Citrus Forum 2017 From the Market to the T ree John Chavarria

1. Citrus Forum 2017From the Market to the TreeJohn Chavarria Mildura, 01-March-2017

2. Presentation Notes • This presentation is based on my practical experience and my current knowledge of markets and varieties and I apologise if any relevant details and varieties have been overlooked unintentionally • Global market approach combined with local knowledge • Holistic understanding of new varieties rather than a detailed description of all current varieties

3. Presentation Notes • Acknowledgements: • Great job done by Citrus Australia, DOA (AQIS), government officials,… granting access to new markets • Good follow up by the exporters developing the markets • Dynamic breeders and commercialises of varieties making new varieties available to the industry • Strong evaluation and local knowledge of the new varieties to transfer onto growers • Very dynamic growers taking on board the new varieties

4. John Chavarria Background • Horticultural Science degree and Masters in Citrus from the University of Valencia in Spain • Working in Australia since 1993 (24 years) • Working for MFC with Bill Robinson (Grower Services Manager) for 22 years • Have formed a very strong relationship with MFC growers • Have taken 8 MFC grower trips to Spain including one in two weeks time of 44 people • Spanish Industry is 10 times the size of the Australian Industry • Spain is the largest fresh Citrus exporter in the World, although not the biggest grower

5. John Chavarria Background • During this time – worked in the field, packing shed (post harvest) & marketing • Last 15 years have been visiting and working with MFC growers 2-3 times per year • Consulted in a number of other Countries including – Spain, USA, Chile, Mexico, China • Manage citrus export program from Spain to USA and also to Asian markets • Lived in the USA (Florida) for 2 years in 2014 and 2015

6. Changing Markets • Markets drive varieties & ultimately the profitability in the orchard • Varieties, cultural practices and rootstocks to meet market requirements • TALK TO YOUR PACKER before deciding on new varieties • The need for new markets was triggered by the decline of the USA market a number of years ago due to competition and poor exchange rates • The economic down-turn and exchange rate in Japan (1st class to composite) • This market has now recovered for 1st class and composite • The Citrus Industry had to look for other markets to remain viable

7. Changing Markets • Need a good balance of markets • NEED FOR DIFFERENTIATION • good quality • high brix • good colour • clean (low residue) • New and exciting markets that we have; • China • Phillipines/Vietnam/South Korea/Thailand • MFC strongly committed to these markets and for 2016 sent 600 containers to China

8. Changing Markets - Export Markets • Opportunities • High demand and better prices • Different varieties & sizes • Favourable exchange rate • Threats • Competition (low cost of production – Southern Hemisphere) • Phytosanitary restrictions • Political decisions eg. Trump – Argentina Lemons • Unfavourable exchange rate • MFC Export 80% - 25 Countries, Domestic 20%

9. Varieties, General Notes • Navels • Preference of navels over valencias • Strong interest in Asia • Declining consumption in the Western markets • Growth opportunities in China

10. Varieties, General Notes • Pigmented oranges (red) • Interest in Asia and US/Canada: Cara Cara & Blood types • The market is looking for a Cara Cara with a blush and early and late to extend the season • Need for bloods with more consistent colour and better size • Potential opportunities for pigmented valencias

11. Varieties, General Notes • Tango/Afourer – • Domestic market and continue to build export markets – Europe, USA, Japan • Seed counts in the future will be crucial for most markets and will impact grower returns • Not a preferred variety in China, but could change • Imperial Mandarins - Domestic • There is a lot of production of Imperials for a marketing window that is being squeezed by newer varieties

12. Varieties, General Notes • Lemons • Currently world shortage – good prospects, although a lot of new plantings worldwide • Interest in seedless Lemons • Will need export in future – CT could restrict markets (chilling injury)

13. Varieties, Internal Pigmented Oranges • Asian and Western markets: • Red colour is very important, not yet in Europe. • Markets: Asia, US, Canada. • Tables to follow, key; • Variety order by maturity • Knowledge • 1 – Good knowledge • 2 – Some knowledge • 3 – Minimum knowledge • WIP – Work in progress • NA – Not available in Australia • SL – Seedless, LS – Low seeds, LS-I – Low seeds in isolation, SD – seeded

14. Varieties, Internal Pigmented Oranges

15. Varieties, Navel Oranges • Asian markets: • Sustainable interest on navels overall. • Western markets: declining consumption. • Markets: Asia, Domestic and some Western markets.

16. Varieties, Navel Oranges

17. Varieties, Western Markets - Mandarins • Western markets: • Seedless most important • Easy to peel (relatively soft) • Good brix but not necessary high brix (10-12+) • Markets: Domestic, US, Europe, Japan.

18. Varieties, Western Markets - Mandarins

19. Varieties, Asian Markets - Mandarins • Asian markets: • High brix (generally 13+) most important (or low acid) • Firm fruit for imports (not so easy to peel) • Seedless is not a priority yet • Smooth skins, good colour, medium size • Markets: Asia, Domestic

20. Varieties, Asian Markets - Mandarins

21. Varieties, Domestic Markets - Mandarins • Domestic market: • Unknown or poor ability to sea freight. • Markets: Domestic.

22. Varieties, Domestic Markets - Mandarins

23. Varieties, Lemons • Asian and Western markets. • Anticipated interest of seedless lemons in the Western markets. • Markets: Domestic, Asia.

24. Varieties, Lemons

25. Cultural Practices • Pest Control • Fruit Damage – lower pack-outs • KCT – Fullers Rose Weevil & other pests of concern • Control of Queensland Fruit Fly – female traps • Navels – smooth rind • Growth Regulators • GA – crop regulation, fruit set, creasing and extended harvest • 2,4-DP (Corasil) - thinning & sizing • 3,5-6 TPA (Tops) - thinning & sizing • 2,4-D (Stop Drop) - fruit condition • Pruning for size and quality • Girdling (Cincturing) • MFC Orchard Protocol

26. Rootstocks • To adapt to soil conditions • Biggest challenge is HLB • Research on resistant/tolerant rootstocks • Market not accepting GMO rootstocks • No solution yet for HLB • Different rootstocks to extend the season and/or to improve brix • Some interesting rootstock selections could be; • C22 – marginal soils • Patricia Barkley (Malcolm Smith) • Chinese Selections (Tahir Khursid) • IVIA Selections (Maria Forner)

27. Take Home Messages • Market driven rather than production driven • Before deciding on new varieties talk to your packer • Spread your risk across different markets and varieties • Be open to new varieties and gather information • Be prepared that some varieties may not adapt to certain growing conditions • Rootstocks and cultural practices for best quality and yields

28. Ending Notes • Very dynamic industry and good to be a part of • Exciting times ahead • Thanks to MFC to facilitate my presentation • Thanks to MFC growers to allow me to work with them over the years • Best wishes for the new season • THANK YOU