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

 

Global demand for NZ kiwifruit creating regional growth opps

The New Zealand kiwifruit sector is set for growth following 2017’s record season and new development opportunities across the country, according to the ANZ Kiwifruit Insights paper.

The sector has bounced back following the PSA crisis, helped by increasing global demand which saw kiwifruit sales rise by $694m from the 2015/16 - 2016/17 seasons.

“The success of the kiwifruit sector is remarkable. It has continued to invest in new varieties while staying connected to consumer demand and has worked hard to keep international markets alive,” said ANZ Managing Director for Commercial & Agri, Mark Hiddleston

“The industry is a great example of how working together, sharing information and continuously looking to improve, can benefit the entire sector. The co-operative mind-set is a big part of the success we see today.”

The paper, which outlines industry investment opportunities and challenges, shows strong global demand, coupled with Zespri’s ambition to grow global sales to $4.5b by 2025, is driving demand for kiwifruit orchards which are selling at record prices.

While the scene is set for growth, Mr Hiddleston said, the trick for the sector will be sustainable growth over a number of years.

“Sustainable growth will require ongoing market development, delivering to customer demand on a consistent basis, and building the infrastructure required for higher production,” he said.

“That steady growth is what we need to achieve to meet the aspirational goals that the industry has set.”

Other findings in the ANZ research showed:

• Land values across the country have increased.

• In Bay of Plenty values have doubled in some cases, with green orchards currently valued in the $300 - $450k/ha range and SunGold orchards in the $700 - $1,000k/ha range.

• Diminishing available land in Bay of Plenty creates an opportunity for greenfield development in Northland, Gisborne and Hawke’s Bay.

• Zespri are forecasting orchard gate returns of $57k/hectare for green and $112k/hectare for SunGold.

• Direct growing costs have moved higher over the past two years with average green and SunGold cost per canopy hectare at $32k/ha and $37k/ha respectively.

• Government pledge to increase minimum wage will have a financial impact across most orchards.

• Kiwifruit growers are aging with 53% aged over 60. High capital requirement for orchard ownership poses similar barriers to entry as in other agri industries.

• Labour is identified as a key capacity constraint as well as the large amount of capital required to build the scale and infrastructure required to support a significantly higher level of kiwifruit production.


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

EU Wine Exports: Peter Yealands Fined For "Unprecedented Offending"

Yealands Estate Wines has pleaded guilty to “unprecedented offending” under the Wine Act 2003 and has copped a $400,000 fine. More>>

ALSO:

Discussion Paper: Govt To Act On Unfair Commercial Practices

“I’ve heard about traders who have used aggressive tactics to sell products to vulnerable consumers, and businesses that were powerless to stop suppliers varying the terms of their contract, including price.” More>>

ALSO:

'Considering Options' On Tip Top Ownership: Fonterra Drops Forecast Milk Price

Fonterra Co-operative Group Limited today revised its 2018/19 forecast Farmgate Milk Price range from $6.25-$6.50 per kgMS to $6.00-$6.30 per kgMS and shared an update on its first quarter business performance. More>>

ALSO:

Science: Legendary Telescope Being Brought Back To Life

One of the world’s most famous Victorian telescopes will be restored and available for public viewing in Takapō after spending five decades in storage... The Brashear Telescope was used in the late 1800s by Percival Lowell for his studies of Mars. More>>