Shift of focus increases horticultural exports

A shift in sales focus towards Asia and Australia has contributed to a 3.1% increase in fruit and vegetable exports to $3.3 billion in 2011.

Horticulture New Zealand described it as a "great result", given the negative impacts of the rise in the New Zealand dollar and difficult market conditions.

There had been a five-fold increase in exports to Australia in 10 years, showing how reliant that market had become on high-quality New Zealand produce, HortNZ chief executive Peter Silcock said.

Exports to Asia had doubled, taking advantage of New Zealand's new free-trade agreements and targeting growth markets across that region.

A 9% rise in processed vegetable products (frozen, canned and dried) and 4.5% growth in processed fruit exports was also pleasing, Mr Silcock said in a statement.

Exports to Australia had risen from $159 million in 2000 to $756 million in 2011, despite ongoing issues around market access for products like apples, potatoes and kumara.

The Australian market was expected to continue to increase in importance to New Zealand producers.

"It is a very tough market out there right now for exporters, and while Europe and the United States are still important markets, the strongest growth is coming from markets closer to home, which is positive," he said.

HortNZ wanted to increase the value of New Zealand's horticulture industry to $10 billion by 2020 and was "halfway there".

Australia was one of the key markets that would help it reach that goal.

Wine remained the largest horticultural export, earning more than $1 billion each year.

While the number of wineries had steadily increased over the past decade, due mainly to the popularity of sauvignon blanc, future success was based more broadly around new flavours that appealed to consumers in new and existing markets, Plant and Food Research chief executive Peter Landon-Lane said.

In the latest edition of the horticulture industry handbook Fresh Facts, Mr Landon-Lane said increasing diversification of varieties had proved a successful strategy for many of New Zealand's horticultural industries.

The wide variety of apples now offered had allowed the pipfruit industry to maintain a premium in the market place and other fruit and vegetables were also following that trend, he said.

An increase in apple export earnings offset decreases in kiwifruit and avocado FOB values.

Natural honey exports at $101.5 million exceeded $100 million for the first time.

While the volume of wine increased 8% from 2010, export earnings increased only 4% reflecting one-third of New Zealand wine was now exported in bulk and bottled and labelled as New Zealand wine in destination markets.

 

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