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Home / Bay of Plenty Times / Business

Fears for gold crop as Psa spreads

By by Graham Skellern - Business Editor
Bay of Plenty Times·
30 Sep, 2011 12:01 AM4 mins to read

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The virulent Psa disease, now spreading to Katikati and Waihi, is likely to cost global kiwifruit marketer Zespri International at least $100 million in overseas earnings next year.

Industry experts believe the lucrative gold kiwifruit crop next season will be reduced a third - or 10 million trays - by the ravages of the bacterial disease.

But the industry is entering a vital period - the impact of Pseudomonas syringae pv. actinidiae (Psa) will be more widely known in the next month when spring growth occurs in the warmer temperatures.

Psa is attacking the more fragile gold in greater quantities than the hardier Hayward green variety.

Mount Maunganui-based Zespri is planning to export about 20 million trays of gold, down from a record 30million trays this selling season.

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A tray of gold attracts a gross return of more than $12 for growers, and that variety makes up nearly a third of the national crop of 100 million trays, fetching revenue of $1.5 billion.

Gold kiwifruit sales are $450 million.

The reduced crop next year means Western Bay growers will receive a lower return and less money will flow through the communities.

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Te Puke district, the worst hit by Psa after it was first discovered there last November, normally supplies about 14million trays or 45 per cent of the gold crop, and this could fall by more than a half after several hundred hectares of vines have been removed.

The country's largest post-harvest operator, Te Puke-based Seeka Kiwifruit Industries, has already indicated it will be handling a lower volume of fruit next season, and it is making a voluntary redundancy offer to staff to re-set its cost structure.

Asked if the industry's whole gold crop will be wiped out next season, Zespri deputy chairman Peter McBride said: "I don't agree with that. I believe orchards will make it through.

"There will be a serious impact on gold vines at Te Puke but the general Bay and national crop will still do reasonable volumes."

Mr McBride, also chairman of Kiwifruit Vine Health, put a figure of about $100 million loss in earnings.

He said the final financial outcome next year will be balanced by other factors.

"The next gold crop will be down anyway after an exceptional seasonal harvest this year, and as well as the vines being removed because of Psa, another 600 more hectares are coming onstream.

"The remaining trays of gold will be able to fetch a higher price, maybe another $2 a tray, and the impact of Psa and the net return may not be as bad as it could have been," Mr McBride.

Yesterday Mr McBride told a meeting of 200 growers in the Katikati War Memorial Hall that they should be vigilant and aggressively monitor their orchards every week, watching out for rust spots and oozing (red exudate) on the vines.

"The Psa spreads aerially and travels large distances. You should treat your orchard as your own bio-security area, and apply the [protective] copper and KeyStrepto sprays at the right time," Mr McBride said.

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The use of KeyStrepto, containing the powerful antibiotic streptomycin, has been extended to December 1 - after consultation with the beekeepers - and can be applied up to three times.

The growers met after the first Katikati orchard, in Sedgemoor Lane, was this week identified as having the serious Psa-V strain. One male vine was quickly removed, and the meeting was told it was low-level infection and there were no other signs of Psa around it.

However, the fourth priority zone has now been drawn around the Katikati district, and industry experts expect further outbreaks.

This followed the discovery of Psa-V in two blocks of an orchard in Waihi - one block was hit more than the other and contained younger vines planted for five to seven years. They have all been removed, including the roots, and the block will be returned to pasture.

The Psa bacterial disease continues to spread through the Western Bay. The meeting was told that 312 orchards are now infected with Psa-V, up from 295 last week.

A total of 304 orchards in Te Puke were affected, as well as six in Tauranga (Papamoa, Matapihi, Welcome Bay to Ohauiti Rd), one in Katikati and one in Waihi.

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After learning of the latest infection in Katikati, one grower at the meeting said: "It's nature biting us in the bum."

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