Opportunities to supply markets in the species' countries of origin are primarily limited by the capacity to produce in a sufficiently large and consistent manner. Niche ethnic markets in Australia are small, and rarely justify large-scale producer investment. A number of key features underpin this incentive. Firstly, demand exists for the product in Australia, with approximately 15-20 t fresh produce currently being marketed annually. Tinned produce from Thailand and China sells for about half to two thirds the price of locally-produced fresh water chestnuts, and is diced in 'fresh' Asian stir fry mixes.
Fresh produce is preferred by discerning consumers.
Replacement of household and restaurant use of imported processed water chestnuts also opens up an opportunity for further sale of fresh produce, and will critically depend upon the ability to extend supplies of fresh produce throughout the year. This alone should allow Australian producers to command a large proportion of the world fresh market and dictate prices. Thirdly, export opportunities are increasing, especially for the fresh produce. Both Japan and Taiwan have experienced a decline in local production. This is largely due to the high labour requirements for harvesting and has opened up opportunities for export.