There has been a major surge in demand for Australian grapes in Hong Kong, and a massive untapped Chinese market beckons, says Vecci.

A report commissioned by the Victorian Department of Primary Industries on the Hong Kong and China Market for Table Grapes showed imports of Australian grapes into Hong Kong reached a record USD 55 million in 2009, a surge of 140 per cent over 2008.

"Table grape growers are seeing increased demand for their product, particularly from parts of Asia", said Vecci manager – international trade, Patricia Griffiths.

"This is important for horticulture in Robinvale and Sunraysia regions, where 80 per cent of the table grape crop is grown and from a region which is in the grip of drought with wine vines being pulled up.

"This is a considerable achievement in a season where growers only received 30 per cent of their full water allocation because of the ongoing drought in the Murray Darling Basin. As a result of the export sales some growers have invested over the winter in new plantings and improved irrigation equipment.

"Chinese people love high quality fruit and grapes are no exception. Hong Kong traders could not get enough crimson seedless and indicated that the quality of Australian fruit was consistently high," said Griffiths.

The market for fruit in this region will continue to grow strongly because of increasing incomes but Australia faces intense competition from other Southern Hemisphere producers, Chile and South Africa.

DPI regional manager, Thailand and China, Bryan Balmer, stressed the importance of Australian growers only supplying the best fruit "with the Australian dollar strengthening, market conditions will get tougher and it is vital that we maintain a quality edge to achieve premium prices."

Key going forward is the opening up of the mainland China market to which Australia, unlike its major competitors, does not yet have access. The Australian Government, through Biosecurity Australia, with support from the Mildura based Australian Table Grape Association currently are in negotiations with their Chinese counterparts.

Jeff Scott, CEO of AGTA stressed the importance of China, "Chinese consume some 5 million tons of grapes, with less than two per cent being imported. We are counter seasonal to their growing season so the potential of the market is huge, particularly with direct shipments to their major sea ports, in both the North and South of China.

As with many factors in farming, weather plays a critical role. Growers in Mildura indicate that the recent record heat stressed many vines just as they were budding and volumes for 2010 will be down but quality should be excellent.