Pipfruit New Zealand’s Ian Palmer told the Southern Hemisphere Congress that it is fair to say that none of his country’s apple growers would break even in 2005.
One major New Zealand exporter was due to announce an annual return of NZ$3 a carton on Braeburn, the conference was told in a session on the southern hemisphere. “That figure is based on European returns and it is the extreme bottom of the range,” said Palmer, “the average will be between NZ$8-10, but it has certainly been a difficult year for the whole industry.”
He added that the first full year of average losses for some time would drive cultural change in the export community. “There is still considerable investment being made - two million trees have disappeared, but much of the volume has been replanted with high density plantings of replacement varieties. Nurseries still have very firm orders moving forward.”
With Braeburn struggling, varieties such as Jazz will come to the fore, he said, comparing the current situation to the period in the 1980s when growers switched attention from Red Delicious and Granny Smith to Royal Gala and Braeburn. While he expects a total export crop in the region of 17m cartons next season, Palmer said volumes may fall as low as 14m cartons before medium to long-term stability is achieved.
Greater internal co-ordination will facilitate the changes necessary to retain the industry’s strength internationally, particularly in the areas of the sharing of accurate information. “Our industry still has a bit of maturing to do, in terms of understanding the competitive environment,” admitted Palmer.
No comments yet