Export Berryfruit
This section comments on export berryfruit crops grown throughout New Zealand. Regions where berryfruit crops are concentrated are Auckland, Waikato, Horowhenua, Nelson and Canterbury.
Key Points
- Most berryfruit crops were affected by frosts in the spring of 2000.
- Nelson drought and spring frosts reduced the district's berryfruit production by 20-30%.
- Strawberry plants have peaked at 18 million/annum.
- International demand for New Zealand berryfruit is strong and most sectors could market more fruit.
Physical Factors
Climate
For export strawberry growers, the mean November daily temperature was 2oC cooler than in previous years. The mean monthly temperature in November 2000 was 15oC, compared with averages of 17oC in both 1999 and 1998. Cool temperatures had the effect of slowing down the rate of flowering and subsequent fruit development.
A frost in North Island regions on 26/27 September 2000 resulted in significant damage to early-flowering berryfruit crops, including strawberries and blueberries.
The frost had the effect of reducing the early season strawberry crop. However, lower early yields were more than compensated for as strawberries bloomed and fruited profusely in December.
For blueberry growers, the impact of the September frosts was more significant over the whole season, resulting in an average yield reduction of 5-10%.
Frosts throughout the southern North Island and northern South Island regions in November had a negative impact on pollination.
South Island berryfruit production was affected by drought and spring frosts. Most growers had sufficient irrigation until late January and this minimised any production loss from drought. The impact of later season drought conditions when water was rationed in some areas, combined with the early frosts, will be evident when canes are tied up and may reduce next season's production.
Spring frosts and cooler spring conditions impacted on berryfruit production by affecting berry set and development.
Blackcurrant yields were reduced by November frost damage. Stormy conditions in Canterbury in mid-December, with high winds and hail, further reduced yield. Nelson blackcurrant growers relying on dams for water supply suffered from drought conditions. Many Moutere Hills growers ran out of water prior to harvest and this contributed to a 20-30% drop in Nelson blackcurrant production.
Production
Strawberry yields were at least comparable to the 1999/2000 season. Some large Auckland growers exceeded previous season yield by up to 20%. The strawberry season had a slow start resulting from cool temperatures and spring frosts. This quickly changed in December, as high yields were concentrated into a shorter harvest period.
Annual strawberry plant sales have now stabilised at 18 million/year. Plants sold in previous years were as follows:
- 20.6 million in 1998
- 21.5 million in 1999
- 18.6 million in 2000.
Blueberry production was affected by frost damage, resulting in reduced supply to local fresh and process fruit markets.
Blueberry industry production is expected to gradually increase based on both new plantings made by existing and new growers, and upgrading of existing plantings by existing growers.
There have been some new plantings of boysenberries over the last five years, as well as replacement plants in existing blocks.
The raspberry industry continues to replace the standard variety, Skeena, in an effort to increase yield from more productive new varieties. Production is not presently satisfying market demand.
Blackcurrant planted area increased by another 200 ha in 2000, with a further 180 ha anticipated in 2001. Some of this was to replace existing plantings and some was to establish new gardens. Industry production this year was static due to the poor growing season experienced. However, production is expected to increase as new plantings come into production and a return to more favourable growing conditions is anticipated.
There has been a lot of interest from new entrants looking to enter the blackcurrant industry while the strong market conditions prevail. These entrants will boost production in the future. Some, in Nelson, are from the apple industry looking to diversify by developing new gardens away from their apple orchards using cheaper land in order to spread risk and ride out the difficult times most apple orchardists are facing. These new entrants have good contacts in the berryfruit industry and are well informed about the state of the industry.
National blackcurrant yields were reduced by about 5% as a result of November frosts, December storms, and drought effects.
| Table 1: Long-term Average and Seasonal Berryfruit Yields (tonnes/ha) | |||
| Crop | Long-term Average | 1999/2000 | 2000/01 |
| Blueberries | 6.0 | 6.0 | 5.4 |
| Strawberries | 23.0 | 24.0 | 25.0 |
| Raspberries | 6.0 | 4.8 | |
| Boysenberries | 15.0 | 12.0 | 9.6 |
| Blackcurrants | 5.0 | 4.6 | 4.5 |
| Source: NZ Berryfruit Growers' Federation Inc, Strawberry Growers New Zealand | |||
Financial Factors
Revenue
Early season strawberry prices were boosted by the considerably reduced crop volume supplied. Returns were further enhanced because of a good window of opportunity in United States (US) markets and the relatively low value of the New Zealand dollar. Average grower return from all export markets was $15/tray for a 3 kg net fruit weight tray.
Boysenberry returns have improved slightly, as the major export company has developed a new market opportunity in the United Kingdom. Exchange rate influences were minimal in the boysenberry industry, due to forward cover taken before the shift of the New Zealand dollar relative to other currencies. The industry is moving towards being a 12-month supplier in the future. Given the reduced crop, as a result of frost damage, it is anticipated that there will be no carry-over of frozen stock to enable a 12-month supply to customers this season.
Frozen blueberry returns are around $4.50/kg. Because of the shortfall of process grade fruit, again due to frost damage, suppliers are currently importing US frozen blueberry product to meet customer needs.
Fresh blueberry returns averaged $15/kg. The improved price is a result of increased demand for blueberries in both Japan and North America. North American markets are long established and blueberries are a known product. Consumers are becoming more aware of the health benefits of blueberries and this is helping to increase the demand.
Process blackcurrant returns were slightly improved at around $1.75/kg. This improved price reflects greater international demand, given current international product shortage.
Expenditure
Fuel price increases have driven up the costs of related products such as plastic punnets, polythene and freight.
Large-scale berryfruit operators continue to seek cost reductions by increasing the amount of mechanical operations to substitute for hand labour, for example, the use of colour sorting equipment for blueberries and machine harvesting of berryfruit crops.
Hand labour costs are increasing at a higher rate than the consumer price index, due to overall higher demand for seasonal labour across a range of industries.
For most berryfruit crops, a move to more integrated pest and disease management has resulted in fewer chemical applications. This cost saving has been counteracted by the use of more expensive chemicals for integrated pest management, such as insect growth regulator products.
Net Result
Table 2 shows the gross margin results for export berryfruit crops. The gross margin is represented by income less variable costs of production. It does not consider overhead costs such as taxation, debt servicing and administration. Levies charged per unit of production or sales are included in the gross margin.
| Table 2: Gross Margin 2000/01 | ||||
| Crop | Product Type | 1999/2000 ($/ha) | 2000/01 ($/ha) | Change (%) |
| Strawberries | Fresh | 27,259 | 28,498 | +4 |
| Blueberries | Fresh | 38,868 | 34,406 | -11 |
| Blueberries | Frozen | 3,380 | 5,479 | +62 |
| Boysenberries | Frozen | 5,223 | 3,340 | -36 |
| Raspberries | Frozen | 17,401 | ||
| Blackcurrants | Frozen | 4,374 | 4,601 | +5 |
| Source: NZ Berryfruit Growers' Federation Inc, Strawberry Growers New Zealand | ||||
Issues and Trends
Strawberry growers are satisfied with alternative fumigation options to replace methyl bromide. Chloropicrin is being used for ground fumigation in combination with the reduced volume of methyl bromide still available. Final phase out of methyl bromide is due by 1 January 2006. Registration of Telone, another product for New Zealand strawberry growers to use as a fumigant, is imminent.
Long-term impacts of fumigation with materials other than methyl bromide are not being evaluated on a trial basis. Growers could have pest and disease problems as they continue to use replacement fumigants over the next few years.
Concern continues amongst berryfruit growers about the off-label use of agrichemicals under the soon to be implemented Agricultural Compounds and Veterinary Medicines Act 1997. GROWSAFE® programmes are working well in the berryfruit industries to ensure safe handling, storage and application of products. The uncertain legal position of growers applying agrichemicals off-label has yet to be clarified.
Satisfaction of quarantine requirements for new variety imports continues to be a concern for strawberry growers. Imported plant material for new varieties, which are not sourced from accredited sites overseas, must enter a closed quarantine system. Once this material is in quarantine, any virus or virus-like diseases detected must be tested at MAF-accredited laboratories. Currently in New Zealand there are laboratories that could do the virus testing but which are not MAF-accredited. Effectively, plant material in closed quarantine with potential virus diseases will be unable to be released in New Zealand.
Industry restructuring has resulted in each product group managing the affairs of its own sector. Blueberries New Zealand (Inc), NZ Boysenberry Council, and Blackcurrants New Zealand Ltd are all funded by Commodity Levy Orders, with their affairs independently managed. Strawberry Growers New Zealand is funded from voluntary membership and a share of the value of strawberry plant sales achieved by New Zealand Berryfruit Propagators Ltd.
The boysenberry industry continues to work in the marketplace improving customer product knowledge. Boysenberry is not a widely known product internationally. Other boysenberry cropping areas internationally are Chile, which has a less preferred product from a consumer perspective, and Oregon, US.
Boysenberry growers are also developing new varieties. Some are less thorny, resulting in easier hand harvest. Other varieties are intended to spread the harvest season. This will lessen the risk of crop loss by spreading the harvesting over a wider range of climatic conditions.
The boysenberry industry Export Marketing Strategy is to be reviewed under the New Zealand Horticulture Export Authority (HEA) Act 1987. The industry will be reconsidering whether HEA regulatory control is still the most appropriate model for that industry. The boysenberry industry does not use the Commodity Levy Orders that some other berryfruit industries utilise for funding industry-good activities.
| Table 3: Berryfruit Industry Statistics | ||||
Area (ha) |
Grower Numbers |
|||
| Crop | 1998 | 2000 | 1998 | 2000* |
| Blackberries | 23 | 62 | 28 | |
| Blackcurrants | 587 | 834 | 33 | |
| Blueberries | 239 | 348 | 52 | |
| Boysenberries | 187 | 263 | 72 | |
| Raspberries | 200 | 254 | 70 | |
| Strawberries | 222 | 384 | 144 | 130 |
| Total | 1,458 | 2,145 | 289 | |
Source: NZ
Berryfruit Growers' Federation Inc, |
||||
| * All figures, except Strawberries, are no longer available | ||||
Boysenberry decline is being controlled by well timed and targeted fungicide application. The New Zealand blueberry industry is working to improve quality assurance systems so that delivered product better matches customer expectations. There were a number of claims from customers on soft or leaky product supplied this season. Fruit firmness is the number one quality criterion, closely followed by taste, bloom and evenness of berry size.
Blueberries New Zealand has negotiated an agreement with HortResearch to better manage the commercial release of new blueberry varieties to the industry.
A number of berryfruit growers have experienced compliance costs with the Employment Relations Act 2000, disproportionate to the benefits to both themselves and their staff. A considerable amount of time has been incurred working through union-related issues for staff.
There is concern amongst existing blackcurrant growers that improving industry performance will attract an excessive number of new entrants or new plantings. Most new plantings have been made by existing growers. The industry considers it is currently in a buoyant phase and is at the top of the revenue cycle, but is uncertain as to how long this will persist.
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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