Established celery growers in New Zealand are facing an uncertain future, with continuous reports of payments below the cost of production for nearly a year. According to Stats NZ, celery prices in July experienced a 56 percent decline compared to the previous year. This situation, while beneficial for consumers, poses a threat to the sustainability of growers' operations, potentially leading to business closures or downsizing. Growers from the Auckland region, with over 50 years of experience, acknowledge the natural fluctuations in supply and demand but indicate a disruption in market dynamics.
Concerns have been raised about a newer market entrant, believed to be Solar Produce from Manawatu, which has significantly increased production. This increase is seen as a strategy to dominate the market, consequently driving down prices. Despite repeated attempts, Solar Produce has not commented on these allegations. The high cost of celery production, coupled with the current low returns, places immense pressure on growers. Luke Franklin, a fifth-generation grower from Waimauku, highlighted the financial strain, noting the challenge of sustaining operations under such conditions.
Discontent has also been voiced regarding the quality standards of the produce, with claims that excellence is no longer as valued in the market. Supermarket chains Woolworths and Foodstuffs acknowledge their partnerships with growers, emphasizing their commitment to ensuring fair pricing and understanding the difficulties of overproduction. However, the issue of food safety and the risk of relying on limited production regions have also been underscored by growers, pointing to the broader implications of the current market challenges.
Source: RNZ