Westpac industry analyst Paul Clark has highlighted the horticulture sector's notable performance in export revenue within New Zealand. According to the NZ Agri Bites report for September, horticulture exports, particularly kiwifruit and apples, rank as the nation's fourth largest export category, trailing only behind logs. When wine exports are considered, the sector's position elevates to third place. Clark attributes this success to the sector's efficiency and its ability to meet the global demand for high-quality, nutritious fruit.
Clark points out that the ideal growing conditions in New Zealand, alongside its counter-seasonal production capability, contribute significantly to the sector's export prowess. Investment in research and development (R&D) has also played a critical role, leading to process efficiencies and the development of products that align with consumer preferences. This focus on R&D, combined with a growing global population and rising incomes in key markets, is expected to sustain demand for New Zealand's fruit exports.
The report forecasts continued growth for the sector, driven by the increasing demand for health-beneficial fruits. However, Clark cautions that supply management will be crucial in maintaining competitive prices and ensuring superior orchard gate returns. The year ending August 2024 sees kiwifruit exports valued at approximately $3.1 billion, with apples contributing just under $1 billion, reinforcing the sector's significant role in New Zealand's economy.
Looking ahead, the prospects for the 2024 kiwifruit and apple crops appear promising, with exports primarily destined for the EU, China, and Japan. Despite potential challenges such as competition from seasonal summer fruits and the impacts of climate change on supply, the sector is expected to maintain strong export demand. Clark concludes that careful management and favorable growing conditions should enable the horticulture sector to achieve better orchard gate returns, benefiting both kiwifruit and apple growers in New Zealand.
Source: HORTNEWS