By LIAM DANN
A drop in apple export earnings this year could accelerate the departure of smaller growers from the industry.
Returns to growers look likely to fall up to 15 per cent because of low international prices.
New chemical treatment technology in the United States is also extending the life of domestic
apples and shortening the off-season in which New Zealand apples are sold.
Apple exporter Enza has already made a preliminary payout to its growers.
Clive Durand, Enza's general manager international, said the payout - 90 per cent of the estimated final figure for the royal gala variety - was made to recognise the fact that growers would be in a more difficult cashflow position this year. He said it was extreme to suggest that the lower return would force growers out of the industry.
But there had been gradual consolidation towards bigger operations and some small growers with relatively high compliance costs might be forced to consider their positions.
Pipfruit NZ chief executive Phil Alison also emphasised that the drop in returns was coming after two strong years.
He expected that royal gala would be down about $2 or $3 - 10 to 15 per cent - per carton for the season.
Returns for braeburn apples were also likely to be down but it was too early to say if it would be by that much.
A record 21 million cartons of apples look likely to be exported this year. That extra volume has contributed to the marketing difficulties exporters face but, for growers, increased volumes may help to offset the price drop.
