Influences in the Business Environment

China apple import blow

02 Jul, 2010

HARCOURT apple growers are bracing for the worst after the federal government decided
to allows apple imports from China.
Bendigo Federal MP Steve Gibbons said the imports would be subject to stringent
quarantine rules and food safety standards. But his assurances meant little to local growers,
who say the threat from the apples is unknown and that is the problem.
Harcourt Fruit Growers Association president Trevor Peeler said the potential effects were
severe. In the short term there is the potential for disease, he said. China has diseases
that both Australia and New Zealand dont.
Its still unknown the sort of quantity were looking at and whether theyll target
supermarkets or domestic markets. Until we find out the details we need to wait and see.
Mr Peeler said depending on the effect, most growers would need to reassess in the coming
months. Obviously weve faced some challenges in the past 10 years, given the drought,
he said. Were really just starting to get back on our feet.
Mr Peeler said in the back of farmers minds was the draft report from the World Trade
Organisation that could see Australias 90-year ban on New Zealand apples reversed.
You could assume that if were importing Chinese apples, then New Zealand apples wont
be far away, he said. Mr Peeler said he would like to see the federal government do more
to protect the industry. There is no doubt about what the eventual costs to Australia will be.
Australians try to buy Australian-owned and we still have a very clean, green image that we
want to keep.
http://www.heraldsun.com.au/ipad/import-law-means-apples-aint-apples/story-
fn6bn88w-1226007169359

NZ apples not welcome

17 Feb, 2011

HARCOURT apple growers say Prime Minister Julia Gillard has abandoned them and claim
importing New Zealand apples could ruin their industry.
Ms Gillard told New Zealand parliament yesterday that Australia accepts the World Trade
Organisations ruling on the importation of New Zealand apples. Last year the WTO

Influences in the Business Environment

rejected an appeal against apples being imported from New Zealand because of concerns
of fireblight.
The WTO decision reverses a 90-year-old ban on the imports. Harcourt Fruit Growers
Association president Trevor Peeler said it was terribly frustrating that something so
important to the apple industry was being treated off the cuff. This industry is struggling at
the moment and we feel we have been abandoned, he said.
Fireblight is one disease we do not want to get into Australia. It would devastate the
industry if it got in. In her address to the New Zealand Parliament, Prime Minister Julia
Gillard has told the world Australia will soon begin importing apples from New Zealand,
despite the risk of fireblight.
http://www.bendigoadvertiser.com.au/news/local/news/general/nz-apples-not-
welcome/2078550.aspx

Questions:
1. What external influences to the Australian apple industry are evident in this
article?
2. Who would benefit from importing apples from China and New Zealand?
Explain your answer.
3. Analyse the current competitiveness within the Australian apple industry
(taking into consideration the market concentration, ease of entry and
local/foreign competitors)