Hawke's Bay Pipfruit
Model Description
Hawke's Bay is the largest pipfruit-producing district in New Zealand, exporting 50% of the country's pipfruit crop. Most orchards have a mixture of pipfruit varieties and are run by owner-operators.
The model orchard covers 15 planted hectares (ha) consisting of 11.5 ha owned and 3.5 ha leased. In previous years it was assumed that 100% of the model orchard was owned. This change reflects the current situation in the pipfruit industry.
Note: This report has been prepared using a 31 December balance date, whereas previous reports used a 30 June balance date. The previous system made year-to-year financial comparisons difficult.
Table 1: Key Parameters
1999/2000 |
2000/01 |
2001/02 |
2002 |
2003 |
2004f | |
Area available for pipfruit (ha) |
13.0 |
15.0 |
15.0 |
18.8 |
18.8 |
18.8 |
Planted area (ha) |
9.2 |
12.0 |
12.0 |
15.0 |
15.0 |
15.0 |
Total TCE |
28,151 |
31,497 |
36,844 |
45,528 |
45,200 |
47,636 |
Export TCE |
17252 |
19,604 |
24,056 |
32,073 |
32,422 |
33,988 |
Weighted average price ($/TCE) |
11.11 |
11.61 |
12.30 |
16.38 |
15.9 |
14.9 |
Cash orchard revenue ($) |
223,914 |
378,294 |
422,741 |
748,264 |
721,455 |
716,730 |
Cash orchard surplus ($) |
-20,246 |
3,610 |
27,076 |
210,504 |
140,997 |
97,680 |
Cash disposable profit ($) |
-69,686 |
-47,047 |
-16,355 |
71,094 |
-31,195 |
-21,495 |
Key Points
- The 2003 year was another good year for the pipfruit industry with an average crop able to be sold at profitable grower returns.
- The demand for New Zealand apples continues to be strong due to poor Northern Hemisphere crops.
- The appreciating exchange rate is the biggest single issue facing New Zealand growers. Returns in 2004 are forecast to continue to decrease due to this single factor alone.
- The 2003/04 growing season was above average with good heat and rainfall at regular intervals. Fruit volume, size and quality are all expected to be above average in 2004.
- National export volumes are predicted to achieve a record 20.6 million cartons in 2004.
Physical Factors
Climate 2002/03
The climate for the 2002/03 growing season was characterised by an abnormally warm September with above average rainfall followed by cold conditions in October, November and January. December temperatures were average. October and December received average rainfall while January was very dry.
A series of damaging frosts occurred between late-September and mid-October, with a particularly damaging frost on the morning of 5 October 2002. This frost caused severe damage to fruit-set on earlier flowering varieties where frost protection was inadequate. Among the various apple varieties, Braeburn was most affected, with many growers reporting large reductions in the crop for the 2002/03 season. Later flowering varieties compensated for the frost losses by setting heavily on lateral bud of one-year wood.
Chemical thinners performed poorly on this type of wood and low temperatures over the chemical thinning period further reduced their effectiveness, leading to a 14% increase in hand thinning costs per hectare.
Lateral bud, one year wood fruit does not size well and, with the additional impact of lower than average temperatures over the critical cell division period, this made 2002/03 a small fruit size year.
Cooler temperatures over summer led to less sunburn damage than usual.
Weather conditions through harvest were good, giving a smooth harvest with higher than average packouts. Spring frosts caused severe damage to competing summerfruit crops, leading to strong local market returns for early apples.
Applications of Kaolin based sunburn-protecting sprays caused some packing issues due to the difficulty of removing its residue from the fruit in the packing line.
Climate 2003/04
Autumn 2003 was mild and these conditions continued into the early part of the winter. July and August were colder than recent years resulting in a better level of winter chilling. Cold late winter temperatures improved ovule longevity and this subsequently led to very heavy fruit set.
The warm September allowed rapid and strong bud break. October was cool, November slightly below average and December and January considerably warmer than average, to give heat units over the September to January period 8% above the long-term average. Spring growing conditions were perhaps better than the growing degree-day (GDD) data suggests. For the critical cell division period, following blossom, the nights were cool and day temperatures warm and sunny giving ideal conditions for apple fruit-let development. Consequently, this year Hawke's Bay apples are much longer in size and more "crowned" than normal.
September and December received four times their average rainfall while October, November and January received normal rainfall. This resulted in total rainfall for the period between September and January being 80% above the long-term average for the same period.
Much of December and January was cloudy and humid leading to warm nights and only moderately hot days. By the end of January sunburn problems were less than usual. However, fruit colour development lagged behind other maturity parameters. This warm, cloudy weather continued into February.
Some blocks showed signs of water logging in spring and as a result fruit set for these areas was not as good as expected. However, generally ideal fruit set conditions during October and November resulted in very heavy fruit set.
Orchards affected by frost in 2002 had the potential to produce very heavy "on" crops this year. Although these orchards were aggressively thinned with chemicals, fruit set was still heavy, leading to increased hand thinning costs estimated to be up 5% on last season.
Hailstorms have caused very little loss, to date, this season. Several cold nights in early October caused damage in low-lying areas without frost protection, resulting in russet ocurring rather than big losses of fruit.
The wet, early spring allowed black spot to become established on some orchards.
The relatively cold spring and warm, early summer has favoured the establishment of mites and woolly apple aphid (WAA) with many orchards needing insecticide application for these pests, even though in the case of WAA there were high predator populations.
The wet summer favoured young orchard establishment with newly planted blocks showing good tree establishment and growth.
Table 2: Hawke's Bay Weather Data
2002/03 mm rain |
2003/04 mm rain |
Average mm rain |
2002/03 (GDD) |
2003/03 (GDD) |
Average (GDD) | |
September |
53 |
133 |
32 |
107 |
97 |
49 |
October |
23 |
26 |
24 |
98 |
92 |
110 |
November |
54 |
56 |
61 |
129 |
138 |
147 |
December |
27 |
78 |
25 |
229 |
244 |
225 |
January 2004 |
12 |
60 |
56 |
227 |
275 |
254 |
Total |
169 |
353 |
198 |
790 |
846 |
785 |
Source: HortPlus (Whakatu weather station)
Production
Since industry deregulation, accurate areas and production data have been difficult to obtain. In the absence of industry wide data, several data sources have been combined to produce estimates for this report.
2003
Model orchard production in 2003 was very similar to the previous year with slight reductions in Braeburn, Fuji, Pink Lady and Pacific Beauty being balanced by increases in Royal Gala, Pacific Rose and Pacific Queen.
Hawke's Bay regional estimates for the 2001/02 export crop show Royal Gala up 7% and Braeburn down 10%. Respective figures for the MAF model were 10% and 6% indicating the drop in Braeburn export production for the model orchard was less than for the region as a whole, but the lift in Royal Gala was a little more.
Average fruit size of Royal Gala was estimated to be 127, down from 112 in 2001/02 and the smallest for many years, as a result of the cooler growing season and increased crop loads. The small fruit size was a factor in the reduced FAS return for Royal Gala, which fell from $23.85 in 2001/02 to $21.42 in 2003.
Fruit finish and colour were above average for this crop resulting in an overall packout lift of 2%, to 72%.
2004
Model orchard export production is forecast to increase by 5%. Pacific Beauty is forecast to increase 83% due to its plantings beginning to approach mature orchard production levels. Braeburn, Pacific Rose and Pink Lady are all expected to increase by 12%, while Fuji is forecast to increase by 9%. Royal Gala is forecast to decrease by 4%, and Pacific Queen by 5%.
Regional estimates indicate the Braeburn export crop will increase by 32% on 2003's crop, assuming similar average packouts to 2003. Regional production of Royal Gala is estimated to be down about 6%.
To date, the growing season has been favourable and growers are forecasting similar packouts to the previous year.
Royal Gala fruit size is forecast to be larger than the previous year even though early season heat units were similar. Big price differentials in favour of large fruit size in this variety have caused growers to thin harder and reduce crop loads to increase fruit size at harvest. The requirements for larger fruit size, and concerns about harvest labour, have increased the use of Retain® which delays harvest by between 7 and 14 days, and can increase average fruit size by between 1 and 2 mm.
The heavy Braeburn crop load may reduce average fruit size and also delay harvest.
The Pacific Rose leaf necrosis problem is much more severe this season, indicating that when long periods of warm cloudy weather occur which favours its expression, the zinc nutrition programme is unable to control the disorder.
District pear crops are heavy due to the very light crops in 2003.
Table 3: National and Hawke's Bay Export Pipfruit Crop (million cartons)
Year |
National Crop |
Hawke's Bay Crop |
1999 |
17.7 |
8.9 |
2000 |
19.8 |
10.3 |
2001 |
14.5 |
7.7 |
2002 |
18.5 |
9.5 |
2003 |
18.1 |
9.2 |
Source: NZ Pipfruit |
Financial Factors
2003 Review
Revenue
Gross orchard revenue for the model orchard in 2003 was $721,500, down 4% on 2002. Export production was 32,400 tray carton equivalents (TCE's), slightly up on 2002. The decline in gross revenue is due to a decrease in average export returns from $22.14/TCE to $21.17/TCE (see table 4). The lower export return was primarily due to a stronger NZD/USD and smaller fruit size, particularly for Royal Gala. Although revenue is down in comparison to 2002, it is still good in comparison to the previous five-year average (see table 4).
Despite the average export return being down approximately $1.00/TCE, Braeburn achieved its best return for years at $20.08/TCE. This was due to a strong market for this variety and a generally smaller New Zealand crop due to frost in Hawke's Bay and hail in Nelson.
Table 4: Average FAS Export Returns ($/TCE)
Variety |
1999 |
2000 |
2001 |
2002 |
2003 |
Braeburn |
12.70 |
14.95 |
18.39 |
18.00 |
20.08 |
Granny Smith |
12.06 |
27.60 |
23.19 |
20.88 |
20.37 |
Royal Gala |
18.04 |
15.55 |
19.69 |
23.85 |
21.42 |
Fuji |
19.61 |
20.91 |
23.65 |
27.79 |
24.72 |
Pacific Rose |
16.82 |
19.71 |
20.96 |
22.16 |
17.82 |
Pink Lady |
25.75 |
19.97 |
25.25 |
28.74 |
26.99 |
Total apples |
15.96 |
16.30 |
19.75 |
22.14 |
21.17 |
Source: ENZA
Expenditure
Cash orchard expenditure increased in 2003 to $551,583, or $17.01/export carton. This is an increase on 2002 on a per hectare and per carton basis. The major increases have occurred in wages and post harvest costs. Operating and administration costs have remained stable.
Orchard wages have increased by 10% to $150,469 (up $4.64/export TCE). All wage categories have increased, i.e., pruning, thinning, and harvesting, reflecting the increases in rates that are being paid to attract orchard staff. With general labour shortages, the costs of labour have increased.
Post harvest costs have increased by 7% to $289,559, or $8.93/export carton. Packing and packaging costs both increased, while coolstorage and freight remained stable. Packhouses lifted their charges to process a 400 kg bin to approximately $55.00, as their costs of labour and capital also increased. Packaging increases came from the cardboard manufacturers and have been passed onto growers at cost.
Net Result
2003 delivered a satisfactory net result with the model achieving a net trading profit of $120,087. Although this is down on the $173,784 achieved in 2002, it is still well above the average of the last five years.
With increased profitability in 2002 and 2003, taxation payments have increased dramatically from $17,190 to $52,908. Growers have also increased their spending on drawings (up 19%), and capital purchases (up 48%). Development expenditure remains constant and principal repayments, although significant, have declined from 2002.
Off-orchard income and other cash income are both down significantly from $54,948 in 2002 to $29,310 in 2003. The high figures in 2002 were primarily due to sales of ENZA shares, which was a one-off sale. It would also appear that spouses are working less off-orchard as orchard profitability increases.
2004 Forecast
Revenue
In 2004, the Hawke's Bay pipfruit model is forecasting a large crop of nearly 34,000 export cartons, an increase of 5% on 2003. This is equivalent to 2,266 export cartons/planted hectare. Fruit size will also be larger than 2003, which would normally result in better export returns.
However, the model orchard panellists are forecasting a drop in export returns of 5% from $21.17 to $20.03/export carton on average. This reduction is due to the appreciating exchange rate, as demand for the fruit is strong and in-market returns are expected to remain good (see table 5).
Northern Hemisphere carry-over stocks are lower than in 2003 and their fruit quality is low due to a heat wave during their 2003 harvest.
Table 5: Foreign Exchange Rates
2003 Selling Season Average |
February 2004 |
% Increase | |
NZD/USD |
0.58 |
0.68 |
17.2 |
NZD/EUR |
0.51 |
0.54 |
5.9 |
NZD/GBP |
0.35 |
0.36 |
2.9 |
Source: National Bank NZ
Expenditure
Cash orchard expenditure is forecast to increase again in 2004 to $588,000 ($39,000/ha and $17.30/export carton), an increase of 7% on 2003. This is partly due to cost increases associated with higher production, together with increases in packing (from $3.27 to $3.42/export carton), packaging (from $3.63 to $3.75/export carton) and cool storage (from $1.78 to $1.90/export carton).
All other costs are forecast to remain stable.
Net Result
Net trading profit is forecast to be $76,000 in 2004, only 11% of gross orchard revenue. This is significantly below the net trading profits that have been achieved in the previous two years.
With allowance for drawings, principal repayments, and development and capital, the orchard is projected to have a disposable deficit of $21,000. However, off-orchard income will balance that position to achieve a positive net cash change of $6,000.
Hawke's Bay Pipfruit Profitability Trends
Issues and Trends
The good pipfruit returns experienced over the last two seasons have restored confidence in the industry. The decline in pipfruit planted areas experienced over the period 1998 to 2002, when Hawke's Bay planted areas fell from 7,950 ha to 6,200 ha, has now ceased.
Orchard and bare land values have both increased in the last 18 months, from $40,000 to $50,000/ha for bare land, and from $45,000 up to $80,000/ha for planted pipfruit orchards. The industry is now in expansion mode. At present, a shortage of nursery trees is the limiting factor for expansion.
The high orchard prices are seen by some older growers as an opportunity to exit the industry on favourable terms. Often these properties are purchased by adjacent pipfruit growers who then amalgamate the titles clearing the way for surplus buildings to be subdivided off and sold. The effect of this is to reduce the level of over-capitalisation in the industry caused by owning dwellings no longer required by the orchard business.
There is a marked trend towards intensive planting on dwarfing rootstocks at densities approximately two to three times the semi-intensive tree densities that were the norm in the past. This increased tree density is having a marked impact on the demand for apple trees. Varieties being planted are Royal Gala, Granny Smith, Fuji and JazzTM, Pink Lady and process pears. There is also renewed interest in planting Braeburn.
Some growers are expressing concern about the increasing volume and polarisation of production towards Royal Gala. With the poor performance of the Pacific series, and untested nature of newer varieties such as JazzTM and TentationTM, planting these varieties is high risk, so risk averse growers are planting Royal Gala, Fuji, Granny Smith and Braeburn.
Growers continue to be disappointed with the performance of the Pacific series varieties. These suffer from low and erratic yield, russet, storage problems, handling difficulties, and are not receiving sufficient returns to compensate producers for these production difficulties. A number of blocks of Pacific Rose, in particular, have been removed.
The industry has now completed two selling seasons under deregulated export market conditions. To date, pipfruit growers view the deregulated market positively in that it offers freedom of choice and the opportunity to explore "niche" markets that were unavailable to them prior to deregulation.
Competition among exporters for supply, and among on-shore logistics companies, has improved grower returns. Comparison of export packouts among the model orchard panellists for the last four years shows that the export content of their crops has increased from 61-62% to 70-72% after deregulation.
It should be noted that, to date, export market conditions for pipfruit have been favourable due to Northern Hemisphere under-supply, and a relatively weak but rising NZD/USD exchange rate. Deregulation is yet to be tested under adverse marketing conditions.
Pipfruit growers also continue to express a number of concerns about the deregulated market. These include:
- lack of industry cohesion and market co-ordination;
- too many exporters with risk of weak selling due to competition among them;
- weakening of quality standards for New Zealand fruit, tarnishing its image abroad; and
- market access issues through poor co-ordination and phytosanitary procedures among exporters.
Pipfruit growers were generally satisfied with the performance of their exporters and are likely to remain loyal to them, apart from shifts towards better performances for "niche" varieties such as the Pacific series, or small fruit. The move away from ENZA has now almost ceased, with ENZA continuing to market around 42% of the crop, which is a similar level to 2001/02 season. Indications for the 2003/04 season suggest a tendency away from rather than towards ENZA in regard to the proportion of the crop a particular grower may supply.
The rising NZD/USD exchange rate is by far the most important issue impacting on grower returns in the immediate future. The strong export market and rise of European currencies against the USD will cushion some of the effect because freight costs are paid in USD, so relative to market price will fall for fruit sold in non-USD trading markets. Returns for fruit sold in USD in markets such as the US, and most of Asia will suffer much greater loss of returns from the high NZD/USD. Diversion of fruit away from these markets to those with stronger currencies could disrupt orderly marketing in those markets, as well as destroy customer confidence in areas that lose access to supply.
Increasing government costs and taxes are of real concern to fruit growers. Many of these are viewed as an unnecessary burden on small orchard businesses. Other issues involving the government include visa policies in regard to overseas worker work permits. Many in the industry consider the work ethic of these people to be superior to those of the New Zealand unemployed. There is a growing realisation that this industry relies on the availability of overseas visitors to harvest and pack the crop.
Pipfruit production is labour intensive. Access to a satisfactory labour pool is a major problem for the industry. There is still a shortage within the industry particularly in regard to permanent staff and middle management. Seasonal staff are becoming more difficult to obtain and often lack motivation and a satisfactory work ethic. This is a big problem for both hand thinning and harvest.
Phytosanitary issues and market access, including food safety certification, are areas where continuing government support is viewed as necessary. EurepGapTM and other compliance costs are seen as adding beaurocratic burden to the pipfruit industry in its present fragmented marketing climate. Administration of such schemes is adding to the overheads having to be carried by pipfruit growers.
Increased overheads and rising costs beyond grower control continue to squeeze margins. Growers with long-term commitment to the industry are responding by expanding their production base by either leasing established orchard, long term leasing of bare land for orchard development, or purchasing established orchards or land. These growers are also embarking on orchard redevelopment to replace lower performing varieties such as the Pacific series, older poorly coloured Royal Gala, pears or summerfruit with modern intensively planted apple orchards.
Smaller pipfruit growers are expressing concern about the shift in voting power within the industry towards corporate and larger growers as larger operators continue to expand.
Growers are becoming concerned about the impact China may have on their markets, and also how new technologies such as "SmartfreshTM" may affect them. SmartfreshTM is a chemical that slows the maturation process giving longer storage life, and Northern Hemisphere growers the ability to market fruit into the traditional New Zealand market window.
Hawke's Bay Pipfruit Budget
|
2003 |
|
2004f |
||||||
|
Whole |
per |
per |
per |
|
Whole |
per |
per |
per |
Revenue |
|
|
|
|
|
|
|
|
|
Gross pipfruit income |
718,815 |
47,921 |
15.90 |
22.17 |
|
712,455 |
47,497 |
14.96 |
20.96 |
Other orchard income |
2,640 |
176 |
0.06 |
0.08 |
|
4,275 |
285 |
0.09 |
0.13 |
Gross orchard revenue |
721,455 |
48,097 |
15.96 |
22.25 |
|
716,730 |
47,782 |
15.05 |
21.09 |
Cash orchard expenditure |
551,583 |
36,772 |
12.20 |
17.01 |
|
587,959 |
39,197 |
12.34 |
17.30 |
Interest |
13,830 |
922 |
0.31 |
0.43 |
|
17,426 |
1,162 |
0.37 |
0.51 |
Rent and/or lease |
15,045 |
1,003 |
0.33 |
0.46 |
|
13,665 |
911 |
0.29 |
0.40 |
Cash orchard surplus |
140,997 |
9,400 |
3.12 |
4.35 |
|
97,680 |
6,512 |
2.05 |
2.87 |
Depreciation |
20,910 |
1,394 |
0.46 |
0.64 |
|
21,300 |
1,420 |
0.45 |
0.63 |
Net trading profit |
120,087 |
8,006 |
2.66 |
3.70 |
|
76,380 |
5,092 |
1.60 |
2.25 |
Taxation |
52,908 |
3,527 |
1.17 |
1.63 |
|
15,955 |
1,064 |
0.33 |
0.47 |
Net trading profit after tax |
67,179 |
4,479 |
1.49 |
2.07 |
|
60,425 |
4,028 |
1.27 |
1.78 |
Allocation of Funds |
|
|
|
|
|
|
|
|
|
Add back depreciation |
20,910 |
1,394 |
0.46 |
0.64 |
|
21,300 |
1,420 |
0.45 |
0.63 |
Drawings |
57,229 |
3,815 |
1.27 |
1.77 |
|
47,580 |
3,172 |
1.00 |
1.40 |
Principal repayments |
21,810 |
1,454 |
0.48 |
0.67 |
|
9,120 |
608 |
0.19 |
0.27 |
Development |
10,275 |
685 |
0.23 |
0.32 |
|
20,000 |
1,333 |
0.42 |
0.59 |
Capital purchases |
29,970 |
1,998 |
0.66 |
0.92 |
|
26,520 |
1,768 |
0.56 |
0.78 |
Disposable surplus/deficit |
-31,195 |
-2,080 |
-0.69 |
-0.96 |
|
-21,495 |
-1,433 |
-0.45 |
-0.63 |
Other Cash Sources |
|
|
|
|
|
|
|
|
|
Off-orchard income |
19,125 |
1,275 |
0.42 |
0.59 |
|
18,585 |
1,239 |
0.39 |
0.55 |
Other cash income |
10,185 |
679 |
0.23 |
0.31 |
|
8,685 |
579 |
0.18 |
0.26 |
Net cash change |
-1,885 |
-126 |
-0.04 |
-0.06 |
|
5,775 |
385 |
0.12 |
0.17 |
Assets and Liabilities |
|
|
|
|
|
|
|
|
|
Land and building (opening)* |
1,021,845 |
88,856 |
22.61 |
31.52 |
|
1,138,545 |
99,004 |
23.90 |
33.50 |
Plant and machinery (opening) |
66,645 |
4,443 |
1.47 |
2.06 |
|
72,525 |
4,835 |
1.52 |
2.13 |
Total orchard capital |
1,088,490 |
72,566 |
24.08 |
33.57 |
|
1,211,070 |
80,738 |
25.42 |
35.63 |
Total debt opening |
192,291 |
12,819 |
4.25 |
5.93 |
|
198,572 |
13,238 |
4.17 |
5.84 |
Equity (orchard assets-liabilities) |
896,199 |
59,747 |
19.83 |
27.64 |
|
1,012,498 |
67,500 |
21.25 |
29.79 |
* Land and building value does not include value of leased land. Therefore, per hectare value is: total value/area of owned land.
|
2003 |
|
2004f |
|||||||
|
Whole |
per |
per |
per |
|
Whole |
per |
per |
per |
|
Orchard Working Expenses |
|
|
|
|
|
|
|
|
|
|
Wages |
|
|
|
|
|
|
|
|
|
|
Pruning |
21,720 |
1,448 |
0.48 |
0.67 |
|
21,345 |
1,423 |
0.45 |
0.63 |
|
Thinning |
31,695 |
2,113 |
0.70 |
0.98 |
|
33,300 |
2,220 |
0.70 |
0.98 |
|
Harvesting |
79,099 |
5,273 |
1.75 |
2.44 |
|
85,269 |
5,685 |
1.79 |
2.51 |
|
Other |
15,075 |
1,005 |
0.33 |
0.46 |
|
17,985 |
1,199 |
0.38 |
0.53 |
|
ACC |
2,880 |
192 |
0.06 |
0.09 |
|
3,705 |
247 |
0.08 |
0.11 |
|
|
150,469 |
10,031 |
3.33 |
4.64 |
|
161,604 |
10,774 |
3.39 |
4.75 |
|
Post-harvest costs |
|
|
|
|
|
|
|
|
|
|
Packing |
106,019 |
7,068 |
2.35 |
3.27 |
|
116,124 |
7,742 |
2.44 |
3.42 |
|
Packaging |
117,692 |
7,846 |
2.60 |
3.63 |
|
127,395 |
8,493 |
2.67 |
3.75 |
|
Coolstorage |
57,711 |
3,847 |
1.28 |
1.78 |
|
64,551 |
4,303 |
1.36 |
1.90 |
|
Freight |
8,136 |
542 |
0.18 |
0.25 |
|
8,575 |
572 |
0.18 |
0.25 |
|
|
289,559 |
19,304 |
6.41 |
8.93 |
|
316,645 |
21,110 |
6.65 |
9.32 |
|
Operating costs |
|
|
|
|
|
|
|
|
|
|
Spray and chemicals |
35,280 |
2,352 |
0.78 |
1.09 |
|
36,090 |
2,406 |
0.76 |
1.06 |
|
Pollination |
1,095 |
73 |
0.02 |
0.03 |
|
1,200 |
80 |
0.03 |
0.04 |
|
Fertiliser |
3,990 |
266 |
0.09 |
0.12 |
|
3,930 |
262 |
0.08 |
0.12 |
|
Electricity |
2,730 |
182 |
0.06 |
0.08 |
|
2,925 |
195 |
0.06 |
0.09 |
|
Sundry expenses |
6,885 |
459 |
0.15 |
0.21 |
|
6,420 |
428 |
0.13 |
0.19 |
|
Vehicles |
14,685 |
979 |
0.32 |
0.45 |
|
14,100 |
940 |
0.30 |
0.41 |
|
Repairs and maintenance |
10,785 |
719 |
0.24 |
0.33 |
|
9,600 |
640 |
0.20 |
0.28 |
|
|
75,450 |
5,030 |
1.67 |
2.33 |
|
74,265 |
4,951 |
1.56 |
2.19 |
|
Administration and property expenses |
||||||||||
Communication |
3,120 |
208 |
0.07 |
0.10 |
|
2,910 |
194 |
0.06 |
0.09 |
|
Rates |
4,590 |
306 |
0.10 |
0.14 |
|
4,815 |
321 |
0.10 |
0.14 |
|
Accountancy, consultancy, legal |
5,415 |
361 |
0.12 |
0.17 |
|
5,400 |
360 |
0.11 |
0.16 |
|
General insurance |
3,060 |
204 |
0.07 |
0.09 |
|
3,135 |
209 |
0.07 |
0.09 |
|
Crop insurance |
10,995 |
733 |
0.24 |
0.34 |
|
9,690 |
646 |
0.20 |
0.29 |
|
Levies and compliance |
5,820 |
388 |
0.13 |
0.18 |
|
6,435 |
429 |
0.14 |
0.19 |
|
Other |
3,105 |
207 |
0.07 |
0.10 |
|
3,060 |
204 |
0.06 |
0.09 |
|
|
36,105 |
2,407 |
0.80 |
1.11 |
|
35,445 |
2,363 |
0.74 |
1.04 |
|
Cash orchard expenditure |
551,583 |
36,772 |
12.20 |
17.01 |
|
587,959 |
39,197 |
12.34 |
17.30 |
|
Calculated Ratios |
|
|
|
|
|
|
|
|
|
|
Economic orchard surplus (or EBIT) |
107,077 |
7,138 |
2.37 |
3.30 |
|
64,360 |
4,291 |
1.35 |
1.89 |
|
Cash orchard expenditure/GOR |
76% |
|
|
|
|
82% |
|
|
|
|
EOS/total orchard capital |
9.8% |
|
|
|
|
5.3% |
|
|
|
|
EOS less interest & lease/equity |
8.7% |
|
|
|
|
3.3% |
|
|
|
|
Interest+rent+lease/GOR |
4.0% |
|
|
|
|
4.3% |
|
|
|
|
EOS/GOR |
14.8% |
|
|
|
|
9.0% |
|
|
|
|
Economic orchard surplus (EOS) is calculated as follows: Gross revenue-cash orchard expenditure-depreciation-wages of management. Wages of management = $31,000 + 1% of opening total orchard capital to a maximum of $75,000
|
||||||||||
Hawke's Bay Pipfruit Production and Income Details
|
2003 |
|||||||
|
Area |
Yield/ha |
Gross |
Export |
Total |
Export |
Non export return |
Revenue |
Variety |
|
|
|
|
|
|
|
|
Braeburn |
4.13 |
3638 |
15,007 |
74 |
11,045 |
20.08 |
0.97 |
225,626 |
Fuji |
1.80 |
2869 |
5,164 |
68 |
3,515 |
24.72 |
1.16 |
88,810 |
Granny Smith |
0.38 |
3219 |
1,207 |
60 |
729 |
20.37 |
2.09 |
15,851 |
Pacific Beauty |
0.75 |
791 |
593 |
60 |
354 |
22.78 |
1.24 |
8,356 |
Pacific Queen |
0.60 |
2158 |
1,295 |
65 |
843 |
19.27 |
1.06 |
16,731 |
Pacific Beauty |
1.80 |
2511 |
4,520 |
41 |
1,843 |
17.82 |
7.94 |
54,093 |
Pink Lady |
0.38 |
2704 |
1,014 |
71 |
716 |
26.99 |
0.96 |
19,605 |
Royal Gala |
5.18 |
3169 |
16,400 |
82 |
13,377 |
21.42 |
1.06 |
289,742 |
Vacant plantable area |
0.00 |
|
|
|
|
|
|
|
Total area available for pipfruit |
15.00 |
|
45,200 |
72 |
32,422 |
21.17 |
2.53 |
718,815 |
|
||||||||
|
2004f |
|||||||
|
Area |
Yield/ha |
Gross |
Export |
Total |
Export |
Non export return |
Revenue |
Variety |
|
|
|
|
|
|
|
|
Braeburn |
4.13 |
4079 |
16,826 |
76 |
12,788 |
18.16 |
1.45 |
238,079 |
Fuji |
1.80 |
3146 |
5,663 |
69 |
3,893 |
23.84 |
1.32 |
95,149 |
Granny Smith |
0.38 |
2981 |
1,118 |
65 |
721 |
19.58 |
0.98 |
14,507 |
Pacific Beauty |
0.75 |
1167 |
875 |
50 |
438 |
20.87 |
0.86 |
9,510 |
Pacific Queen |
0.60 |
2374 |
1,424 |
65 |
926 |
18.07 |
1.01 |
17,234 |
Pacific Rose |
1.80 |
2606 |
4,691 |
41 |
1,920 |
19.58 |
6.03 |
54,307 |
Pink Lady |
0.38 |
3031 |
1,137 |
65 |
739 |
24.47 |
0.58 |
18,309 |
Royal Gala |
5.18 |
3073 |
15,903 |
79 |
12,563 |
20.71 |
1.55 |
265,360 |
Vacant plantable area |
0.00 |
|
|
|
|
|
|
|
Total area available for pipfruit |
15.00 |
|
47,636 |
71 |
33,988 |
20.03 |
2.31 |
712,455 |
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
Contact this person
