D approach is designed to support the normal World Trade Organisation (WTO) Sanitary and Phytosanitary Measures (SPS) market access framework. Systems Approaches and Disinfestation are the two major categories for market access R&D within this revised framework. Within these two major categories there are eight key Pathways to Market priorities to accommodate the scope of research

rose weevil, codling moth, mealy bugs, scales, mites, etc are also of significance and have been considered within this plan. The plan places an emphasis on multi-industry projects. This is relevant to pre-harvest systems, in mixed crop orchard areas as well as in areas where there is a patchwork of single crop orchards growing fruit fly or pest hosts.

The next step in the implementation of the plan will be development of benefit cost analysis (BCAs) and business cases for investment in the plan. Industry, government and other funding bodies will be consulted for funding support for the Pathways to Market Access R&D Plan for the 2007/08–2012/13 period.

Project MT06020

For more information contact:

Kim James, HAL Biosecurity and Market

Access R&D Manager

T 08 6389 1407

E [email protected]

which may be required to address the various pathways that lead to international market access.

The Systems Approach category contains market access data packages, pest control and management and other systems approaches. The post harvest Disinfestation category contains fumigants, chemical treatments, cold disinfestation, heat treatments, irradiation and other disinfestation treatments. The plan describes an R&D program investment of $18.3 million over five years, and follows on from the industry, agency and government investment of around $6.5 million since the original market access strategic R&D plan was conceived.

It is important to note that the scope of the original eight key research areas within the original R&D plan, are included within the revised and expanded market access plan R&D framework. While fruit flies remain one of the main concerns, other insects e.g. light brown apple moth, fullers

Project staff members are committed to communicating information on project activities and progress. Presentations were delivered at the ‘Avocado Roadshow’ series of field days around Australia, and at the 6th World Avocado Congress held in Chile in November 2007. Project staff participated in grower field days and had articles published in Talking Avocados.

Project AV07000

For more information contact:Elizabeth Dann, QLD DPI&FT 07 3896 9468E [email protected]

Page 6: Avocado Industry Report

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As the avocado industry grows there is an increasing need for growers and the industry as a whole to understand the points at which supply and demand impact on returns. A three pronged approach has been undertaken to address this requirement.

The continued management of 1. Infocado

Infocado was developed in 2005 by Avocados Australia to provide a system that collects more meaningful and timely industry supply data, specifically throughput and forecasts to assist businesses with better information on which to base their management and marketing decisions.

Currently Infocado has three data tracking modules:

The dispatch module tracking actual •volume throughput for the previous week.

The weekly forecast module for •expected dispatches in the next four weeks.

The season forecast module to record •data for the upcoming 15 months.

The program is currently being expanded to also include a wholesale module – under which, data including receivals, sales and stock on hand will be collected from wholesalers and reported to contributors.

Management of the system involves the production and distribution of a weekly and

quarterly report and the management and enforcement of a protocol to encourage consistent, timely and accurate data input. Approximately 85 per cent of Australian market throughput is recorded through the system from 112 packhouses.

Development of a system to collect 2. productivity information

A productivity data collection system has been developed. The data is collected from growers and includes a range of variables affecting productivity. The data is submitted by growers either electronically or as a hard copy.

At the individual grower level the information will:

Assist growers to track their own •productivity over time and between variables and provide the ability to compare their productivity against regional and national data.

Assist growers to forecast their own •future production.

At the industry level the data will be used to:

Develop a long term production •forecasting model used to assess and update long term marketing and promotions plans.

Track productivity over time to •determine if the current R&D program is producing the desired results.

The system has been implemented in WA and the Tri-state region and is currently being rolled out across all other growing regions in Australia.

Management and coordination of 3. a suite of supply chain projects addressing quality and efficiency of the supply chain

There has been an absence of quantitative, impartial information available to determine both the combined impact of price and fruit quality on consumer purchase (demand) and the structures currently available to address issues affecting quality and efficiency in the supply chain.

The supply chain project was developed to address this gap and employs a stepped approach (involving different service providers to undertake each component)

to build the full picture of fruit quality and supply chain efficiency.

A number of projects were completed in the last couple of years to identify consumer preferences. The projects undertaken in 2007/08 were developed to build on previous work and to gather information regarding the current state of play in terms of avocado quality in the market. The current projects include:

Avocado Retail Quality Surveys •(AV07018)

– Retail quality surveys

This is a 12 month project which began in October 2007. Fruit is collected by assessors from retail outlets in four major capital cities on a monthly basis and then assessed for internal quality.

– DM testing for avocado maturity

This also is a 12 month project which began in September 2007. Fruit is collected from wholesalers in the Sydney markets on a monthly basis and then tested for % DM as an indicator of fruit maturity.

Results will be available for both of these sub-projects later this year and will assist in pinpointing where there are issues in terms of quality (both internal blemishes and eating quality related to maturity).

Online consumer quality survey •(AV07019)

This project was developed to expand on the information already gathered in the earlier consumer sensory panels regarding impact of specific levels of internal damage on future consumer purchases. By using online tools we were able to widen the data collection to all states of Australia and include a much wider cross section of the population. The results from this project are available and will assist greatly in the analysis of the quality surveys.

Project AV6006

For more information contactJoanna Embry, Avocados AustraliaT 07 3846 6566E [email protected]

Scoping of a National Avocado Quality System and management of Avocado Industry Information Systems

Page 7: Avocado Industry Report

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Developing a test to predict avocado fruit quality

gUIDElINES fOR AVOCADO IRRIgATION mANAgEmENTA test has been developed that is a good

early indicator of post-storage commercial avocado fruit quality.

One of the major limiting factors to increase avocado fruit sale is variable fruit quality. Despite considerable efforts in improving cold chain management and the skills of ripeners/wholesalers and retail staff, avocado shelf quality had not improved much over the past decade.

Maximum fruit quality is determined between fruitset and harvest. No postharvest technique can improve fruit quality, but can only maintain quality or reduce quality loss. Postharvest techniques cannot ameliorate an initial quality problem. The development of a simple test to predict fruit quality was therefore proposed.

The test involves obtaining sample fruits several weeks before the start of commercial harvest and placing them through a ‘robustness test’ which would indicate fruit quality after commercial distribution and handling. It was suggested that this pre-season fruit quality test may become a valuable marketing tool for growers.

It was also proposed that grower management data be collected from the blocks sampled to identify possible factors contributing to fruit quality issues.

In Phase One of the project the robustness

test was carried out on fruit from the Bundaberg/Childers area, Queensland. Collaboration with local growers was established and the test carried out using fruit from 20 sampling sites. The test was conducted at approximately 19 per cent dry matter about nine weeks prior to commercial harvest, and at 21 per cent dry matter four to six weeks prior to commercial harvest. The resulting fruit quality was compared with that of fruit put through a commercial cold chain simulation at about 24 per cent dry matter.

A strong correlation in fruit quality (in excess of 60 per cent) was found between the robustness test at 19 per cent dry matter and the commercial simulation of fruit at 24 per cent.

Although robustness testing needs to be verified in the coming season, the first season’s results indicate that the robustness test is a good early indicator of post-storage commercial fruit quality. The commercial applicability of this test is being discussed with industry collaborators.

Project AV07005

For more information contact:

Danielle Le Lagadec, QLD DPI&F

T 07 4132 5524

E [email protected]

Production of avocados occurs across diverse regions of Australia. In particular, water resource availability varies significantly with declining resources in some regions and plentiful supplies in others. The industry recognised a lack of information on how to manage water under limited and drought conditions.

This recognition triggered the development of the Guidelines For Managing Under Limited Water Supply – Avocados with growers being encouraged to consider irrigation management in the context of different climatic conditions and water resource availability.

The process for development of the guidelines included an assessment of the available international literature and key knowledge gaps associated with water management in the avocado industry. The major issue identified as requiring research is understanding tree water requirements at different growth stages under Australian conditions.

The guidelines use best estimates of crop water requirements adopting an international standard (FA056 – Crop Evapotranspiration). They focus on water requirements during non-limiting and limiting conditions and include information on:

Purpose of guidelines.•

Critical growth stages.•

Irrigation requirements – non-limiting •and limiting conditions.

Drought management strategies.•

References and further information.•

The guidelines have been road tested with growers from around Australia to ensure the information was accurate and they were practical and easy to use.

The guidelines have been published and are available to industry members.

Project AV06011

For more information contact:

Anne-Maree Boland, RMCG

T 1300 306 043

E [email protected]

Page 8: Avocado Industry Report

88

Avocados are known to contain high amounts of health-benefiting phytonutrients including monounsaturated fatty acids, carotenoids, and vitamins B, C and E. Recent studies carried out using Californian-grown ‘Hass’ avocados have reported that extracts from the fruit also possess in-vitro (i.e in test-tube) anti-cancer properties against prostate cancer cells.

The aim of this work was to obtain scientifically creditable information relating to the health-promoting benefits of substances found in Australian avocados (Hass variety). This was achieved by quantifying the major lipid-soluble phytonutrients found in avocados and assessing their antioxidant and in-vitro cancer-inhibiting properties.

Lipid-soluble extracts from Australian-grown ‘Hass’ avocados were found to contain Vitamin E (α, γ and δ forms) (1398–2643 µg/100 g FW), chlorophylls (a and b forms) (2304–3680 µg/100g FW) and lutein (160–273 µg/100g FW) as their major components. A notable fruit-to-fruit variation in the levels of these components was observed but this has also been reported with Californian-grown fruit.

Avocado extracts (from Australian-grown fruit) rich in Vitamin E, chlorophylls, carotenoids were found to have high antioxidant activity in in-vitro tests. A sub-fraction of these extracts was found to be active against colon and gastric cancer cells while not very effective against leukaemia cells in test-tube assays.

This information may now be used to further promote/market Australian avocados and strengthen their position in the mind of the national and international public as a natural, health-benefiting fruit. Some of these results have been accepted for presentation at a significant international conference (Pigments in Food 08) held during August 08 in Helsinki, Finland.

Project AV07003

For more information contact:

Dimitrios Zabaras, Food Science Australia

T 02 9490 8352

E [email protected]

DETERmINATION Of hEAlTh-PROmOTINg bIOACTIVES IN AUSTRAlIAN AVOCADOS

AVOCADO ROOTSTOCk ImPROVEmENT PROjECT CONTINUESOver six years, avocado rootstocks selected from the three botanical races within this species have been selected for their suitability to meet the requirements of Australia’s diverse production regions.

In 2008 the project is entering its third phase where the effect of rootstocks on postharvest fruit storage and its susceptibility to develop fruit diseases will be assessed.

Grower awareness of the importance of selecting the correct rootstock when ordering new trees from nursery sources has been raised by activities including articles in Talking Avocados, at conferences, and at two R&D road shows with presentations in seven commercial avocado growing districts across Australia. In turn customer pressure has resulted in nurseries being more conscious of growers’ needs.

During 2004/05 approximately 1400 ‘Hass’ and ‘Shepard’ trees were planted in different production areas for long-term evaluation. The trees were grafted to rootstocks representative of the three horticultural races of the species since they impart different performance characteristics to trees. Rootstocks were either clonally propagated giving genetic uniformity between trees or grown as seedlings imparting genetic variability.

In 2006 the first growth measurements were collected from these trees. In 2007 growth

measurements and the first yield data was been collected. Yield results were converted into yield efficiency (kg/m3 of canopy) for each rootstock using the production and growth measurement data.

From the first two years’ yield results some trends are evident within the cloned rootstock experiments with Duke 7, Velvick and Zutano producing the greatest yield efficiency when grafted to Hass, while cloned SHSR-03 has the greatest yield efficiency when grafted to Shepard.

In a Shepard field experiment in north Queensland that was exposed to cyclone Larry many trees subsequently developed trunk cankers; trees grafted to cloned rootstocks from the Mexican botanical race were found most susceptible to developing Phytophthora cinnamomi-induced trunk cankers. Three rootstocks from the project have now shown to have higher resistance to Phytophthora root rot; it is it is intended to apply for Plant Breeders Rights for SHSR-04.

Project AV04007

For more information contact:

Tony Whiley, Sunshine Horticultural Services

T 07 54415441

E [email protected]

‘Hass’ grafted to the SHSR-04 rootstock growing in a high-pressure Phytophthora root rot site

Page 9: Avocado Industry Report

9

A recently completed project aimed at improved management of spotting bugs identified opportunities for targeted spray applications based on systematic monitoring.

Spotting bugs are persistent pests of avocados in Queensland and New South Wales.

They have a wide range of native and exotic hosts from which they can migrate into avocado orchards. Their feeding results in fruit drop and reduced quality of fruit.

Project workshops highlighted the opportunities to monitor spotting bug incidence and immigration, and the decision-making process for implementing control measures. Non-chemical options to reduce the attractiveness of the crop habitat were discussed although current control measures depend heavily on insecticide sprays.

Workshops also addressed the main

variables of airblast sprayer calibration to achieve even coverage throughout the canopy, and the calculation of pesticide mixing rates to achieve optimum dose based on target canopy characteristics. The new label concepts of ‘dilute’ and ‘concentrate’ sprays and rates were discussed. Field demonstrations highlighted the need to assess coverage in all parts of the canopy using dyes or water-sensitive papers, rather than relying on visual assessment of the spray cloud.

Ten workshops were completed in Queensland (4), New South Wales (4) and Western Australia (2) before the final workshop in Mareeba (Qld) at the end of June this year after which the project was concluded. More than 140 growers attended the workshops, each receiving a comprehensive 52-page workshop manual. Evaluation sheets were distributed to all participants. A limited number of workshop manuals will be available from AAL after the

Improved management of spotting bug in avocados

project is completed.

Additionally, all workshop participants will still be able to receive advice and desktop assessments of their spray practices for 12 months free of charge.

There is wide variability in spotting bug between orchards and seasons, resulting in opportunities for targeted sprays based on systematic monitoring.

A current hurdle to targeted insecticide sprays is the poorly understood value of applying regular fungicide sprays for anthracnose control. Breaking the link between insecticide and fungicide sprays is essential for future adoption of improved pest monitoring systems in avocados.

Project AV06001

For further information contact:

Dr Henry Drew, Growing Greener Growers

T 07 5445 0032

E [email protected]

CANOPY mANAgEmENT fIElD DAYS A hUgE SUCCESS Over 325 growers attended canopy management field days that were held in the 11 major production areas during 2007 to demonstrate a range of canopy management strategies and identify systems that may be suitable for their own production situations. Field days were held on the Sunshine Coast and Childers/Bundaberg in July, throughout coastal NSW during August, Southern Queensland during October and Perth in December.

In April and June 2008 regional study group meetings on canopy management were held at the Sunshine Coast and Pemberton as part of the extension activities of AV06003 (see page three). Canopy management options suitable for each region were demonstrated.

A manual illustrating a range of canopy management strategies will soon be available to growers.

Strategies for new plantings, young trees (prior to crowding) and older trees (where orchard crowding may be a problem) will be demonstrated. For each strategy details on the procedure,

timing and costs of operations and other considerations such as the use of plant growth regulators, sunburn protection and the effect of growing location will be included.

This manual aims to assist growers to develop cost effective strategies to optimise light penetration, maximise and maintain fruit quality and yield, and improve efficiency of harvesting and spraying operations.

In 2007/08 further information on the timing and costs of canopy management operations and the impact of these strategies on yield, fruit size and quality was collected from each of the study sites. Canopy management strategies such as selective limb removal, selective and mechanical pruning, staghorning/stumping, tree removal, cincturing, and plant growth regulator application have been studied.

A trial on the effect of uniconazole (Sunny®) on shoot growth, flowering and yield in stumped trees was finalised in 2007/08. Stumped trees can take several years to return to production. Foliar applications of half and one per cent Sunny® in January and April 2007 to young vegetative growth

reduced shoot growth and increased flowering in trees stumped in June 2006.There was also a trend towards increased yield in the treated trees.

Project AV04008

For more information please contact:John Leonardi, Avocados AustraliaT 07 3846 6566E [email protected]

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Significant opportunities to increase avocados profile with health professionals have been identified.

The Australian avocado industry wants to understand the key drivers of professional health advice in relation to avocados and nutrition, as this group has a significant influence on the dietary behaviour of individuals.

This research project aims to create benchmarks to understand the key drivers of professional health advice in relation to avocados and nutrition. This can be subsequently remeasured to identify attitudinal and behavioural change over time.

The recommended groups of health professionals to be included in this research project are GP’s, dietitians, personal trainers, naturopaths and pre and post natal care nurses.

The objectives of this project are:

To identify the key internal and external •health-related influences of health professionals in relation to the dietary advice they give to their clients/

patients (where internal influences refer to their specific professional experiences, and external influences refer to their non-professional experiences).

To understand the attitudes of health •professionals towards the consumption of avocados and to evaluate the advice they give their clients in relation to avocados and nutrition.

To specifically explore their knowledge •of the health benefits of regularly eating avocados: e.g. prevention of heart disease, diabetes and obesity; good for pregnant women.

To identify opportunities to influence •the attitudes and behaviours of health professionals in relation to the nutritional advice they give their clients.

Over 500 health professionals participated in the survey in 2008, covering each of the five key sectors. Across each sector, avocados were recognised and acknowledged as a very healthy food. The two major inhibiting factors in terms of explicitly recommending avocados to their clients were:

benchmarking the usage and attitudes of health professionals

Concerns about calories and fat content.•

Lack of prominence of avocados in their •thinking.

There is a significant opportunity for the avocado industry to increase its profile with health professionals by clarifying issues such as:

How do avocados compare with •margarine and butter in terms of calories?

How do avocados compare with the •highly advertised plant sterol margarines in reducing cholesterol re-absorption?

It is recommended that the avocado industry develop an educational program for health professionals in order to increase awareness of their health benefits and achieve a greater prominence within their nutritional advice to their clients.

Project AV07025

Fore more information contact:

Joseph Ebbage, Consumer Insights

T 0407 543 340

E [email protected]

SECOND INfOCADO SUmmIT kEEPS INDUSTRY INfORmEDThe second Infocado Summit was held in Sydney earlier this year as part of the Infocado information extension project.

In late 2005 Avocados Australia began rolling out its crop flow system – Infocado – to the industry. In July 2006 the inaugural Infocado Summit was held in Brisbane, Qld. This was one of the key initiatives in the initial Infocado rollout and consisted of a one day workshop attended by 50 Australian packhouses, grower-packers and consolidators, as well as representatives from the New Zealand industry. One of the recommendations to come from the 2006 summit was that a similar event should be held on a biennial basis.

Subsequently, the second Infocado Summit was held at Coogee Beach in Sydney in April 2008.

In all, 80 Australian packhouses, grower-packers, consolidators and wholesalers attended. It provided a forum to

discuss the Infocado system specifically and also the opportunity to present and discuss issues and new ideas relevant to packhouses, marketers and wholesalers as a specific segment of the Australian avocado industry.

Guest presenters of key messages included Professor David Hughes (expert and businessman from the UK discussing consumer segmentation), Michael Batycki from Woolworths and Richard De Vos (consultant conducting a strategic analysis of the foodservice sector). Opportunities were presented in terms of increasing consumer demand by delivering specialised products to different segments of the market, further developing the foodservice sector through a strategic and coordinated approach, and ensuring continued growth of Australian avocado demand by delivering a premium quality local product.

In relation to the Infocado system specifically, a range of recommendations were made to ensure its continuing success.

These included:

The addition of a comprehensive •weekly retail price report to future Infocado reports.

Implementation of a wholesale •module to report on retail sales and stock on hand.

Further monitoring of the accuracy of •forecasting data entered into Infocado (to improve an individual’s abilities to accurately forecast production).

Inclusion of further analysis in industry •reports.

A continual focus on updating •reports to keep up with the needs of contributors to the system.

Project AV07010

For more information contact:

Antony Allen, Avocados Australia

T 07 3846 6566

E [email protected]

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AVOCADO SUPPlY ChAIN mAPPINg AND RESOURCE AUDITIn the Australian Avocado Industry Strategic Plan 2005–2010, eating quality of avocados, productivity and supply chain efficiency are identified as priority areas for industry to address. Recognising that a wide variety of factors affecting fruit quality, productivity and supply chain efficiency are interrelated, the Supply Chain Improvement Program of which this project is one component was developed. Its aim is to specifically identify where the industry currently sits in terms of quality and efficiency and identify points in the supply chain where further work is required to make improvements in these areas.

In this project, the supply chain is defined as production though to consumer and includes ripening, wholesaling, independent retailing, specialist produce distribution, food service distribution/catering, and processing functions. Stakeholder consultation was undertaken with a wide range of businesses across avocado supply chains, to develop an understanding of the nature of supply chains in the industry and the resources available to the supply chain sectors. As a result, Avocados Australia has:

Mapped the various supply chain types •that currently exist in the industry and identified the main businesses within these supply chains.

Conducted an audit of all the relevant •research related to best practice at each point in the supply chain and resources that are currently available to supply chain participants that support the improved flow of avocados through to the final customer.

Developed a database of information •that industry can utilise to improve business management practices.

Where possible, identified gaps in •research, resources and support that

has an impact in regard to the efficient development of supply chains.

These findings are significant as it allows the industry to identify future investment needs related to improved supply chain efficiency, product demand and/or consumer satisfaction.

A series of recommendations have been made including:

Developing a knowledge portal for •industry, and improving the knowledge of industry participants in relation to desired quality parameters and marketing issues.

Undertaking further research related to •benchmarking key production, harvesting and packing activities at an enterprise level, and developing a fruit quality benchmarking system for the industry.

The extension of Infocado information •system into the wholesaling sector of the industry.

The recognition of enterprises across the •supply chain that adopt ‘best practice’ to facilitate improved fruit quality, productivity and supply chain efficiency.

The requirement for Avocados •Australia to engage more consistently with all supply chain members and other stakeholders to improve the flow of communication related to supply, promotion and other industry development activities.

Project AV06026

For more information contact:

Antony Allen, Avocados Australia

T 07 3846 6566

E [email protected]

gIVINg WA gROWERS gREATER hARVEST flExIbIlITYA recently completed project has given Western Australian avocado growers greater flexibility in harvest timing and market potential.

Harvesting in the south west of Western Australia occurs during December through February. January and February are the two hottest months of the year, with ambient temperatures above 30ºC common. Current guidelines recommended not harvesting avocados when the ambient temperature rose above 30ºC.

Due to increased size of planting and yield improvements, growers were finding these guidelines too restrictive. Industry sought more flexible harvesting guidelines, but needed assurances that they would not be at the expense of final fruit quality.

The research results from previous years of this project where quite positive with the findings providing increased flexibility for south west growers. The results showing that growers could indeed harvest their Hass avocados during ambient temperatures up to at least 37º C, provided appropriate after harvest care is maintained.

The 2007/08 season was the final year for this project and centred around the development and implementation of the communication strategy. A brochure on the key findings and how these can be used to benefit growers has been produced, as well as a final report with more detailed results and analysis. The conclusions and recommendations from this project have been communicated to the WA industry through a series of presentations and media articles. The brochure and final report are available electronically from both the WA Department of Agriculture and Food (www.agric.wa.gov.au) and the WA avocado industry (www.avocadoswa.com) websites.

This project has now been completed, but the findings and communication efforts will continue and be incorporated into the current Project AV06002 ‘Improving technology uptake in the WA avocado industry’ (see page 16).

Project AV03005

For more information contact:Alec McCarthy, WA Department of Agriculture and Food T 08 9780 6273E [email protected]

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Domestic marketing further builds consumer demand

The 2007/08 domestic marketing campaign for avocados continued to build strong demand for Australia’s increasing levels of production, carrying on from the successes achieved by previous campaigns.

The key target market for the Australian avocado promotions campaign in 2006/07 was urban and suburban female grocery buyers between 25 and 39 years of age who are regular, infrequent or non-users of avocados. The secondary target market was female grocery buyers between 40 and 54 years of age.

Consumer research

The consumer research aimed to:

Determine what are the best means to •communicate with our target audience.

Evaluate current communications •material.

The research took place in four focus groups (two in Sydney, two in Melbourne) consisting of:

Mums 25–45 with young children at •home, who were working full time or part time (one group in Melbourne, one in Sydney).

Mums 34–55 with older children at •home who were working part time or home duties (Sydney).

Female SINKS/DINKS (single- or double-•income no kids) 25–35 working full-time (Melbourne).

Research results indicated that all elements – TV commercial, website, recipe leaflets, and press (with recipe) worked well in standalone terms.

The creative device forming the basis of the campaign (morphing) was viewed as positive, attractive and engaging.

It was seen that the communication of versatility and health was being achieved. Notably, consumers were excited, not by the versatility message itself, but the recipes used to demonstrate it. However, as a means of promoting visitation to the website, all fell short.

The role of recipe ideas for consumers was enormous, not just for avocados but also as a key tool for mums because it had social currency (i.e. a topic of conversation). Written materials – especially magazines (mainstream/supermarket magazines, retailer direct mail) – were seen as vital.

Recommendations resulting from this research have been taken onboard for the 2008/09 program because there is now more focus on magazines, use of updated recipe booklets, and a new strategy to drive numbers to the updated website.

Development of creative imagery

The 2007/08 program was about expanding the ‘Add an avo’ campaign with additional creative executions and growing reach through the addition of new media in the form of TV. 2007 saw the production of two new recipe press advertisements:

omelette•

pizza•

In addition, two half-page health executions were developed and one new advertisement which was targeted at ‘mums with bubs’.

Consumer advertising

The consumer advertising component of the campaign made use of three media platforms:

TV1.

Avocados were involved with Channel 9’s Fresh TV through an in-program product sponsorship. The program airs in five state capital cities Monday to Friday (11:30am to 12:00 noon). This part of the TV campaign reached 209,000 consumers in our target audience of women 18–39.

The strategy implemented for Australian avocados on subscription TV was a multi-dimensional campaign housed on subscription TV’s key channels for avocados’ target audience. The aim was to engage consumers with the brand, drive awareness and extend online. Avocado advertisements were aired on Lifestyle Food, Lifestyle, W, Max, E and Arena, with LifeStyle Food being the lead channel for avocados. As a bonus to our media expenditure, Foxtel created a consumer competition on behalf of Australian avocado.

Spots were placed to ensure high visibility amongst the target audience of female grocery buyers 18–39. The subscription TV campaign reached more than half a million female grocery buyers between the ages of 25 and 39.

In addition, TV advertisements running in all Fitness First gyms were seen by 200,000 women between the ages of 20 and 39.

Magazines2.

The avocado print advertisement campaign reached 72 per cent of Women 25–39

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with a household income (HHI) $35K+ on average 3.7 times across the campaign period. 42 per cent of this audience saw the communication 3 or more times across this period. The recipe booklet was also inserted as a tip in New Woman magazines.

Online consumer advertising: 3.

One of the best features of online advertising is its measurability – it is now possible to measure how many people see the banner, print the recipe, and click through to the avocado website. In addition to this, the target audience uses online frequently – at least monthly if not weekly.

The three-month campaign took place between August and October 2007. Expandable banners were placed on the relevant sections of websites (health and recipe focused sections). The online campaign delivered almost three million impressions, with 10,297 clicks at a ‘click through rate’ (CTR) of 0.36 per cent (more than double the industry average of 0.15 per cent).

In addition to the banner advertisements, a Mexican themed newsletter sent to taste.com.au subscribers recorded the highest number of clicks for ‘news’ (656 in total).

Key lessons from the online campaign were:

The creative was an essential platform •to deliver the recipes and ways to ‘add an avo’ to consumers. The expanding creative was the most successful execution.

Generally, placements on the lifestyle •and health sites performed better than those offering food information or entertainment.

Targeting the demographic via •newsletters and emails was very cost-effective and delivered high click volumes.

Website maintenance

The content of the avocado website was updated and new recipes added regularly. This helped attract more repeat visits as well as new visitors. The main focus in 07/08 for online activity has been to continue to retain a very high ranking in the major search engines for the Avocado website.

Thus far, we have achieved this by developing a set of target key word related HTML content and keeping a regularly updated report on user profiles for each key word. One of the goals was to focus on traffic increase while keeping the bounce rate to a minimum.

The number of visits from 1 July 2006 to 30 June 2008 increased from 32,277 to 37,483 visits. The bounce rate decreased from 45.65 per cent to 41.26 per cent implying that more people looked at other pages on the website beyond the main homepage.

Niche market advertising

This year a niche sector was targeted – expectant mothers and mothers with toddlers under the age of three. Four advertisements were placed in magazines such as Mother and Baby, Practical Parenting, Woolworths Australian Parents and Pregnancy and Birth. An additional advertisement was also placed in Little Kids which is a quarterly title, aimed at parents with children aged two to six years old. It is full of information to help parents through this incredibly busy time. This magazine was used to reinforce the avocado message and keep them consuming it – not just as a first food. This magazine was also inserted into the Bounty Bags. Recipe booklets were inserted in Mother & Baby, Practical

Parenting and electronic direct mailers were sent to a mums and bubs database.

Sampling

Sampling took place in two environments:

Health1. (gyms): During August and September 2007 ‘brand ambassadors’ distributed avocados and recipe flyers to gym patrons.

– 415 consumers were sampled in NSW with 80 per cent of the people attending the gym at that time actively noticing the avocado display.

– In Victoria 280 consumers were given an avocado and 80 per cent of the attendants noticed the avocado stand.

– In Queensland 250 consumers received an avocado.

In addition to the sampling at health gyms, there were also a total of 77 media activities put up at Fitness First gyms. This ran for a duration of three weeks beginning 3 March 2008. The distribution was among NSW, Vic, Qld, WA and SA.

Mothers and babies group2. : the aim of this program was to educate mums, carers and pregnant women on avocados, specifically on the huge nutritional benefits for babies aged 4-6 months and pregnant women. The campaign ran from July to September 2007 and March to May 2008. From July to September the presentations reached an audience of 15,132 directly, and 90,792 mums with young families indirectly and in the period of March–May, an audience of 18,456 were reached. Education on avocados was definitely evident, as many Mums commented they were not aware of the huge nutritional benefits of avocados, along with having limited ideas to use them as part of their everyday diets. Most mums were keen to buy more avocados to provide their families with another, more nutritious option for snacks and meal inclusions.

Project AV07500

For more information contact:

Gunjan Tandan, HAL Marketing Manager

T 02 8295 2300

E [email protected]

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Exports of avocados from Australia have more than doubled in the last three years which is driven by the expanding domestic production and opportunities to introduce avocados to Asian markets.

In the 12 months to June 2008, Australian avocado exports reached 1300 MT or 36 per cent above the previous year and more that 100 per cent above the average of the last three years of exports. Significant growth markets have been in the Middle East, Thailand and Singapore, all venues for major trade events and new international contracts are close to being achieved in other markets.

The Australian avocado industry is small in the context of the world avocado trade and accounts for one per cent of the total world production and our export trade is only two per cent of this one percent. To enable the growth to reach potential markets the Australian industry has increased the awareness of Australia’s avocados to the global buyers.

HAL has been promoting Australian horticultural industries under the

AustrAliAfresh banner at trade exhibitions and in trade magazines for many years. The program is designed to raise awareness of the quality and availability of Australian

produce.

The avocado participation in the

AustrAliAfresh export program has enabled the industry to gain greater exposure to the international buyers, planting seeds for international business collaboration that is beginning to achieve significant export volumes for the industry.

By contributing to this program the Australian avocado industry has been showcased at events such as Fruit Logistica (Berlin and Bangkok) Food & Hotel Asia (Singapore) and Gulfoods (Dubai) and supported by exporters participating to follow up and generate real trade.

The trade advertising reached more than 20,000 trade professionals in global markets directing them to www.australiafresh.com.au, where international buyers are able to find more information about the Australian avocado industry and its exporters.

Project AV07507

For more information contact:

Wayne Prowse, HAL Export Development

Manager

T 02 8295 2300

E [email protected]

CARbARYl RESIDUE STUDIES IN AVOCADOUnless supportive residue data is generated, registration of the much-used insecticide product, Bugmaster® Flowable Insecticide may be suspended or cancelled, severely limiting the availability of chemical control options for some key insect pests.

Bugmaster® is registered for use in avocado crops to control insect pests, but following a review of the active constituent conducted by the APVMA, the data submitted to the regulatory authority, many years ago, is now considered insufficient because of newer and stricter regulatory assessment standards.

Avocado growers say this product is an integral component of their pest management programs, and its manufacturer, Bayer CropSciences, has identified the avocado industry as an important market for the Bugmaster®.

The Australian avocado industry and HAL, in collaboration with Bayer CropSciences, has commissioned a residue study program to generate sufficient residue data to renew the registration.

The independent horticultural research firm Agronico Research Pty. Ltd. will conduct the field-phase of two residue studies in Queensland. The studies will be conducted inline with the principles of ‘Good Laboratory Practice’ (GLP).

The GLP field report will be combined with Bayer CropSciences’ analytical-phase report and then submitted to the APVMA for review.

The field-phase of the GLP studies is scheduled to begin during August and September this year.

Project AV06020

For more information contact:Dale Griffin, Agronico Research Pty LtdT 0418 139 788E [email protected]

This project seeks to identify alternate value streams for avocados beyond sales into the fresh market. In particular, it aims to identify market development opportunities for low grade fruit and outline viable options for current and new value added products to improve overall industry profitability. The project will not only look at potential uses for the flesh, but also the skin and seed of the avocado fruit.

Research is currently underway to identify opportunities for value added avocado products in a range of market sectors including the oils market, dips and sauces, other culinary markets, cosmetics, nutriceuticals and stock feed.

Once potential opportunities have been identified, the limitations in regard to market development will be investigated. This will involve looking at product limitations and potential cost structures

related to the Australian market. Where feasible, a competitor analysis will be undertaken.

The project also intends to analyse other agribusiness industries with similar attributes and examine the methods they have employed to develop their value added processing sectors. By providing case studies of successes and lessons learned in other industries it is hoped this will provide meaningful insights for the Australian avocado industry.

A report will be finalised by the end of 2008, outlining the potential opportunities available to the sector.

Project AV07024

For more information contact:

Jenny Margetts, P2P Business Solutions

T 07 3366 2710

E [email protected]

mARkET OPPORTUNITIES fOR AVOCADOS bEYOND fRESh fRUIT SAlES

POTENTIAl ExPORT mARkETS fOR ThE AVOCADO INDUSTRY

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Cooperative promotions

One Harvest through the 2007/08 Avocado Domestic Cooperative Promotion Program, initiated by HAL and Avocados Australia, promoted Shepard Avocados in Woolworths stores. This linked to the national “Add an Avo” promotion program. The main objective of this campaign was to create awareness of the green skin Shepard Avocados and communicate the key features

and benefits. In addition, this was an education exercise to communicate to consumers on the ‘stay green’ messages and how to use shepard avocados daily in a variety of ways by making consumers aware of the versatility of the products. This was achieved by encouraging trial of the recipe being demonstrated.

Consumers were given the “STAY GREEN” message:

Shepards stay green when ripe.•

Shepards stay green when cut.•

A bruschetta recipe was made using Shepard Avocado, tomatoes, fresh basil and olive oil on a mini toast and offered to consumers to eat as finger food. New back-of-store posters were developed outlining the different types of avocado and key handling requirements.

The total number of customers sampled was 48,375 which equates to an average of 24 customers per hour. The sales results based on demonstrator counts equated to 26,980 units which is an average of 56 units per store in four hours.

QLD had the best results all round with 28 customers per hour, 20 sales per hour and 73 per cent conversion rate.

Cooperative promotion of Shepard Avocados in Woolworth stores

Almost 27,000 products sold as a direct result of demos and one in two customers purchased on the day.

Project AV07506

For more information contact:Gunjan Tandan, HAL Marketing ManagerT 02 8295 2300E [email protected]

Online Consumer Quality Survey

Retail surveys of avocado quality in the last few years have shown that up to one in five avocados have significant problems in terms of amount of unusable flesh, with rots and bruising being the main causes of poor flesh quality.

The aim of this project was to determine, in more detail, the level of fruit quality that negatively impacts on consumer purchasing behaviour. Specifically, the study aimed to determine the impact of price, incidence and severity of defect on consumer intention to purchase avocados using the three most commercially significant quality defects: Bruising; Stem end rot; and Vascular Browning. In addition, the opportunity was taken to assess previous avocado purchase experiences, determine the response to ripeness indicator technology, and to establish awareness of various health benefits and explore their

importance in the decision to purchase avocados.

Research was undertaken online using a conjoint analysis methodology to involve 1050 Australian consumers throughout the country who consumed avocados at various frequencies (weekly, fortnightly, monthly or quarterly). The current study demonstrated that increases in price, severity of defect and incidence of defect had significant and negative impacts on consumers’ future purchase decision, with severity of defect playing the greatest role. In addition, increases in price from $0.89 to $1.39 resulted in reduced likelihood of purchase for even the lowest levels of severity or incidence. Respondents were slightly more tolerant of Vascular Browning, in that the drop in likelihood of purchase for similar quality fruit did not occur until the price had increased to $1.99.

Consumers displayed some tolerance to occasional appearance of defective flesh in avocados as long as the price was right and very little flesh was affected. However, tolerance to damage decreased significantly as price increased. Retailers therefore have to accept that even if consumers are loyal, high incidence of even fairly low levels of defect carry with it the penalty of low returns.

Awareness of the most important health benefits was low, and differed as a function of consumption frequency, with weekly frequency consumers of avocados more likely to be aware of these benefits than monthly or quarterly consumers.

Project AV07019

For more information contact: Karl Crawford, HortResearchT 64 9925 7227E [email protected]

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ImPROVINg TEChNOlOgY UPTAkE IN ThE WA AVOCADO INDUSTRYA baseline has been established for the Western Australian avocado industry from which improved technology uptake can be measured.

The WA avocado industry underwent rapid growth between 2002 and 2007. It was recognised that, to capitalise fully on this growth and to progress successfully into the future, the industry needed to have strategies and programs in place to ensure the industry operated with world’s best practices. The WA avocado industry developed the ‘Improving technology uptake in the WA avocado industry’ project. This was facilitated through the industry’s fee-for-service funds administered by the Agriculture Produce Commission – Avocado Committee, in conjunction with the Department of Agriculture and Food and with assistance from HAL.

The project set out to determine the WA industry’s current ‘baseline’, its desired future in five to 10 years, what is needed to achieve this future, and the strategies required to maximise uptake of necessary practices.

Over the past 12 months the project completed a survey of the WA industry which provided a baseline of the industry – providing information on its size, production, markets, production strategies, perceived information gaps and communication preferences. From this base information, future production potential can be estimated, as can potential gaps in production strategies. This information will be of great benefit in mapping out the industry’s future and when developing strategic plans and communication strategies.

The project also funded attendance at

the World Avocado Congress and brainstorming event; this ensured the project was fully versed in the latest world industry practices and recent developments being researched around the world. Opportunities of benefit to the WA industry will be identified from this learning experience and factored in when developing the strategic plans and communication strategies.

Feedback on both the industry survey and World Congress has been communicated to industry via both seminar and in written form.

Project AV06002

For more information contact:

Alec McCarthy, WA Department of

Agriculture & Food

T 08 9780 6273

E [email protected]

R&D ROAD ShOWS hElP AVOCADO gROWERS WORk SmARTERAvocados Australia undertook the avocado industry’s four year regional R&D Road Shows during July to October 2007. Over 650 industry growers attended across the seven regional R&D Road Shows.

The 2007 R&D Road Show series focused on the latest industry research and showed participants how they could turn research findings into practical on-farm benefits. The industry has invested considerable funds on research and development initiatives and it is important that growers have the opportunity to turn this investment into real benefits, in their individual businesses. It also allowed researchers to learn from growers the issues facing the industry and enabled researchers to refine their research based on ‘on-farm conversation and examples’.

All R&D Road Shows were held on farm, allowing growers to walk and talk in the orchard with the best avocado researchers Australia has to offer. The R&D Road Shows were held in South Queensland, North New South Wales, North Queensland, Tristate, Western Australia, Central New South Wales and Central Queensland growing regions.

The R&D Road Show program involved researchers working on all major current avocado R&D levy funded projects as well as industry leadership topics. The presenters included: Dr Tony Whiley, Dr Ken Pegg, Dr John Leonardi, Dr Fiona Giblin, Ms Joanna Embry, Mr Henry Kwaczynski and Mr Antony Allen.

Each R&D Road Show included presentations, networking time, a panel discussion period with the attendees where all presenters participated, along with a farm/orchard/packing shed session. The success of the R&D Road Shows has been in bringing researchers to the growers and ensuring that the R&D program is closely linked to those who can best use the information and research.

Project AV06028

For more information please contact:

Antony Allen, Avocados Australia

T 07 3846 6566

E [email protected]

AVOCADO ExPORT DEVElOPmENT fORUm hElDThe Australian Avocado Industry is facing increased international competition, increasing supply and is currently heavily focused on the domestic market. With

production of 46,000 tonnes in 2008 and more fruit each year for at least the next five years, we have an excellent opportunity to develop high quality targeted markets.

The Australian Avocado industry leadership team needs information, tools and strategies to facilitate the growth in exports of Australian avocados. In December 2007 the industry held an export forum to set the direction of the project.

From the forum the project will develop a grower and exporter friendly resource tool which aims to demystify the process of developing an export market and provide information as to the range of government support programs that can assist growers and exporter in this area.

The export project will commence the process of market development by investigating and reporting on current market dynamics, advantages, opportunities, threats and weaknesses. All of the above elements will build into a ‘road map forward’ which the industry leadership team can utilise to develop an Export Development Plan.

Project AV06010

For more information please contact:

Antony Allen, Avocados Australia

T 07 3846 6566

E [email protected]

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RElATIONShIPS AND ROlES RElATINg TO hAl PROgRAmSHorticulture Australia Limited (HAL) is a not-for-profit industry owned company. Its role is to manage the expenditure of funds collected by the Australian Government on behalf of horticulture industries.

HAL invests $85 million annually in projects to benefit horticulture industries.

An Industry Advisory Committee (IAC) is established for each industry with a statutory levy and annual income exceeding $150,000. The IAC is a subcommittee of the HAL Board. It makes recommendations to HAL on the expenditure of funds.

The Peak Industry Body (PIB) for an industry is responsible for recommending to HAL the establishment of, and any changes to, statutory levies. The PIB for an industry with a statutory levy recommends membership of the IAC to HAL and must demonstrate how the skills required on an IAC are met by the persons they recommend for appointment to the committee.

For more information please visit www.horticulture.com.au

CONSUlTATION fUNDINgConsultation funding is paid by HAL to cover costs for IAC meetings, annual levy payers’ meetings and costs within the partnership agreement between HAL and the member industry that are specified as consultation, for example R&D program consultation. Consultation does not include funding for conferences, publications or general communication or industry development officers/managers. These activities can be funded as projects in the industry program. In 2007/08, $271,103 of consultation funding was budgeted to be provided to Avocados Australia Limited.

Productivity and Adding Value

Improve the productivity and profitability of existing industries and support the development of viable new industries.

Supply Chain and Markets

Better understand and respond to domestic and international market and consumer requirements and improve the flow of such information through the whole supply chain, including to consumers.

Natural Resource Management

Support effective management of Australia’s natural resources to ensure primary industries are both economically and environmentally sustainable.

Climate Variability and Climate Change

Build resilience to climate variability and adapt to and mitigate the effects of climate change.

Biosecurity

Protect Australia’s community, primary industries and environment from biosecurity threats.

Productivity and Adding Value (45.3%)

Supply Chain and Markets (41.0%)

Natural Resources Management (6.4%)

Climate Variability and Climate Change (2.2%)

Biosecurity (5.1%)

Percentage by value of Avocado projects

AUSTRAlIAN gOVERNmENT PRIORITIES

Investing in Australian horticulture

As part of the Australian Government’s commitment to rural research and development, horticulture industries can access matching Commonwealth funding through HAL for all research and development activities.

The Australian Government’s Rural Research and Development Priorities aim to foster innovation and guide R&D effort in the face of continuing economic, environmental and social change. HAL’s operations are closely aligned with these priorities.

This chart shows the percentage of expenditure in HAL’s avocado R&D program against each of the Australian Government priorities for rural research and development. Full details of expenditure across all industries is available in HAL’s annual report at www.horticulture.com.au

Percentage by value of Avocado Projects

In 2007/08 Avocados Australia Limited acted as the service provider on ten projects.

Full details where the Avocados Australia Limited acted as the service provider can be found on page 18–19 of this report.

Page 18: Avocado Industry Report

Project No. Title

Outcome 1 Enhance the efficiency, transparency, responsiveness and integrity of the supply chain for the total industry to provide clear market signals

AH04007 Pesticide regulation coordinator

AH04009 Coordination of minor use permits for horticulture

AH06004 Horticulture Code of Conduct – Industry Support Package

AH07033 Incident Response Protocol – development and training for horticulture

Outcome 2 Maximise the benefits of horticultural products in the eyes of consumers, influencers and government

AH07006 Promoting the health advantage of fruit and vegetables to increase their consumption

AH07007 Horticulture Wellbeing Initiative

Outcome 3 Position horticulture to compete in a globalised environment

AH07002 HAL Market Access Coordinator

AH07003 Market access support program

AH07017 Codex Committee on Fresh Fruit and Vegetables participation

Outcome 4 Achieve long term viability and sustainability for Australian horticulture

AH06002 Horticulture Industry Strategic Plan (Future Focus)

AH06015 Cooperative venture for capacity building (CVCB) membership fees

AH07009 Horticulture Water Initiative

MT07029 Managing pesticide access in horticulture

AH07001 Horticulture Statistics database

AH06019 Australian horticulture’s response to climate change and climate variability

AH07022 Horticulture for Tomorrow – Environment Communication Program

AH07026 The Current and Future Human Resource Needs of Australian Agriculture

AH07027 Horticulture component of the National Climate Change Research Strategy for Primary Industries

AH07031 Peri-urban horticulture and land use planning: Literature Review & ‘Tool-kit’

AH07032 Independent quarantine and biosecurity review

Across Industry Program 2007/08

Avocado Program 2007/08

The avocado industry contributes funding towards an across industry program that addresses issues affecting all of horticulture. Details of the current program are listed below. A full report of the program can be found at www.horticulture.com.au/industry/acrossindustry.asp.

18

Project No

Project Title Levy or VC

Start Project

Project Completion

Organisation Contact

AV03005 Harvest temperature effects on postharvest avocado quality

VC 30-Jul-03 23-May-08 Department of Agriculture & Food Western Australia

Alec McCarthy 08 9780 6273

AV04001 Improved management of avocado diseases

Levy 31-Jan-05 22-Oct-07 QLD Department of Primary Industries & Fisheries

Fiona Giblin 07 3896 9299

AV04007 Rootstock improvement for the Australian avocado industry – phase 2

Levy 01-Jan-05 30-May-08 Sunshine Horticultural Services Pty Ltd

Tony Whiley 07 5441 5441

AV04008 The development of canopy management strategies suited to the different growing environments across Australia for increased profitability

Levy 01-Jul-04 31-Aug-08 Avocados Australia Limited (AAL)

Antony Allen 07 3846 6566

AV06001 Improving spraying and management of spotting bugs in avocados

Levy 01-Jul-06 01-Oct-08 Growing Greener Growers Henry Drew 07 5445 0032

Page 19: Avocado Industry Report

19

Project No

Project Title Levy or VC

Start Project

Project Completion

Organisation Contact

AV06002 Improving technology uptake in the WA avocado industry

VC 01-Nov-06 01-May-10 Western Australian Avocado Growers Association

Alec McCarthy 08 9780 6273

AV06003 Study groups to achieve globally competitive avocados

Levy 15-Dec-06 31-May-10 QLD Department of Primary Industries & Fisheries

Simon Newett 07 5441 2211

AV06005 Econometric ROI and Investment Apex Analysis

Levy 02-Jan-07 30-Mar-07 Horticulture Australia Limited

Roger Bramble 02 8295 2300

AV06006 Scoping of a national Avocado Quality System and management of Avocado industry information systems

Levy 01-Oct-06 30-Sep-09 Avocados Australia Limited (AAL)

Joanna Embry 07 3846 6566

AV06010 Export development for the Australian avocado industry

Levy 04-Jun-07 29-Aug-08 Avocados Australia Limited (AAL)

Antony Allen 07 3846 6566

AV06011 Guidelines for avocado irrigation management

Levy 01-Jul-06 31-May-07 RMCG Anne-Maree Boland 1300 306 043

AV06020 Avocado carbaryl residue trials Levy 30-Nov-06 18-Aug-08 Agronico Research Pty Ltd Dale Griffin 03 5976 4511

AV06026 Avocado supply chain mapping and resource audit

Levy 14-May-07 15-Jun-07 Avocados Australia Limited (AAL)

Antony Allen 07 3846 6566

AV06028 Avocado R&D Roadshow 2007 Levy 20-Jun-07 29-Aug-08 Avocados Australia Limited (AAL)

Antony Allen 07 3846 6566

AV06029 Investigation, analysis and development of a strategic plan to maximise avocado sales in the food service markets

Levy 02-Jun-07 29-Aug-08 Richard de Vos Richard de Vos 02 9973 4507

AV07000 Improving yield and quality in avocado through disease management

Levy 02-Jul-07 30-Sep-10 QLD Department of Primary Industries & Fisheries

Elizabeth Dann 07 3404 6999

AV07001 Investigation of the distribution and incidence of Avocado sunblotch viroid in Australia

Levy 10-Jul-07 30-Mar-10 QLD Department of Primary Industries & Fisheries

Andrew Geering 07 3896 9353

AV07003 Determination of health-promoting bioactives in Australian avocados

Levy 31-Jan-08 30-Oct-08 Food Science Australia Dimitrios Zabaras 02 9490 8352

AV07005 Development and commercial application of an avocado fruit robustness test

Levy 04-Jan-08 31-May-11 QLD Department of Primary Industries & Fisheries

Danielle Le Lagadec 07 4155 6244

AV07010 Infocado information extension project Levy 18-Apr-08 17-Jun-08 Avocados Australia Limited (AAL)

Antony Allen 07 3846 6566

AV07012 Australian avocado export efficiency powers consultation

Levy 30-Apr-08 27-Feb-09 Avocados Australia Limited (AAL)

Antony Allen 07 3846 6566

AV07018 Avocado retail quality surveys Levy 10-Sep-07 31-Oct-08 Avocados Australia Limited (AAL)

Antony Allen 07 3846 6566

AV07019 Online consumer quality survey Levy 30-Nov-07 29-Feb-08 HortResearch Ltd Karl Crawford 649 925 7227

AV07024 Market opportunities for avocados beyond fresh fruit sales

Levy 25-Apr-08 28-Nov-08 p2p business solutions Jenny Margetts 07 3366 2710

AV07025 Benchmarking the usage and attitudes of health professionals

Levy 01-Apr-08 04-Jul-08 Consumer Insights Joseph Ebbage 0407 543 340

AV07900 Avocado Partnership Agreement 2007/08 Levy 01-Jul-07 30-Jun-08 Avocados Australia Limited (AAL)

Antony Allen 07 3846 6566

MT06020 Improving market access R&D for the Australian horticultural industries

Levy 01-Jul-06 01-Jul-10 Horticulture Australia Limited

Kim James 08 6389 1407

MT07065 Consumer tracking study Levy 01-Jul-06 30-Nov-08 Brand Story Pty Limited David Chenu 0419 318 013

AV06500 Domestic marketing program Levy 01-Jul-06 30-Jun-07 Horticulture Australia Limited

Gunjan Tandan 02 8295 2300

AV07507 Export marketing Levy 01-Jul-07 30-Jun-08 Horticulture Australia Limited

Wayne Prowse 02 8295 2300

Page 20: Avocado Industry Report

20

FOR MORE INFORMATION CONTACT:

John TyasIndustry Services Manager

Horticulture Australia Limited (HAL)Suite 329, 433 Logan RoadStones Corner QLD 4120

T 07 3394 8220E [email protected]

Horticulture Australia Limited (HAL) Level 7, 179 Elizabeth Street Sydney NSW 2000 T 02 8295 2300 F 02 8295 2399 www.horticulture.com.au

fINANCIAl REPORT AVOCADO INVESTmENT SUmmARYYEAR ENDED 30 jUNE 2008

AVOCADO INDUSTRY ADVISORY COmmITTEE (IAC)Bob Granger (Chair)

Daryl Boardman

Lachlan Donovan

Colin Fechner

Jennie Franceschi

Jim Kochi

Henry Kwaczynski

Chris Nelson

Tom Silver

John Walsh

Antony Allen (ex-officio)

John Tyas (ex-officio)

Marketing 2007/08

R&D 2007/08

Combined 2007/08

Funds available 1 July 2007 303,441 175,272 478,713

INCOME

Levies Received 2,022,114 1,353,789 3,375,903

Commonwealth Contributions 702,523 702,523

Other Income 14,128 48,799 62,927

Total Income 2,036,242 2,105,111 4,141,353

Budget 1,770,443 2,100,514 3,870,957

Variance to Budget 265,799 4,597 270,396

PROGRAM INVESTMENT

Levy Programs 1,572,707 1,236,619 2,809,326

Service Delivery Programs by HAL 214,203 168,427 382,630

Across Industry Funding 14,345 14,345

Levy Collection Costs 45,560 24,158 69,718

Total Investment 1,832,470 1,443,549 3,276,019

Budget 1,698,121 1,986,242 3,684,363

Variance to Budget (134,349) 542,693 408,344

Annual Surplus/Deficit 203,772 661,562 865,334

Closing Balance 30 June 2008 507,213 836,834 1,344,047