Issues and Trends
Contracts for process crops for the coming year will not be announced until spring. The expectation is that prices will not vary significantly as competition for land area from dairy farmers is down, cereal prices are lower, and farmers will be more willing to accept the offered prices than they were last year. While dairy conversions gained a lot of publicity last year, only 10% of Canterbury land is in dairying. Benefits from dairying to arable farmers are in winter grazing, and sales of straw and grain.
Demand for organic peas, carrots, and potatoes is still strong. However, the conversion from conventional to organic farming takes a number of years and there is a lack of farmers willing to convert their properties.
Tomato prices have dropped to their lowest level for the last 15 years, and the crop is being supplied all year round. As tomato growers diversify into different crops, other growers are concerned about the increased competition. Indoor vegetable producers are minimising expenditure, and a number are not maintaining their growing structures and therefore reducing their area of crop until there is potential for growth.
Hydroponic lettuces experienced good growth at the expense of the iceberg type, which has been severely affected by the spread of the lettuce aphid. Most sandwich makers are now using hydroponic lettuces, which are open-leaved and can be washed before sale to reduce the aphid levels.
Last year onion growers expected exports to Japan to be dismal, but market prices have been good, resulting in a positive season for growers. Exports of onions to the UK and Europe are on a consignment basis rather than contracts, due to the poor performance of some exporters in the past. This resulted in calls for the industry to tighten up its standards to regain its position.
Purple asparagus is starting to come into production and is achieving prices three times that of green asparagus. Areas of purple asparagus are also being grown in the UK and Japan for out of season production.
Asparagus crops that were established five years ago, as a requirement for subdivision close to Christchurch, are now starting to produce. However, some of the older growers are retiring so that the area in asparagus is staying about the same.
The lack of potential cargo capacity with the proposed amalgamation of Air New Zealand and Qantas, reduced flights due to SARS, and the withdrawal of United Airlines from the New Zealand market, concern fresh vegetable and flower exporters. Processors who normally use sea freight do not have the same concerns.
Irrigation is not considered a big problem to farmers as the demand is earlier in the season, is applied to a relatively small area of the property, and frequently the farms are on deeper soils which have a better water holding capacity. Early harvested crops require less irrigation, with potatoes and onions the most likely to be affected.
Canterbury Process Vegetable Exports
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Canterbury Fresh Vegetable Exports
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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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