Hort growers tipped to be star performers
Horticulture could be the star performer in the primary sector this year. Horticulture NZ outgoing chief executive Peter Silcock says horticulture is in a very strong position.
But he remains connected to the soil. He heads to Civil Contractors New Zealand as its chief executive from July 1 – a new industry for him.
With three decades mainly at the helm of grower organisations, Silcock played a key role in the 2006 establishment of Horticulture NZ and developing the industry’s strategy. He will again manage consolidation: Contractors NZ and Roading NZ voted last September to amalgamate.
“It’s a completely different industry, but there are similarities,” Silcock explains to Rural News. “They are pretty down-to-earth people and that’s what I have always liked about working for the growers. They like you to talk straight and they talk straight to you.”
Silcock started with NZ Vegetable Growers in 1984 soon after graduating BSc from Victoria University. He was made chief executive in 1991. In 1997 he was also contracted to New Zealand Fruit Growers Association – so he headed the two organisations. Vegfed, as it was known then, and Fruit Growers came together in 2000. That led to HortNZ’s formation.
HortNZ has 22 affiliated product groups: larger ones like kiwifruit, pipfruit and potatoes, and Vegetables NZ – small groups like asparagus and feijoas. It deals with the big issues common to the industry such as biosecurity, people development, representation to government, resource management and natural resources. Product specific issues are left to the product groups.
In 30 years Silcock has seen horticulture grow from a $500 million industry to $3.5 billion per year. Kiwifruit has grown from $200m to more than $1 billion. Vegetables have grown in processed and fresh from $100m to $500m.
But grower numbers have almost halved – from 10,000 in 1984 to 5500 now.
“There is growth occurring right across the industry. The businesses have changed with vertical integration, and consolidation is still occurring,” he says.
“We’ve got fewer growers, but we are growing and exporting more than ever. The positive is the industry has proven it is internationally competitive and we’ve got a strong export base.”
On the downside since 1984, compliance complexity has increased. “The industry recognises some compliance is necessary but it can get carried away. Issues over compliance costs, access to water – that’s become challenging and one factor holding the industry back.”
Markets have changed, with Asia and the Middle East more important.
“Growers have had to become more professional to meet customer demands internationally. But also the NZ Gap and Global Gap (quality assurance programmes) have forced people to become more professional. And people are using systems like integrated pest management and integrated fruit production. So they are thinking and recording their actions more.”
Consolidation has occurred as growers have retired or sold up; a necessary process to create scale, Silcock says.
“The industry is on the right track. The strategy document that HortNZ and all the industry pulled together back in 2009 is still relevant. We need to focus on meeting our customer requirements, the premium end of the market – the market segment that can give us higher returns.”
Career highlights
Silcock says HortNZ’s formation was a highlight of his 30 years in the industry.
But other achievements have also given him personal satisfaction, such as starting the RSE scheme Young Grower of the Year and the NZ GAP scheme.
“And the work we are doing on resource management – people appreciate it is difficult and challenging but they also support us in that. I have worked with some wonderful people, both the staff of HortNZ and the organisation that went before. I have been part the teams that worked together.”
He also appreciates the board members and the chairmen over the years and thanks them for the opportunities they provided him.
Silcock is moving on because he wants a new challenge. “The board of HortNZ and I will part on good terms but it is the right thing for me to do for my future.”
He will always take an interest in HortNZ because “it has been a huge part of my life”. He leaves at the end of June.
