CANBERRA: “Rainfall was ample this year. Compared to last year, the early-ripe Australian cherries have to deal with a drop in production volume of 70% to 80%. One exception is Tasmania. The production drop directly caused a severe reduction of the export to Hong Kong of 80% to 90%,” says David of the Australian export business.
“The large decrease of production this season has perturbed the export market to a great extent. It also has pushed up the cherry price on the local market, because Australia can’t import cherries from other countries. So the cherries produced in Australia stay there for consumption. The high export price and the vigour of domestic demand created an export market that is in a state of deep confusion. Specifically, the export price is lower than the price on the local market. This compels almost all Australian exporters to stagnate their exporting business.
Based on estimates, the situation will improve after Christmas. Not only will the Australian local market lose some of its intensity, but also a larger amount of cherries will go on sale. This will bring bring down the price, which in turn means a new opportunity for export to the Hong Kong market.”
