Inconsistent rules 'stifling productivity'
Productivity in the horticulture sector is being thwarted by different regions in the country having different rules for commercial growers and orchardists.
In December 2023, Indonesian officials started to strictly enforce a regulation requiring mandatory preexport methyl bromide fumigation, effectively stopping exports. In 2023, onion exports to Indonesia were valued at $45 million.
Assistant Agriculture Minister Nicola Grigg told the recent Hort NZ Conference the regulation cost the industry about $5 million a week at one point.
Grigg acknowledged the “work of our world-class Ministry for Primary Industries (MPI) and Ministry for Foreign Affairs and Trade (MFAT) officials”.
“MPI and MFAT worked hard to resolve this matter and, last month, New Zealand and Indonesia agreed for onion exports to occur without fumigation.
“Onions New Zealand predicts that ten to twelve thousand tonnes of this season’s onions will be exported to Indonesia under the new conditions in 2024, worth around $5 million.”
Grigg says while working on new markets, the Government has a big workstream on now to dismantle non-tariff barriers (NTBs) with existing trading partners wherever possible.
“That is why our trade ministers, myself included, are on planes and offshore putting New Zealand back on the global stage and negotiating, and re-negotiating existing settings,” she says.
Grigg challenged the hort sector to take advantage of the comprehensive suite of trade deals New Zealand has secured across the globe.
She notes that there are significant growth opportunities in emerging regions such as South East Asia. Horticultural exports to South East Asia made up roughly 10% of total hort exports last year.
Grigg emphasised the need for building relationships in export markets.
She noted that horticulture export revenue is expected to reach a record $7.1 billion in the year to 30 June 2024 and is rapidly heading towards $8 billion.
“This is an impressive result, especially considering the monumental curveballs that have been thrown your way in recent years.
“The Government is committed to backing your sector’s success, and we stand ready to do our part to enable horticulture to grow – but a lot of that success will come down to the leadership and the actions you choose to take to implement your vision.”
