Grower confidence soaring

New Zealand Kiwifruit Growers president Neil Trebilco and the Gold 3 variety that holds so much promise. Photo/George Novak

One of the Bay's lifeblood industries is back into growth and prosperity thanks to a previously unheralded kiwifruit variety called G3.

Confidence is soaring among kiwifruit growers barely three-and-a-half years after the vine-killing disease Psa began spreading gloom through Te Puke orchards, devastating the high-value but susceptible variety known as Zespri Gold.

The optimism generated by G3 has translated into prices for kiwifruit orchards doubling in the space of 12 months, with buyers queuing up to buy quality properties.

It comes at the same time as the rest of the Bay's primary produce sector bounces back.

Log prices had recovered from recession doldrums and all the stars were aligned for dairy farmers - a record price forecast for milk solids and ideal weather conditions providing a godsend from last year's drought.

Zespri's manager of grower and government relations Simon Limmer said more than 4000ha of G3 had been grafted or planted, with the Hort 16A gold variety crippled by Psa now virtually gone from Te Puke orchards. He said the industry had the capacity to produce 50 to 60 million trays of G3 kiwifruit by 2018, depending on productivity rates. "That is a lot of growth."

Mr Limmer expected that the balance between the gold and green varieties would become a lot more even than before - probably around 50/50.

"We are not completely out of the woods but I am confident that we have a strong future even with Psa. New Zealand kiwifruit growers are a resilient and innovative bunch."

With picking due to begin towards the end of this month, Mr Limmer said they were expecting to maintain last year's position in the marketplace.

New Zealand Kiwifruit Growers president Neil Trebilco said the area planted out in G3 now exceeded Hort 16A and the fruit was looking very good.

"I am hearing nothing but good stories this year."

A turning point for the industry was last spring. "Once Gold 3 got through spring there was a huge sigh of relief and grower confidence has rocketed up since then."

Mr Trebilco said it was fortuitous that a variety which had not been bred for its resistance to Psa was available. G3 had became hugely important to the future of the industry.

PGG Wrightson's Te Puke real estate salesman Stan Robb said the sale of a Paengaroa orchard with G3 just before Christmas had opened the floodgates. In the past two weeks he sold five orchards of which two were a mix of green and gold.

"A year ago, you couldn't give orchards away."

An all-green production block in No 1 Road that failed to sell for $250,000 a canopy hectare prior to the outbreak of Psa had sold for $260,000 a hectare last month. "I had half a dozen people wanting to buy it."