New Zealand Braeburn: struggling with profitability

New Zealand Braeburn: struggling with profitability

New Zealand apple growers need to reduce export volumes of Royal Gala and Braeburn next season and start pulling up Braeburn trees.

The warning came from Ian Palmer, chairman of industry body Pipfruit NZ this week as Braeburn could barely make 500p a tray on UK wholesale markets. Palmer reported that almost 20 per cent of NZ Braeburn in Europe still remains unsold as he told growers they must produce 2 million cartons fewer of both Braeburn and Royal Gala to raise grower returns. "With Braeburn it has only been truly profitable in years when the export volume is 6 million cartons or less," said Palmer. "If there is not enough Braeburn tree removal now to lower the crop, we must recognise we will need to manage the export volume if we are to return it to profitability."

He said that sending the wrong profile or quality of fruit to market was a "recipe for disaster. If you think we are going to sell 18m-19m cartons without problems next year, you've got rocks in your head," added Palmer. "We are not the elite, unique fruit producers we once were. The rest of the world has caught up and in a lot of cases passed us."

As growers start to plan for next year, Palmer said he was encouraged by the reaction to Pipfruit NZ's new quality strategy. "It was most pleasing to have received the overwhelming level of support for the strategy of introducing Qualmark outlined to members," said Palmer. "While we all recognise re-branding NZ apples will not solve all our market issues, it certainly is a step in the right direction."

He concluded by telling growers they need to market their fruit rather than just trade it: "We must co-operate as an industry and support each other."