Cyclone-ravaged orchardists facing balance sheet woes
Many companies are financially mortally wounded by the effects of Cyclone Gabrielle and may have to sell up because of their high debt levels.
That’s how the HortNZ chair Barry O’Neil describes the position of his sector, following the destruction wrought by Cyclone Gabrielle and other weather events that preceded it.
O’Neil told Rural News there are growers who have lost complete orchards and/or crops. He says there are growers who still have crops or fruit but are uncertain if they can get in to harvest it.
“This is one of the more significant events to impact horticulture and it’s very widespread. Whether you are in Dargaville or Hawke’s Bay, Tairawhiti or Coromandel, it’s quite devastating.”
O’Neil says the lucky ones will be able to get back up on their feet next season, but for the others the damage is so great that it’s unlikely they will ever be able to work that land again. He says, in some cases, all the top soil has been washed away and it’s down to bare rock; in other cases the land is covered in up to two metres of silt.
“In both those cases you are not going to be able to replant and some growers will have walk away from their land.”
O’Neil reckons for those who believe they can re-establish orchards where all the trees are destroyed, it will take between five to six years before they get a commercial crop. He says the cost of doing this is huge, even after they may have spent up to $40,000 just cleaning up the damage.
O’Neil estimates that re-establishment costs range from between $180,000 to $200,000 per hectare. However, for growers who are looking for a speciality PVR – trees covered by plant variety rights – he says you can add another $50,000 on to that.
There is also the question of getting root stock and O’Neil points out that normally growers order this two years in advance and pay a deposit. He says growers affected by the cyclone can’t afford to wait that long, hence HortNZ is talking to government about assistance packages.
“We have to remember that this is profitable industry and the growers that have been impacted have had strong balance sheets,” O’Neil told Rural News.
“For some, it’s a long road back to normality. But if they are supported they will get there and be profitable again for their own businesses, the region, the community and that nation.”
