Issues and Trends

The rapid spread of lettuce aphid nationwide both surprised and concerned many growers. The spread occurred rapidly despite the voluntary restrictions put on the movement of lettuces around the country by growers. It is thought that the spread occurred as a result of the movement of vegetable crates. The only regions still free of the pest are the Waikato, Manawatu and Marlborough, though some comment that the pest has just not yet been identified in these areas. Growers are placing priority on finding a suitable integrated pest management solution for lettuce aphid.

Greenhouse growers are concerned about the proposed carbon emissions charge. Research undertaken by the vegetable industry indicates that the proposed "carbon tax" could cost tomato growers, for example, an average $3.10/m2 with some large operations facing a potential annual carbon emissions charge of over $500,000 if they continue in their current operation. Concern has been expressed that the proposed greenhouse agreements will only be negotiated with the big industrial companies and that the greenhouse vegetable industry will become uncompetitive relative to producers in countries where the Kyoto Protocol has not been adopted.

The proposed carbon tax will also impact significantly on large growers who operate a fleet of trucks to move their produce around the country. A 7 c/litre diesel tax could add tens of thousands of dollars to transport costs for large growers.

The implementation of the Resource Management Act 1991 continues to concern growers and their representatives. There is a concern that insufficient weight is being given to the joint submissions of the New Zealand Vegetable & Potato Growers Federation (Inc) (Vegfed) and the New Zealand Fruitgrowers Federation (NZFF). These submissions represent around 7,000 growers. As a result of the lack of notice taken at the submission stage, the two grower organisations are taking more issues to the Environment Court. Their joint concern is that the lack of recognition of the economic and social implications of council plans could force growers out of business. They are also aware that individual growers or growers within a region are unlikely to have the resources to take their concerns through to the Environment Court.

The lack of competition in the retail market has meant that some large growers now no longer have a market for their produce. In the short-term, it is expected that the desire of the large supermarkets to deal with one supplier will force partnerships between producers.

Growers continue to be concerned about the risk to the New Zealand horticultural industry from biosecurity incursions. While growers acknowledge the increased surveillance, they are alarmed at the number of interceptions that occur of biosecurity risk items. They are also concerned that, despite the surveillance effort, incursions continue to occur.

Availability of labour, at an affordable rate, continues to plague vegetable growers. The lack of profit limits growers' ability to pay wages sufficient to attract the skilled staff required. Of particular note is the lack of staff skilled in tractor and truck driving and those skilled in spraying.

Potato growers have been unable to import new varieties of potatoes into the country for the past two and a half years. Biosecurity concerns are being cited as the reason for this. The lack of new genetic material means that growers are unable to meet the demands of a more discerning customer. Processors particularly want growers to plant varieties available offshore that meet very exacting standards. Comments have been made that this lack of new genetic material is holding the industry back.

Vegetable growers are maintaining a "watching brief" on the intention to lift the moratorium on the release of genetically modified organisms (GMOs) into New Zealand horticulture. They comment that they would only grow GMOs if there was consumer demand for the product. The greatest risks they see of growing these GMOs is consumer reaction to the product. Opportunities identified by growers include the opportunity to reduce agrichemical use.

Work continues to benchmark the joint Vegfed/NZFF quality assurance programme, New Zealand Fresh Produce Approved Supplier Programme, to the Euro-Retailer Produce Working Group Good Agricultural Practice (EUREPGAP) standard to reduce the compliance costs for exporters into Europe. Many growers are commenting that EUREPGAP accreditation will be required for growers and packers of onions being exported to the European Union next season.

Spray drift from neighbouring properties continues to impact on growers of some vegetable crops. In response to the problem, Vegfed have appointed a person to act as a spray drift assessor. The assessor works with the grower in order to compile a full incident report. This report is able to be used in proceedings with the relevant authorities.

Growers have commented on the decreasing government assistance with research funding. Researchers are having to get more and more money from industry. There is increasing collaborative research between the New Zealand and Australian industries. Joint priorities are determined between the New Zealand and Australian industry representatives and the work is being conducted by whoever is considered the best in Australasia. More of the research is being conducted in Australia where government funding per industry dollar is higher.

The onion industry held a referendum in February on the proposal that onions become a product group under the New Zealand Horticulture Export Authority Act 1987. While this has been discussed for some time it was brought to a head by two successive seasons of poor quality exports and the concern that this was adversely affecting New Zealand's reputation. Thirty-seven percent of onion growers responded to the referendum with 51% in favour, but this reduced to 31% in favour based on area grown. While the results were inconclusive it was recommended that Vegfed's fresh vegetable sector provide a forum for discussion between exporters and growers with the objective of establishing an export marketing strategy (EMS) for the 2003/04 season.

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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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