Who is the research targeted at?
The information generated from this project is of benefit for producers and marketers contemplating diversification into Asian root crops for domestic and export markets. It is also important as a general case study of attempts to establish relatively new crops for commercial production and export. As well as providing information about requirements for crop production and marketing, this report also indicates some of the challenges that were encountered.

The expected beneficiaries are primarily Australian producers who can establish cost-effective production of good to high quality produce for supply to an increased domestic market and to select export markets. It is also expected that consumers in Australia would also benefit from having an increased variety of nutritious vegetables to choose from.

Background
As Australian horticulture and agriculture producers are continually faced with increasing challenges in quality management, pests and diseases, competition from developing countries on the world market and competition from cheaper imports on the domestic market, many are seeking to diversify their production operations and are willing to explore non-traditional crops and markets in Australia and for export. As a result of recent efforts in Australia in the research and development of production and marketing of traditional Asian food commodities, there is increased awareness of the potential for profit by supplying high quality food products to Asian markets in Australia and overseas. This project now adds to the increasing knowledge of production of Asian food crops in Australia.

From information gathered in a previous RIRDC project, UCQ-10A, “Consolidating the Asian Vegetable Industry”, and other RIRDC-funded reports on Asian food markets (Vinning, 1995) it was apparent that taro, yam, yam bean and sweet potato had potential for further development in Australian domestic and international Asian export markets.

Aims/objectives
The objectives (stage 1 & 2) are to investigate markets, define required quality attributes, to establish a supply chain for the successful export of taro, yam, yam bean and/or sweet potato to Japan and/or USA. In parallel, ensure the group of producers and suppliers has the capacity to stand alone for exporting and diversifying from these commodities.

Methods used
Stage 1: The first visit involved meeting with retail, wholesale, import and food processing companies in Japan and USA to gather information about seasonal supply and price patterns, preferred varieties and quality and presentation preferences. The second visit to Japan involved further investigation of Japanese domestic production and attempts to source germplasm of desired cultivars. The information gathered from the market assessment stage was presented at a workshop in Brisbane and one in Cairns, from which it was decided to focus stage two project activities on the development of production and export of fresh sato-imo, or Japanese taro, to Japan.

Stage 2: Production trials were conducted at a number of locations in Queensland, NSW and NT.

Quality assessment was conducted by NSW DPI and samples of fresh corms were sent to companies contacted during stage one visits to Japan. Several growers coordinated with an Australian export company to send a trial shipment to Japan. Attempts continued throughout stage two to import relevant Japanese cultivars of taro, sweet potato and yam for further production trials.

Results/key findings
Stage 1: The decision to focus on export of fresh sato-imo (as opposed to fresh or semi-processed sato-imo and the other root crops) was based on a number of key factors: reliable data was available for the Japanese markets which showed consistent seasonal price and supply volume patterns which were favourable to Australian production windows; the Japanese companies that were visited expressed most interest in sato-imo; a desirable cultivar of sato-imo was already available in Australia and under small-scale commercial production; and cultivation and harvest machinery already used for potato and sweet potato production could be used or modified for sato-imo production.

Stage 2: Production trials over three seasons have generated sufficient information to recommend production guidelines for Australia. A protocol of quarantine risk assessment for burrowing nematode (Radopholus similis) was established with the assistance of Biological Crop Protection and in conjunction with AQIS to meet Japanese plant quarantine restrictions for fresh taro corms. Results of quality assessment experiments of sato-imo corms have allowed recommendation of storage and transport conditions. Feedback from trial samples and a trial shipment sent to Japan has allowed further recommendations for quality control, sorting, packing and presentation of fresh corms. A Growers’ Guide for the supply of sato-imo has been produced, and is being published by RIRDC.

Although sweet potato export was not included in stage two of this project, we were able to obtain six Japanese sweet potato varieties which Qld DPIF and NSW DPI will maintain and make available for further investigation by the sweet potato producers. We were, however, unable to source Japanese cultivars of sato-imo directly from Japan, due to a reluctance to release germplasm to other countries, and an unwillingness of AQIS to allow direct imports of germplasm from Japan. In 2003 project team members made contact with a source of Japanese cultivars in Hawaii and have since been involved in the process of importing a number of these into Australia. AQIS requires a long and expensive process of tissue culturing and virus testing for taro importation. So far, seven virus-free lines have been imported, with three more expected for mid-2006.

Five sato-imo producers who met quarantine risk requirements coordinated with an Australian export company to send trial samples and one 1000 kg trial shipment to Japan in 2003. These producers did not proceed with further exports as the price offered by the Japanese importer was too low to allow these producers to be profitable. At that time (2003 and 2004) the Australian domestic prices allowed greater profitability. An underlying issue is the very low price of sato-imo produced in China and imported into Japan. The Japanese are willing to pay more for “clean, green” good quality Australian sato-imo, however there are still a number of important limitations to profitability for Australian producers.

Implications for relevant stakeholders
One limitation is the current small scale of most sato-imo production operations in conjunction with high labour costs and high cost of specialised machinery to streamline the cleaning and grading or corms. Another is that there has been no established processing outlet for non-premium corms in Australia. Non-premium corms can be peeled then chilled or frozen whole, or further processed for a variety of other food of starch products. Recently (May/June 2005) there have been reports of cheap frozen sato-imo imports from China entering Australia and depressing demand, and therefore price, for fresh sato-imo in the domestic markets in Sydney and Melbourne.

During the time since this project was first proposed China’s sato-imo production and supply has increased to Japan and Australia, influencing prices for Australian producers in export markets and domestically.

Recommendations
It appears that to be profitable, Australian sato-imo producers need to have medium to large scale operations with specialised harvesting, cleaning and grading machinery and, or alternatively, obtain higher prices by supplying high quality and/or specialty product to niche markets. Additionally, producers could be more profitable if they have an outlet for non-premium corms, such as peeled or even further processed product.

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Last updated: August 2006
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http://www.rirdc.gov.au/reports/AFO/06-101sum.html