Mike Chapman: Horticulture a growing leader

Mike Chapman

In 2015 horticulture's combined domestic supply and exports, excluding wine, were worth $5 billion.

The 2016 figures released recently show horticulture was then worth $5.6b. Domestic supply rose by $200 million and exports by $400m. (Data: Plant & Food Research's Fresh Facts annual accumulated statistics.)

Fresh fruit exports in 2016 increased by an impressive 35 per cent over 2015.

Outstanding performances were kiwifruit $1.7b, up nearly $500m or 42 per cent on 2015; apples close to $700m - up $130m or 23 per cent on 2015; blueberries rose 50 per cent on 2015 to $36.5m; and cherries rose 30 per cent to $68m.

Overall, the vegetable export sector rose 4 per cent. In that sector 60 per cent of the value is a mix of fresh, frozen, dried or a vegetable preparation, dominated by peas, potatoes and sweet corn. Onions dominated the fresh vegetable export sector with a sizeable increase of 38 per cent from $81m to $112m.

Much of our vegetable sector supplies NZ's domestic market with fresh and processed product and is valued at about $2b.

It was not just the value of horticultural exports that increased - volume also rose, by 13 per cent. The driver for the increase in value has been a combination of market mix, market conditions, varietal mix, fruit size better matching customer requirements and other similar factors. There is also a stronger emphasis on exports to Asia and away from our more traditional markets in the US, EU and the UK.

The horticulture industry has a goal, set in 2007, to grow its collective annual value to $10b industry by 2020. This is looking more and more achievable. The opportunity presented by Asia's growing affluence will be a key driver of this growth. On the 2016 figures, Asia is 2.4 times more valuable than any other region, at $1.84 billion.

There is also potential to export greater volumes to the EU when the free trade agreement is completed. The EU at $615m (21016 figures) is the fourth-largest export destination behind Asia, North America and Australia.

Brexit and Theresa May's disastrous election result caused the pound to lose value, making the UK a more desirable destination from a foreign exchange point of view. There is potential there for NZ to grow its exports, filling any potential vacuum left by the EU.

The future for NZ horticulture exports looks positive, with new market opportunities opening up through the Government free trade negotiations, exports increasing in value and volume, and with potential for growth in Asia, the EU and the UK.