Situation and Outlook for New Zealand Agriculture and Forestry (August 2008)
12 Fresh and processed vegetables
Reduced yields due to a dry spring/summer period, coupled with an increase in overseas supplies and an unfavourable exchange rate, have all contributed to lower export volumes for fresh vegetables. In the year ending 31 December 2008, exports of fresh vegetables are expected to fall back to 312 000 tonnes, down 11 percent on the year before.
Onions and squash (kabocha) continue to dominate fresh vegetable exports. Export volumes are likely to remain static or decrease slightly. This is due to rising production costs and competition for land use.
Adverse weather conditions in Europe during summer 2007 and increasing competition worldwide for cropping land are providing an opportunity for processed vegetable exports (in particular, frozen peas and potatoes). However, significant increases in export volumes are limited by processing plant capacity and also the competition in New Zealand for land use from grapes, dairying and grain crops.
Japan and Australia are New Zealand’s most important markets for vegetables (see Figure 12.1). Japan is the major market for fresh vegetables, particularly squash and capsicum, while Australia is the main market for processed vegetables.
Beyond 2008, the overall export value for vegetables is projected to increase steadily. This is primarily the result of a depreciated exchange rate, with modest price rises expected for a few products. Fresh and processed potatoes and frozen peas are included.
Figure 12.1: Vegetable export destinations, by value, year ended 31 March 2008
Sources Statistics New Zealand and MAF.
Table 12.1: Vegetable export volumes and value, 2005–2012
| Year to 31 March | Actual | Forecast | ||||||
|---|---|---|---|---|---|---|---|---|
| 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | |
| Fresh vegetables | ||||||||
| Export volume (000 tonnes) | 310 | 294 | 316 | 336 | 308 | 307 | 305 | 304 |
| Frozen vegetables | ||||||||
| Export volume (000 tonnes) | 178 | 189 | 192 | 195 | 200 | 204 | 204 | 204 |
| Total fresh and frozen vegetables | ||||||||
| Export value ($ mil) | 447 | 450 | 503 | 524 | 493 | 539 | 581 | 613 |
Sources Statistics New Zealand and MAF.
Potatoes
New Zealand exported 26 000 tonnes of fresh potatoes and 77 000 tonnes of frozen and processed potatoes in the year ended 31 December 2007. Market demand for French fries is strong, with the potential for a 20 percent increase in export volumes over the next three years. However, to meet this market demand, there will need to be a significant increase in returns to growers, and processing capacity must expand.
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