CITRUS INDUSTRY

The Hon. G.A. KANDELAARS (15:06): I seek lave to make a brief explanation before asking the Minister for Agriculture a question about citrus research.

Leave granted.

The Hon. G.A. KANDELAARS: It is well known that citrus exports from South Australia are considerable. The quality of our fruit means that it is highly regarded in many markets. Can the minister advise on recent work which may help reduce the reliance on chemical fungicides?

The Hon. G.E. GAGO (Minister for Agriculture, Food and Fisheries, Minister for Forests, Minister for Regional Development, Minister for the Status of Women, Minister for State/Local Government Relations) (15:07): I thank the honourable member for his most important question. South Australia is recognised as a source of great produce; for example, our premium citrus is just one example. The government has identified, as one of its seven priorities of government, premium food and wine from our clean environment to make sure that we take every opportunity to play to our strength, to maximise and build on that advantage, namely, that we have premium quality products and a very clean environment, a very strong biosecurity system.

I am pleased to be able to tell the chamber that SARDI has been involved in research on how to reduce or replace the use of chemical fungicides to better prepare citrus for export. In 2011-12, around 190,000 tonne of citrus was produced in South Australia, with a farm gate value of $50 million. Around one-third of our production was exported as whole fruit, with a small amount of juice, which is valued as it is shipped from Australia (called free-on-board valuation) at $57 million.

Dr Peter Taverner, a senior SARDI scientist, is the leader of the National Citrus Post-Harvest Science Program. This research is focusing on the challenge of replacing chemical fungicide use with softer alternatives, thereby underpinning our citrus credence values and reducing any potential health risks and promoting our reputation as a producer of clean, green food.

This work will provide citrus packers with guidelines for export market compliant fungicide usage and also promote and explain how to use softer options for disease control that are safe for both the environment and consumers. The research aims to help equip packing sheds and growers with the resources to meet the quarantine and growing demands of our key global markets. The work also involves helping packing sheds to prepare for some of the post-harvest problems, such as sour rot, which can substantially devalue a shipment of fruit and I am advised is hard to control using the current available conventional fungicides.

Consequently, the combination of new and softer controls for post-harvest citrus diseases, which were approved by our export markets, will help ensure the integrity of our citrus and underpin our premium market niches, adding value to the industry. With synthetic fungicides falling out of favour with consumers, global supermarkets are increasingly looking to source pesticide-free produce.

SARDI and other researchers involved in the program are looking for generally recognised safe (GRAS) compounds to control a range of post-harvest diseases. These GRAS compounds are chemicals that have been used in the food industry for many years. The system is used as a benchmark by which all foods are assessed for safety by organisations such as Food Standards Australia and the US Food and Drug Administration.

In addition, sanitisers and food preservatives during packaging and also processing are being investigated as ways in which to reduce or replace fungicides in harvested fresh fruit and vegetables. These could provide an opportunity, in combination with current chemical fungicides or GRAS compounds, to improve fruit outturn quality in the market.

The benefit for exporters and citrus packers is that, once a compound has a GRAS designation, treated fruit can be exported with fewer restrictions than those treated with standard chemical fungicides. The program has wide support as consumers, growers and citrus packers are obviously all very keen to reduce chemical use and to find safer chemicals.

The four-year research project was endorsed by Citrus Australia and funded by SA Citrus Growers, through the citrus levy and voluntary contributions through Horticulture Australia, matched by the Australian government. As well as the fungicide research, SARDI's entomology and food safety and value chain experts are improving South Australia's citrus exporting future.

Australia exports around $180 million in citrus. The majority of our orange exports by volume go to Asia, led by Japan, Hong Kong, Malaysia and Singapore. The US is also a significant market. As more and more South Australian orchards register for this export status, exports are expected to take off in China, Korea and Thailand this year, with Citrus Australia Limited forecasting Australian exports to China alone will triple in 2013 as a result of this registration program.

I congratulate Dr Taverner and SARDI on the fabulous work they have done so far, and I obviously look forward to the results of this important work, which has great potential for our citrus industry.