SPECIAL INSERT
This ‘Executive Summary’ is an excerpt from a report titled New Zealand Horticulture – Barriers to Our Export Trade 2020, which is commissioned every two years by the NZ Horticulture Export Authority (HEA).This report was released to industry stakeholders in December 2020. Refer HEA website www.hea.co.nz for further information.
New Zealand’s horticultural exports were worth $4.521 billion in 2020 increasing $903 million (25%) from 2018.
The total cost of tariffs on horticultural exports decreased 29% to $152 million in 2020 from $214 million in 2018, based on approximate CIF (cost, insurance, and freight) value (refer to Table 3.1). This is despite a 25% increase in the total value of trade over this period. The drop in tariff costs is primarily because bilateral or regional free trade agreements have removed tariffs in many of New Zealand’s key markets such as China, Japan, Malaysia, South Korea, Taiwan and Vietnam. Tariffs now account for an average of 3.4% of the value of horticultural trade, which is down from 5.9% in 2018.
The continuing growth trajectory in horticultural exports is shown in Figure 2.1. Kiwifruit and apples are the dominant horticultural crops accounting for 75% of the total export value in 2020. Kiwifruit accounts for over $2.5 billion (56%) of the value of horticultural exports. Based on 2020 values, onions, potatoes, and avocados are ranked third, fourth and fifth respectively, as the most valuable horticultural exports. Onions increased 59% between 2018 and 2020, surpassing potatoes and avocados. Potato exports decreased 11%, while avocados increased 14.6% in 2020.
Tariffs estimated on horticultural exports to the EU cost the New Zealand industry at least $61 million (FOB) (or an estimated $97m CIF) in 2020. For context, this is almost 59% of the total cost of tariffs ($96 million based on FOB, which converts to $152 million based on CIF) for all horticulture exports to all markets. India ($22.8 million) and Japan ($5.2 million) accounted for 29% of the $96 million estimated cost of tariffs. On a localised basis, the estimated loss of income for the 5,000 commercial growers averages $30,400, down from $42,800 in 2018.
FIGURE 2.1 New Zealand horticulture export values and tariffs paid, 2004 to 2020. $5000
$4,5k
$4000
$ million
$3,3k
$3000 $2000
$1,7k
$1,6k
$2,1k
$2k
$2,3k
$3,6k
$2,4k
$1000 $156
$175
$197
$235
$241
$181
$190
$214
$152
$0 2004
2006
Total export value (FOB) ($m)
2008
2010
2012
Total est cost of tariffs (CIF) ($m)
: JUNEHORTICULTURE 2021 1 |48 NZGROWER NEW ZEALAND EXPORT AUTHORITY
2014
2016
2018
Linear (Total export value (FOB) ($m))
2020
