Key Points
Physical Factors
Table 1: Long-term Average and Seasonal Berryfruit Yields (t/ha)
Financial Factors
Table 2: Gross Margins
Issues and Trends
Table 3: Berryfruit Industry Statistics

Export Berryfruit

This section comments on export berryfruit crops grown throughout New Zealand. They are grown mainly in Auckland, Waikato, Horowhenua, Nelson and Canterbury.

Key Points

Most berryfruit crops have struggled to achieve targeted high performance levels on a consistent basis because of adverse weather effects over past seasons.
The blackcurrant industry is managing to sell increased production from a planted area that has almost doubled over the last 5 years, and has the potential to profitably sell further increased production as new plantings mature.
The fresh blueberry industry is experiencing strong competitive pressure on returns, as has been predicted for some time.
New variety development is seen as a key factor across all industries, so the availability and cost of the use of quarantine facilities are seen as bottlenecks to continued industry viability and development.
The blueberry, boysenberry and blackcurrant industries are supporting a HortResearch programme investigating the functional aspects of berryfruit in relation to human health.

Physical Factors

Climate

Waikato blueberry growers experienced frost events in spring 2003, but the effect on the 2004 yield was not as severe as the spring frosts in 2001 and 2002. Winter chilling was adequate, resulting in even bud break and flowering. The wettest February on record for blueberry growers resulted in high levels of berry splitting and soft berries for later harvested varieties.

Blackcurrant crops performed well, under favourable weather conditions. Raspberry growers experienced cool spring conditions that reduced flowering levels.

For strawberry growers, very wet ground conditions at planting for the 2003/04 crop and subsequent wet weather after planting, resulted in significant levels of root rot problems.

Dry conditions towards the latter part of the 2002/03 boysenberry season had a flow-on effect of curtailing the length of the harvest period and reducing yield in 2003/04. Harvest commenced 10-14 days later than usual, but was completed only 7 days later than usual. In Nelson, high winds and localised hail in the latter part of the harvest season resulted in increased berry damage.

Production

Yield on processed blueberry blocks was reduced by around 15%, from 2.85 tonnes/ha to 2.5 tonnes/ha, due to wet conditions in February and the effect of blueberry rust. Rust is expected to continue to reduce production in the future. This disease was identified in a New Zealand blueberry planting in January 2004 and quickly made its presence felt. Worst-affected varieties were completely defoliated in the mid-growing season and canopy cover was not re-established. Effects range from apparently unaffected to severely affected, over the range of varieties. It is anticipated that severely affected varieties will have significantly reduced production potential in the following growing season. The Woodard variety has been removed by a large-scale process grower, because it is most prone to adverse effects from rust infection.

The effect of wet weather on strawberry plant health resulted in plant death from root rot, and a reduction in yield from surviving plants because of smaller fruit size. Growers estimate a 12% reduction in yield on average.

Blackcurrant growers experienced good conditions at flowering and harvest. Industry average yield is increasing as a result of the new production contributed from maturing plantings of high productivity varieties. Indicative industry production was 6,000 tonnes for 2002/03, 7,800 tonnes for 2003/04 and estimated to be10,000 tonnes or more for 2004/05.

Boysenberry growers with plantings of high productivity varieties, including Tasman and Mapua, are achieving higher than industry average yield, in the order of 20 tonnes/ha, compared with the long term industry average of 15 tonnes/ha. Industry average yield was reduced in 2003/04 due to the shorter harvest season and wind and hail damage towards the end of harvest.

The strawberry industry expects to see a reduction plant numbers and therefore planted area in 2004/05. Industry estimates for 2004 plant sales are 12-13 million plants, a 15% reduction on the16 million plants sold in 2003. A key factor in the reduced number of plants available is the failure of nursery plants grown in the Ohakune area to produce sufficient daughter plant material for replanting, due to a cool wet growing season. Within the reduced volume of plant material available for strawberry planting, the variety Pajaro has reduced in volume from 53% of material sold to 41% of material sold. Relatively, the variety Camarosa is increasing in popularity.

Raspberry growers are suffering the significant effect of plant material that is not true-to-type. Yields from blocks planted with the affected material are about 30% of the industry average yield of 6 tonnes/ha, or less.

Table 1: Long-term Average and Seasonal Berryfruit Yields (t/ha)

Crop	Long-term Average	2001/02	2002/03	2003/04
Blueberries	6.0	5.4	5.8	5.4
Strawberries	23.0	24.0	26.0	22.8
Raspberries	6.0	4.8	6.0	5.4
Boysenberries	15.0	8.25	15.0	12.75
Blackcurrants	5.0	3.6	6.4	6.8

Sources: NZ Berryfruit Growers' Federation Inc, Strawberry Growers New Zealand,
Blackcurrants New Zealand Ltd and NZ Boysenberry Council

Financial Factors

Revenue

New Zealand remains a net frozen blueberry importer. Demand for frozen blueberries both within New Zealand and offshore remains high, and returns for frozen blueberry product have further improved to $4.80/kg.

Fresh blueberry returns average $13/kg, down on the industry average of $14.80/kg in 2002/03. The later season fresh price has been further eroded this year, mainly because of competitive supply to North American buyers from Chile at a lower price, and at a similar or better quality level than New Zealand supply. Competitive supply from Chile continues to be a significant threat to the long-term viability of New Zealand fresh blueberry exports.

Strawberry growers achieved improved export prices to around $6/kg for export production.

Boysenberry average price has improved slightly, mainly because of the increased proportion of crop processed as block frozen, Individually Quick Frozen (IQF) and puree, as opposed to the relatively low value juice concentrate sector of the market, rather than an absolute change in the price paid per unit for these product types.

Raspberry prices are steady, and New Zealand remains a net importer of raspberry product.

Expenditure

Growers do not report any significant increases in the cost of inputs.

Labour remains a challenge, with growers struggling to obtain sufficient labour for manual harvest of crops. In Nelson, a machine has been developed for commercial winter training of boysenberry canes. While this is not anticipated to save costs, it will overcome the requirement for manual training of canes by field workers.

Strawberry growers report higher costs per tonne of strawberries produced, as a consequence of the reduced yield and fruit size flowing on from wet weather effects. The highly labour-intensive nature of the industry means that on a per unit throughput basis, harvest and packing costs have been higher, because of the lower volume to handle and the lower level of packout. Labour costs are estimated to have been 8% higher per tonne for 2003/04 as a result of reduced yield and fruit size.

For both the boysenberry and blackcurrant industries, economies of scale continue to be a significant factor for business viability. Small-scale growers are retiring from the industries. Planted area is not declining because of expansion by existing larger scale growers.

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. The gross margin 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.

Table 2: Gross Margins

Crop	Product Type	2001/02 ($/ha)	2002/03 ($/ha)	2003/04 ($/ha)	Change (%)
Strawberries	Fresh	16,105	17,949	23,723	+32
Blueberries	Fresh	26,518	29,672	20,781	-30
Blueberries	Frozen	5,369	5,515	6,805	+23
Boysenberries	Frozen	1,371	8,046	6,461	-19
Raspberries	Frozen	5,597	8,568	7,356	-14
Blackcurrants	Frozen	3,317	4,570	3,865	-15

Sources: NZ Berryfruit Growers' Federation Inc and Strawberry Growers New Zealand

Issues and Trends

As predicted by the blueberry industry, the challenge of profitably selling the increased volume of fresh blueberries in the marketplace is becoming increasingly difficult. Head-to-head competition from Chilean exporters in the same selling season from December to late February (and even into March, when New Zealand has traditionally achieved very good prices) has impacted on grower returns.

The main competitors' product is also improving in quality, and is now of similar or better quality than New Zealand fruit in the same marketplace. Blueberries New Zealand (Inc) is working to develop varieties with firmer fruit and better flavour characteristics. Growers recognise that if some competitive advantage cannot be maintained, then the future for blueberries as a hand-picked small berry-size crop, with high production and marketing costs, could be threatened.

The other issue of significance for the blueberry industry is the arrival in New Zealand of blueberry rust. It is likely that this unwanted organism was windborne from Australia. Experience in 2003/04 indicates a range of varietal susceptibility. The disease is predicted to eventually spread throughout blueberry plantings in New Zealand. Most severely affected varieties experience complete defoliation, and the canopy is unable to re-establish during the growing season. The consequences are unknown, but are predicted to be significantly reduced yield on affected varieties in subsequent years. Initial chemical control trial treatments were largely unsuccessful. The industry has a research programme planned to trial a range of strategies for disease control. The long-term solution is likely to be breeding of varieties with either rust tolerance or resistance.

A major concern for berryfruit industries is the ability to cost-effectively access new parent plant material for New Zealand breeding programmes and variety evaluation programmes. The new HortResearch level three quarantine facility in Palmerston North is designed primarily for kiwifruit and apples. At a cost of $6,000 per accession for material to be quarantined at this facility prior to release, affordability is a significant issue for smaller industry groups. Given the fact that new variety development is seen as a key factor across all industries, the availability and cost of the use of quarantine facilities are seen as bottlenecks to continued industry viability and development.

The blueberry industry is continuing to attempt to import new varieties from the West Coast of the United States (US) to use in the New Zealand blueberry breeding programme, but has found the process frustratingly slow. The identification of these varieties was not because of their rust tolerance or resistance, but for other desirable characteristics likely to be compatible with New Zealand breeding needs and production systems. However, the likely tolerance or resistance of such varieties to rust would have had significant benefit for the industry right now. The delay in obtaining this material is expected to have a significant financial impact on growers and the industry as a whole, as they struggle to overcome rust effects.

The major issue of concern to strawberry growers continues to be the reduced availability of methyl bromide for ground fumigation. In 2003, both strawberry fruit growers and strawberry plant propagators have applied to the Ministry for Economic Development for methyl bromide critical use exemptions. These applications have been agreed by the Minister of Economic Development and lodged with the Montreal Protocol Secretariat, with growers now awaiting the Secretariat's decision. Australian strawberry plant propagators and fruit growers, and US strawberry fruit growers have received methyl bromide critical use exemptions through to 2005, giving them a significant competitive advantage over New Zealand growers.

Under the wet weather conditions experienced in 2003/04, the alternative fumigant gas mix, Telone C 35, was less effective at maintaining disease control in strawberry gardens than the industry standard mix of methyl bromide and chloropicrin.

The strawberry industry is focused on long-term sustainability. The current production system involving soil sterilisation, the use of polythene, high levels of cultivation of soils, and relocation to new sites once existing production sites are rendered unsuitable, raise significant concerns about environmental and financial sustainability for growers. Growers recognise the high costs of production associated with the existing system, but do not have any ready solutions.

Strawberry growers continue to fund research programmes, with a successful Sustainable Farming Fund programme for fruit rot control, and a proposed joint research programme with Australian researchers on root rot disease control.

Strawberry Growers New Zealand has been able to rationalise the royalty systems it pays on new plant material with offshore variety owners, particularly the University of California. This restructured royalty system allows for better industry planning for utilisation of funds, and a better ongoing relationship with international developers of new strawberry variety material.

The boysenberry industry continues to consolidate the number of growers, although slow expansion of planted area by established growers continues. Boysenberries are an inherently disease-susceptible fruit. Because of this, the current disease control programme applied by the industry will be under severe challenge in the event of another wet growing season. While the industry is interested in integrated fruit production programmes, there is little scope to reduce the number of fungicide applications per season, particularly in wet seasons.

Boysenberry decline disease has been confirmed in Hawke's Bay. The industry now has a good understanding of this disease and its control, so it is no longer the critical issue that it was previously.

Worldwide production of boysenberries has declined dramatically in the last 2 years with New Zealand now supplying about 60% of world production. The risk to the industry is that if supply is not further increased, boysenberry may be lost as a single identity flavour. Once US processors move to a blended berryfruit flavour not dependant on boysenberry, it would be very difficult to re-establish boysenberry as a flavour. Expansion of planted area in 2004 will be limited because of an issue with trueness-to-type for new plant material available for planting in 2004 and 2005.

The boysenberry industry is also actively supporting the successfully funded Foundation for Research, Science and Technology project on healthful berries, which is a project focused on a range of New Zealand grown berryfruit as functional foods for health. This project is also directly supported by the blackcurrant and blueberry industries. The programme is expected to be of advantage in developing higher value market opportunities.

The increase in planted area and increasing production from the blackcurrant industry is being profitably sold. There has been a significant investment in marketing in Japan, with the intention of using this as a springboard for further market development in other Asian countries. The programme has achieved some success to date, with indications of good potential for further sales.

This Japanese market development is based on the health benefits of blackcurrants, particularly focusing on antioxidants and, specifically, the very high level of anthocyanins demonstrably found in New Zealand blackcurrants. While indications are positive, the industry considers expansion potential should be market driven.

The raspberry industry in New Zealand continues to struggle. There is very little industry structure, so no research and development is carried out on an industry-wide basis. Several key growers have taken a unified approach to research and development on a private basis. This has resulted in the continued development of new raspberry material.

Table 3: Berryfruit Industry Statistics

Crop	Area (ha)			Grower Numbers
	2002	2003	2004	2002	2003	2004
Blackcurrants	1,000	1,325	1,450	48	49	50¹
Blueberries	N/A	N/A	N/A	-	80²	81²
Boysenberries	197	210	210³	55	55	55³
Raspberries	220	225	225	70	65	60⁴
Strawberries	292	246	220⁵	130	125	120⁵

Sources: ¹Blackcurrants New Zealand Ltd estimates, ²Blueberries New Zealand (Inc), ³NZ Boysenberry Council estimates, ⁴Raspberry grower estimates, ⁵estimate based on plant sales figures, 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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