An apple exporter is urging the Government to get Japanese authorities to relax their biosecurity requirements, which are costlyto comply with and clash with New Zealand’s environmental standards.
Freshco’s Japan country manager Jessica Tisch presented Luxon with the challenge when she met him at an event aimed at showcasing Kiwi products sold at a Costco megastore in Tokyo.
Speaking to the Herald, Tisch explained Japanese authorities require New Zealand apples to be specially treated to manage the spread of codling moth.
The apples need to be fumigated with methyl bromide and then undergo a cold treatment.
The process takes up to six weeks, eating into the window of time exporters have to supply fresh apples to Japan during its off-season.
The other issue is that New Zealand’s Environmental Protection Authority (EPA) is cracking down on the use of methyl bromide, demanding it be recaptured after use so it isn’t released into the air.
Currently, 80% of the gas needs to be recaptured. By 2031, 99% needs to be recaptured.
The EPA describes methyl bromide as a “toxic and ozone-depleting substance” being phased out around the world.
By phasing in tougher recapture requirements, it said users of the fumigant had time to prepare to comply with the rules.
Tisch said Freshco could export apples to Japan at a lower cost if the Japanese relaxed their rules to better align with other countries.
Trade Minister Todd McClay said the Ministry for Primary Industries was talking to its Japanese counterparts to find a solution.
“If we can get it right, it means it will be a lot more value for our exporters. But as with New Zealand, we need to make sure the Japanese have the certainty the pests won’t get in to ruin crops,” McClay said.
Trade Minister Todd McClay said the Ministry for Primary Industries was talking to its Japanese counterparts to find a solution. Photo / George Heard
The value of apple exports to Japan totalled nearly $15 million in the 2023 calendar year, having peaked at $39m in 2020.
The industry has had a tough few years. It took a hit during the pandemic, with shipping issues and border closures limiting the movement of seasonal workers from the Pacific Islands. It then got hammered by Cyclone Gabrielle.
While the value of apple exports to Japan is relatively small, the price the Japanese pay per kilo is very high.
Tisch believed the Japanese were very protective of their own apple growers.
“We would like to convince Aomori growers we are not here to threaten the Japanese industry,” she said.
She explained Freshco wanted to “complement” domestic growers, supplying the Japanese market with apples during its off season, so consumers could have fresh apples all year round.
Tisch believed Freshco was well placed to grow its presence in Japan, with the country’s stringent rules deterring growers from elsewhere from entering the market.
Danielle Adsett, the market access manager for the industry group New Zealand Apples and Pears, characterised negotiations with Japanese authorities as business as usual.
She said apple growers had to work with various regulators for the 65 different markets they export $900m of apples to a year.
Jenée Tibshraeny is the Herald’s Wellington Business Editor, based in the Parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.
