increase font size
NZ Avocado chief executive Brad Siebert says growers are facing increasing cost pressure including orchard inputs, labour and interest rates.
New Zealand Avocado chief executive Brad Siebert says avocado growers are facing increasing cost pressure across all areas of their business.
Siebert says these include orchard inputs, labour and interest rates.
His comments come after the release of the Rabobank Global Avocado Update 2024, which saw a 35% year-on-year decline in production for the 2023/24 crop.
RaboResearch analyst Pia Piggott says Cyclone Gabrielle impacted avocado quality, meaning that in 2023, exports were “well back” on the prior year, with total volume exports declining 51% year-on-year.
“While, in the domestic market, an oversupply of lower-grade fruit caused retail prices to fall,” Piggott says.
Despite this, she still says there were some bright spots.
“Exports to China in 2023 grew by 159% yearon- year (YOY), and this is a really positive sign as we see efforts to build market share in Asia as an essential step if New Zealand wants to become a more significant global player in term of avocado exports,” Piggott says.
Meanwhile, Siebert says current favourable growing conditions provide a positive outlook for orchard productivity in the upcoming season, alongside new and expanding market opportunities.
“While some sense of rationalisation will be seen as growers look deeper into their own on orchard costs towards maximising profitability, the industry continues to see year on year increases in fruit volumes from more recent plantings,” he told Hort News.
Siebert says that over the past few years, adverse weather events have impacted crop volumes and quality, however, summer 2023/24 has provided favourable growing conditions.
“The industry crop estimates point to an increase in production and in quality outcomes leading to an optimistic view in opportunities across domestic and export markets,” he adds.
He says the adverse effects of Cyclone Gabrielle forced the industry to review many aspects of how it operates and to reinforce best practise.
“This led to discussions on how the industry can be better equipped to navigate these seasonal challenges whether they be driven from environmental or global supply & demand impacts. The past season has proven how vulnerable the crop can be to adverse weather events, specifically wind, with fruit being downgraded away from export towards the domestic market in the 2023-24 season,” Siebert says.
“Reducing the compliance burden and arbitrary restrictions across the entire supply chain is now firmly in focus so that opportunities to find value can be capitalised on whatever mother nature throws our way.”
The recent East Coast Farming Expo, held over two days at Wairoa, offered an insight into the current state of agriculture on the east of the North Island, at a time when the locals are remembering the second anniversary of Cyclone Gabrielle.
New Zealand is so far escaping the unpredictable vagaries of President Donald Trump's trade policies by the skin of its teeth.
The cost of producing milk in New Zealand continues to compare favourably with other exporting regions despite a lift in production costs over the past five years.
Many companies are financially mortally wounded by the effects of Cyclone Gabrielle and may have to sell up because of their high debt levels.
Dairy
Fonterra says the US continues to be an important market for New Zealand dairy and the co-op.
Trade and Agriculture Minister Todd McClay says New Zealand's trade interests are best served in a world where trade flows freely.
New Zealand's red meat sector says it is disappointed by the United States' decision to impose tariffs on New Zealand exports.
OPINION: Farmers nationwide will be rubbing their hands with glee at the latest news from the Government about the RMA reforms.
Holstein Friesian NZ and Link Livestock have agreed on a strategic partnership to provide HFNZ members with comprehensive services from one of New Zealand's most respected dairy men.
Rural retailer Farmlands has launched a new casual clothing range available across 42 stores nationwide and through its online store.
OPINION: At last, a serious effort to better connect farmers and scientists.
OPINION: If you believe Maori Party president John Tamihere’s claim that “nothing dodgy” occurred at Manurewa Marae during the last…
