$150B farm succession challenge looms for NZ agriculture
Within the next 10 years, New Zealand agriculture will need to manage its largest-ever intergenerational transfer of wealth, conservatively valued at $150 billion in farming assets.
New Zealand’s avocado industry has been urged to diversify export markets as production is set to take off in the coming years.
In a new report Rabobank says the majority of New Zealand’s avocado exports currently head to Australia and development of other export markets will be essential to ensure sustainable growth opportunities for the country’s producers as production climbs.
The Australian & New Zealand Avocado Outlook 2022 states that New Zealand’s avocado production is forecast to grow by an average 6% annually for the next five years, reaching 57,000 tonnes by 2026 — up from 44,000 tonnes in 2021.
“We expect the majority of this production growth will come from the Northland and Bay of Plenty regions,” says the report’s author, Rabobank associate analyst Pia Piggott.
“And while the general production trend will be in an upwards direction, we also anticipate this growth will be highly variable on an annual basis due to ‘alternate bearing’ which results in irregular crop loads from one season to the next.”
The report says New Zealand is highly reliant on Australia as an export market for avocados with our trans-Tasman neighbours accounting for 79% of total New Zealand exports over the last five years.
“New Zealand is well placed to supply the Australian market as it has a price competitive production base and is able to supply product during the periods in the season when Australian production drops,” Piggott said.
“However, Australian supply has ramped up considerably of late – particularly in Western Australia – leading to a national oversupply, and it’s essential that the New Zealand industry continues to grow its sales into other export markets that can pick up the slack when Australian import demand is lower.”
Piggott says the New Zealand avocado industry made significant progress growing sales to other markets in 2021, despite lower exports overall.
“New Zealand’s total avocado exports by volume were back by 11% in 2021, in large part due to an oversupply of avocados in Australia and the resulting drop in sales into this market,” she says.
While exports to Australia fell, strong growth was recorded in other export markets with avocado sales to the rest of the world (excluding Australia) up by 154%.
This included improved export sales into Singapore, Hong Kong and South Korea – with NZ exports making up 9%, 4% and 125 of total imports into those markets respectively – as well as strong export growth in markets like China, Thailand, Taiwan and India.
A Chinese business leader says Chinese investors are unfairly viewed as potential security risks in New Zealand.
In the first of two articles focusing on electrification in New Zealand, Leo Argent talks with Mike Casey, operator of the 100% electric-operated Electric Cherries orchard and founder of advocacy group Rewiring Aotearoa.
A Foundation for Arable Research initiative which took a closer look at the efficiency of a key piece of machinery for arable farmers - their combine harvesters - has been recognised at the Primary Industry NZ Awards.
Prime Minister Christopher Luxon has reiterated New Zealand’s ‘China And’ policy, adding that it wasn’t about choosing one market over another but creating more options for exporters.
A long running trade dispute between New Zealand and Canada over dairy access has been resolved.
New Zealand Police is urging rural property owners to remain vigilant and ensure their property is secure.
OPINION: Spare a thought for the arable farmer, squeezed on one side by soft global prices and on the other…
OPINION: Labour leader Chris 'Chippy' Hipkins is carrying on the world-class gaslighting of the nation that he and his cohorts…