New Zealand Horticulture Expects 5% Growth Despite Frost

In the year ending June 30, 2023, it is anticipated that export earnings from horticulture would rise by 5% to $7.1 billion. High yields from the 2022 grape harvest, an anticipated rebound in apple exports, and increases in export prices for wine, avocados, and onions all contribute to this expansion. Both fruit quality difficulties (2022 crop) and frost (2023 crop) have a negative influence on kiwifruit export volumes and earnings. While most exporters are experiencing a reduction in supply chain concerns, the industry is still facing challenges from the labor shortage and growing input costs.

The Ministry for Primary Industries of New Zealand recently published a report titled Situation and Outlook for Primary Industries presenting various forecasts on the agriculture segments in New Zealand. The horticulture sector, representing a prominent aspect of New Zealand agriculture, is expected to progress this year by 5% by the end of year June 2023 despite the severe frosting experienced in the country in October.

Consumer demand for horticulture products has strengthened since the pandemic began, but production-related headwinds are limiting available export volumes for some products. A frost event in October struck the Bay of Plenty and Waikato, which affected horticulture crops, including blueberries and kiwifruit orchards. For the year ending June 30, 2022, horticulture export income increased by 2% to $6.8 billion. High yields from the 2022 grape vintage are expected to cause a 5% increase to $7.1 billion by June 2023. Fruit quality difficulties (2022 crop) and frost have harmed kiwifruit (2023 crop). With expectations for fresh fruit being high during COVID-19, the prognosis for the kiwifruit export business is favorable. However, it is anticipated that rising labor and inflation-related input prices would have an impact on profitability. Quality concerns have caused Gold3 license releases to be more circumspect in their approach to constructing supplies.

Read the rest of the report here.