The walnut industry appears to have broad appeal for producers looking for enterprise diversification in temperate climatic regions of Australia. World demand for walnuts is strong, and production in Australia is starting to rise. But production levels are still well short of replacing imports and meeting peak-season demands in Europe. According to the Australian Walnut Industry Association (AWIA), in 1999 there were an estimated 138,000 trees in Australia, including 118,000 trees less than six years old. The current annual production of in-shell nuts in Australia is between 100 and 150 tonnes. Nuts generally sell for 4 dollar to 6 dollar per kilogram. With the establishment of new plantations in Victoria and NSW, production of in-shell walnuts will increase rapidly in the next decade. Agriculture Victoria senior research scientist and national industry consultant for the walnut industry, Harold Adem, Tatura, says the lack of critical mass of production in Australia is one of the factors inhibiting the drive to replace imports.
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