Wednesday, 11 May 2022 08:25

Future peachy for NZ kiwifruit

Written by  David Anderson
Prospects for the NZ kiwifruit sector remain strong due to expanding kiwifruit consumption in Asia, the EU and the US. Prospects for the NZ kiwifruit sector remain strong due to expanding kiwifruit consumption in Asia, the EU and the US.

A recent global report says the outlook for the NZ kiwifruit sector remains strong due to expanding kiwifruit consumption in Asia, the EU and the US.

According to the Rabobank report, No red light for green and yellow kiwifruit, global kiwifruit production reached four million metric tons in 2021 - a three year high, but still below the record figures of 2018.

"Led by China, which accounts for more than 50% of global supply, kiwifruit production has remained somewhat stable. But that doesn't mean changes are not occurring," report author, Rabobank senior fresh produce analyst David Magana says.

However, Magana explains that if China is removed from these production figures, since almost all of its supply goes into the domestic market, then there are five main producing countries - New Zealand, Italy, Greece, Iran and Chile.

"New Zealand is leading in production due to increased acreage, and (excluding China) now represents 33% of total global production, up from 24% in 2012."

Off the back of this production increase, Magana says New Zealand solidified its position as the world's largest exporter of kiwifruit in 2021.

"New Zealand kiwifruit exports reached a record figure of 647,700 metric last year, 13% more than 2020. Exports out of Italy were down in 2021, while volumes from Iran, Greece and Chile remained stable," he explains.

"About 88% of New Zealand kiwifruit exports went to Europe and Asia in 2021, with Asia predominantly importing the golden kiwifruit (60%) while Europe primarily imports the green variety (50%)."

Since 2020, New Zealand exports of golden (yellow) kiwifruit have surpassed Hayward (green) exports in volume.

"We expect to see this trend continue in the medium-term, given planted area of Hayward is declining, while increasing for yellow varieties," Magana says.

"A further opportunity for the New Zealand industry, is the launch of Zespri's new Ruby Red variety, which is set to enter the market in the 2022 season," he adds. "We're confident this variety will find a niche in the Asian market due to its red pulp and berry taste."

With consumption of kiwifruit expanding in Europe and Asia as well as the US, Magana believes the prospects for New Zealand's kiwifruit sector remain strong. However, he warns that production challenges are expected for growers in New Zealand and in other key kiwifruit production regions.

"Growers and exporters are likely to face significantly higher costs, including but not limited to fertiliser, energy, harvest packaging and freight."

More like this

China lockdowns hit dairy demand

Covid restrictions in China are likely to slightly dampen milk powder imports into that country, according to Stefan Vogel, Rabobank research general manager for Australia and New Zealand.

All hands on deck

Growers are mucking in and helping staff to pick this year's kiwifruit crop.

Zespri's challenging year ahead

Zespri is expecting this year to be one of its most challenging seasons it has faced, thanks to the impact of Covid across the global supply chain.

Optimism for apple and pear exporter

Ideal pre-season conditions and growing markets are buoying JR's Orchards (JR's) pear and apple exports, against challenges of the global pandemic and geo-political tensions in Europe.

National

Don't reinvent the wheel!

Horticulture NZ is one of the primary sector parties involved in the industry-wide initiative He Waka Eke Noa, to provide…

Machinery & Products

JD establishes new hort JV

John Deere claims a joint venture between it and California-based technology company GUSS will assist horticulture producers achieve greater on-farm…

Mulchers set the standard

Orizzonti is well known in the viticulture and orchard sectors for its specialised range of mowers and mulchers.

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Say what?

OPINION: This old mutt almost choked while chewing his bone when he happened upon the latest politically-correct advice that’s been…

Why bother?

OPINION: A mate of the Hound’s recently applied for membership with Ashburton-based farm supply co-operative Ruralco.

» eNewsletter

Subscribe to our weekly newsletter