Victorian Food and Fibre Export Performance:

2010-11 Financial Year

Authors:

Simon Fraval, Project Officer Market Access and Competitiveness, Farm Services Victoria

Lucy Ridley, Project Officer Market Access and Competitiveness, Farm Services Victoria

Editors:

Clare Balmer, Program Manager Market Access and Competitiveness, Farm Services Victoria

Brian Kearns Project Leader International Market Access - Middle East  & India

Image on page 36 adapted under Creative Commons licence. Photo sources: Kevan Davis, 'FotoosVanRobin', ovineyards.com, Albastrica Mititca, and Amanda Slater

Executive Summary

Food and Fibre Export Performance 2010-11

This report is prepared to provide information on the value of Victorian and Australian food and fibre exports. The report is prepared by Farm Services Victoria and is focused on export performance by commodity groups and key export markets for the 2006-07 to 2010-11 financial years.

Victorian food and fibre exports were valued at $8.07 billion in 2010-11. (Table 1). Export value increased by $1.3 billion (19%) from 2009-10. The value of food exports from Victoria in 2010-11 was $6.3 billion, an increase of $839 million (15%) from the previous financial year. The value of fibre products (including animal fibre and skins and hides) increased by $470 million, or 64% from 2009-10, to be valued at $1.77 billion. In 2010-11 Victoria accounted for 28% of Australia’s total food and fibre exports and was Australia’s largest State exporter. Victoria had a 15% share of Australia’s total food exports and a 36% share of Australia’s total fibre products exports (including animal fibre and skins and hides).

Table 1. Australian Food^^ and Fibre Exports by State of Origin (A$ million)

State of Origin^^	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Victoria	6,752	6,449	7,140	6,763	8,072	1,309	19%	28%
Queensland	4,768	4,542	5,294	4,599	5,050	451	10%	17%
New South Wales	4,109	3,407	4,589	4,471	4,865	394	9%	17%
South Australia	3,543	3,878	3,911	3,329	4,597	1,268	38%	16%
Western Australia	3,906	3,832	5,327	4,056	4,327	271	7%	15%
Tasmania	547	518	580	537	567	30	6%	2%
Other***	1,741	3,064	2,111	1,352	1,514	163	12%	5%
Total Australia	25,366	25,691	28,953	25,107	28,993	3,886	15%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.

***Other refers to export data from the Australian Capital Territory, Northern Territory, re-exports and exports for which no state details are released for confidentiality reasons.

^^ Export statistics relating to live beef cattle, abalone and lobster have been affected by the misreporting of state of origin.

Figure 1. Value of Victorian Food^^ and Fibre Exports (A$ million)

Export Performance by Commodity Group

The key food and fibre commodity groups for Victoria’s exports in 2010-11 continued to be dairy and meat, accounting for 45% of the total value of food and fibre exports.

Table 2. Victorian Food^^ and Fibre Exports by Commodity Group (A$ million)

Industry	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Dairy	2,041	2,346	2,304	1,761	1,957	196	11%	24%
Meat^^	1,476	1,428	1,650	1,545	1,655	110	7%	21%
Animal Fibre	931	525	561	891	1,274	383	43%	16%
Grains	392	470	626	684	1,126	442	65%	14%
Prepared foods^	408	487	649	720	810	91	13%	10%
Skins and hides	369	413	445	410	498	87	21%	6%
Horticulture	404	406	549	427	372	-54	-13%	5%
Wine	600	270	255	234	226	-8	-3%	3%
Seafood^^	129	105	100	92	154	62	68%	2%
Total Victoria	6,752	6,449	7,140	6,763	8,072	1,309	19%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.

^ Prepared foods are classified as those which have been substantially transformed from their raw product basis or have inputs from multiple industries.

^^ Export statistics relating to live beef cattle, abalone and lobster have been affected by the misreporting of state of origin.

Victorian dairy exports were valued at $1.96 billion in 2010-11, an increase of 11% from 2009-10. Victoria accounted for 86% of the value of Australia’s dairy exports. Powdered milk and cream, valued at $905 million, and cheese and whey products valued at $641 million were the most valuable dairy export categories.

Japan remained the largest market for Victorian dairy exports, valued at $353 million in 2010-11. Other significant markets included Singapore ($178 million), Indonesia ($148 million) and China ($141 million).

Victorian meat exports ^^ were valued at $1.66 billion in 2010-11 an increase of $110 million or 7% from 2009-10, with Victoria accounting for 20% of the value of Australia’s meat exports. Beef exports from Victoria increased by 11% to be valued at $676 million. Sheep meat exports increased by 6% to be valued at $652 million, accounting for 39% of Victoria’s meat exports. Offal exports decreased by 2% to be valued at $140 million.

Exports to the United States of America (USA) were valued at $239 million in 2010-11, a decrease of 5% from 2009-10. Other key export destinations included Japan and Indonesia with exports valued at $177 million and $113 million respectively.

Victorian animal fibre products were valued at $1.27 billion in 2010-11, increasing by 43% compared to 2009-10.

In 2010-11, Victoria accounted for 48% of the value of Australia’s wool exports.

Fine wool (<19µm) exports were valued at $566 million. Medium wool (20-23µm) exports were valued at $544 million. Exports of coarse wool of 24-27µm, were valued at $84 million. Exports of coarse wool greater than 27 µm were valued at $72 million.

Demand for wool has remained strong despite higher prices.

Note: Animal fibre includes wool and other animal fibre products. Some animal fibre statistics are restricted by confidentiality agreements and statistics should be used with caution.

Victorian grain exports were valued at $1.13 billion in 2010-11, increasing by 65% compared with 2009-10. Victoria accounted for 12% of the value of Australia’s grain exports. Reported wheat exports were valued at $694 million, making up 62% of Victoria’s grain exports.

Vietnam was Victoria's most valuable export market for reported grain exports in 2010-11, valued at $168 million. Grain exports to Indonesia were valued at $107 million and exports to the Philippines were valued at $102 million. Partner country details were not provided for $165,307 worth of grain exports from Victoria in 2010-11.

Note: Grain exports are affected by confidentiality restrictions and statistics should be used with caution.

Exports of prepared food products from Victoria were valued at $810 million in 2010-11. Victoria accounted for 45% of Australia’s prepared food products. Exports of cereal-based products were valued at $351 million and exports of confectionary were valued at $148 million.

In 2010-11 New Zealand remained the key market for prepared food, valued at $252 million, followed by China at $132 million.

Victorian skins and hides exports increased by 21% in 2010-11 to be valued at $498 million. Victoria accounted for 47% of Australia’s skins and hides exports. Skins and hides from sheep were valued at $284 million and skins and hides from cattle were valued at $211 million.

Victoria’s largest market for skins and hides was China, with exports valued at $326 million, followed by Russia valued at $48 million.

Victorian horticulture exports were valued at $372 million in 2010-11, a decrease of $54 million (-12%) from 2009-10 with Victoria accounting for 37% of Australia’s horticulture exports. Fruit (fresh or dried), valued at $152 million made up 41% of Victoria's horticultural exports. Nut exports were valued at $78 million. Processed horticulture exports were valued at $73 million. Vegetable exports (fresh or dried) were valued at $37 million.

In 2010-11 Hong Kong and New Zealand were Victoria’s largest markets for horticulture exports, valued at $57 million and $55 million respectively.

Victorian wine exports decreased by 3% to be valued at $226 million in 2010-11. Victoria accounted for 11% of the value of Australia’s wine exports. Red wine remained Victoria’s strongest performer, accounting for 61% of the state’s wine exports at a value of $137 million. White wine exports were valued at $61 million and sparkling wines were valued at $18 million.

The United Kingdom and China were Victoria’s largest wine export markets, valued at $69 million and $41 million respectively in 2010-11. Other important markets included the USA ($25 million) and Canada ($11 million).

Victorian seafood exports ^^ increased by 68% in 2010-11 to be valued at $154 million. Abalone exports were valued at $75 million. Lobster exports increased by $38 million totalling $60 million worth of exports in 2010-11.

Hong Kong and Japan were Victoria’s major markets for seafood exports in 2010-11, valued at $79 million and $21 million respectively.

^^Note: Export statistics relating to live beef cattle, abalone and lobster have been affected by the misreporting of state of origin.

Export Performance by Market

The five most valuable markets for Victorian food and fibre exports accounted for 43% of food and fibre exports in 2010-11. Victoria’s most valuable food and fibre export markets in 2010-11 were China, Japan, New Zealand, Indonesia, USA, Singapore, Hong Kong, South Korea, Malaysia and Thailand.

Table 3. Top Ten Markets for Victorian Food^^ and Fibre Exports (A$ million)

Destination	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
China	949	806	1,047	1,275	1,616	341	27%	20%
Japan	827	823	875	750	756	7	1%	9%
New Zealand	366	415	419	427	433	6	1%	5%
Indonesia	253	306	345	345	425	80	23%	5%
United States	729	532	617	400	350	-50	-13%	4%
Singapore	251	303	297	276	302	26	9%	4%
Hong Kong	212	215	287	242	280	38	16%	3%
South Korea	216	193	250	217	275	58	27%	3%
Malaysia	247	266	279	250	264	13	5%	3%
Thailand	156	193	206	210	255	44	21%	3%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.

^^ Export statistics relating to live beef cattle, abalone and lobster have been affected by the misreporting of state of origin.

Victorian food and fibre exports to China in 2010-11 were valued at $1.62 billion and accounted for 20% of Victoria’s total food and fibre exports. Key export commodities to China include animal fibre, skins and hides products (72% combined), and dairy products (9% of export value).

Victorian food and fibre exports to Japan were valued at $756 million, and accounted for 9% of food and fibre exports in 2010-11 an increase of $7 million from 2009-10. Key export commodities to Japan included dairy (47%) and meat products (23%).

Victorian food and fibre exports to New Zealand were valued at $433 million in 2010-11 and accounted for 5% of Victoria’s total food and fibre exports. Key export commodities to New Zealand included prepared foods (58%) and horticulture products (13%).

Victorian food and fibre exports to Indonesia were valued at $425 million in 2010-11 and accounted for 5% of Victoria’s total food and fibre exports. Key exports to Indonesia were dairy (35%) and meat products (27%).

Victorian food and fibre exports to the USA continued to decrease, to be valued at $350 million in 2010-11. The USA accounted for 4% of Victoria’s total food and fibre exports. Key exports to the USA included meat (68%) and dairy products (9%).

Victorian food and fibre exports to Singapore were valued at $302 million in 2010-11 and accounted for 4% of Victoria’s total food and fibre exports. Key exports to Singapore were dairy (59%) and meat products (17%).

Victorian food and fibre exports to Hong Kong were valued at $280 million in 2010-11 and accounted for 3% of Victoria’s total food and fibre exports. Key exports to Hong Kong were seafood (28%), horticulture (20%) and dairy (19%).

Victorian food and fibre exports to South Korea were valued at $275 million in 2010-11 and accounted for 3% of all Victoria’s total food and fibre exports. Key exports to South Korea were dairy (34%), meat (27%) and grains (19%).

Victorian food and fibre exports to Malaysia were valued at $264 million in 2010-11 and accounted for 3% of Victoria’s total food and fibre exports. Key exports to Malaysia were dairy (28%) and meat products (24%).

Victorian food and fibre exports to the Thailand were valued at $255 million in 2010-11 and accounted for 3% of all Victoria’s total food and fibre exports. Key exports to Thailand were dairy products (31%) and grains (22%).

Figure 2. Top 5 Markets for Victorian Food^^ and Fibre Exports (A$ million)

^^ Export statistics relating to live beef cattle, abalone and lobster have been affected by the misreporting of state of origin.

Other Markets of Interest

Victorian food and fibre exports to the Philippines were valued at $232 million in 2010-11. Key exports to the Philippines were grains (44%) and dairy (39%).

Victorian food and fibre exports to Vietnam were valued at $230 million in 2010-11. The key export to Vietnam was grains (73%) and dairy products (11%).

Victorian food and fibre exports to Taiwan were valued at $210 million in 2010-11. Key exports to Taiwan were dairy (30%) and grains (26%).

Victorian food and fibre exports to India were valued at $209 million in 2010-11. The key exports to India were animal fibre (57%) and dairy products (20%).

Victorian food and fibre exports to United Arab Emirates were valued at $204 million in 2010-11. Key exports to the UAE were meat (48%) and prepared foods (22%).

Victorian food and fibre exports to Russia were valued at $164 million in 2010-11. The key exports to Russia were meat (46%) and skins and hides (29%)

Victorian food and fibre exports to Saudi Arabia were valued at $162 million in 2010-11. Key exports to Saudi Arabia were dairy (62%) and meat (29%).

Victorian food and fibre exports to the United Kingdom (UK) were valued at $108 million in 2010-11. The key exports to the UK were wine products (64%) and meat (14%).

Victorian food and fibre exports to Sri Lanka were valued at $91 million in 2010-11. Key exports to Sri Lanka were dairy (49%) and grains (43%).

Regions

Victorian food and fibre exports to North Asia were valued at $3.14 billion in 2010-11.

Victorian food and fibre exports to South East Asia were valued at $1.72 billion in 2010-11.

Victorian food and fibre exports to the Middle East were valued at $856 million in 2010-11.

Victorian Food Export Performance 2010-11

Table 4. Australian Food Exports by State of Origin (A$ million)

State of Origin ^^	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Victoria	5,452	5,511	6,134	5,462	6,300	839	15%	25%
Queensland	4,591	4,317	5,056	4,370	4,775	405	9%	19%
South Australia	3,358	3,705	3,769	3,190	4,411	1,220	38%	17%
New South Wales	3,301	2,940	4,095	3,749	4,012	263	7%	16%
Western Australia	3,326	3,484	4,965	3,614	3,755	141	4%	15%
Tasmania	501	486	549	506	527	21	4%	2%
Other***	1,000	1,682	1,454	1,341	1,501	160	12%	6%
Total Australia	21,529	22,125	26,024	22,233	25,281	3,049	14%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.

** Grain export statistics are affected by confidentiality agreements and statistics should be used with caution.

***Other refers to export data from the Australian Capital Territory, Northern Territory, re-exports and exports for which no state details are released for confidentiality reasons.

^ Prepared foods are classified as those which have been substantially transformed from their raw product basis and may have inputs from more than one food production industry.

^^ Export statistics relating to live beef cattle, abalone and lobster have been affected by the misreporting of state of origin

Table 5. Victorian Food Exports by Commodity Group (A$ million)

Industry	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Dairy	2,041	2,346	2,304	1,761	1,957	196	11%	31%
Meat^^	1,476	1,428	1,650	1,545	1,655	110	7%	26%
Grains**	392	470	626	684	1,126	442	65%	17%
Prepared foods^	408	487	649	720	810	91	13%	13%
Horticulture	404	406	549	427	372	-54	-13%	6%
Wine	600	270	255	234	226	-8	-3%	4%
Seafood^^	129	105	100	92	154	62	68%	2%
Total Victoria	5,452	5,511	6,134	5,462	6,300	839	15%

Table 6. Top Ten Markets for Victorian Food^^ Exports (A$ million)

Destination	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Japan	791	805	857	731	722	-9	-1%	11%
China	144	235	337	366	445	79	22%	7%
New Zealand	361	412	415	422	428	6	1%	7%
Indonesia	252	304	343	345	424	79	23%	7%
United States	714	524	611	390	337	-53	-14%	5%
Singapore	250	303	297	276	302	26	9%	5%
Hong Kong	210	213	280	236	267	31	13%	4%
South Korea	203	191	239	189	247	58	31%	4%
Malaysia	239	266	276	241	245	4	2%	4%
Philippines	110	144	190	118	232	114	96%	4%

Victorian Fibre Export Performance 2010-11

Until February 2009 several wool export statistics and skins and hides statistics were affected by state and country detail restrictions and this should be considered when examining changes in export values. In particular restrictions removed from fine wool export categories have substantially increased Victoria's fibre exports in the reported period. Fibre exports for which there is no state of origin recorded reduced to $0 in 2009-10.

Table 7. Australian Fibre Exports by State of Origin (A$ million)

State of Origin	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Victoria	1,300	938	1,006	1,302	1,772	470	36%	48%
New South Wales	808	468	494	721	853	131	18%	23%
Western Australia	580	349	362	442	572	130	30%	15%
Queensland	177	225	238	230	275	46	20%	7%
South Australia	185	174	142	139	186	47	34%	5%
Tasmania	46	31	31	31	40	10	31%	1%
Other***	741	1,382	657	11	13	3	26%	0%
Total Australia	3,837	3,566	2,930	2,875	3,712	837	29%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total

** Animal Fibre export statistics are affected by confidentiality agreements and statistics should be used with caution.

***Other refers to export data from the Australian Capital Territory, Northern Territory, re-exports and exports for which no state details are released for confidentiality reasons.

Table 8. Victorian Fibre Exports by Commodity Group (A$ million)

Industry	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Animal Fibre**	931	525	561	891	1,274	383	43%	72%
Skins and hides	369	413	445	410	498	87	21%	28%
Total Victoria	1,300	938	1,006	1,302	1,772	470	36%

Table 9. Top Ten Markets for Victorian Fibre Exports (A$ million)

Destination	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
China	805	570	710	909	1,171	262	29%	66%
India	78	61	65	97	123	26	27%	7%
Italy	107	32	34	45	105	60	134%	6%
Russia	31	29	22	18	48	30	173%	3%
Thailand	12	10	12	28	42	14	50%	2%
Taiwan	34	1	11	22	37	16	72%	2%
Czech Republic	20	22	10	18	35	17	91%	2%
Japan	36	18	18	18	34	16	87%	2%
South Korea	13	2	10	29	28	-1	-2%	2%
Austria	13	11	4	12	27	15	121%	2%

Table Grapes in Asia

There is significant market potential across Asia for table grapes. The United States has invested heavily in Asian markets, and other Southern Hemisphere suppliers have diverted a greater portion of shipments and marketing spend to Asia (Indonesian importer, 2011, pers. comm.).
Australia’s ability to capitalise on this market potential will depend on gaining an understanding of: the diverse range of markets in Asia, competitors, and the limitations and strengths of the Australian industry. The following analysis gives an overview on Australia's competitive position for table grapes in Asia, using primary interviews from importers and trade statistics.

Market share

Analysis of trade flows suggests that Australia’s traditional export markets have increased imports of Chilean and South African table grapes. Australia has maintained the greater share in the Vietnamese market, yet has now been overtaken by the gradual rise of South Africa in Singapore and Malaysia, and Chile in Indonesia and Thailand. Chile has also increased its dominant market share in Hong Kong, while Australia has lost market share.

The change in market share dominance is not necessarily devastating for the industry. The price received (free on board (FOB)) for Australian product is higher now than it was 4-5 years ago; volumes of Australian product is similar to 4-5 years ago in our top three markets – Hong Kong, Indonesia and Thailand; and there are new prospective markets to venture into, with China recently opening up, and South Korea and Japan potentially opening boarders in the coming years (HAL, 2010).

Using the Indonesian market as an example provides a good perspective on the loss of market share. Australia is still in a relatively strong position in Indonesia. Export volume and value is similar to 2003-04 levels (figure 3), and in this case the loss of market share can be partly attributed to the significant increase in volume of Red Globe grapes from Chile. This is a similar story to Thailand.

Figure 3. Indonesian imports of counter-seasonal grapes: market share shift.

Quality

Australia has the competitive edge on actual and perceived quality.

Australia’s reputation for quality is a great asset; with a major importer in Singapore reporting that “once consumers know that the fruit is Australian they generally don’t ask further questions about sweetness” (2011, pers. comm.). However according to interviewed importers, Australia’s actual competitive advantage in quality has been diminishing in recent years as the quality of table grapes from Chile and South Africa continue to improve; Australia’s competitive advantage from interviewed importers was reported to come down to lower levels of degradation and spoilage in transit - relatively short shipping time and, according to Indonesian importers, better packaging.

If the quality gap is narrowing, table grapes have to be more than unblemished, consistent, high brix and presentable in-market; importers allude to the need to align varieties with markets at an acceptable price. This is particularly the case in new markets where trading on a reputation is not an option.

Timing, variety and price

In 2010-11 Chile’s average Free On-Board (FOB) price across Asian markets was $1.55/kg; South Africa’s was $2.06/kg; and Australia’s average price was $3.20/kg.

Analysis of trade flows suggests that willingness to pay varies by timing, variety and by market. All markets pay a premium for fruit on the shoulder season, particularly November through to February (figure 4). South Africa takes advantage of the price premium in Hong Kong, Singapore, Malaysia and Indonesia; Chile takes advantage of the premium offered in South Korea; in a good season, Australia has taken advantage in Hong Kong, Thailand, Indonesia, Singapore, Vietnam and Thailand.

Figure 4. Average FOB price for table grapes across Asia monthly (A$/kg).
Note: Outliers in this chart have been removed. Outliers are defined as prices received where the volume is not of a commercial amount. Statistics are based on respective export declarations, and may be subject to error.

In terms of variety, “Red Globe is now a commodity market” according to one Hong Kong importer (2011, pers. comm.). Similarly, an Indonesian importer commented that “the demand for premium products is increasing. [Customers] are looking to importers for new products”. Responding to this, Chile is increasing its production of Crimson Seedless, Flame Seedless and Sugraone, and more South African Black Seedless is being promoted in-market (2011, pers. comm.). Some of these varieties have the dual benefit of getting to market earlier in the season and being more suited to the tastes of Asian consumers.
The key concluding points from this analysis are as follows:

• Loss of market share is not loss of market position.
• Establishing and maintaining a reputation based on quality is becoming more important in key export markets.
• The ability of exporters to achieve premium prices is likely to be in the timing, and having the ‘right’ variety, as well as other competitiveness factors.

Note: for the purposes of this analysis, India is not considered part of Asia.

References

Horticulture Australia Limited (HAL), 2010, Submission to the Productivity Commission on Bilateral and Regional Trade Agreements, Productivity Commission, Canberra, ACT.

Dairy

David Shambrook, Farm Services Victoria

In general seasonal conditions improved from the 2009-10 season and with higher world prices resulting in higher production volumes for Victoria this year. In fact production lifted by 2.2 percent on the previous year at 5,915 million litres or 65 percent of total Australian production. The extra milk however, did not fully convert to more solids being available for manufacture, as milk composition was lower leading to 0.7 percent less solids being available.

Most of the extra production came from Gippsland, providing 23.6 percent of Australia’s production followed by Western Victoria at 23 percent. Overall the favourable spring and the wetter summer to autumn period assisted in lifting the production over that period compared with what would normally be produced. The North however suffered longer term effects from flooding leaving them 0.2 percent down on last year’s production.

Export volumes for Australian dairy product lifted by 3.5 percent overall for the year, with Victoria being the major exporter. The value of the exports also increased but the industry’s export ‘product mix’ changed. For example while export volumes of butter/anhydrous milk fat (AMF) and cheese were down 23 percent and 3 percent respectively, skim milk powder and whole milk powder increased by 21 percent and 11 percent respectively.

Exports of dairy products were valued at A$1.96 billion, an increase of A$196 million from 2009-10 levels. Exports of milk and cream powders increased by A$204 million, with total export value in 2010-11 reaching A$905 million. Milk powders exported to India increased from A$5 million in 2009-10 to A$42 in 2010-11, this increase comes after Australia gained market access for dairy products to India in 2009-10. Butter exports increased by A$20 million in 2010-11. Butter exports to Russia increased by A$22 million, Iran increased by A$10 million and butter exports to Egypt declined by A$12 million.

ABARES is forecasting prices for cheese and milk powders to remain relatively high, and the price of butter to decline by 10 percent. The recovery from the earlier flooding events combined with improved water allocations in the irrigation districts should see Victoria’s production increase leading to an increase in Australia’s milk production, with processors expected to focus on cheese and milk powder production.

Products

Table 10. Value of Victorian Dairy Exports by Product Category and Item (A$ million)

Product and Item	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Milk and cream	951	1,125	1,227	767	975	208	27%	50%
Powdered milk and cream	907	1,081	1,148	701	905	204	29%
Fresh milk and cream	44	44	79	66	70	4	6%
Cheese and whey products	765	875	716	664	641	-23	-3%	33%
Cheese	657	776	617	591	580	-11	-2%
Whey products	108	99	99	72	61	-11	-16%
Butters, fats and oils	169	181	221	195	230	35	18%	12%
Butter	92	104	134	116	136	20	17%
Other	78	76	87	79	94	15	19%
Milk extracts	112	125	109	102	70	-32	-32%	4%
Casein	112	124	107	87	52	-35	-40%
Other extracts	1	1	1	15	18	3	18%
Yoghurt and fermented milk products	43	40	31	33	42	9	27%	2%
Butter milk	36	31	23	23	31	7	31%
Yoghurt	7	8	9	10	11	2	17%
Total Victoria	2,041	2,346	2,304	1,761	1,957	196	11%

* $ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total

Markets

Table 11. Value of Victorian Dairy Exports by Destination (A$ million)

Destination	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Japan	351	438	434	369	353	-15	-4%	18%
Singapore	148	205	188	163	178	15	9%	9%
Indonesia	163	181	150	123	148	25	20%	8%
China	70	128	150	122	141	19	15%	7%
Saudi Arabia	128	146	84	81	101	19	24%	5%
South Korea	75	74	100	72	93	21	29%	5%
Philippines	81	110	136	76	90	14	18%	5%
Thailand	103	100	77	60	80	20	33%	4%
Malaysia	168	176	115	66	73	7	10%	4%
Taiwan	69	68	62	53	64	11	20%	3%

* $ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total

Australia

Table 12. Value of Australian Dairy Exports by Product Category (A$ million)

Product	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Milk and cream	1,101	1,270	1,355	881	1,108	227	26%	48%
Cheese and whey products	942	1,077	910	795	803	8	1%	35%
Butters, fats and oils	179	195	232	211	252	41	19%	11%
Milk extracts	114	126	110	109	75	-34	-31%	3%
Yoghurt and fermented milk products	48	46	38	39	48	10	25%	2%
Total Australia	2,384	2,714	2,645	2,035	2,287	252	12%

Figure 5. Australian Dairy Exports by State of Origin for 2010-11 (A$ million)

Meat

Tim Hollier and Stuart Warner, Farm Services Victoria

Improved seasonal conditions have allowed producers to turn-off stock in better condition and rebuild stock numbers. 2010-11 also saw a large number of sheep enter Victoria for finishing from the western states. These lambs were mostly grown to heavy weights for the export market.

Despite heavier carcass weights and stock inflows, export volumes for sheep and lamb products have decreased and beef export volumes have only increased marginally. Lamb export volumes decreased by 2,500 tonnes in 2010-11 to 70,200 tonnes. Mutton export volumes decreased by 8,700 in 2010-11 to 38,600 tonnes. Beef export volumes increased by 1,200 tonnes, totalling 150,700 tonnes in 2010-11. Bovine exports^^ increased by approximately A$67 million from 2009-10 to 2010-11.This is largely due to increased exports of frozen beef cuts, also increasing by A$67.

Lamb exports increased by A$33 million over this time period, with mutton exports decreasing by A$2 million and live exports increasing by A$7 million. Notably, frozen lamb exports to Iran, increased from A$3 million in 2009-10 to A$42 million in 2010-11.

There is a positive outlook for beef, lamb and mutton products, despite pressure associated with the global economic position and high Australian dollar. The underlining issues of diminishing cattle herds in Australia's competitors and markets and increased domestic demand in Brazil indicated a continued maintenance of a stronger world beef market.

ABARES forecast Australian beef export volumes to increase by 5% in 2011-12. Beef export volumes to the United States (USA), South Korea, Russia, China and the Middle East are forecast to increase; exports to Japan are expected to decline due to competitive pressure from the USA. Changes in live trade to Indonesia are not expected to have a significant affect on Victorian exports or on domestic saleyard prices. There is still a bright future for bovine products, albeit in a more volatile climate.

Lamb and mutton production and export volumes are forecast to increase in 2011-12 and prices are forecast to remain at current levels. Live sheep exports are also expected to increase in both value and volume.

Products

Table 13. Value of Victorian Meat Exports by Product Category and Item (A$ million)

Product and Item	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Beef^^	687	633	759	609	676	67	11%	41%
Fresh or frozen	651	620	734	559	615	56	10%
Live animals	16	3	1	24	36	12	50%
Prepared or preserved	19	9	23	26	25	-1	-3%
Sheep meat	541	540	598	614	652	39	6%	39%
Lamb fresh or frozen	357	359	400	376	409	33	9%
Sheep fresh or frozen	155	138	153	179	177	-2	-1%
Live animals	29	43	46	58	66	7	12%
Other	<0.5	<0.5	0	<0.5	<0.5	<0.5	12872%
Offal	132	119	156	143	140	-3	-2%	8%
Alternative meat	27	20	27	41	53	11	28%	3%
Goat	23	17	23	40	52	11	29%
Kangaroo	<0.5	1	2	<0.5	<0.5	0	18%
Other	3	2	2	1	1	0	4%
Other prepared meat products	36	50	38	55	49	-6	-11%	3%
Animal fats	5	16	25	46	46	0	1%	3%
Pig meat	34	31	26	22	25	3	16%	2%
Fresh or frozen	29	28	24	20	24	4	18%
Prepared or preserved	5	3	2	2	2	0	-14%
Poultry	16	19	21	15	13	-2	-11%	1%
Fresh or frozen	11	12	15	11	12	1	8%
Eggs	1	1	1	<0.5	1	<0.5	40%
Prepared or preserved	<0.5	<0.5	<0.5	<0.5	1	<0.5	385%
Other	4	5	4	4	1	-3	-85%
Total Victoria	1,476	1,428	1,650	1,545	1,655	110	7%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total
^^ Export statistics relating to live beef cattle, abalone and lobster have been affected by the misreporting of state of origin

Markets

Table 14. Value of Victorian Meat Exports by Destination (A$ million)

Destination	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
United States	399	337	425	252	239	-13	-5%	14%
Japan	256	195	208	186	177	-9	-5%	11%
Indonesia	53	75	93	130	113	-17	-13%	7%
United Arab Emirates	61	72	81	97	98	1	1%	6%
China	45	39	66	79	82	3	4%	5%
Russia	44	90	59	30	76	46	154%	5%
South Korea	90	72	59	55	74	19	34%	4%
Malaysia	30	33	52	55	62	7	13%	4%
Iran	<0.5	<0.5	<0.5	10	60	50	517%	4%
Kuwait	18	32	37	51	59	8	15%	4%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total
^^ Export statistics relating to live beef cattle, abalone and lobster have been affected by the misreporting of state of origin

Australia

Table 15. Value of Australian Meat Exports by Product Category (A$ million)

Product	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Beef^^	5,400	4,913	5,649	4,720	5,087	367	8%	63%
Sheep meat	1,543	1,567	1,805	1,688	1,867	179	11%	23%
Offal	537	498	600	537	563	25	5%	7%
Other prepared meat products	146	188	205	191	187	-5	-2%	2%
Alternative meat	159	128	140	149	166	17	11%	2%
Pig meat	150	135	130	113	111	-3	-2%	1%
Animal fats	22	46	49	66	67	1	2%	1%
Poultry	33	40	53	47	50	3	6%	1%
Total Australia	7,990	7,515	8,631	7,511	8,096	585	8%

Figure 6. Australian Meat Exports by State of Origin for 2010-11 (A$ million)

Animal Fibre

Gary Hallam, Farm Services Victoria

Since September 2010, wool prices have risen by more than 60 percent. China remained Victoria’s main destination for wool, despite a sizable appreciation of the Australian exchange rate. Current high prices are likely to lead to an increase in the use of alternative cheaper fibres resulting in a softening of prices in the longer term.

Total wool production and wool cut per head have increased in eastern Australia over the past two seasons due to improved pasture conditions.

The better seasons, stronger wool prices and continued demand for mutton and lamb will result in a slow rebuilding of the national sheep flock to 70.8 million by late 2011. This rebuilding has been largely due to an increase in the percentage of ewes in the flock and the retention of ewe lambs irrespective of breeding.

There is a slow return to breeding wool sheep expected but in the short term this will not greatly alter the fibre diameter profile of the clip. However, the seasonal conditions have increased the average fibre diameter and the amount of faulty wool. There is an expectation that there will be a significant increase in discoloured wool offered in Victoria this year due to the high summer rainfall.

According to ABARES’s commodity report 2011 whilst wool production is expected to increase next year, exports are likely to decline slightly as held stocks of wool will have diminished.

Product

Table 16. Value of Victorian Animal Fibre** Exports by Product Category and Item (A$ million)

Note: The Australian Bureau of Statistics classifies a number of wool and fibre exports as confidential items and this has an impact on state of origin and country of destination details for some wool exports. In this reporting period, the number of codes subject to confidentiality restrictions was reduced, affecting the reported values of wool exports from Victoria.

 

Product and Item	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Wool°	919	516	551	883	1,266	383	43%	99%
Fine wool (<19 µm)	292	7	130	371	566	194	52%
Medium wool (20-23 µm)	511	437	346	402	544	142	35%
Coarse wool (24-27 µm)	43	1	18	52	84	33	64%
Coarse wool (>27 µm)	72	71	57	58	72	14	24%
Wool grease and wastes	5	4	5	4	4	<0.5	2%	<0.5%
Yarn products	5	4	4	3	3	<0.5	-12%	<0.5%
Other animal fibres	2	1	1	1	1	<0.5	27%	<0.5%
Total Victoria	931	525	561	891	1,274	383	43%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.
 **Wool and fibre product export statistics are affected by confidentiality agreements and statistics should be used with caution.
 ° Classification of wool products is based on the AWEX Sheep Breed Compendium, 2010

Markets

Table 17. Value of Victorian Animal Fibre** Exports by Destination (A$ million)

Destination	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
China	575	303	382	614	845	232	38%	66%
India	75	56	59	93	119	26	28%	9%
Italy	75	9	16	30	86	56	185%	7%
Czech Republic	20	22	10	18	35	17	91%	3%
Thailand	12	3	5	23	34	11	45%	3%
Japan	33	16	16	17	33	16	97%	3%
Taiwan	33	<0.5	5	15	29	14	91%	2%
South Korea	13	1	9	28	28	0	-1%	2%
Malaysia	8	<0.5	3	9	19	10	105%	1%
United States	15	8	6	10	13	3	32%	1%

Australia

Table 18. Value of Australian Animal Fibre** Exports by Product Category (A$ million)

Product	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Wool**	2,707	2,484	2,008	2,011	2,626	615	31%	99%
Wool grease and wastes	12	14	15	15	19	5	33%	1%
Yarn products	8	6	5	4	4	<0.5	-11%	<0.5%
Other animal fibres	3	3	2	2	3	1	41%	<0.5%
Total Australia	2,730	2,508	2,030	2,031	2,652	621	31%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11
**Wool and fibre product export statistics are affected by confidentiality agreements and statistics should be used with caution. 

Figure 7. Australian Animal Fibre Exports by State of Origin for 2010-11 (A$ million)

 

Grains

Chris Sounness, Farm Services Victoria

An excellent growing season produced record harvest volumes in 2010-11 in most crops, however, the harvest was wet and drawn out and many crops were damaged due to both rain and flooding. Record high volumes, led to a huge boost in the value and volume of grain products exported in 2010-11.

According to the ‘ABARES Crop Report, 2011’, Victorian wheat production is expected to increase by 37 percent in 2010-11 over 2009-10, barley volume is expected to increase by 30 percent over 2009-10 levels and Canola is forecast increase by 34 percent, reflecting current soil moisture profiles in most cropping regions in the eastern states. Yields are expected to remain high in the 2011-12 season.

Products

Table 19. Value of Victorian Grain** Exports by Product Category and Item (A$ million)

Product and Item	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Cereals	202	237	314	396	698	302	76%	62%
Wheat	198	220	310	393	694	301	77%
Barley**	<0.5	14	0	<0.5	2	2	417%
Other	3	3	4	2	2	<0.5	-3%
Processed grains	103	141	220	176	175	-1	-1%	16%
Malt	88	106	148	126	101	-25	-20%
Oils and by-products	8	29	56	37	58	21	55%
Milled products	7	6	16	13	16	3	21%
Oilseeds	8	4	2	17	130	112	650%	12%
Canola	6	1	<0.5	16	129	113	728%
Other	2	3	1	2	1	-1	-53%
Pulses	79	89	91	95	124	29	30%	11%
Total Victoria	392	470	626	684	1,126	442	65%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.
 ** Grain export statistics are affected by confidentiality agreements and statistics should be used with caution.

Markets

Table 20. Value of Victorian Grain** Exports by Destination (A$ million)

Destination	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Vietnam	26	45	45	59	168	109	185%	15%
Indonesia	5	18	53	41	107	66	164%	9%
Philippines	6	11	21	15	102	87	598%	9%
Netherlands	1	<0.5	<0.5	<0.5	64	64	29326%	6%
Thailand	15	53	48	61	56	-5	-8%	5%
Taiwan	2	34	44	52	54	3	5%	5%
South Korea	24	26	61	38	53	15	39%	5%
Malaysia	6	26	45	53	45	-8	-15%	4%
Japan	25	30	48	36	39	3	9%	3%
Sri Lanka	21	35	22	44	39	-5	-12%	3%

Australia

Table 21. Value of Australian Grain** Exports by Product Category (A$ million)

Product	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Cereals	3,278	4,117	5,933	4,417	6,547	2,130	48%	72%
Processed grains	828	840	1,084	951	975	24	2%	11%
Pulses	448	390	600	678	639	-40	-6%	7%
Oilseeds	130	328	615	601	873	272	45%	10%
Total Australia	4,685	5,676	8,232	6,647	9,033	2,386	36%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.
** Grain export statistics are affected by confidentiality agreements and statistics should be used with caution.

Figure 8. Australian Grain** Exports by State of Origin for 2010-11 (A$ million)

Prepared Foods

Products

Table 22. Value of Victorian Prepared Food^ Exports by Product Category and Item (A$ million)

Product and Item	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Cereal-based	33	78	197	265	351	87	33%	43%
Confectionary	137	153	155	151	148	-3	-2%	18%
Ice cream	3	3	3	4	4	<0.5	2%
Other	134	150	152	147	144	-3	-2%
Condiments	66	70	87	91	85	-6	-6%	10%
Other food preparations	80	80	91	83	78	-5	-6%	10%
Bread, cakes and biscuits	40	46	45	45	45	<0.5	-1%	6%
Beverages	17	21	36	36	42	6	16%	5%
Non-alcoholic	4	6	13	19	22	3	17%
Spirits	13	16	23	18	20	3	16%
Beer	<0.5	<0.5	<0.5	<0.5	<0.5	<0.5	7%
Sugars	19	16	11	24	32	8	35%	4%
Honey	4	1	2	1	1	<0.5	14%
Other	14	14	9	23	31	8	36%
Ingredients	17	22	26	26	29	3	13%	4%
Total Victoria	408	487	649	720	810	91	13%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.
^ Prepared foods are classified as those which have been substantially transformed from their raw product basis or have inputs from multiple industries.

Markets

Table 23. Value of Victorian Prepared Food^ Exports by Destination (A$ million)

Destination	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
New Zealand	187	211	225	239	252	13	5%	31%
China	5	33	85	104	132	27	26%	16%
Japan	55	62	85	78	78	0	0%	10%
Malaysia	7	13	40	50	50	0	0%	6%
United Arab Emirates	8	8	10	38	45	6	16%	6%
Thailand	5	9	35	35	43	8	24%	5%
Indonesia	10	9	20	22	28	6	26%	3%
Singapore	19	21	23	23	26	3	13%	3%
South Korea	7	11	14	18	23	6	33%	3%
Hong Kong	20	20	23	22	21	-1	-4%	3%

Australia

Table 24. Value of Australian Prepared Foods^ by Product Category (A$ million)

Product	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Cereal-based	142	197	332	407	484	77	19%	27%
Confectionary	293	308	323	318	314	-4	-1%	17%
Other food preparations	223	222	240	239	226	-12	-5%	12%
Sugars	174	144	181	212	253	41	19%	14%
Condiments	159	169	175	172	167	-5	-3%	9%
Bread, cakes and biscuits	137	144	152	161	155	-6	-4%	9%
Beverages	137	127	144	148	160	11	8%	9%
Ingredients	40	40	45	48	61	13	26%	3%
Total Australia	1,306	1,350	1,592	1,706	1,820	114	7%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.
^ Prepared foods are classified as those which have been substantially transformed from their raw product basis or have inputs from multiple industries.

Figure 9. Australian Prepared Food^ Exports by State of Origin for 2010-11 (A$ million)

Skins and Hides

Products

Table 25. Value of Victorian Skins and Hides Exports by Product Category (A$ million)

Product and Item	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Sheep	250	203	209	208	284	76	36%	57%
Cattle	55	101	149	152	211	59	39%	42%
Goats	<0.5	<0.5	<0.5	<0.5	1	1	273%	<0.5%
Equine	63	107	85	49	1	-48	-98%	<0.5%
Other	<0.5	2	1	<0.5	<0.5	<0.5	94%	<0.5%
Total Victoria	369	413	445	410	498	87	21%

Markets

Table 26. Victorian Skins and Hides Exports by Market (A$ million)

Destination	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
China	230	267	328	295	326	30	10%	65%
Russia	31	29	22	18	48	31	174%	10%
Austria	13	11	4	12	27	15	121%	5%
Italy	32	24	18	15	19	4	28%	4%
Hong Kong	2	2	7	6	14	7	116%	3%
Mexico	25	37	20	28	11	-17	-60%	2%
Taiwan	1	1	6	7	9	2	30%	2%
Thailand	0	7	6	5	8	3	74%	2%
Turkey	9	10	5	4	7	3	75%	1%
Bangladesh	2	4	6	5	7	2	49%	1%

Australia

Table 27. Value of Australian Skins and Hides Exports by Product Category (A$ million)

Product	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Cattle	617	571	438	455	583	128	28%	55%
Sheep	362	315	315	295	427	132	45%	40%
Equine	64	107	86	50	1	-49	-98%	<0.5%
Other	62	64	58	43	46	3	8%	4%
Goats	2	2	1	1	3	2	340%	<0.5%
Total Australia	1,107	1,059	899	843	1,060	217	26%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2009-10 total.

Figure 10. Australian Skins and Hides Exports by State of Origin for 2010-11 (A$ million)

Horticulture

Robert Dimsey and Pam Strange, Farm Services Victoria

The major impact on horticulture exports for 2010-11 was the high Australian dollar and the adverse conditions of a wet, humid summer and the floods which particularly affected horticulture production in northern Victoria.

Table grape exports 2010-11 have been significantly affected by the adverse weather resulting in crop loss and subsequent high disease pressure significantly affecting the crop. Dried grapes have been similarly affected by the wet summer with increased disease and decreased yield and quality.

Stone fruit was similarly impacted with cherries affected by rain damage and other stone fruit having high disease pressure. Flooding significantly affected a number of stone fruit properties and this will have significantly reduced total crop production, quality and exports.

Citrus has also been hit by the high Australian dollar as well as increased competition in the USA market. Fruit fly outbreaks have added another cost for cold treatment required for some markets (USA) and restricted access to other markets (NZ).

Some almonds have been affected by the floods and there was poor flowering for the main variety. Despite poor flowering, there has been an overall increase in production as more trees approach maturity and full production. The increase in production will continue with a significant number of trees yet to reach full bearing age.

The value of olive oil decreased due to a lower world price after a bumper crop in Spain and the high Australian dollar.

Asparagus exports have also been impacted by the high Australian dollar.

Given favourable seasonal conditions for 2011-12, export value is expected to increase back above 2009-10 levels.

Products

Table 28. Value of Victorian Horticulture** Exports by Product Category and Item (A$ million)

Product and Item	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Fruit (fresh or dried)	183	194	283	194	152	-42	-22%	41%
Grapes	94	100	187	86	79	-7	-9%
Citrus	60	63	59	73	45	-28	-38%
Stone fruit	20	20	24	23	18	-5	-22%
Other	8	11	13	12	11	-2	-14%
Nuts (fresh or dried)	33	39	84	63	78	15	23%	21%
Almonds	31	35	83	61	74	13	21%
Macadamia**	<0.5	<0.5	<0.5	<0.5	1	1	242%
Other nuts	<0.5	1	<0.5	1	1	0	0%
Other	2	3	1	1	2	1	102%
Processed	133	116	107	97	73	-24	-25%	20%
Vegetable	36	37	35	38	28	-10	-27%
Fruit and vegetable juice	45	37	34	23	23	<0.5	-1%
Fruit	51	40	36	32	19	-12	-39%
Other	2	2	3	3	2	-1	-33%
Vegetables (fresh or dried)	30	27	39	30	37	7	24%	10%
Perennial vegetables	17	16	24	15	17	2	16%
Roots, tubers and bulbs	2	2	2	4	11	7	151%
Leaf vegetables and brassicas	6	5	7	6	6	<0.5	4%
Other	4	4	6	4	2	-2	-49%
Oil and extracts	17	20	23	28	21	-8	-26%	6%
Olive oil	8	8	16	22	17	-5	-24%
Vegetable oils	6	9	5	6	3	-2	-41%
Extracts	3	2	1	<0.5	1	<0.5	157%
Coffee, tea, herbs and spices	9	10	13	14	12	-3	-19%	3%
Total Victoria	404	406	549	427	372	-54	-12%

 *$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.
** Macadamia nut export statistics are affected by confidentiality agreements and statistics should be used with caution.

Markets

Table 29. Victorian Horticulture Exports by Market (A$ million)

Destination	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Hong Kong	46	51	96	48	57	9	18%	15%
New Zealand	65	80	68	76	55	-21	-28%	15%
Japan	61	45	54	37	45	8	21%	12%
India	23	16	45	34	27	-6	-19%	7%
Indonesia	18	19	27	28	26	-1	-5%	7%
Singapore	22	21	32	21	18	-3	-15%	5%
United States	35	33	38	40	18	-22	-55%	5%
United Arab Emirates	10	11	28	17	15	-2	-13%	4%
Thailand	9	12	24	13	12	-1	-8%	3%
United Kingdom	21	18	12	12	9	-2	-19%	3%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.

Australia

Table 30. Value of Australian Horticulture Exports by Product Category (A$ million)

Product	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Fruit (fresh or dried)	400	392	499	419	320	-100	-24%	31%
Processed	263	245	223	213	179	-33	-16%	18%
Nuts (fresh or dried)	172	185	235	202	209	6	3%	21%
Vegetables (fresh or dried)	147	137	152	150	166	16	11%	16%
Coffee, tea, herbs and spices	76	81	89	88	101	13	15%	10%
Oil and extracts	35	45	58	54	41	-13	-25%	4%
Total Australia	1,092	1,086	1,257	1,127	1,016	-111	-10%

Figure 11. Australian Horticulture Exports by State of Origin for 2010-11 (A$ million)

Wine

In the eastern parts of Australia, the 2010-11 season was characterised by cooler and wetter than normal conditions and flooding. As a result of the seasonal conditions there was significant disease pressure resulting in loss of some crops and down grading of quality of others across Victoria but in particular in northern Victoria. This will also have implications for higher disease pressure in the coming season (WGGA Harvest Update, February/March 2011: Trends and Issues, Wine Grape Growers Australia).

If growers were able to effectively manage their spray program for disease control then yields and quality were maintained. The higher moisture levels led to larger berries and higher tonnages per hectare compared with recent seasons, off-setting some of the losses from disease. Grapes were generally harvested at lower sugar levels than in recent years and wine styles will have lower alcohol and more elegant wines, more like those prior to the 12 year drought. A higher than usual proportion of grapes were processed into concentrate to be added to less ripe grapes to improve the sugar/alcohol balance. Whilst some red grapes damaged by bunch rot will produce lower quality wine, undamaged red grapes have produced intense colour and strong flavours (Whiting & Dimsey, DPI).

In the Murray Darling and Swan Hill regions the tonnage of grapes crushed fell by more than 14 per cent; the estimated value of the total crush for wine decreased by $22.6 million to $73.6 million in 2011. The amount of red wine grapes crushed for wine decreased by around 50,000 tonnes and white decreased by around 20,000 tonnes.

Growers in the Murray Darling and Swan Hill met 89 percent of winery demands for white wine grapes and 69 percent of red (Wine Grape Crush Survey 2011, Murray Darling/Swan Hill).

Products

Table 31. Value of Victorian Wine Exports by Product Category and Item (A$ million)

Product and Item	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Red	391	178	162	149	137	-12	-8%	61%
Bottle	358	154	125	112	102	-10	-9%
Bulk	14	23	35	35	34	-1	-2%
Cask	19	1	2	2	1	-1	-50%
White	190	76	72	62	61	-1	-1%	27%
Bottle	174	68	51	45	43	-2	-6%
Bulk	15	8	20	15	18	3	19%
Cask	1	<0.5	1	1	<0.5	-1	-83%
Sparkling	16	12	17	18	18	<0.5	-2%	8%
Other	1	2	3	3	8	5	151%	4%
Fortified wine	3	2	2	2	2	<0.5	24%	1%
Total Victoria	600	270	255	234	226	-8	-3%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.

Markets

Table 32. Victorian Wine Exports by Market (A$ million)

Destination	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
United Kingdom	201	80	95	88	69	-19	-22%	30%
China	13	15	22	36	41	5	14%	18%
United States	160	42	43	22	25	3	13%	11%
Canada	62	11	12	10	11	1	9%	5%
Hong Kong	10	8	6	7	10	3	51%	4%
Japan	13	9	7	8	10	1	15%	4%
Ireland	12	13	9	10	9	-1	-5%	4%
New Zealand	22	22	11	9	8	-1	-7%	4%
Netherlands	11	4	5	7	7	1	10%	3%
Sweden	17	6	6	6	6	-1	-12%	2%

Australia

Table 33. Value of Australian Wine Exports by Product Category (A$ million)

Product	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Red	1,933	1,789	1,631	1,443	1,347	-96	-7%	66%
White	848	797	766	648	561	-87	-13%	28%
Sparkling	93	90	77	79	78	-1	-1%	4%
Other	7	18	19	22	24	2	10%	1%
Fortified wine	19	17	20	19	17	-2	-13%	1%
Total Australia	2,900	2,711	2,513	2,210	2,026	-184	-8%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.

Figure 12. Australian Wine Exports by State of Origin for 2010-11 (A$ million)

Seafood

The apparent increase in seafood exports can be misleading. Abalone and lobster from Tasmania and South Australia were most likely mislabelled as originating from Victoria. Tasmania’s export volume of abalone declined by 274 tonnes in 2010-11, whereas Victoria’s export volume increased by 236 tonnes in the same period. Export volumes declined in both Tasmania (by 408 tonnes) and South Australia (214 tonnes), while increasing in Victoria by 610 tonnes.

Products

Table 34. Value of Victorian Seafood Exports by Product Category and Item (A$ million)

Product and Item	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Molluscs^^	89	70	59	56	75	20	35%	49%
Abalone	82	68	57	55	75	20	37%
Other	8	2	2	1	1	<0.5	-41%
Crustaceans^^	30	21	26	24	62	38	161%	40%
Lobster	28	19	24	22	60	38	172%
Other	2	2	2	2	2	<0.5	17%
Fish	7	11	11	9	12	3	29%	8%
Prepared or preserved	3	7	7	6	6	<0.5	6%
Live or fresh	2	3	2	2	4	2	118%
Frozen	2	2	2	2	2	<0.5	19%
Seafood extracts and oils	3	3	4	3	3	<0.5	16%	2%
Seaweed	<0.5	<0.5	<0.5	1	2	1	254%	1%
Total Victoria	129	105	100	92	154	62	68%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.
^^ Export statistics relating to live beef cattle, abalone and lobster have been affected by the misreporting of state of origin

Markets

Table 35. Victorian Seafood Exports by Destination (A$ million)

Destination	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Hong Kong	66	51	52	51	79	28	54%	51%
Japan	29	26	20	18	21	3	17%	14%
China	6	3	4	3	18	15	505%	12%
Singapore	11	10	10	8	16	8	93%	11%
Thailand	1	<0.5	<0.5	<0.5	5	5	2253%	3%
Malaysia	1	2	1	2	4	2	92%	3%
Taiwan	4	3	2	3	3	<0.5	15%	2%
United States	2	3	3	1	3	1	75%	2%
Indonesia	<0.5	<0.5	<0.5	<0.5	2	1	336%	1%
New Zealand	1	3	4	2	1	-1	-51%	1%

*$ change and % change are based on the difference between 2009-10 data and 2010-11 data. % total is based on % of 2010-11 total.
^^ Export statistics relating to live beef cattle, abalone and lobster have been affected by the misreporting of state of origin

Australia

Table 36. Value of Australian Seafood Exports by Product Category (A$ million)

Product	2006-07	2007-08	2008-09	2009-10	2010-11	$ change*	% change*	% total
Crustaceans	584	488	562	477	469	-7	-2%	47%
Fish	281	324	335	259	289	30	12%	29%
Molluscs	293	252	250	253	235	-18	-7%	23%
Seafood extracts and oils	12	6	6	5	6	1	10%	1%
Seaweed	2	2	2	2	4	1	56%	<0.5%
Total Australia	1,173	1,074	1,154	996	1,003	7	1%

Figure 13. Australian Seafood^^ Exports by State of Origin for 2010-11 (A$ million)

Order Form

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