Damien O’Connor: NZ united on global trade
When it comes to international trade, politicians from all sides of the aisle are united, says Labour's trade spokesman Damien O'Connor.
Agriculture Minister Damien O'Connor says such weather events are unpredictable by nature and determining the long-term effect is difficult because of the growing cycle.
The cost of a freak hailstorm which devastated orchards in the Tasman region on Boxing Day is now estimated at $100 million dollars as the extent of the damage becomes clearer.
The “unprecedented” hail pummelled an area spanning Motueka, Riwaka. Tasman, Upper Moutere and into the Motueka Valley for up to half an hour. Hailstones the size of large cherries blanketed the ground so thickly that it remained more than a day later.
“It was all through, not just patches here and there,” orchardist and New Zealand Apples and Pears Board director Evan Heywood told Hort News. “There wasn’t anyone in that area that didn’t get hit really hard.”
He estimates that 40% of the district’s apples and 50% of kiwifruit has been lost. Heywood says there is nothing that can be done with the damaged fruit.
“Nothing that’s got any value. And you’ve got to get it off the tree or it’ll impact next year’s crop.”
Heywood’s own orchard lost about 90% of its gold kiwifruit.
Meanwhile, Agriculture Minister Damien O’Connor says affected crops include apples (a total estimated area of 800ha with a complete loss expected for 300ha and an average loss of 30% for the rest), kiwifruit (loss estimated at 2 million trays of gold kiwifruit and 300,000 trays of green kiwifruit), hops (estimated at 100-150ha with around 50% loss) and grapes (40ha with 40-50% loss).
“After the hard task of removing damaged fruit, growers will need to prepare their trees and vines for a slow recovery over the next year for the 2022 harvest,” O’Connor says. “Having spoken to growers I understand the hard work ahead of them. Weather events are unpredictable by nature and determining the long-term effect is difficult because of the growing cycle.”
He says support was already available for those affected.
“For example, growers can make use of the Rural Support Trust-administered Farm Business Advice Support Fund, to which the Government allocated $200,000 of funding last year,” O’Connor explains.
“For a qualifying grower, the fund will provide up to $6000 to pay for financial or business advice from an independent consultant. The RSTs will provide up to $3000, depending on an assessment of need, and the relevant bank will match that dollar for dollar.”
He says the Ministry of Social Development has assistance available for both growers and staff whose income has been hit, while Inland Revenue has tax flexibility and income assistance options.
According to the latest Federated Farmers banking survey, farmers are more satisfied with their bank and less under pressure, however, the sector is well short of confidence levels seen last decade.
Farmer confidence has taken a slight dip according to the final Rabobank rural confidence survey for the year.
Former Agriculture Minister and Otaki farmer Nathan Guy has been appointed New Zealand’s Special Agricultural Trade Envoy (SATE).
Alliance Group has commissioned a new heat pump system at its Mataura processing plant in Southland.
Fonterra has slashed another 50c off its milk price forecast as global milk flows shows no sign of easing.
Meat processors are hopeful that the additional 15% tariff on lamb exports to the US will also come off.

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