Apple and pear growers are estimated to have lost $270 million in earnings. Photo / Warren Buckland
Apple and pear growers are estimated to have lost $270 million in earnings. Photo / Warren Buckland
Cyclone Gabrielle has cost Hawke’s Bay apple and pear growers $270 million in lost earnings, on top of what it’s going to cost to rebuild the industry.
That’s the analysis of New Zealand Apples and Pears market access manager Danielle Adsett.
In a good year, the Hawke’s Bay apple and pear industry generates about $560 million in revenue. But 2023 has not been a good year, which is reflected in the figures.
Flooding saw production fall by 34 per cent, or $190m. On top of that, were the $78m in costs incurred by growers ahead of their anticipated harvest.
In that sense, the timing of Cyclone Gabrielle couldn’t have been worse, destroying orchards right before fruit was due to be picked.
“And then, of course, the cost of replanting – which can be up to $250,000 per hectare - and the years it then takes for an orchard to start making returns,’’ Adsett said.
All up, Apples and Pears estimates replanting costs will be more than $100m for that sector of the horticultural industry alone.
Adsett is leading the cyclone response on behalf of the affected apple and pear sector and says the effectiveness of the Government’s loan system will determine how many people leave the industry and how long those who remain take to recover.
The loan scheme, announced last month, would see the Government underwrite bank loans for a period of up to five years, while growers get back on their feet.
“People leaving the industry from all areas: orchards, packhouses, and the other industries upstream and downstream is a tough reality and outcome of the effects of Cyclone Gabrielle,’’ said Adsett.
“There’s been significant investment in upskilling our workforce over the past 10 years by the industry and Government, so we have highly skilled and specialised people in our industry and we’d hate to lose them.
“Again, we are hoping that the support from the Government will help growers and affected businesses keep going and retain their people. However, for some it won’t be enough and the harsh reality of resizing a business, or walking away, means that jobs will be lost.’’
Danielle Adsett, right, of NZ Apple & Pears, inspects damaged apples tree in Puketapu. Photo / Warren Buckland
Adsett says it will be “a marathon and not a sprint’' to get the industry back to where it was.
“It isn’t just a matter of turning the soil for the next season. Apple and pear trees take years to grow and the financial cost of starting again is enormous,’’ she said.
In terms of next season, Adsett’s been involved in studies into the potential damage caused to trees by silt and waterlogging. There are fears diseases could develop that mean orchards that have survived the cyclone would have to be destroyed.
“We now wait for spring and the spring blossoms, which will reveal the true impact of the flood on trees. It is a critical time,’’ Adsett said.
