Costa Farms calls for more Qld, NSW avocado growers to have a shot at Japanese market

An Australian farming group wants Queensland and NSW avocado growers to have access to the Japanese market as it denies claims some farms are on the cusp of closure.

Costa Farms' Harry Debney is calling for access to the Japanese market.

An Australian farming group is calling for Queensland and New South Wales avocado producers to have access to the Japanese market, citing the lucrative partnership between Western Australian avocados and the land of the rising sun.

Costa Group, which runs various farms in the Wide Bay Burnett and Fraser Coast regions, hit back at recent reports it‘s planning on shutting down a number of its avocado operations and instead says it needs access to Japan to open up for the state’s growers.

A report in the Sydney Morning Herald claimed the agriculture giant would be forced to sell some avocado farms in order to recover from intense rain that hit farmers and ruined crops in 2022.

The story quoted comments which were included in a public report penned by Costa Group chief executive Harry Debney who said the company had plans to slim down its avocado business.

Mr Debney had been quoted as saying the group may need to “scale back” or “divest” farms.

Western Australian growers have been able to access the Japanese market for years and now a prominent farming company is calling for Queensland and New South Wales to follow suit. Photo: ULISES RUIZ/AFP

However, a spokesperson for the company told this publication that reports of decisions being made on closing farms were not accurate and the company’s focus was on accessing the Japanese market like WA.

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“Costa’s preference is to not have to divest any of our farms and no decisions have been made yet, despite what may have been reported,” the spokesperson said.

They said opening up avocado exports to Japan would be the lifeline the company needed to weather the difficulties being faced by the industry.

“It remains frustrating that avocados can be exported from Western Australia to Japan, but not from Queensland or New South Wales, where more than 60 per cent of Australia’s crop is grown,” they said.

“Opening up further access would provide a genuine opportunity to supply the Japan market almost year-round from Australia and provide certainty for the industry.”

The spokesperson said they were working with the Member for Kennedy, Bob Katter, as “he understands the importance of this issue”.

“Costa looks forward to the Federal Agriculture and Trade Ministers working closely together with their respective Japanese counterparts to achieve this important access in 2023,” they said.

A Costa Group sustainability report released on February 21 notes Paradise Dam being at 99 per cent capacity as of February 2023, that the federal government‘s confirmed $600 million contribution towards returning the dam to its full 300,000 mega-litre capacity as a factor in future success.

A government spokesperson says growers suffered a glut after planting too many of the on-trend fruit. Photo: ULISES RUIZ/AFP

Mr Debney also praised Prime Minister Anthony Albanese for “revitalising” Australia's relationship with China and the impact this could have on boosting the agricultural sector.

“With improved weather expectations for 2023, and La Nina appearing exhausted as we head into more neutral weather patterns, we are forecasting a return to more normal growing conditions, which we expect to deliver improved performance,” he said.

A Department of Agriculture, Fisheries and Forestry spokesperson said pressure on the avocado industry had been the result of increased plantings generating an oversupply which proved too much for existing markets.

“The Australian avocado industry prioritised market access for avocados from Western Australia to Japan in 2014,” they said.

“Market access was achieved on 26 January 2018.

“The Australian avocado industry prioritised market access for avocados from Eastern Australia to Japan on December 18, 2018 by providing the department a submission, however it was technically incomplete.

“It was not until July 2022 that Australia was able to approach Japan with this request, recognising that Japan was already working on other market access priorities for Australia.”

The spokesperson said there had been attempts at boosting overseas sales of avocados.

“Australian Government has sought Japan’s consideration to expand market access to include avocados from Australia’s east coast,” they said.

“Other market opportunities for avocados are also being actively negotiated, including India and Thailand.

“The Department of Agriculture, Fisheries and Forestry is regularly engaging with the avocado industry regarding their request to export east coast avocados to Japan, as well as other countries.”