Financial Factors
Revenue
Strawberry exports for the season started slowly, with less marketing opportunities than in 1998. In 1999, Californian production was not rain-affected so continued later, and Florida production commenced earlier. These two factors resulted in a narrower market window for New Zealand strawberries in the United States during November and December 1999.
Strawberry export prices were lower in 1999. The average grower return was $14/3 kg net fruit weight tray from United States markets and $11/tray from Asian markets.
The combination of increased production, fewer export opportunities, and tougher local markets resulted in lower returns. As a consequence, many growers have left the industry.
Raspberry returns were $3.00-$3.50/kg.
Frozen raspberry exports are managed by two grower owned co-operative companies. These companies were established to fulfil post-harvest services required by raspberry growers. Until August 1999, post-harvest services were supplied by organisations which operated under the Raspberry Marketing Regulations 1979. These were revoked in August 1999.
Frozen export blueberry returns are in the range of $3.50-$4.00/kg. International markets are very short of product. Fresh returns were $14/kg, with very strong demand experienced for fresh product before Christmas. However, this average figure does not depict the extremely wide range of returns growers received, which depended on supply time and quantity. Very early and late fresh exports commanded around $30/kg for relatively small volumes, and mid-season returns were in the order of $9/kg for larger volumes.
Blackcurrant returns were $1.50-$1.70/kg delivered. The grower return is more stable for those supplying integrated manufacturers/merchants/exporters than for those who supply the New Zealand Blackcurrant Pool.
Expenditure
Airfreight costs have increased significantly over the last two years for export strawberry growers. In 1997, airfreight costs were around $2.30/kg - now they $4.00/kg. Export growers have little choice but to accept this cost increase. The volume of airfreight from New Zealand to export destinations is unlikely to significantly increase.
Berryfruit production costs are increasing gradually, driven by small increases in packaging and wage costs.
Production costs have been maintained or reduced for machine harvested blackcurrant, boysenberry, blueberry, and raspberry crops. Machine harvesting costs are in the order of 10-55ÿc/kg. This compares to hand harvesting at $1-$3/kg, and the increasing difficulty of securing sufficient workers interested in carrying out such work. Blackcurrants are all machine harvested.
Net Result
Table 2 shows the gross margin results for export berryfruit crops. The gross margin is represented by revenue 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.
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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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