Tasmania’s cool temperate climate and relatively low pest and disease incidence is ideal for greenhouse capsicum production. In1996, Japan granted Tasmania area freedom from Tobacco Blue Mould; offering an opportunity to export Solanaceous fruits such as tomatoes and capsicums to Japan. Initial screening trials and test marketing identified capsicums as the crop with the most export potential. Capsicums therefore became the major focus with an emphasis on production under Tasmanian conditions, for export to Japan. A significant opportunity for developing a greenhouse capsicum market in Australia was also identified. This project has been funded by HAL using voluntary contributions from industry and matched funds from the Australian Government.