Ian Palmer, chairman of the New Zealand apple and pear industry association Pipfruit NZ, has reported that the country’s growers are receiving a poor return this season and expressed frustration at the lack of government support.
Palmer said the increased exchange rate against New Zealand’s key markets was costing growers considerably in terms of returns and “eroding value” from an already difficult global market.
Following the Pipfruit NZ Conference, Palmer said the government is offering little support to horticulture in this difficult situation: “One interesting comment at the conference from David Carter, minister of agriculture, was that there was nothing the government could do to balance out the exchange rate.
“In layman’s terms, they have no answers. I find this rather intriguing when they also talk about an export-led recovery. I don’t know about you, but these two concepts seem to be somewhat non-aligned with each other.
“If our exchange rate is no longer within our control… then it is about time we stopped pretending it is and link it to the dominant currencies and stop this wildly fluctuating rollercoaster ride it is on.
“Just as we are small, but important, players in the world apple market, so is our currency in the global financial market. The sooner we accept this as a country and find a way to improve stability of our exchange rate the better. Then at least we might be able to properly plan an appropriate export-driven business strategy."
He also said consumers in New Zealand’s key markets may struggle to continue to buy the country’s product while shopping economically: “This trend is being seriously felt by our premium varieties like Pink Lady and Jazz. The difficulty arises when varieties like Braeburn are at €15-18 (£13-16) - it is difficult for retailers to stock premium varieties at €25-29.
“There is no easy solution to this, but as an industry we must examine any options to maximise the grower return.”
The two-day conference presented a range of information that gave a basis to the New Zealand apple story. The carbon footprint of apples was heavily disccused throughout the conference and Pipfruit NZ chief executive Peter Beaven remained positive that the industry is taking the right approach in establishing a carbon footprint standard and finding ways to most efficiently produce and market its fruit in order to minimise carbon emissions.
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