Thursday, 08 December 2022 11:25

Southern Hemisphere confidence high

Written by  Nigel Malthus
Rabobank Agricultural Analyst Pia Piggott SUPPLIED. © SCOTT STRAMYK 2022 Rabobank Agricultural Analyst Pia Piggott SUPPLIED. © SCOTT STRAMYK 2022

In a recent report, agribusiness banking specialist Rabobank notes that Chile is by far the largest exporter of cherries in the Southern Hemisphere – accounting for 96% of total exports last season.

The remainder comes from South Africa, Argentina, Australia and New Zealand.

Report co-author, Rabobank agricultural analyst Pia Piggott, says Chile’s exports are expected to continue to increase.

“We’re also expecting record cherry volumes across all other major Southern Hemisphere cherry exporters other than Australia,” she says.

“This will test how the ‘return to normal’ post Covid is working, and how the main export destination markets will behave. With China a key export market for Southern Hemisphere cherry producers, including New Zealand, all eyes will be on the Chinese market to see how the country’s continuing zero-Covid policy impacts demand.”

Piggott says New Zealand’s cherry industry remains relatively small with less than 1,000 ha of plantings, mostly in Central Otago. That compares with more than 2,500 ha in Australia.

However, New Zealand’s reputation for producing quality cherries means New Zealand cherries command high prices, second only to Japanese fruit.

“Cherries from New Zealand are predominantly bought as a luxury gift in celebration of the Chinese New Year,” Piggott adds. “With the largest export volumes going to Taiwan, followed by China, Vietnam and Thailand.”

She points out that New Zealand cherry exports have fallen in recent years due to La Nina weather conditions and Covid-related logistical issues.

“Over the next few years growing conditions should become more favourable as La Nina comes to an end in early 2023, and we expect to see New Zealand cherry production and export volumes improve from pandemic levels."

The Rabobank report says Southern Hemisphere cherry producers all face similar challenges in the form of increasing competition and narrowing margins due to elevated production costs.

“Chile, Argentina, and Australia are all moving in the same direction in terms of improving the efficiency in their processes, focusing on high-quality production, and diversifying their destination markets,” Piggott concludes.

More like this

Featured

Farmers urged not to be complacent about TB

New Zealand's TBfree programme has made great progress in reducing the impact of the disease on livestock herds, but there’s still a long way to go, according to Beef+Lamb NZ.

Editorial: Making wool great again

OPINION: Otago farmer and NZ First MP Mark Patterson is humble about the role that he’s played in mandating government agencies to use wool wherever possible in new and refurbished buildings.

Helping protect sheep from parasites

Everyone from experienced veterinarians and young professionals to the Wormwise programme and outstanding clinics have been recognised in this year’s New Zealand Veterinary Association (NZVA) awards. As part of a series looking at this year’s rural winners, Leo Argent talked with Ginny Dodunski, winner of the Veterinary Impact Award for raising the profile of the Wormwise programme.

National

Machinery & Products

Yamaha acquires Robotics Plus

New Zealand based company Robotics Plus, a specialist in agricultural automation, has announced an agreement for it to be acquired…

Ecorobotix announces NZ dealership

Swiss-based Ecorobotix has announced its entry into the New Zealand market through a strategic partnership with Canterbury-based New Zealand Tractors.

Sorting unwashed potatoes made easy

Downs, a leader in potato reception, automated sorting, and storage, has introduced its new high-throughput optical sorter for unwashed potatoes…

Jumbo X saves time and money

A winner of a prestigious ‘Technical Innovations 2024’ award by FederUnacoma at the EIMA show in Italy, the Maschio Jumbo…

NH unveils specialty tractor

New Holland recently showcased its new-generation T4.120 F specialty tractor, giving New Zealand customers a closer look at the winner…

» Latest Print Issues Online

The Hound

Make it 1000%!

OPINION: The appendage swinging contest between the US and China continues, with China hitting back with a new rate of…

Own goal

OPINION: The irony of President Trump’s tariff obsession is that the worst damage may be done to his own people.

» eNewsletter

Subscribe to our weekly newsletter