International markets have not felt the thrust of New Zealand’s asparagus spear for several years now. New plantings in the country by Delica announced earlier this week may give new momentum to the shrinking industry, but according to some buyers the market realities are unlikely to make any return to glory easy.
New Zealand’s asparagus exports have been on a steady downward spiral for some time; exports have fallen from 60 per cent of the national crop to just 25 per cent last season, according to local industry bodies.
The central culprit for that decline has been the loss of market share in Japan, still New Zealand’s main export market for the vegetable, to competition from Peru and Australia.
“The New Zealand asparagus industry was sort of dependent on the export to Japan,” detailed Keita Watari, president and CEO of major Japanese produce importer Watari Co. “So, as they lost their market in Japan, the industry itself started to decline.
“New Zealand directly conflicts with the Australian season from October to December, and Peruvian asparagus is very popular in Japan from December to January.”
Australian asparagus in particular has shifted New Zealand out, largely on a varietal basis. The vast majority of Australia’s exports are of the Californian-bred UC157 variety, while New Zealand relies on Jersey Giant and Jersey Supreme, which Mr Watari explained are not popular in Japan.
Australian asparagus is also cheaper than that from New Zealand, a factor that again comes into play in Peru’s case. Because of the price difference, Peru has largely moved New Zealand out of the December supply window in Japan.
“New Zealand exporters used to use the technique that they sort of forced the Japanese importers to buy their asparagus in October to November when they did not want it by using their supply in December as a candy, so to speak,” Mr Watari told Fruitnet.com.
“However, over the last few years, Peruvian asparagus has been most popular in December, which has made New Zealand supply unimportant to the Japanese market.”
While it’s good to see plantings increasing in New Zealand again, said Mr Watari, exports to Japan will remain a tough business down the road.
“Maybe, one day, New Zealand asparagus will be important to Japan again. But, for sure, not for a while.”
