NZ apples to take bite out of Australian fruit market

New Zealand apples have been banned in Australia for almost 90 years. Photo / Supplied

New Zealand's apple growers have reportedly won a major victory in their 90-year battle to sell fruit in Australia, but mindful of Australia's mastery of delaying tactics, the industry is not expecting benefits any time soon.

An interim World Trade Organisation (WTO) decision has found against Australia's use of trade barriers to block the import of NZ pipfruit, the Transtasman political newsletter yesterday reported.

Sources said the WTO panel, which adjudicated the long-running dispute, comprehensively rejected the Australian defence.

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.

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