Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Apple production may offset fall in returns


17 December 2003


Increased apple production may offset fall in export returns


Returns to apple growers are expected to fall in 2003/04 for the second successive year but then gradually rise over the medium term as the New Zealand dollar depreciates, according to the latest MAF Situation and Outlook for New Zealand Agriculture and Forestry (SONZAF) report.

However the SONZAF report says this fall in export carton returns could be offset this year by increased production.

The report says that despite improved market prices in the past three years, grower returns for the year ended September 2003 fell because of the higher value of the New Zealand dollar.

Apple growers received an estimated $12.60 per export carton at the orchard gate. This was down 12 percent on the previous season.

Severe spring frosts in Hawkes Bay and hail in Nelson along with cooler drier conditions in the country reduced the total production of apples by six percent compared to the previous year.

Despite this, total apple exports increased marginally to 17.9-million cartons. This resulted in a reduction of apples for juice and some processors struggled to source apples.

Looking to the current season, there are encouraging signs that the apple harvest season will be good.

In recent years there has been a big drop in the number of apple growers in the country - down from around 1500 to fewer than 900.

However, New Zealand's apple production is forecast to continue to increase in future due to orchard expansion, new development and increased production.

The report says New Zealand's apple export volumes for the 2003/04 season are forecast to increase by seven percent to 19.2-million cartons. Further on, provided that there are no long-term adverse climatic events, export volumes are due to steadily increase to 19.6-million cartons by 2006/07.

Since the industry was deregulated in 2001, the number apple exporters have increased to 97. Thirty-five exporters were responsible for 95 percent of exports, with ENZA alone exporting 41 percent of the total export volume last year.

This fragmentation of the export market is leading to concerns about "weak selling", to the benefit of big overseas retailers. There have also been suggestions that the industry could benefit from more co-operation, particularly in "common-good" areas such as crop estimation and price forecasting.

A MAF review of the effect of industry reforms is due to be completed early next year.

In the longer term, the report says that the New Zealand pipfruit industry is at a cross roads.

It says there is a danger that relaxed grade standards, combined with an increased world supply of Braeburn and Royal Gala apples, and the large number of New Zealand exporters, could erode the premiums that New Zealand currently receives for its apples.

ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news