Nuts – including chestnuts , walnuts, pistachio & pecan nuts

Nut industry statistics from 2004

Summary

Nuts are a medium sized industry in the region dominated by chestnuts. The 2000-01 gross value of production was approximately $3.4 million. Alpine Shire produces approximately 70% of the region's nuts with Indigo Shire producing almost all the remainder. The nut industry is favoured by the ideal growing conditions in the region. Labour shortages have prompted an increase in mechanical harvesting.

Nut industry overview

The region produces fresh chestnuts, walnuts, pecans, pistachio and hazelnuts for domestic consumption as well as frozen chestnuts for export. Frozen chestnut meal is also a newly development product for the domestic restaurant market.

70% to 80% of Australian chestnut production is in the North East of Victoria in Bright, Myrtleford, Buckland Valley, Harrietville, Beechworth, Stanley, Kiewa Valley, Buffalo River and King Valley. Most of the chestnut crop is sold fresh through the wholesale marketing system, while smaller growers sell quantities direct to fruit and vegetable vendors and larger supermarket chains. A lesser quantity is sold at the farm gate throughout the region. The average wholesale price for chestnuts at both the Sydney and Melbourne wholesale markets was between $3.00/kg and $6.00/kg in 2003.

The pistachio industry is new to the region and at present is still very small.

Location of the nut industry within North East Victoria

Projected nut industry growth

Tree nut production is increasing at a rate greater than 10 per cent per annum. Chestnut production is expected to increase 50 per cent over the next five years as existing non-bearing trees reach production.

Nut industry labour requirements

Chestnuts in Australia are harvested from March to May. Seasonal labour requirements are increasingly difficult to meet, so a shift to mechanised harvesting in the long term is an important cost reducing possibility. During the eight-week period of chestnut harvesting, about 330 seasonal workers are required, while approximately 35 are employed in a full time capacity. It should be noted that for most growers, chestnut production is a secondary agricultural pursuit.

The hazelnut harvest is extremely labour intensive. In the AlpValleys region most plantings are small, and labour is usually supplied by extended family and friends.

Nut industry marketing activities

The Chestnut Growers of Australia have established a DNA library and testing service which growers will be able to access to determine the varieties they are growing. As a result, growers will be able to market their product according to variety. The industry concentrates on marketing four varieties: Buffalo Queen, Purdons Pride, DiCoppi Marone and Red Spanish.

The Premium Chestnuts of Australia co-operative members have their own chestnut grading and packaging facilities so that packaging can be easily tailored to suit the needs of the customer.

Developing market awareness and promoting North East region grown hazelnuts remains primarily the responsibility of the grower in conjunction with the Hazelnut Growers Association.

Nut industry Strategic advantages and opportunities

• Climate and soil suitable to nut growing allow for the production of a superior product.
• Opportunity to work with the tourism industry and the clean green image of the region.
• Central to Sydney and Melbourne markets.
• Nut farmers surveyed stated a need for modern processing and harvesting equipment, which on an individual scale represents significant capital costs. This highlights the opportunity of developing a nut processing facility / plant within the region to service the needs of producers.
• Further promotion of benefits of eating nuts to create broad public awareness would serve to benefit the industry.
• Niche sub industries such as walnut oil that need to be promoted in order to create demand for the product.
• The North East Victoria region has rich fertile soils, hot dry summers and cold wet winters as characteristics of the area. These conditions provide the ideal environment for growing chestnuts.
• These climate conditions and reliable rainfall or irrigation are important for good tree growth and the production of high quality walnuts and hazelnuts. The preferred climate is characterised by a mild summer and cool winter.
• A number of potential marketing alternatives are available for hazelnut growers with new plantings, particularly with small production. These include potential sales through grower cooperatives (The Premium Chestnuts of Australia Co-Operative), specialised nut retailers, manufacturers - confectionery, baking, health foods, bakeries , commission agents in the wholesale produce markets, wineries (as an addition to cellar door sales), local fruit and vegetable outlets, street stalls and farmer markets, further development in contacting and supplying large wholesalers and direct sales from the farm gate may occur.
• The region’s hazelnut industry has an opportunity for input into the import replacement for 1500 tonne of imported product.
• The nut industry in North East Victoria remains relatively free from pests and disease.
• Opportunities exist to determine the most suitable varieties for growing specific types of chestnuts and hazelnuts in the North East Victoria region. This will be helped with the advancement of the DNA fingerprinting of species of chestnuts.
• Value adding to existing production of chestnuts and hazelnuts and continue to commercially develop all aspects of hazelnut and chestnut products including the kernel, shell or casing and waste.
• More specifically the chestnuts grown in North East Victoria have the advantages and the opportunity to brand themselves as being produced as high quality, clean chestnuts free of insect pests and produced in an environmentally sustainable manner. To complement this, quality assurance and flexible packaging are achievable deliverables from the nut industry in North East Victoria. The Premium Chestnut Cooperative is currently exploring the majority of these initiatives for both the export and the domestic market.
• The Australian Chestnut Company Pty Ltd, in Myrtleford, has received a national grant to develop and design a process to commercially produce frozen roasted chestnuts, with the Japanese export market as the target market.

Nut industry Strategic disadvantages and impediments to growth

• The time it takes for trees to grow to maturity given the relative high associated establishment costs.
• Labour shortages during harvest (Autumn).
• The relatively small size of industry in comparison to the presence of new multinational players.
• Slow take up of the benefits of a national approach in the development of the hazelnut industry.
• There are minimum numbers of large commercial undertakings within the region to take advantage of possible economies of scale.
• There is limited access to processing facilities available.
• The capacity to produce, handle and process quality hazelnuts is limited by the small size of the plantings and quantities of nuts available.
• As a supplementary form of farm income there is often a reluctance or affordability of capital input toward developing plantings to create a viable and sustainable industry.
• As a result of the extensive range of horticulture enterprises undertaken in the North East, competition for resources is at a premium.
• Particularly in the case of hazelnuts, global overproduction and cheap imports could affect the industry.
• Fragmentation between growers in different regional locations involved in the development of the Australian hazelnut industry slows the introduction of knowledge and initiatives that would be of benefit to all growers and regions.