Hort's FTA windfall
NZ onion growers are getting an extra $3 million this season for exports to the European Union, thanks to the early ratification of a free trade agreement (FTA).
In ONZ's 2021 annual report, chief executive James Kuperus says an excellent crop was grown and harvested during the year, only for it to face extreme shipping disruptions.
"It was tough, and then a ship got stuck in the Suez Canal carrying onions to Europe, to add salt to the wounds," he adds. "The sheer number of blank sailings, container shortages and lumpiness of arrivals made for an extremely difficult year for the sector."
Kuperus says this was exacerbated by lockdowns and uncertainty about what were permitted activities.
"The onion industry really was stretched this year, with high levels of tension and stress. However, as tough a season as it was, growers are planting again and we look forward to a brighter 2022."
New Zealand onion exports are currently worth $150 million in a total global onion market worth $5.8 billion.
Last year, ONZ commissioned independent economists Infometrics to value the untapped potential value of export markets where New Zealand could further expand. The report valued this untapped potential at $302.6m and outlined clear objectives for increased exports.
"There is a lot of potential value for the sector and for New Zealand if we can gain access to new markets and position ourselves correctly in these markets," Kuperus claims. "For instance, with access to new export markets such as Thailand, China, South Korea and the Philippines, the industry can grow significantly and invest further in new systems."
He says the NZ industry is extremely reliant on government assistance to maintain and gain access to new markets, and the key to ONZ's successes is developing strong enduring partnerships.
"We partner with the Government, growers, exporters, agronomists and other sector groups," Kuperus says. "We have elevated our relationship with the Ministry for Primary Industries (MPI) with a formal partnership titled Humble to Hero."
He says this partnership is not just a financial arrangement, but a determination by both parties to focus on market access, increase export values and provide export assurances.
"This partnership will be the linchpin for Onions New Zealand and MPI for the coming six years, with joint investment to sustainably increase onion experts."
Kuperus says the sector needs to be looking to a strong future focused on meeting consumer requirements in Europe and Asia.
"Although there are some storm clouds on the horizon around shipping and buy-local campaigns, the onion sector is extremely resilient and has excellent prospects to grow exports significantly with targeted invesment."
