Chestnut

Executive summary

Hort Innovation invested close to $79,000 in projects that were a blend of studies and initiatives designed to improve production techniques, enhance industry development and to better communicate the latest news, information and R&D efforts to growers and industry stakeholders.

One project examined the impact of storage and transport temperatures on chestnut quality, with the aim of improving supply chain practices from farm gate to retail outlet. This project highlighted the need for improvement in these areas for domestic supply.

An industry development officer (IDO) was also engaged to support the development of the Australian chestnut industry by leading key activities such as field days, grower visits, meetings and workshops.

Efforts to ensure timely and valuable information is shared with growers and other industry stakeholders included expansion of the industry website, regular contributions to publications and the use of digital channels and social media.

Almost $39,000 was invested in marketing efforts during the 2015/16 period, including the development of a brochure to educate consumers about how to prepare and cook with chestnuts.

A proactive media and public relations strategy was aimed at placing chestnuts front and centre of magazine and other media publishers’ agendas prior to Christmas 2015 to help develop interest in, and demand for, chestnuts during this peak season.

Chef Stefano Manfredi continued as chestnut ambassador and helped to lift the profile of chestnuts at a festival attended by 5000 people. This helped educate consumers on how to use chestnuts, with plenty of tips on purchasing, storing and cooking. Fresh roasted chestnuts were also available at stalls at the festival to further stimulate demand.

Horticulture Innovation Australia Limited (Hort Innovation) makes no representations and expressly disclaims all warranties (to the extent permitted by law) about the accuracy, completeness, or currency of information in the Chestnut levy fund industry Annual Report 2015/16. Reliance on any information provided by Hort Innovation is entirely at your own risk. Hort Innovation is not responsible for, and will not be liable for, any loss, damage, claim, expense, cost (including legal costs) or other liability arising in any way, including from any Hort Innovation or other person’s negligence or otherwise from your use or non-use of the Chestnut levy fund industry Annual Report 2015/16, or from reliance on information contained in the material or that Hort Innovation provides to you by any other means.

Copyright © Horticulture Innovation Australia Limited 2016.

The projects in this report have been funded by Horticulture Innovation Australia Limited using sources including the chestnut levy, Australian Government contributions and, in some instances, co-contributions from a variety of sources.

Executive summary 1 Strategic Investment Advisory Panel 2 Marketing report 3

R&D project list 2015/16 5 R&D report 6 Financial summary 8 Minor use permits 9During 2015/16, Horticulture Innovation Australia (Hort Innovation) was focused on investing the chestnut levy and Australian Government contributions into R&D and marketing projects to improver growers’ productivity and profitability and ensure the long-term sustainability of the industry.

Content

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Annual Report 2015/16

Executive summary

Marketing report

The plan involved the release of a 12-page recipe brochure, as well as media and public relations activities and events.

BrochureA new 12-page recipe and information brochure was commissioned to educate consumers on how to prepare and cook with fresh chestnuts, to help increase demand.

The brochure content included seasonal availability, selection and storage information (including freezing). This was aimed to encourage consumers to cook, peel and freeze chestnuts to use throughout autumn and winter with ease, and to have them prepare for the off season. Chestnut preparation and instructions on different cooking methods was also provided.

Five recipes developed for the brochure were:

» Chestnut and mushroom soup

» Chestnut, Italian sausage and fennel spaghetti

» Chestnuts with bacon and green beans

» Sweet chestnut cream

» Roasted Asian-style chicken with chestnuts.

The recipes showcased chestnuts’ versatility across sweet and savoury dishes, were family friendly, and demonstrated that chestnuts could be added to the type of meals that consumers regularly prepare.

Nutritional information along with the Australian-recognised official health Five Star rating logo was incorporated into the brochure.

The 80,000 brochures were distributed primarily by market wholesalers and growers across Australia and were made available at consumer events and some green grocers.

PR and media activitiesA pre-season chestnut update press release was circulated to media specifically to prompt long-lead publications and media planners to consider publishing stories on chestnuts that would coincide with chestnuts being in season.

The aim was to put chestnuts on the media’s radar before Christmas to ensure they had time to consider when and how they could use chestnuts in their New Year publications when chestnuts were in season.

This first-time strategic approach for the chestnut industry proved effective. This very early update increased awareness of the seasonality of chestnuts and prompted food editors and journalists to plan articles and recipe development, helping to place chestnuts front of mind as the 2016 season approached.

A second chestnut season update was subsequently produced and sent to 118 media contacts. Additionally, 20 key influencers were identified from this group and sent a special presentation hamper of fresh chestnuts to further inspire and encourage trial and recipe development.

These PR efforts yielded great success with an estimated reach of more than 853,000 consumers across online and offline publications.

EventsAustralian-based Italian chef Stefano Manfredi, who has worked successfully with the Australian chestnut industry for a number of years, was once again the chestnut ambassador and a drawcard for the La Fiera Italian Festival held in Myrtleford, Victoria, in May 2016.

Stefano was integrated into the festival’s main events. He hosted a masterclass and a dinner highlighting the delicious flavour, versatility and health benefits of chestnuts.

More than 5000 people attended the festival.

Chestnuts are generally misunderstood and seen to be a difficult product to use every day, so the masterclass was a perfect opportunity to educate consumers on how to use chestnuts and offer practical information and tips on purchasing, storing and cooking.

Stefano was available to personally engage with consumers to arouse interest in the product and to answer questions. The industry recipe brochure was also handed out at this event, while fresh roasted chestnuts proved popular at the festival’s stalls.

The objective of 2015/16 marketing activity for the chestnut industry was to increase awareness of the Australian chestnut season by providing food media, food communicators and the public with key information. This helped to highlight chestnuts as an Australian grown, seasonal food that can be enjoyed in everyday meals, offering a unique, delicious flavour and valuable health benefits.

Strategic Investment Advisory Panel

About industry SIAPsThe key function of Hort Innovation’s levy-industry SIAPs is to provide transparent and robust advice on potential investment opportunities, helping to guide the way industry levies and Australian Government contributions are put to use. Each SIAP has clearly defined objectives associated with the provision of this strategic investment advice, and is guided by the priorities set out in the Strategic Investment Plan for each levy industry.

During the 2015/16 financial period, 18 SIAPs were formed, with others appointed in the 2016/17 period.

Each industry SIAP is made up of panellists from that industry – most of whom are levy-paying growers – with appointments made based on skills criteria and considering geographic and sectoral diversity.

Each SIAP also has a chair, as listed on the industry grower pages of Hort Innovation’s website. The chair appointments selected by the Hort Innovation Board reflect a broad range of horticulture and agriculture experience, as well as solid foundations in former chairing roles.

Panel meetingsSummary notes from each SIAP meeting will continue to be available on the chestnut grower page on Hort Innovation’s website, at www.horticulture.com.au/grower-focus/chestnut. Below is a brief overview of the industry’s meetings to date.

May 20, 2016

Held in the 2015/16 period in Myrtleford, Victoria, this meeting provided an outline of the objectives, governance and scope of operation of the panel, as well as an overview of the Hort Innovation funding model, innovation process and procurement framework.

There was a discussion of the requirements for the development of the industry’s Strategic Investment Plan, and particularly the need for broad industry input from the whole supply chain, including growers.

Other discussion included marketing campaigns and a refresh of the website.

Name Organisation Location

David McIntyre The Garden in the Forest VIC

Heather Kane Tweenhills Chestnuts NSW

Luciano Cester Esodo VIC

Don Nightingale Nightingale Bros VIC

Jane Casey Australian Gourmet Chestnuts

VIC

Tom Robertson Alpine Chestnuts & Truffles

NSW

Chris Dikkenberg Fumina Farms VIC

Chestnut SIAP panellists

Hort Innovation has established Strategic Investment Advisory Panels (SIAPs) to provide advice to help ensure R&D and marketing investment decisions are balanced and prioritised by the current needs of each horticulture levy industry.

Chestnut industry levy fund

Strategic Investment Advisory Panel

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Annual Report 2015/16

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Marketing report

R&D project list 2015/16

PROJECTS CONTRACTED

MT15032 Monitoring and evaluation framework for the industry Strategic Investment Plan

PROJECTS IN PROGRESS

CH12000 Facilitating development of the Australian chestnut industry – Communications Officer

FINAL REPORTS ISSUED

CH13003 Facilitating development of the Australian chestnut industry – Industry Development Officer

CH14005 Improved postharvest management of chestnuts – phase 2

MT14041 An objective basis for temperate nut industries expansion

VC PROJECTS CARRIED OVER FROM HORTICULTURE AUSTRALIA LIMITED

MT14055 Driving collaboration in Australian horticultural research

R&D initiatives were designed to improve production and enhance industry development

SOURCED FROM ISTOCK

513371776

During the 2015/16 financial year, all Australian levy paying horticulture industries also contributed to across-industry projects addressing issues that affect horticulture as a whole.

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Chestnut industry levy fund

R&D project list 2015/16R&D project list 2015/16

Annual Report 2015/16

Improved postharvest management of chestnuts – phase 2 (CH14005)This project examined the impact of storage and transport temperatures on chestnut quality, with the aim of improving supply chain practices from farm gate to retail outlet.

It followed on from 2014 trials and involved temperature monitoring (with data loggers) of eight chestnut consignments sold from five farms in Victoria and New South Wales to green grocers and supermarkets in Sydney, Brisbane, Melbourne, Perth and Adelaide. Thirty-nine retailers were then visited in Sydney, Brisbane and Melbourne to assess the display, price and quality of chestnuts for sale.

Temperature data loggers were also inserted into chestnuts packed into sacks and shipped to China for processing. The sacks with loggers were placed in nine different locations in the sea container to monitor conditions across the load.

The project found that chestnuts packed into sacks and then stacked at the centre of pallets for domestic sale were very slow to cool during subsequent storage and transport. However temperatures inside packed and loaded export consignments were very stable during shipment and the quality of the product was generally good.

The project highlighted that temperatures for chestnut storage and transport had room for improvement in domestic supply chains, but shipping containers were functioning well for export sales.

R&D report

Facilitating development of the Australian chestnut industry – Communications Officer (CH12000)The aim of this project was to support the development of the Australian chestnut industry through the services of a part-time communications officer (CO).

Over the life of the project, activities of the CO included:

» Production and distribution of three issues per year of the industry newsletter, Nuts and Burrs

» Maintenance and expansion of the industry website, www.chestnutsaustralia.com.au

» Two field days/workshops in each calendar year

» Introduction of a program of e-blasts, short email news items about current issues or events

» Social media implementation through Instagram (@chestnutsaustralia).

Monitoring and evaluation framework for the industry Strategic Investment Plan (MT15032)Among other things, this project helps support the monitoring and evaluation of individual industry Strategic Investment Plans (SIPs). SIPs are the roadmaps that help ensure levy investment decisions align with individual industry priorities. They are used to guide decision-making in levy spending, and represent a balanced view of stakeholders in each industry.

Facilitating development of the Australian chestnut industry – Industry Development Officer (CH13003)The aim of this project was to support the employment of a part-time industry development officer (IDO) for the industry. The role was responsible for the promotion of best practice production and handling guidelines to assist growers:

» Improve grower productivity, nut quality, industry sustainability and the adoption of market preferred varieties

» Assist growers in addressing on-farm pest and disease issues and identify broader R&D priorities

» Assess future industry chemical requirements and provide support for chemical registration and permitting processes

» Support chestnut industry biosecurity processes, including grower education.

IDO activities undertaken within this project included, but weren’t limited to:

» Maintaining the chestnut industry biosecurity, research and development and chemical portfolios through the collection of data, preparation of reports and distribution of information to growers

» Organising industry symposiums and farm walks

» Preparing and distributing technical bulletins

» Undertaking an end of season production survey to collect data from the 2015 production season and providing production and projected planting data to growers.

Take a closer look at some of Hort Innovations’s key projects for the chestnut industry below. To keep up to date with the latest information on new and ongoing R&D for the industry, visit www.horticulture.com.au/grower-focus/chestnut and keep an eye out for Hort Innovation’s quarterly Hortlink publication, also available from the website

Full details of all completed research can be found in project final reports, which are available to order at www.horticulture.com.au/about/resources-publications-final-reports (final reports are free to Australian horticulture levy payers, registered Hort Innovation members and industry representative bodies).

An objective basis for temperate nut industries expansion (MT14041)This project identified and provided objective data on regions suitable for the expansion of the Australian temperate nut industries.

Production of profitable nut crops relies on specific climatic and agronomic conditions, so this project assessed regions based on key elements such as chill and heat accumulation, water availability and soil type. Chill accumulation was identified as the most critical factor limiting regional suitability in Australia.

The project produced maps and information packages outlining the research findings and offering both general and specific regionalised data to support expansion decision-making.

A harvester suitable for chestnuts was the highlight of one of the field days held under Facilitating Development of the Australian Chestnut Industry – Communications Officer (CH12000)

Improved postharvest management of chestnuts – phase 2 (CH14005) discovered greengrocers often make an effort with displays

Annual Report 2015/16

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R&D report R&D report

Chestnut industry levy fund

Financial summary

Financial summary

Minor use permits

Minor use permits

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Annual Report 2015/16Chestnut industry levy fund

Financial operating statement 2015/16

Annual Report 2015/16

Permit ID Permit description (pesticide/crop/pest) Date issued Expiry date Permit holder

PER15259 Phosphorous acid / Chestnuts / Suppression of Phomopsis nut rot & Phtophthora Trunk and Root Canker

27-Feb-15 30-Jun-20 CAI

PER12507 v2* Tsunami or Adoxysan (peroxyacetic acid + hydrogen peroxide) / Chestnuts / Surface moulds

16-Mar-11 31-Dec-16 CAI

PER13273 Copper present as Cupric hydroxide / Chestnuts / Chestnut Blight 01-Apr-12 31-Mar-17 NSW DPI

PER13375 Scholar (fludioxonil) / Chestnuts / surface mould (suppression) 24-Dec-12 31-Oct-17 CAI

PER13640 Sodium Hypochlorite / Chestnut / Surface Moulds 01-Nov-12 31-Oct-17 CAI

PER13642 v2 Chlorpyrifos & Maldison / Tree nuts / Australian plague locust 01-Sep-12 30-Jun-25 ANIC

* During the 2015/16 financial year, Hort Innovation prepared and submitted to the APVMA a renewal for this flagged permit. Minor use funds were also used for residue-data generation during the period.

All efforts have been made to provide the most current, complete and accurate information on these permits, however it’s recommended that you confirm all

details on the APVMA website, portal.apvma.gov.au/permits. Details of the conditions of use associated with these permits can also be found on the APVMA site.

CAI = Chestnuts Australia Limited; ANIC = Australian Nut Industry Council

Minor use R&D projects active in the 2015/16 period

CH14004 Minor use permits for the chestnut industry

CH15002 Generation of residue and efficacy data for pesticide minor-use permit applications in chestnuts in 2016

Ongoing project CH15002 is funding the generation of pesticide residue data to support minor-use permit applications and renewals with the APVMA. The ultimate aims are:

» To gain approval from the APVMA for a new permit for iprodione, for protection against post-harvest surface moulds and fungal rots caused by various pathogens.

» To assess whether post-harvest dipping time for the industry’s fludioxonil permit (PER13375) can be reduced from 15 minutes to one minute and maintain efficiency.

Pesticides are a valuable tool for the chestnut industry. While the use of pesticides is being modified through the increasing uptake of integrated pest management, there is still a need for the strategic use of specific pesticides.

Pesticide companies submit use patterns for registration to the Australian Pesticides and Veterinary Medicines Authority (APVMA) and the chestnut industry is therefore provided with limited registrations because of its minor crop status.

Minor use permits are required in the chestnut industry where the market size is considered too small and therefore not adequate commercial returns for the research and development investment by the pesticide companies.

Below is a list of all current minor use permits for the chestnut industry, as of November 28, 2016. MARKETING ($) R&D ($) TOTAL ($)

2015/16 July – June

2015/16 July – June

2015/16 July – June

Opening balance 33,707 28,743 62,450

Levies from growers (net of collection costs) 47,342 45,283 92,625

Commonwealth funds - 44,506 44,506

Other income 1,030 803 1,833

Total income 48,372 90,592 138,964

Project funding 38,907 70,729 109,636

Consultation with and advice from growers 1,854 8,042 9,896

Service delivery 5,058 10,240 15,298

Total expenditure 50,047 89,042 139,089

Levy contribution to across industry activity - 1,989 1,989

Closing balance 32,032 30,293 62,325

Levy collection costs 6,082 6,084 12,166

Additional expenditure through VC - - -

Horticulture Innovation Australia LimitedACN 602 100 149Level 8, 1 Chifley SquareSydney NSW 2000Telephone 02 9295 2300Fax 02 8295 2399www.horticulture.com.au