Issues and Trends
The Heinz-Wattie processing facility in Gisborne has closed after over 40 years of processing in the district. For the next five years the harvesting and processing of sweetcorn will be carried out by Cedenco Foods Ltd under contract to Heinz-Wattie. Next season there will be a 25% decrease in the area grown for Heinz-Wattie, because the frozen corn on the cob vegetable line will now be operated in Australia.
These announcements have provided some future certainty for growers. However, they do comment that it has lessened the competition for sweetcorn, as there are now only two processors in the district instead of three.
Heinz-Wattie will in future only require Supersweet varieties. There is concern amongst growers about this. Although they are high yielding, they are more susceptible to abnormal weather conditions and to the incidence of head smut. There is also some concern amongst growers that the new Cedenco sweetcorn processing facility will only have one production line whereas the old Wattie facility had three. Growers fear major breakdowns could put their crops at risk during the harvest season.
Leader Brand Ltd, a major vegetable grower, packer, and marketer in Gisborne, has continued its rapid expansion. It has invested over $1 million to develop a major lettuce growing and packing operation to produce product for the domestic market. Lettuces are produced outdoors in a year round operation. All are individually wrapped. The company has also established its own seedling nursery to meet all its own requirements. The company grows 3,400 ha of vegetables annually.
Annual lease rentals on the Poverty Bay flats have generally stabilised. They range from $1,000-$1,400/ha. Rentals at the higher end of the range are for good land, often with tile drainage. The land is generally cropped over the winter with winter vegetables, and these will be followed by a summer crop of either sweetcorn or squash. Landowners are prepared to accept some soil structural damage in return for an increase in rentals. It is noticeable that some operators are taking a different approach and planting grass and green restorative crops, such as mustard and lupins over the winter.
Onions have been grown on an increasing scale in Gisborne over the last 5-6 years. Last season was not a good one for local growers with a considerable area spoilt due to heavy rain that occurred after the crop was lifted. However, enough confidence exists for growers to persist with this crop.
A research and demonstration project is under way in Gisborne to enhance the biodiversity of cropping land on the Poverty Bay flats. A joint Lincoln University/Agriculture New Zealand Ltd project is funded by the Ministry for the Environment. A focus farm has been selected and trials will shortly commence on the three-year project.
The area of organic sweetcorn grown for Heinz-Wattie was approximately 350 ha. This past season was a very difficult one for growers. High rainfall in December caused a major increase in weed populations in corn that was already too big for inter-row cultivation. Some growers spent large amounts of money hand weeding crops.
The industry in general is relatively static with minimal increases in Hawke's Bay and Manawatu in area grown, production and prices. Most of the growth is taking place in central and southern Hawke's Bay.
The long-term viability of the asparagus industry looks good, but will be determined by New Zealand's ability to compete with off-shore competition, especially from Peru, Chile and China. There is some opportunity to expand into the organic market with asparagus.
A compulsory commodity levy has been introduced for asparagus growers on a per hectare basis.
A new 'Decision Support System' has been introduced by Crop & Food Research and the New Zealand Asparagus Council. This technology involves taking samples from asparagus roots to determine the level of starch. This enables growers to make decisions on harvest management and crop sustainability.
The Hawke's Bay Regional Council continues to work on strategies to manage soils prone to wind erosion. These include shelter planting, use of cover crops, and zero
There is concern over the future of export organic squash to Japan. Japanese authorities may in future fumigate produce with methyl bromide as a measure to kill passenger insects. Using methyl bromide would put the squash out of an "organic" classification. Organic growers require squash as a profitable crop to place in a rotation with peas, and they view the possible Japanese moves with concern.
Initial hope for expansion into the Japanese squash market looks uncertain with a decrease in consumption of frozen vegetables in Japan. Squash growers are hoping to at least maintain the current level of exports to Japan.
Squash growers are generally satisfied with the current status of the industry, although inexperienced growers have suffered after a difficult season. Growers are apprehensive about the potential impact of the bee mite infestation on production. Exchange rates have worked in growers' favour this season.
The genetically modified organisms issue continues to be an area of increasing interest to consumers, and thus to vegetable growers and processors.
Production of tomatoes in Hawke's Bay and Gisborne is expected to increase. New Zealand is a net importer of tomato paste but is now cost-competitive with overseas growers.
Processors are watching with interest to see how the new Employment Relations Bill will affect them. There is concern that potential union conflict will impact on production.
Integrated pest management technologies continue to be developed for a wide range of vegetable crops.
In general, organic vegetable growing is not expected to increase significantly in the next 12 months, although the local market and processing of organic potatoes continue to expand. Demand for organic potatoes for crisp production is high. The demand for organic sweetcorn also continues to rise. The organic vegetable growing industry is likely to expand in the future.
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Farm Monitoring Programme Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
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