Process Vegetables NZ Inc

REFLECTIONS AS THE PROCESS

VEGETABLES HARVEST ENDS

Richard Palmer : Process Vegetables New Zealand general manager

The last Process Vegetables New Zealand (PVNZ) Board meeting reviewed the harvest that is ending, with reflections on what has been a hugely varied season driven by a wide range of events. Clearly weather events have been one big factor with a series of tropical weather systems affecting crops in Gisborne and Hawke’s Bay, and rain also disrupting the pea harvest in Canterbury before Christmas.

Overall, the process pea crop is expected to be down at least 15 percent, whilst final tallies may show a more significant drop. Likewise, corn and tomato harvests in Gisborne are mixed, after a fantastic early start with sweetcorn yields well up in early crops but later crops badly affected by weather. Covid-19 has also had an effect on processing capacity and logistics constraints, limiting both the export and domestic movement of finished products. So, another season of mixed fortunes but processors report consistent demand and the rise in fresh produce prices, coupled with family budgeting advice from domestic experts about vegetable options, is likely to drive increased demand for processed vegetables, both in New Zealand and in export markets. Given the current season’s challenges what might the following season look like? With input prices rising as inflation grips the country and the globe, clearly price and productivity increases are necessary for the sector’s ongoing success. Competition in arable regions as grain prices reach record levels is also likely to be a driver for increased grower returns. Global wheat prices are at a 25-year high, and other staple agricultural commodities (corn, beef, soybeans) are all at similar long-term highs, reflecting the uncertainty of food supply. This situation is in part driven by the food shortage concerns over Ukrainian agricultural output but also must reflect the increased input costs, especially labour, energy and fertiliser. Those increased input costs will have to translate to increased grower returns, not just to cover those costs, but also to reflect the increased financial risks. The necessity of increased margins to cover both the financial and production risks are not factors well understood by those not involved in primary production. Despite the evident business risk lessons from Covid-19, the irony is that perhaps this has inured our consumers to the challenges of farming. It is clearly an issue that we need to keep educating customers and bureaucracies about, as well as being progressive in climate adaptation to play our part in minimising the weather risks. In the meantime, PVNZ continues to invest in research to support and maintain production. Two key aspects are the varied research approaches to improve pea production, both seed consistency and also using Rhizobia to improve cooler early season growth. The pea seed research being undertaken by Bruce Searle at Plant & Food Research is demonstrating the ongoing challenge season-to-season, not just for that season’s production but the seasonal environmental effect on seed from mother to daughter crops. What is apparent is that the weather effects in one season can be ongoing with the possibility for varied flowering and therefore reduced yield in the subsequent crop. PVNZ also continues to work with the government to identify other constraints and the Board gave increased impetus to our engagement with Agcarm, given the supply risks for agrichemicals for the coming season. For growers the need to place early orders for agrichemicals is critical to ensuring sufficient supply for next season. The PVNZ Board looks forward to seeing growers at the Christchurch roadshow and Annual General Meeting on 4 August where we are running a series of presentations together with Vegetables New Zealand before the AGM at the end of the day.