Aust growers continue to query safety of NZ apples

Australia first banned the import of fruit trees from NZ in the early 1920s. File photo / Hawke's Bay Today

Australian pipfruit organisations are still questioning the safety of New Zealand apples, despite a World Trade Organisation (WTO) interim report apparently indicating a win for local growers.

The Transtasman political newsletter yesterday reported that an interim WTO decision had found against Australia's use of trade barriers to block the import of NZ pipfruit.

Sources said the WTO panel, which adjudicated the 90-year battle, comprehensively rejected the Australian defence.

But an Australian grower organisation today said there were still issues over the safety of New Zealand fruit being imported into the country.

Apple and Pear Australia general manager Tony Russell told Radio New Zealand there were still unanswered questions about how fireblight was transmitted.

He said its introduction would be particularly disastrous for Australia because it would be likely to spread quickly in the warm climate.

"It would be quite devastating particularly for pears, which are quite susceptible to fireblight. But it would also be a problem in increased costs of management of another disease that we don't want - so why take on more diseases if you can avoid it?"

Australia's Department of Agriculture, Fisheries and Forestry said the dispute had not been finalised and the interim report was simply a step in the process.

Prime Minister John Key this morning said an end to the dispute would be welcomed.

"I haven't seen the report and I have to emphasise it is an interim report, but I am ever hopeful that we will find a resolution to this long-standing problem."

A spokeswoman for Trade Minister Tim Groser yesterday confirmed the report had been received but the Government will not say what the WTO's decision was.

"We are satisfied that the panel understood the arguments we put before it and we look forward to receiving the final report," she said.


Pipfruit NZ chairman Ian Palmer said the Government had not briefed the grower organisation - though "that might change now that this has been leaked".

The final report is expected in June.

New Zealand apples have been banned in Australia - originally because of the presence of the bacterial disease fireblight - for almost 90 years.

Several attempts to force Australia to open up to New Zealand apples culminated in a complaint to the World Trade Organisation in 2007.

Brendon Osborn, general manager of Nelson grower-owned exporter Luv'ya, welcomed the news but that was tempered with caution because the leaked report was an interim one.

"It looks all positive but we're just keeping our feet on the ground at the moment."

Mr Osborn said there would be considerable excitement among growers about gaining access to the Australian market, "but put it this way - it's going to be a difficult market to get into.

"There are some very established relationships with Australian apple growers and there are only two supermarket chains. It's not as if the door's going to fly open."

Marlborough apple grower Kevin Murphy said the demise of the ban had been inevitable for some time.

"It's just that the Australians are trying to delay it as long as possible."

Peter Beaven, chief executive of Pipfruit NZ, said their assessment of the Australian market opportunity was for exports of about 500,000 cases annually generating income of $15 million to $20 million.

Even if the final report, expected in June, was favourable, exports would inevitably be years off.

"The history of these things is that the side that loses appeals, and that will take eight months," he said.

Assuming the appeal fails then there is negotiation between Biosecurity NZ and its Australian counterpart to establish rules for the new export market, which would provide opportunity for further delays.


How do you like them apples?

* NZ apples were first banned from Australia after fireblight was found in Northland in 1919.

* Although New Zealand scientists have found fireblight in Australian ornamental plants and shown that the bacterial disease is unlikely to be transmitted on mature, clean fruit, efforts to gain access to the potentially-lucrative Australian market in 1986, 1989, and 1995 were rejected.

* Further talks over the restrictions also failed when access was allowed in 2006 with conditions, such as orchard inspections, so strict that exports would not be economically viable.

* New Zealand took a complaint to the World Trade Organisation in 2007, on the basis that the proposed constraints were an unacceptable trade barrier.

- additional reporting NZPA