NZ carrots in big demand from Asian markets

By LIBBY MIDDLEBROOK

Carrot distributors are expecting to boost export volumes up to 60 per cent this year as Asian demand continues to outstrip supplies.

Many exporters say they have struggled to fill export orders since the start of the annual carrot harvest in January, with the strongest demand coming from Japan.

The improved quality of home-grown carrots during the past five years and the increased production of the Asian variety Koyo in New Zealand are thought to be behind the export boom.

"The carrot export industry has traditionally been a fledgling one. Now that we've introduced new varieties, it's an industry that's growing extremely rapidly," said Tim Chrisp, chairman of one of the country's largest carrot producers, Mountain Carrots New Zealand.

"This year we're probably going to be up about 50 per cent compared to two years ago. The whole industry will probably be up around 100 per cent."

The Ohakune-based business, which expects to export about 10,000 tonnes of carrots this year through Gisborne distributor Sunrise Coast, has invested more than $2 million to double the size of its packaging operation.

The company has also agreed on a new five-year contract through Sunrise Coast to supply carrots to the Japan-based division of international food distributor Dole.

"About six years ago, New Zealand growers started using Koyo. It's superior in terms of colour and [beta] carotene levels and it doesn't grow so well in Australia, which helps," Mr Chrisp said.

Meanwhile, Turners & Growers marketing manager Bob Armstrong said that, while prices for carrots in Asian markets had remained flat, the company would probably export 20 per cent more carrots to Asia this year.

An insufficient number of packing facilities was limiting Turners' ability to keep up with orders, which often specified packaging preferences.

Christchurch-based exporter New Zealand Produce Brands sells more than 7000 tonnes of carrots each year to Southeast Asia and Japan. Director John Smart said the lack of quality carrots produced in Australia had improved New Zealand's position in Asian markets.

Fresh NZ's marketing manager, Steve Bartley, said the company expected to increase its annual 900-tonne carrot export business about 60 per cent this year.

New Zealand exports about 16,000 tonnes of carrots to Japan each year, 80 per cent of which are produced in Ohakune.

While the carrot export business may be improving this year, South Island grower Grant Brown of Alpine Produce said the company was losing money supplying the domestic market.

"There's an oversupply domestically. It's not that easy to export them either because some aren't up to the right quality standards."

Meanwhile, limited rainfall in the country's largest carrot-producing region, Ohakune, is reducing yields at least 5 per cent. Mr Chrisp said the three-week-long dry spell was having only a minor impact on Mountain Carrots' operation, but the situation could worsen significantly if the region did not receive substantial rain by the end of the month.