Fresh and processed vegetable imports to Australia - Health risks and economic opportunities F Horlock, eta/ Agriculture Victoria Project Number: VG98079 VG98079 This report is published by the Horticulture Australia Ltd to pass on information concerning horticultural research and development undertaken for the vegetable industry. The research contained in this report was funded by Horticulture Australia Ltd with the financial support of the vegetable industry. All expressions of opinion are not to be regarded as expressing the opinion of Horticulture Australia Ltd or any authority of the Australian Government. The Corporation and the Australian Government accept no responsibility for any of the opinions or the accuracy of the information contained in this report and readers should rely upon their own enquiries in making decisions concerning their own interests. Cover price: $22.00 (GST Inclusive) ISBN 0 7341 0240 2 Published and distributed by: Horticultural Australia Ltd Level 1 50 Carrington Street Sydney NSW 2000 Telephone: (02) 8295 2300 Fax: (02) 8295 2399 E-Mail: [email protected] ©Copyright 2001 Horticulture Australia Limited HRDC Project number: VG98079 Fresh and Processed vegetable imports to Australia - Health risks and economic opportunities Francha Horlock, Julia Behrsing, Andrew Hamilton and Bruce Tomkins Agriculture Victoria, Knoxfield February 2001 This publication may be of assistance to you but the State of Victoria and it's officers do not guarantee that the publication is without flaw of any kind or is wholly appropriate for your particular purposes and therefore disclaims all Uability for any error, loss or other consequences which may arise from you relying on any information in this publication. Project Number: VG98079 Principal Investigator: Julia Behrsing Contact details: Agriculture Victoria, Knoxfield, 621 Burwood Highway, Knoxfield, 3180. Scoresby Business Centre, Vic, 3176. Phone (03) 9210 9222. Fax (03) 9800 3521. Email: [email protected] Acknowledgement of funding source: We acknowledge the support of the Horticultural Research and Development Corporation, Natural Resources and Environment and the Vegetable Industry. Disclaimer: Any recommendations contained in this publication do not necessarily represent current HRDC policy. No person should act on the basis of the contents of this publication, whether as to matters of fact or opinion or other content, without first obtaining specific, independent professional advice in respect of the matters set out in this publication. TABLE OF CONTENTS Background 1 Media Summary 1 Technical Summary 2 Part A. Potential health risks associated with fresh and processed vegetable imports into Australia 4 1. Introduction 4 1.1 Organisation of sample collection 4 2. Microbiological analysis 5 2.1 Methodology 5 2.1.1 Collection of samples 5 2.1.2 Analysis of microorganisms 6 2.2. Results 7 2.2.1 Baby corn 7 2.2.2 Garlic 8 2.2.3 Snow peas 9 2.3. Discussion 9 3. Pesticide residue analysis 9 3.1. Methodology 9 3.1.1 Collection of samples 10 3.2. Results 10 3.2.1. Garlic 10 3.2.2. Cucumbers/gherkins 10 3.2.3. AQIS data 11 3.2.4. Victorian Produce Monitoring Program 16 3.3 Discussion 17 Part B. Economic analysis of fresh and processed vegetable imports into Australia 18 1. Introduction 18 2. Methodology 18 3. Results and discussion 19 3.1. Main vegetable imports 19 3.2. Sources of vegetable imports 19 3.3. Comparison of imported value to local value 23 3.4. Comparison of the retail prices of locally processed vegetables to imported processed vegetables 24 3.5. Local production 2 5 3.5.1. Sweet corn 25 3.5.2. Beans 27 3.5.3. Green peas 28 3.5.4. Snow peas 29 3.5.5. Garlic 30 3.5.6. Processed cucumbers and gherkins 31 4.Conclusions and recommendations 39 5. Technology Transfer 40 6. Acknowledgments 40 7. References 41 Appendices 43 Appendix I: Results of pesticide residue tests on imported and local fresh garlic as reported by State Chemistry Laboratory, Werribee Victoria 43 Table 1. Imported fresh garlic 43 Table 2. Australian garlic 44 Appendix II: Results of pesticide residue tests on imported and local processed cucumbers/gherkins as reported by the State Chemistry Laboratory, Werribee Victoria 45 Table 1. Imported processed cucumbers/gherkins 45 Table 2. Australian processed cucumbers/gherkins 46 Appendix III: Chemical analyses performed by the AQIS through the Imported Food Inspection Program (IFIP) on vegetable imports 47 Appendix IV: Total vegetable imports (processed and fresh) for the financial year 1997-98, ranked according to value 48 Background This report constitutes two main parts. The first examines the safety aspects and potential health risks associated with imported vegetable products, due to either microbial contaminants or chemical residues. The second investigates the economics involved in the production of some of the higher valued vegetable imports in Australia. Media Summary In the 1997-1998 financial year Australia imported A$274 million of fresh and processed vegetables from approximately 74 countries. It may be possible to replace some of these imports with Australian grown produce. To gain a better understanding of the major vegetable crop imports and the replacement possibilities which may exist, a desk top study was conducted. This focused on gathering information on the type, quantity, value, source and timing of imported fresh, frozen, canned, pickled and dried vegetables. The major levied vegetable imports include frozen and canned sweet corn, fresh garlic, processed peas and beans, fresh snow peas and beans and frozen spinach. Information on local vegetable prices, production and seasonal timing was collected for comparison with the data on imported vegetables. It appears that it is becoming increasingly difficult for Australian producers to compete with vegetable imports when it comes to price. This is largely due to the lower production costs of competing countries, as well as the increased globalisation of the processing industry. It appears that if local growers are to compete on price with imported vegetables, unit costs of production will have to be reduced. Strategies to achieve this may include the development of new technologies such as mechanical harvesting and achieving greater economies of scale. For Australian growers and processors to compete with vegetable imports, it seems they must also identify market niches where local product can compete on price, quality and continuity of supply. For example locally grown garlic may be marketed for it's superior health benefits. Local snow pea production can be increased in different climatic zones to extend the local season and compete with the imported product. Imported horticultural produce has potential health risks from microbial contaminants and chemical residues. Fresh and processed vegetables fall into a low risk group of foods that are randomly tested by the Australian Quarantine and Inspection Service (AQIS) for chemical residues. However, vegetables are not currently tested for microbial contaminants. A review of the potential hazards and the regulations in countries exporting to Australia has been completed. Products and their country of origin were identified and sampling was carried out on selected imported vegetables identified to have higher health risks. Fresh garlic and baby corn were analysed for microbial contamination. Products were tested for the presence of human pathogens capable of causing illness in humans and faecal contaminants, organisms that can indicate unhygienic practices during production. Of the samples tested baby corn from 1 Thailand was the only product found to contain human pathogens and indicators of faecal contamination. The AQIS data on chemical residues in imported vegetable products and the Department of Natural Resources and Environment (NRE) Victorian Produce Monitoring survey for chemical residues in locally grown vegetables were used to determine the extent of chemical contamination in imported and local vegetables. Samples of imported fresh garlic, processed cucumbers and gherkins and fresh snow peas were analysed for pesticide residues. Garlic was chosen for analysis, as it represents the largest fresh vegetable import into Australia. Of the samples tested, one violation was detected in imported cucumber and / or gherkins. The Australian Maximum Residue Limit (MRL) for residues according to the Australian Food Standards Code was used as the acceptable limit. The results indicate that the pesticide residue status of imported and local vegetables is comparable. Technical Summary In the 1997-1998 financial year Australia imported A$274 million of fresh and processed vegetables from approximately 74 countries. It may be possible to replace some of these imports with Australian grown produce. To gain a better understanding of the major vegetable crop imports and the replacement possibilities which may exist, a desk top study was conducted. This focused on gathering information on the type, quantity, value, source and timing of imported fresh, frozen, canned, pickled and dried vegetables. The major levied vegetable imports include frozen and canned sweet corn, fresh garlic, processed peas and beans, fresh snow peas and beans and frozen spinach. Information on local vegetable prices, production and seasonal timing was collected for comparison with the data on imported vegetables. It appears that it is becoming increasingly difficult for Australian producers to compete with vegetable imports when it comes to price. This is largely due to the lower production costs of competing countries, as well as the increased globalisation of the processing industry. It appears that if local growers are to compete on price with imported vegetables, unit costs of production will have to be reduced. Strategies to achieve this may include the development of new technologies such as mechanical harvesting and achieving greater economies of scale. For Australian growers and processors to compete with vegetable imports, it seems they must also identify market niches where local product can compete on price, quality and continuity of supply. For example locally grown garlic may be marketed for it's superior health benefits. Local snow pea production can be increased in different climatic zones to extend the local season and compete with the imported product. Imported horticultural produce has potential health risks from microbial contaminants and chemical residues. Fresh and processed vegetables fall into a low risk group of foods that are randomly tested by the Australian Quarantine and Inspection Service (AQIS) for chemical residues. However, vegetables are not currently tested for microbial contaminants. 2 A review of the potential hazards and the regulations in countries exporting to Australia has been completed. Products and their country of origin were identified and sampling was carried out on selected imported vegetables identified to have higher health risks. Fresh garlic and baby sweet corn were analysed for microbial contamination. Each product was surveyed for the presence of six microorganisms, Salmonella spp., Listeria monocytogenes, E. coli (enterohaemophagic types), E. coli (generic) Streptococcus faecalis and faecal coliforms. The first three listed are human pathogens capable of causing illness. The presence of generic E. coli, S. faecalis and faecal coliforms can indicate unhygienic practices during production. Of the samples tested baby corn from Thailand was the only product found to contain human pathogens (Salmonella Java 3bvar3) and indicators of faecal contamination. Listeria welshimeri and L. innocua (both are non pathogenic bacteria) were also detected. The AQIS data on chemical residues in imported vegetable products and the Department of Natural Resources and Environment (NRE) Victorian Produce Monitoring survey for chemical residues in locally grown vegetables were used to determine the extent of chemical contamination in imported and local vegetables. Samples of imported fresh garlic, processed cucumbers and gherkins and fresh snow peas were analysed for pesticide residues. Garlic was chosen for analysis, as it represents the largest fresh vegetable import into Australia. Of the samples tested, one violation was detected in imported cucumber and / or gherkins. The Australian Maximum Residue Limit (MRL) for residues according to the Australian Food Standards Code was used as the acceptable limit. The results indicate that the pesticide residue status of imported and local vegetables is comparable. 3 Part A. Potential health risks associated with fresh and processed vegetable imports into Australia 1. Introduction In the 1997-1998 financial year Australia imported 183,000 tonnes of frozen, preserved, dried and fresh vegetables from approximately 74 countries. For chemical residues fresh and processed vegetables currently fall into a low risk group of foods which are randomly tested by the AQIS. The AQIS do not sample for microorganisms on vegetables. A review highlighting the potential health risks associated with fresh and processed vegetable imports into Australia was completed earlier in the project (Behrsing et al, 1999b). It examined the safety aspects and potential health risks associated with imported vegetables related to microbial contaminants or chemical residues. It included a review of the regulations controlling agricultural chemical use and the measures of control for microbial contamination of vegetables in the countries that export to Australia. It summarised the current testing regime carried out by the Imported Food Inspection Program (IFIP). The review and import data were used to select vegetables to sample for microbial contaminants and pesticide residues. The vegetables selected for analysis of microbial contaminants were fresh garlic, fresh baby sweet corn, fresh snow peas and fresh beans. These vegetables were selected because they represent major vegetable imports and can be consumed raw and so are not subjected to cooking which will destroy pathogens. The vegetables selected for pesticide residues analysis were fresh garlic, fresh snow peas, fresh and frozen beans, frozen spinach, fresh carrots, fresh turnips and fresh shallots (mature). These were chosen on the basis that substantial amounts are imported, they are vegetables that may be consumed without cooking and/or have only been subjected to light processing or are fresh. 1.1 Organisation of sample collection In late 1999, after consultation with the program manager of Imported Foods at the AQIS, it was established that it is not legally permissible for staff of the AQIS to collect vegetable samples for pesticide or microbial analysis from import shipments other than those set down legislatively by the ANZFA. It is under the ANZFA's jurisdiction to set down what samples are tested, the tests that are carried out and the level of testing on any particular commodity. During the proposal stages of this project and also in it's early stages staff at the AQIS assured us that we would be able to collect vegetable samples from import consignments for our own analysis purposes. As vegetable samples could not be accessed through the AQIS, it was decided that samples should be obtained from the next step in the supply chain; the importers or the supermarket chains at the distribution level. After consultation with importers (describing what we intended doing), it was determined that they were generally unwilling to provide us with samples. They saw the test results as posing a threat to business. Supermarkets were contacted and they responded in a similar manner to the 4