Export Berryfruit
Export Berryfruit
This section comments on export berryfruit crops grown throughout New Zealand. Regions where berryfruit crops are concentrated are Auckland, Waikato, Horowhenua, Nelson and Canterbury.
Key Points
- Most berryfruit crops in 2001/02 produced at levels that were below the long-term average yield.
- Lower crop volumes had little influence on price as the price of export berryfruit is dominated by world markets.
- Gross margins for all berryfruit were 2-59% lower in 2001/02 compared with 2000/01.
- New varieties of strawberry and boysenberry are beginning to show lifts in productivity.
- Food safety programmes are recognised as being a necessary part of the berryfruit production industries.
Physical Factors
Climate
For Waikato blueberry growers, a severe frost event occurred on 25 October 2001, with temperatures between 0-6oC for 4-6 hours.
The frost caused extensive damage in some blueberry production areas on varieties where the bloom period had been completed and berries were beginning to develop, and on southern high bush variety types.
Drought in late autumn 2000/01 had an impact on blackcurrant and raspberry plant condition. Plants were generally weaker with smaller buds, resulting in lower productive potential for 2001/02.
High spring and early summer rainfall had an adverse effect on yield and quality for all berryfruit production regions.
The cool, wet conditions of spring 2001 resulted in very poor blackcurrant pollination. As a result of the poor seed set, many fruit aborted. The effect on yield was significant as the poor fruit set was followed by botrytis disease.
Boysenberry and raspberry crops were also adversely affected by the cool, damp spring weather conditions. Given the need to meet the maximum residue limit for chemicals used on boysenberries as set by a range of importing countries, boysenberry growers have few effective options to control the disease dryberry, from flowering onwards. Raspberry growers were affected to a lesser extent as there is a better range of disease control materials, and raspberries are more wet weather tolerant than boysenberries.
The late October frost that affected the blueberry industry also affected strawberry growers. Delay to first export harvest was about one week in Auckland and three weeks in Waikato. Strawberry quality was also adversely affected by wet spring conditions, resulting in more crop being sold on domestic markets and less being sold on export markets.
Production
Blueberry yields were variable, depending on the extent of frost experienced by individual growers. Some export growers exceeded the 2000/01 season’s yield by up to 10%.
The total blueberry crop was reduced as a result of frost damage. The extra production gained from new and maturing plantings was more than offset by frost damage losses on a number of large-scale process-orientated properties. Total crop volume is estimated to be down by 23% this year compared with 2000/01.
Blueberry production is expected to gradually increase based on existing growers having upgraded their net planted area with better varieties, significant new plantings made by existing growers and smaller plantings by new growers. There has also been some vertical integration in the blueberry industry with several export companies establishing their own blueberry plantings or forming partnerships with existing growers.
Although the blackcurrant planted area has increased by about 80 ha from 2001/02, the national crop declined from 2,700 tonnes to 2,350 tonnes as a result of drought in summer/autumn 2001 and a wet spring. The industry average yield for the 2001/02 season was around 3.6 t/ha.
There is relatively little significant new blackcurrant planting expected for the 2002/03 season. Production is increasing and the industry is enjoying manageable growth.
Boysenberry crop yields were typically reduced by 45% as a result of dryberry infection.
Strawberry yields were reduced slightly by adverse weather conditions, but the greater impact was the reduced proportion of crop suitable for fresh export, estimated at 45% of harvested yield compared with 55% in 2000/01.
Strawberry plant sales indicate a small increase in the planted area is anticipated for 2002/03. The more significant feature of plant sales is the increasing proportion of total plantings of the variety Camarosa. In 2000/01, Camarosa accounted for 14% of plant sales, whereas for 2001/02 Camarosa is expected to account for 31% of plant sales. As Camarosa is more productive and has a longer harvest season than the industry standard variety Pajaro, production and the length of the supply season are anticipated to increase significantly in 2002/03.
Raspberry yield was reduced to a lesser degree compared with other berryfruit crops. The total planted area has changed little. Production is anticipated to rise as replacement plantings of more productive varieties are harvested from 2002/03. Growers are planting a range of varieties to spread harvest risk and make better use of high capital cost machinery over the harvest season.
Financial Factors
Revenue
Frozen blueberry returns remain unchanged at around $4.50/kg. The New Zealand frozen blueberry price is driven by the international commodity price of frozen blueberries, mostly sourced from United States suppliers.
Fresh blueberry returns averaged $14/kg. While very early and late season fresh returns were considerably higher than this, the slightly lower mid-season prices had the effect of reducing the weighted average return for fresh export blueberries.
The international commodity price is the driver for the blackcurrant price, so the reduced New Zealand supply volume had little impact on price. The average grower net return for 2001/02 is expected to be $1.75/kg.
The main impact of reduced blackcurrant yield was the disruption to marketing plans. Some customers will not receive the full volume negotiated to be supplied and some customers will not be supplied at all. There are a number of customers who have not received supply for 2-3 seasons. The blackcurrant industry faces a significant challenge to break back into the market with some of these customers.
Boysenberry price is not affected by the reduced supply. The main impact of the lower national crop is the disruption to marketing plans.
Strawberry growers received export returns typically 30-40% lower than in 2000/01.
Raspberry prices remain steady at $3/kg. As for other process berryfruit crops, the price is determined by the international commodity price for the product. Northern Hemisphere crops are reported to have been affected by frost this spring, which may result in a small increase in the international frozen raspberry price.
Expenditure
Hand labour costs continue to rise, with increasing difficulty in obtaining enough workers of suitable quality during harvesting.
For frozen blueberry crops, storage costs are lower because of the reduced volume of crop stored for a shorter period for sales ex-coldstorage.
For most North Island berryfruit growers, the cost of hive rental for pollination has increased as a direct result of beekeepers passing on additional costs for varroa mite control.
Direct costs have remained relatively constant for blackcurrant production. With the lower productivity level in 2001/02, the machine harvesting cost per unit was higher at around 20 c/kg.
Capital cost remains a barrier for new entrants into process berryfruit crops. Specialised machine harvesters and the increasing use of grading equipment mean that the economy of scale necessary to achieve a worthwhile return on investment is increasing.
Strawberry plant costs are expected to increase as growers increasingly adopt the Camarosa variety, which commands a higher royalty rate as part of the plant purchase cost.
Net Result
Table 2 shows the gross margin results for export berryfruit crops. The gross margin is represented by income less variable costs of production. It does not consider overhead costs such as taxation, debt servicing and administration. Levies charged per unit of production or sales are included in the gross margin.
Issues and Trends
The effects of climate on boysenberry yield this year have highlighted the need for the industry to achieve reliable supply. There is opportunity for expansion in the industry in areas where high boysenberry productivity is likely to be achieved.
The Planting Intentions Survey of the boysenberry industry indicates very few new plantings. Of these, most are being undertaken by existing growers.
The boysenberry industry Integrated Pest Management system is working well despite softer disease control options resulting in significant failures for some growers this season.
Berryfruit, as minor crops, have reducing chemical control options for pest and disease management. With the withdrawal of some overseas chemical registrations and the high cost of new chemical registration under the Hazardous Substances and New Organisms Act 1996, chemical control options are limited. While a number of berryfruit industries are making investments in research on biocontrol technologies, such technologies are far from ready for commercial implementation.
The boysenberry industry Export Marketing Strategy has been reviewed under the New Zealand Horticulture Export Authority Act 1987. The industry continues to utilise the regulatory controls of that Act for export marketing. It also continues to fund industry-good activities on a voluntary levy basis.
Berryfruit growers are concerned that there is insufficient incentive for unemployed beneficiaries to move to seasonal labour in the berryfruit harvest season. The present abatement scheme on unemployment benefit income discourages uptake of employment opportunities for those who might otherwise be involved in casual or seasonal employment.
The increase in the minimum wage for adults from $7.70 to $8.00/hour, and youth rates for 16/17-year-olds moving from $5.40 to $6.40/hour, adds to berryfruit growers’ labour costs with no additional advantage. Berryfruit growers anticipate the change to the youth rate will particularly disfavour employment of youth age workers compared with adults.
The strawberry industry is due to complete trial work in 2002/03 investigating alternatives to methyl bromide for ground fumigation prior to planting. The work to date has demonstrated the efficacy of the alternative product Telone C-35. Long-term impacts of fumigation with this material have not been fully evaluated. The strawberry nursery industry is currently considering application to the Ministry for the Environment for a critical use permit for that industry, to ensure that nursery strawberry plant production for annual replanting can provide pest and disease free plant material by using methyl bromide for soil sterilisation.
The blueberry industry suffered adverse media coverage as a result of a press release from the Director-General of Health on 12 April 2002. The release indicated that 17 of 29 cases of Hepatitis A in Auckland from January to April 2002 were linked with eating blueberries. The blueberries concerned were tracked to a specific Waikato berryfruit garden that sold products from 23 December 2001 to the end of January 2002.
As a result of this incident, Blueberries New Zealand (Inc) is recommending that all growers implement a Hazard Analysis and Critical Control Point-based food safety programme on their properties. A number of exporters have indicated that they will accept blueberries only from properties where such a programme has been developed and implemented by the 2002/03 season.
The blackcurrant industry is investing in pest and disease management research. The challenge is to obtain effective disease control materials which do not result in detectable residues in blackcurrant concentrate. Berryfruit industries do not necessarily have food safety programmes in place. The experience of the blueberry industry in the 2001/02 season, with an association between Hepatitis A and blueberries, may come as a wake up call for berryfruit industries to work towards satisfying customer expectations on food safety.
Some berryfruit industries are looking to extract better value from research investment. By adopting a collaborative approach, berryfruit industries are looking to leverage research investment in areas where the benefits may accrue across a range of berryfruit industries, rather than to just one crop type alone.
The industry structure for Blackcurrants New Zealand Ltd, Blueberries New Zealand (Inc) and the NZ Boysenberry Council has resulted in each product group effectively managing its own affairs. The boysenberry industry collects a voluntary levy and the blackcurrant and blueberry industry groups are funded by Commodity Levy Orders. Strawberry Growers New Zealand continues to be funded from voluntary membership and, more significantly, a share of the value of strawberry plant sales by New Zealand Berryfruit Propagators Ltd.
Contact for Enquiries
Farm Monitoring Programme Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
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