Issues and Trends
Avocado plantings have continued, based on confidence in the industry and good returns in recent years. Industry monitoring of nursery tree sales shows around 425 ha of new avocado orchards were planted in spring 2002. Nurseries have tree orders for around 350 ha to be planted in both 2003 and 2004.
Avocado properties have been high priced and saleable but prices are starting to ease. Around 15% of properties have changed hands in the past few years. There is demand for bare land in Northland suitable for planting avocados. Establishing rights to sufficient water for the orchard can be an issue, particularly in Northland.
Around 80% of avocado growers are located in the coastal Bay of Plenty with 67% of current production coming from the region. In Northland, the other major growing district, there are a number of large, young orchards coming into production. Industry figures show 53% of current avocados are young and not yet producing fruit. Production is sensitive to spring weather, especially temperature. Cool spring conditions in 2001 and 2002 have kept production increases below industry projections.
The avocado industry is closely associated with the kiwifruit industry. The major growing areas coincide, many growers have both crops and many packhouse/coolstore facilities are used for both fruits. A multi-exporter system is embedded in the avocado industry culture. The industry operates using the New Zealand Horticulture Export Authority Act 1987 to assist with co-ordination of export marketing. In contrast to kiwifruit, New Zealand is a small producer of avocados on a world scale and many avocados are sold in market brands, sourced from several countries.
The avocado industry is now concentrating on implementing practices to manage fruit quality rather than undertaking substantial research to establish causes. Many of the key factors affecting fruit quality are now well understood. The established programme monitoring fruit in the US market is going well and fruit quality there has been good. The industry funds staff who spend several months in the US monitoring fruit outturn. Management of inventory, so the oldest avocados are moved first, has been important as the fruit is nearing the end of its shelf life after shipping to the US by sea. Packhouses now operate a "fruit library" in which samples of exported fruit are held in store in New Zealand to provide feedback on fruit storage out-turns.
The avocado industry has a regional discussion group programme supported by the MAF Sustainable Farming Fund (SFF). One group is particularly addressing orchard profitability.
The citrus industry has also benefited from the SFF. The funding is being used over three years to assist in implementing an integrated pest and disease management programme. The citrus industry is now set up under three product groupings: mandarins; oranges and tangelos; and lemons, limes and grapefruit. The mandarin group has just gained approval for a compulsory levy of 1.5 c/kg to fund research and development. The other two groups have voluntary levies in place. As a result of this funding a large amount of on-orchard applied research has been completed or is ongoing. A grower newsletter is also being produced quarterly.
The citrus industry has embarked on a process of gaining entry for New Zealand citrus to the US market. If all goes to plan the industry expects access to be granted in 2004.
The persimmon industry has been developing an integrated pest management strategy over the last two years. There are difficulties in using fewer insecticides as Japan, one of the major markets, demands 100% pest-free fruit.
Like the avocado industry, the persimmon industry uses the New Zealand Horticulture Export Authority Act 1987 to co-ordinate exports. The Persimmon Industry Council, which has six grower and three exporter members, licenses exporters and collects levies for research and development. The industry is trying to obtain access to the US market.
Most persimmons are now sea freighted to export markets. Development of fruit bagging to surround the fruit in a modified atmosphere during transit has enabled this. In the early part of the season some fruit is still air freighted to the high paying Japanese market.
The smaller industries, like tamarillos and passionfruit, have difficulties accessing new pesticides. Small industry size means there is insufficient market incentive for suppliers to obtain registration and the expense to grower organisations to obtain registration is significant over the small production base.
Passionfruit require a vine support structure. The traditional structure was a vertical fence. They are increasingly being grown on A-frame structures, which have been achieving very good yield performances under good management and in good sites. A further advantage of the A-frame is that it shades the ground, so reduces losses from sunburn of the fallen fruit, and enables less frequent collecting of the fruit. The A-frame is significantly more costly to erect than the traditional fence.
New Zealand citrus is being promoted more heavily on the domestic market. Television advertising commenced last year and this has given strong and increasing demand for fresh and pure orange juices. As well, returns have lifted for fruit that is basically reject grade but can be processed.
Some of the larger persimmon growers are planning to do more promotion of their fruit on the local market. They feel that if they market a quality product, returns are likely to increase. The fruit has met with a stronger demand in recent years as the number of immigrants and visitors from Asia has increased.
There is demand for feijoas for processing, and orders were filled this year in contrast to undersupply in some years. Processors tend to deal with a grower group to help organise adequate tonnage. The feijoa industry has a commodity levy which raises about $20,000/year to help fund industry programmes, but is battling to get levies passed on from one exporter. On the domestic market, work with supermarkets over the past couple of seasons on handling and maturity of feijoas is now being followed with a direct focus on consumers. Various research projects are underway on fruit attributes, processing, variety characteristics and control of the guava moth.
The avocado industry is concerned about the lack of a level III quarantine facility to use when importing new plant material into New Zealand. They feel this is a significant issue for all the fruit industries. The industry wants to import new rootstock and scion varieties for assessment.
Feijoa growers are concerned about the recently arrived pest, guava moth. Organic sprays do not control the moth. The impact of guava moth on commercial orchards has been minimal to date, but growers are concerned about future levels and spread of the pest, particularly the impact on export market access and meeting organic production standards.
New plantings of feijoas are being made and some of the new orchards are larger than typical current orchards. There is increasing demand for organic feijoas both for fresh export sale and for processing. Organic production of the fruit is relatively achievable where guava moth is not present, as sprays allowed under organic production rules control the key caterpillar and scale insect pests.
Both tamarillos and passionfruit are precocious but short-lived crops. There is a significant turnover of growers as they do not all re-plant after the first crop finishes producing. Tamarillos are sometimes grown in between young avocado trees providing revenue during the establishment period for avocados.
Virus causing mottling of the fruit surface and reducing tree productivity is a key issue for tamarillos and plantings are often replaced after four years. Virus mottling reduces potential export packout to very low levels, sometimes around 10%.
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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