Horticulture and Crops:
Growing Quality Food for the World
Kiwifruit Production in New Zealand
Kiwifruit
was originally commercialised in New Zealand, where growers remain the most
efficient and highest earning kiwifruit growers in the world. The kiwifruit
industry has been based on the production of a single variety of fruit, the
Hayward kiwifruit. Years of research to develop new varieties is now showing its
first successes; new varieties such as Zespri Gold, a gold-fleshed variety, are
being established by growers.
Zespri Group Ltd (formerly the New Zealand Kiwifruit Marketing Board) is owned by kiwifruit growers and is responsible for marketing almost all the export kiwifruit from New Zealand.
The New Zealand Kiwifruit Board was established in April 2000, to monitor and enforce Zespri Group Ltd's compliance with the regulatory measures set out in the Kiwifruit Export Regulations 1999.
The Board also decides whether to approve other exporters who wish to export kiwifruit in collaboration with Zespri Group Ltd.
New Zealand kiwifruit production was estimated to be 252 000 tonnes in the year ended March 2003 of which an estimated 249 185 tonnes or 63 million trays were exported, valued at NZ$564 million (FOB), and comprising 26 percent of total horticultural earnings.
Apple Production in New Zealand
On 30
September 2001 New Zealand deregulated apple and pear exports as requested by
apple and pear growers. Currently anyone can export apples and pears, whereas
previously ENZA Ltd, (formerly the New Zealand Apple and Pear Marketing Board)
was responsible for marketing almost all the export pipfruit from New Zealand.
Many new players have entered the apple export market since the deregulation of
the export industry.
Apples represent 18 percent of new Zealand's horticultural export earnings, and
amounted to $374 million (FOB) in the year ended March 2003. Apple production in
2002/03 was about 528 000 tonnes, equivalent to about 29 million 18 kg cartons.
Of these 15.9 million cartons were exported.
The world apple industry is very competitive and New Zealand accounts for less than one percent of world apple production. Only one percent of world production is exported, and New Zealand accounts for about 5 percent of this. The world's top apple producing countries are China, United States, Chile, Italy and Belgium. Chile together with South Africa (9th on the top 10 list), Argentina and Brazil are four of New Zealand's biggest competitors: being in the southern hemisphere they produce apples at the same time of the year.
The New Zealand pipfruit industry has consistently succeeded in the face of worldwide competition because of its cultivation of new speciality varieties and because of the industry's emphasis on providing a quality product. New Zealand has been able to lead the world with new varieties of apple such as Royal Gala, Braeburn, Pacific Series and SciFresh (JAZZ). These make up 75 percent of the total New Zealand crop. New Zealand's main competitors (Chile, South Africa, Argentina and Brazil) still produce large quantities of varieties such as Red Delicious, Granny Smith and Golden Delicious. However all four countries are now producing increasing quantities of New Zealand's top two varieties, Royal Gala and Braeburn. New Zealand's competitiveness is reflected in its market returns. In the major markets of Europe, Asia and North America, New Zealand's share of returns is significantly greater than its market share by volume.
The apple industry is a major employer employing about 10 700 people in total. The main apple producing areas in New Zealand are Hawkes Bay in the North Island and Nelson in the South Island.
The New Zealand Vegetable Industry
The fresh vegetable
industry is characterised by small owner-operated enterprises, although 80
percent of tomatoes and potatoes - large area crops - is produced by 20 percent
of the growers. Domestic consumption accounts for a high proportion of vegetable
production. In 2002/03, vegetable exports reached $423 million. Exports of fresh
vegetables, mainly onions and squash (earning 37 percent and 31 percent of the
fresh vegetable receipts respectively), were worth $251 million in 2002/03.
Other large or increasing fresh vegetable exports are potatoes, carrots, sweet
corn, asparagus and baby carrots. Processed vegetable exports were worth $173
million in 2002/03. The main processed exports are frozen peas, corn, and mixed
vegetables, tomato products, frozen potatoes and dried peas.
Vegetable production is a large seasonal employer. Around 22 500 people are employed in the New Zealand vegetable industry during peak times.
The New Zealand Arable Industry
The New Zealand arable industry produces milling, malting and feed grains, including wheat, barley, maize, oats and peas. It also produces pasture and vegetable seeds for the pastoral industry and for export. During the year ended June 2002, 42 000 hectares of wheat, 78 000 of barley, 14 200 of maize, 7400 of oats, and 10 900 of peas were grown. A further 20 000 ha of pasture seeds are produced and about 10 000 ha of other crops, mainly vegetable and brassica seeds. New Zealand is not self-sufficient in cereals, and imports about 30 percent of its total cereal requirements. Overall, the production of grains and seed contributes 3 percent of the total value of New Zealand's agricultural output, or approximately $400 million in gross agricultural output at farmgate.
While predominantly a domestic industry, the sector exports herbage and vegetable seeds ($70m fob) and baking products ($72m fob) produced from local and imported wheat.
Canterbury produces 85 percent of all the crops except maize grain, which is produced mainly in Waikato and Bay of Plenty. Arable farms usually run significant but varying numbers of livestock, including sheep, beef cattle, dairy cattle and deer. Arable farms also grow a significant proportion of the peas, corn, potatoes, beans and carrots for the process vegetable industry, and areas of onions and other fresh vegetables.
The arable processing industry is divided into three main sectors: flour production from imported and local wheat, malt production from local barley, and animal feed manufactured from local and imported feed grains. Other companies specialise in the cleaning, packing and marketing of pasture and vegetable seeds.
The New Zealand Ornamental and Floriculture Industry
New
Zealand exports a wide range of cut flowers, the primary market being Japan
which took 61 percent of flower exports in 2002/03. The main export flowers are
orchids, calla lilies, sandersonia, and peonies. Ornamental plants, bulbs,
corms, tubers and foliage, and sphagnum moss are also exported. In 2002/03
exports of ornamental plants and flowers reached over $88 million with 45
percent from fresh cut flowers.
Cut flowers are produced throughout the country, wherever climate and soil conditions suit the type of flower grown. Over 50 percent of the production is in Northland, South Auckland, Waikato and the Bay of Plenty. Many cut flowers are grown in greenhouses so are less dependent on local climatic conditions for success. Other factors, such as access to international airports or low-cost energy for heating, are also important in the location of indoor flower production.
Small Sector Crops
The value of fresh fruit exports (other than kiwifruit and apples) was $86 million (FOB) in 2002/03. These fruit include avocados ($25 million), berryfruit ($16 million), summerfruit (stonefruit) ($15 million), European pears ($14 million), persimmons ($11 million), citrus ($11 million), strawberries ($8 million) and blueberries ($7 million). Avocado and cherry exports are increasing rapidly. The export of processed fruit reached $86 million (FOB) in 2002/03. Fruit and vegetable juice accounted for about $32 million of this figure. Other products exported in this category include dried fruit and peels, frozen berries, jams and jellies, and canned fruit. The value of hop exports was $7.4 million in the year to March 2002.
The New Zealand Wine Industry
New
Zealand wines have risen rapidly in quality and consumer acceptance during the
last decade and are now acclaimed internationally as world-class, intensely
flavoured wines. New Zealand is now home to over 400 wineries and this number is
likely to continue to grow, as investment in new vineyards is still increasing.
Although export figures show impressive growth, the New Zealand wine industry is
small in world terms, producing just 1 percent of world wine exports. New
Zealand has, however, carved out an assured niche in the world market, meeting a
demand for high-quality wines from a unique grape-growing environment. This
niche has enabled New Zealand wines to be positioned in the high-price market
segment.
The New Zealand wine industry is based on six main varieties: Sauvignon Blanc, Cabernet Sauvignon, Chardonnay, Riesling, Merlot, and Pinot Noir. Sauvignon Blanc is the country's predominant export variety, representing 55 percent of total wine exports for 2002. Chardonnay and Pinot Noir are the next largest export varieties representing 13 percent and 4 percent of wine exports respectively.
The industry is continuing to expand, with the area of planted vines more than doubling in the last 10 years. New Zealand now has over 15 000 hectares of producing vineyards. The rapid growth in vineyard investment has been encouraged by steadily increasing nominal export prices over the past decade. In 2002, 118 700 tonnes of grapes and 89 million litres of wine were produced, with 23 million litres exported at a value of $246 million (FOB). The United Kingdom is the predominant export market, representing 52 percent of total exports by volume and 48 percent by value. The US and Australia follow, taking 20 percent and 15 percent of total exports by value respectively.
Horticultural Industry Organisations
The following organisations provide support services to the various horticultural sectors.
New Zealand Fruitgrowers Federation
New Zealand Fruitgrowers Federation represents 4000 growers. Its role is to tackle generic issues for the benefit of their industry. The Federation ensures the quality of New Zealand fruit by its attention to food safety issues, and protects the environment by its promotion of sustainable horticulture. It encourages education and training within the industry, and promotes research and development. NZFF also promotes access for New Zealand fruit to international markets. All fruitgrowers pay a levy based on their land area to fund NZFF and its activities.
New Zealand Vegetable and Potato Growers Federation
New
Zealand Vegetable and Potato Growers Federation (VegFed) represents
approximately 5000 commercial growers from throughout the country. Vegfed is
responsible for promoting, encouraging and enhancing the production,
distribution and consumption of New Zealand-grown vegetables, both within New
Zealand and in export markets.
Foundation for Arable Research
The Foundation is a farmer organisation funded by levies, set up to provide high quality independent research that is cost effective and will add value to the business of arable farming.
New Zealand Wine Growers
The wine industry is supported by the New Zealand Winegrowers organisation. This organisation commenced on 1 March 2002 to promote, represent and research the interests of New Zealand grape growers and wine makers. The organisation is a joint initiative of what were previously the New Zealand Grape Growing Council (Inc) representing grape growers, and the Wine Institute of New Zealand (Inc.), the controlling body of all licensed New Zealand grape wine makers.
New Zealand Flower Industry Federation Inc (FloraFed)
FloraFed is an umbrella organisation that represents flower-growing organisations. Made up of grower bodies and associate groups from the floricultural value chain (marketers, researchers, education and retailers of flowers), FloraFed promotes the interests of its members at a national level.
New Zealand Horticultural Export Authority (NZHEA)
The NZHEA is a statutory body, established under the New Zealand Export Authority Act 1987 whose primary function is the promotion of effective export marketing of horticulture. Its statutory functions include export licensing and approval of export marketing strategies for recognised product groups.
Contact for Enquiries
MAF Information Services
Pastoral House
25 The Terrace
PO Box 2526
Wellington, NEW ZEALAND
Fax: +64 4 894 0721
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