Tuesday, 06 March 2012 14:40

Banks need to back growers

Written by 

BANKS WILL need to support kiwifruit growers through a year to 18 months as they switch to Psa-V resistant varieties of gold kiwifruit, say growers representative Neil Trebilco.

Many orchards growing the gold variety Hort16 which have been devastated by Psa are likely to be grafting a replacement variety this winter – with their first crop from those vines in 2014.

“It won’t make sense for banks to foreclose at this time because the sales of that orchard will be quite low. If banks are prepared to support them for a year or 18 months, the likelihood is the growers will able to recover all the equity.”

Trebilco, who is president of New Zealand Kiwifruit Growers Inc (NZKGI), made the comments as kiwifruit growers engage in a consultation period, with meetings around the country, on a three-year Psa recovery plan released by Zespri. It proposes a broad-scale release of a new gold variety, Gold3, over the next three years.

Zespri is offering growers two options for the release of G3.

The first is a commercial proposal where Hort16A growers will be paid $5000/ha to return their existing Hort16A licence.  The grower can then choose to join a commercial (closed) tender process, whereby the highest bids are successful.

The second option would offer all Hort16A growers a licence if/when they deem the timing to be right to re-graft based on their personal circumstances. 

Under this option, Hort16A growers can make a fixed price bid (proposed to be $12,000/ha) for enough Gold3 licence to replace their existing Hort16A plantings.

Under both options a further 400ha of Gold3 are being released to give non-Hort16A orchards an opportunity to buy Gold3 licences and diversify their growing portfolio.

Also, under both options, a deferred payment of 80% of the cost is being offered. Growers can repay the money when their orchards begin to produce again.

In addition, ZESPRI is proposing to release up to 200ha of Green14, a newly commercialised (in 2010) sweet green variety, through a $3000 fixed price allocation.

Trebilco says there’s been a lot of grower uncertainly about what the release mechanism might be for the new G3 variety that’s “caused a lot of discussion”.

He says the “pathway to recovery” consultation “may settle some of that discussion” and options may be modified after grower discussion.

More like this

Featured

Accident triggers traffic alert in barns, sheds

WorkSafe New Zealand is calling on farmers to consider how vehicles move inside their barns and sheds, following a sentencing for a death at one of South Canterbury’s biggest agribusinesses.

People expos set to return

Building on the success of last year's events, the opportunity to attend People Expos is back for 2025, offering farmers  the chance to be inspired and gain more tips and insights for their toolkits to support their people on farm.

SustaiN lands NZ registration

Ballance Agri-Nutrients fertiliser SustaiN – which contains a urease inhibitor that reduces the amount of ammonia released to the air – has now been registered by the Ministry of Primary Industries (MPI). It is the first fertiliser in New Zealand to achieve this status.

National

Chilled cow cuts enter China

Alliance Group has secured greater access for chilled beef exports into China following approval of its Levin and Mataura plants…

New CEO for Safer Farms

Safer Farms, the industry-led organisation dedicated to fostering a safer farming culture, has appointed Brett Barnham as its new chief…

Machinery & Products

AGCO and SDF join hands

Tractor and machinery manufacturer AGCO has signed a supply agreement with the European-based SDF Group, best known for its SAME,…

» Latest Print Issues Online

The Hound

Sacrificed?

OPINION: Henry Dimbleby, author of the UK's Food Strategy, recently told the BBC: "Meat production is about 85% of our…

Entitled much?

OPINION: For the last few weeks, we've witnessed a parade of complaints about New Zealand's school lunch program: 'It's arriving…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter