The document summarizes how the Australian apple industry increased production from 19 tons per hectare to 40 tons per hectare in 6 years through an intensive productivity and extension program led by AgFirst. Key factors in the industry's transformation included establishing clear production goals, benchmarking costs and returns, intensifying orchard planting densities and management practices, improving crop load regulation and quality, and providing growers with ongoing education through field days and technical resources. The success of the program demonstrates that significant gains are possible in other fruit industries like apples through collaborative effort and a willingness to challenge existing practices.

1. Inspiring change in the Australian apple industryFrom 19t/ha to 40t/ha in 6 years
Prepared by: Jesse Reader
Title: General Manager & Senior Horticultural Consultant, AgFirstAustralia
Date: Wednesday 15thOctober 2014

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Lets discuss the following…
PART 1.
• AgFirst, who are we and what do we do?
• The Australian Apple Industry
PART 2.
• What happened to cause change?
• When did it happen?
• Why did it happen?
• How did it happen?
Part 3.
• So why not for Macs?

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AgFirst, who are we and what do we do?
• AgFirst is New Zealand’s largest network of agricultural,
horticultural and agricultural engineering consultants
• Offices in Australia and New Zealand
• Our core business activities are: technical and financial
consultancy, applied research and development, technology
transfer, environmental monitoring services, data capture and
management, and industry intelligence
• AgFirst have been working in Australia for the apple and pear
industry for 8 years
• Commissioned to deliver the world class Future Orchards™
project
www.agfirst.co.nz

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The Australian Apple Industry
The important numbers…
• Apple and pear industry has an estimated gross value
of production of $450 million, making it the 3rd largest
horticulture industry (after grapes & citrus)
• 280,000 tonnes of apples produced
• 105,000 tonnes of pears produced
• Highest COP of nearly any apple growing region in the
world
• 680 growers over 8 major regions
• Approx. 13,000ha

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The Australian Apple Industry
The major challenges…
• Managing high cost of production
• Stimulating domestic consumption
• Increasing exports
• Managing risk
• Increasing production and pack out
• Maintaining desirable market returns
• Attracting people, in particular, youth to our industry

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What happened to cause change?
A paradigm shift in thinking and an increase in production from 19t/ha – 42/ha
In 2006 APAL crystallised the problem by saying:
“To compete globally, Australian orchards need to be
able to produce high proportions of premium quality
fruit at a lower cost than today, be able to change
varieties relatively quickly and reach commercial
production levels early.”
As a result, a road map to an internationally competitive
Australian apple and pear industry was created and goals
were set.

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When did it happen?
• Between 2006 and 2013 the Australian apple and pear
industry focused on doubling production
• In 2006 it received DAFF funding for 2 years in order to
try and reach its goals
• In 2008 the industry continued to fund this endeavour
for a further two years
• In 2010 the results were so strong the industry
committed to providing ongoing support for a further
12 months
• In 2011 the industry again allocated funding to this
program for a further two years

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Why did it happen?
Because sitting still is going backwards…
• Several years of
poor return
• Significant jump in
wages
• Threat of imported
fruit from NZ
• Identified as being
uncompetitive by
international
standards

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How did it happen?
Well…How do you eat an elephant?

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How did it happen?
Project Goals set in 2006
Year 2:
• Australian apple and pear growers are thinking about and
planning new actions in relation to intensification,
product quality, international competitiveness and
profitability.
Year 5:
• All new plantings are intensive. Older plantings are
managed to provide maximum profitability.
Year 10:
• The Australian apple and pear industry is internationally
competitive

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• After broad consultation APAL put in place a world class
productivity and extension program lead by AgFirst
• Future Orchards® became the flagship program of APAL
• Launched in 2006 to provide growers with practical,
hands on education tools to help increase quality and
productivity in their orchards and assist the industry in
becoming internationally competitive
• Future Orchards is a national program funded through the
R&D levy, with matched funds from the Government
How did it happen?

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How did it happen?
The marriage…

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• Early focus for the project was based on identifying the
drivers for increased productivity.
BUSINESS DRIVERS
1. Identifying the ‘real’ cost of production
2. Understanding return on investment
3. Benchmarking
• All these things provided the management team and
industry at large with focus and direction.
How did it happen?

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AGRONOMIC DRIVERS
1. Orchard planting density
2. Vigour / canopy management
3. Biennial bearing / regular cropping
CULTURAL DRIVERS
1. Shifting mindset – “We can’t” “We can”
2. Collaboration / information sharing
3. Local expertise
How did it happen?

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• In 2006 we ‘literally’ drew a line in the sand
and urged the industry for commitment.
• Those that took on the challenge have been
handsomely rewarded.
• Those who chose to resist change find
themselves in a very marginal situation in 2014
How did it happen?

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How did it happen?
Let me tell you a quick story…
When I sent my note of congratulations to Rob, I received a
very poignant reply:
”Still a bit shocked myself. Didn't look like a 90t crop and
makes me think that there's a bit more to come. The driest
summer that I have had to combat, made it a year to look
back and say that I have learnt something.”
"Apple growers carry too much baggage, we are so much
better off when we find solutions instead of excuses.”
“Many thanks to APAL and the AgFirst team for the Future
Orchards program and helping to remove the blinkers.”

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20. 2014 AMS 40th Anniversary Industry Conference proudly presented by
How did it happen?
Anything is possible…
The following year, Rob achieved 102T/ha of high quality
marketable fruit, proving to himself, his local growing
community and the industry at large that 100t/ha of high
quality fruit in one of the hottest and driest growing regions
in the world is absolutely possible!
In 2012 Rob was named the Australian Fruit Grower of the
Year.
A little over a month ago, Rob was named the Australian
Farmer of the Year…

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South Australian apple grower Robert Green wins ABC Rural
and Kondinin Group 2014 Australian Farmer of Year award

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How did it happen?
Effective & appropriate technology transfer
TIMELY – TARGETED – TECHNICAL
• Utilise local experts
• Use multiple forms of communication and extension
tools
• Maintain regular contact
• Be robust in your review
• Be unwavering in your message and direction for the
industry

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24
The number of technical magazine articles
produced by the program over the last 24
months

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15
The number of technical webinars produced
by the program over the last 24 months

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Pruning Demonstration
Bud Counting and TCA Measurement
Variation in Flowering
Improving ATS Effectiveness
Fruit Size Monitoring in the field
Fruit Size Monitoring using OrchardNet
Optimising Harvest
Orchard Systems Pt 1: A few to compare
Orchard Systems Pt 2: Show me the money
Picking Techniques: Fruit lineup
Picking Techniques: Bag setup and bin
filling
Picking Techniques: Picking and fruit
handling
Picking Techniques: Ladder work

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520
The average number of people who attend
Future Orchards every 12 months

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16+5+10=31
The number of world apple and pear experts
that have been bought to Australia during
the Future Orchards program

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Alberto Dorigoni Mark Goodwin
Terrance Robinson Steve McCartney
Jan Peters Karen Lewis
Stuart Tustin Ben Van Hooijdonk
John Palmer
Martin Thomman Juergen Christanell

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120
The number of presentations/fact sheets
entered into the library during the Future
Orchards program

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$1.15
The cost of production per gross kg of fruit
produced in 2011/12 as determined by the
Australian Orchard Business Analysis

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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Class 1 recovery %
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$ return per class 1 kg
Class 1 Recovery
Or
Pack out
Dollars return
Per class 1 kg

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16+19=35
The number of Focus Orchards and case
studies produced across the eight growing
regions of Australia in the last 15 months
with the support of our Front Line Advisors

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Is all this working?
I’m glad you asked…
• 99% found the consultant’s presentation valuable or of some
value
• 100% found the guest’s presentation valuable or of some value
• 100% found the in orchard presentations and discussion valuable
or of some value
• 100% found the opportunity to visit the venue valuable or of
some value
• 100% rated the event organisation as excellent or good
• 100% learnt something that would work in their orchard or
business
• 96% learnt something they would definitely implement in their
orchard or business
• 100% thought they would attend other Future Orchards events

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So why not for Macs?
Fundamentals are the same…
• Same economic drivers – productivity, pack out
(recovery), price
• Same horticultural challenges – pest/disease,
vigour management, biennial bearing
• Growers are growers – resilient, innovative,
results driven
• Same environmental/geographic challenges –
risk mitigation critical for both
• Both have a fantastic product worth investing
in!

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A 10%
increase
in crop
recovery
equals a
doubling
of profit!

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• As production goes up cost of production goes
down.
• Top performing growers always spend more
putting on the crop but in return have superior
productivity, packout and price.
• Be careful you don’t save a dollar, only to lose
three!
So why not for Macs?
These key points apply to you…

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42. 2014 AMS 40th Anniversary Industry Conference proudly presented by
So why not for Macs?
Consider the following…
• Crop load regulation - thinning, manipulated pruning time
• Plant Growth Regulators - very effective tools when used
correctly, may well be your road to success
• Growing system design - push the boundaries on tree
architecture
• Beefing up spray programs - if you think you have done
enough, you probably haven’t
• Immersing yourself in similar industries to fast-track your
goals
• Apply these considerations in the early years – prevention
rather than cure!

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Late spring “Lorette”
pruning at 10-14 leaves
was named after Louis
Lorette, whose studies
describing the effects of
summer pruning date
back to 1900-1914.
So why not for Macs?

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Auvil Fruit Co. – 130T/ha on 32yr old trees!
• Applying
chainsaw cuts to
the trunk to
control vigour,
goes 80% of the
way through!
• Applies plant
growth
regulators 3-4
times per year
to control
vigour.
• Root prunes
every second
year to control
vigour.
• Manages crop
load to control
NOTHING HAPPENS BY ACCIDENT! vigour.
So why not for Macs?

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Things are never as bad as you think they are
going to be and never as good as they seem.
Your challenges can be overcome with
focussed, collaborative effort but be mindful
of waiting around for someone else to fix
your problems.
Summing up…

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Be diverse when tackling your problems,
the silver bullet doesn’t exist…
Never treat an issue in isolation. A holistic
approach is required to fix the problem
and make the change sustainable. Failure
to do so often results in further
consequences.
Summing up…

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You know what they say about doing the
same things over and over again and
expecting a different result…
As a horticultural industry, we have to
constantly be on the look out for new
solutions to our problems
Summing up…

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On behalf of AgFirst I thank you for the
opportunity to speak and look forward to
helping you overcome your challenges into
the future…
Thank you