3.0 Horticulture
3.1 Apples
Production and Trade
The production of New Zealand apples for the year ending September 2003 is estimated to fall by about 7% to 16.5 million cartons due to frost damage at the time of blossom in the spring of 2002. Over the medium term, New Zealand apple production is projected to remain stable. This follows an earlier period of significant removal of apple trees, particularly poorer performing varieties, and virtually no new plantings since, due to poor returns for the seasons ending September 1993 through to 2000.
However, improvements in apple returns over the previous two seasons are now resulting in renewed interest in apple orchards and anecdotal evidence points to growing demand for apple trees from nurseries. This is expected to lead to new plantings, largely replacing old and poor performing trees and varieties.
Total exports of apples in the year ended September 2002 were 17.7 million cartons, up 21% on the previous year. Of the total exported in 2002, 23% went to the United Kingdom, 39% to the rest of EU, 20% to North America, and 18% to the rest of the world. Market shares for these major destinations are expected to remain unchanged for the 2002/03 season. New Zealand apple exports over the medium term are expected to remain static at around 17.5 million cartons, reflecting static production levels.
Prices
Reduced apple production in the EU and the US for the calendar year 2002 and the lower New Zealand export crop for the 2003 season all point towards higher international prices for the current season. However, returns to New Zealand growers are expected to be lower than the 2002 season due to higher NZD exchange rates.
While New Zealand apple prices in the German market are only just starting to be recorded, early indications show that prices for Cox Orange, Gala and Braeburn are holding above the 2002 prices. Royal Gala and Cox Orange prices in Euro for the 4 weeks of the 2002/03 season, on average, were about 12% and 10% higher respectively compared with the same 4 weeks of the previous season.
Over the medium term international prices are expected to be relatively flat, as improving world economic growth and incomes are tempered by the generally sluggish international demand for fruit and competition from manufactured snacks.
Contact for further information:
Jagdish Prasad
Phone: (04) 474 4153
Email: jagdish.prasad@maf.govt.nz
