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Executive Summary
The purpose of the report
This study is about the dynamic growth and changes occurring in the Asian vegetables industry in the Northern Territory. The industry has expanded from 30 growers producing around $2.5 million in 1995 to over 60 growers producing an estimated $12 million in farm gate value in 2005. It is estimated that the NT industry has the potential to increase production volumes to 7,500 tonnes per annum. This would equate to an annual production volume increase of almost another 3,500 tonnes above the annual 2005 volume of 4,000 tonnes.

The industry is estimated to be growing at a rate of some 15% per annum due largely to strong market demand for Asian vegetables from southern States. At such a rate, Asian vegetable quality and efficiencies of supply chains become important to further industry growth. While the NT industry has been able to maintain the supply of Asian vegetables to keep pace with this growth of demand, the potential for further quality improvements is recognised in the industry.

The target of the report
This report targets the multiple parties involved in the supply chains transporting Asian vegetables from the NT to the southern States of Australia. While the NT industry has been able to maintain the supply of Asian vegetables to keep pace with the recent growth in demand, the opportunity for further quality improvements are recognised by those in the supply chains.

Background
The supply chains are characterised by the involvement of multiple parties, numerous handlings and long periods of transportation. It is only at the end of these long supply chains that the market demand and outturn quality of the Asian vegetables determine the return to the grower. In comparison to other parts of Australia, the Asian vegetables industry in the NT has long supply chains and it may often take up to ten days between harvest and delivery of the Asian vegetables to central markets. Different parties along the supply chain may not clearly understand the importance of issues relating to the transport and handling of the vegetables at other points along the chain.

Aims/Objectives
This project aims to provide growers, packers, consolidators, transporters and wholesalers in the supply chains with technical guidelines for the optimal handling and management practices for the distribution of Asian vegetables from the NT to southern States of Australia.

Methods used
Research has been conducted to:

• Define supply chains not just physically, but also in terms of paperwork, transactions and communications systems.
• Assess risks and issues which potentially impact upon the quality of Asian vegetables in the supply chains.
• Define ‘quality control points’ throughout the supply chains.
• Develop technical guidelines to improve the consistency and continuity of quality in the supply chains.

Results/Key findings
The industry research identified over thirty quality control point issues in the NT Asian vegetables supply chain systems. These systems include processes relating to the physical produce, paperwork and documentation, transactions and communications and information paths.

Implications
Technical guidelines have been developed in this report and have largely drawn upon existing systems and experience in industry. The implication is that future industry growth may be compromised if industry is unable to match demand with consistency and continuity of quality produce in its supply chains. The focus now needs to be upon industry communication to ensure implementation and improvement by all supply chain parties. The NT industry, researchers and policy makers have the opportunity to underpin the industry’s further growth with the focus upon the management of best practice systems throughout the supply chains.

Recommendations
A communication program for the supply chain management guidelines in this study should be developed. Evidence that growers and others in the supply chains are changing their practices in response to the knowledge would be a performance indicator of progress with such a communication program.

Strategies for communicating and promoting ‘best practice’ systems throughout NT Asian vegetable supply chains, and incorporating the guidelines in this study, would include a number of approaches.

Demonstration Project

• With industry, conduct a through chain project to show the benefits of managing and measuring performance throughout the supply chain.
• Focus upon management of supply chain measures such as distribution and receivals, price returns and quality issues which offer potential for improvement in the NT supply chains.
• Focus upon groups of Type 2 growers especially those that are actively engaged with the growth of the industry.

Extension Program

• Develop an extension program for communication of the cool chain management guidelines in this study.
• Use customer specifications or the FreshSpecs product specification system developed by the Australian Chamber of Fruit and Vegetable Industries (www.freshmarkets.com.au) to confirm vegetable demand for future farm production plans.
• Improve market efficiency and transparency through the provision of timely Asian vegetable market data from central market groups.

New Packaging Developments

• In association with industry, investigate the opportunity to develop alternate, cost effective packaging for the distribution of NT produce to other States.
• New carton, modified atmosphere and sleeve packaging are key areas of growth and development in the distribution and value-adding for Asian vegetables.

Capacity Building for Export Development

• Use the above strategies to build capability and capacity of supply chains for potential exports to Asia.
• Export quality management systems need to be proven and tested. Such testing may be based upon quality systems and practices such as exporting to southern States of Australia.

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