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Home / New Zealand

Horticulture growth spurt expected

By Julian Raine
NZME. regionals·
16 Mar, 2016 11:33 PM5 mins to read

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The recovery of kiwifruit post-Psa is expected to contribute to a hefty rise in industry return in 2016.

The recovery of kiwifruit post-Psa is expected to contribute to a hefty rise in industry return in 2016.

Horticulture in New Zealand is the little brother to the major powers of the dairy, meat, forestry and wine sectors.

But this little brother is growing up fast.

At the end of last year the Ministry for Primary Industries predicted the rise and rise of horticulture will make a considerable contribution towards offsetting the slump in the primary sector's export earnings caused by the dairy downturn.

But commercial fruit and vegetable growing in New Zealand is not experiencing a 'renaissance' or an 'upturn' in its fortunes.

No, the growth the industry is experiencing is built on years of long-term strategic planning, commitment to developing new markets, constant evolution of production systems, development of new cultivars and of course, good old fashioned hard work.

MPI's outlook for 2016 predicts a rise in industry returns of about $700 million, thanks to the recovery of kiwifruit post-Psa, increasing apple and vegetable exports and improved market access with lower tariffs and exchange rates for product like onions, buttercup squash and cherries.

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The Ministry is forecasting this lift in growth to continue through to at least 2019.

Its confidence is based on the growth in existing markets, plus the potential for growth in new markets, and the trade benefits starting to flow through from free trade agreements with countries such as Taiwan and South Korea.

Just to recap, the fruit and vegetable industry is worth $5 billion, just over half of that value coming into the country as export returns.

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Australia is New Zealand's largest market for fresh horticulture produce.

We export fresh and processed produce valued at $450 million to Australia.

Of the top 10 countries we export to, seven are in Asia. Gone are the days of dependence on the EU.

New Zealand horticulture is now firmly established as a global business, trading with more than 120 countries annually.

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New Zealand's 5500 commercial fruit and vegetable growers don't take much for granted.

Not the weather, the government or their industry representatives.

They care about putting premium quality food on the tables of families in New Zealand, and in countries around the world.

They expect the levy bodies working for them to care just the same.

HortNZ was created almost 10 years ago out of the merger of the Vegetable and Potato Growers Federation and the Fruitgrowers Federation.

Other industry sectors, such as various berry fruit groups, have joined along the way.

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HortNZ is the umbrella organisation that brings together more than 20 different horticulture industry 'product groups' and many regional or district grower associations.

The industry works together, coming together to work on many issues of mutual interest, such as biosecurity protection, labour supply, industry training and government advocacy.

Growers also enjoy the benefit of product specific representation via their own 'product' industry groups, such as Pipfruit New Zealand, Potatoes New Zealand and at the niche end of the scale, the likes of the New Zealand Tamarillo Growers Association and the Passionfruit Growers Association.

All these entities survive via their own levy funding, plus of course enormous amounts of passion, enthusiasm and in many cases, unpaid support.

The challenge facing HortNZ going into its second decade is to continue to ensure it is representing the views of the majority of growers, on issues that they cannot be as effective on, on their own.

The man now charged with bringing everyone together to do this is Mike Chapman, former chief executive of the Kiwifruit Growers Inc, who took over the role of chief executive this month following the departure of long-serving CE Peter Silcock last year.

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Mike studied law at Otago University, joined the New Zealand Navy and worked for 16 years finishing his military career as the Defence Force solicitor.

In 1995 he left the service to join the Commerce Commission, working under former Reserve Bank governor Alan Bollard.

Five years on Mike left to join the Auckland District Law Society as its professional standards director, and so began his involvement with membership associations.

In 2002 he moved to Tauranga and took up the role of chief executive of the regulatory body Kiwifruit New Zealand, and moved over to work for kiwifruit growers at NZ Kiwifruit Growers three years later.

Mike is no stranger to working with politicians, government policy makers and local council officials. And we are looking forward to accessing his expertise in Wellington.

HortNZ's main goal has always been to assist in the development of local, regional and government policy so it treats growers and their businesses in the best possible way.

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This is the kind of focus which has got horticulture to its spot as New Zealand's fourth largest export earner, and with a continued focus on working together, working smarter and growing not just one but all businesses in the sector, this little brother will continue to play a significant role in New Zealand's primary sector family.

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