Onions NZ Inc

SEASON UPDATE

James Kuperus : Onions NZ Inc. chief executive

The 2022 season has not been without its challenges for the New Zealand onion industry. The culmination of a lack of rainfall, high disease pressure, increased cost of inputs, shipping disruptions, lack of labour, the Covid-19 pandemic and an emerging war in Europe is really testing the resilience of the sector. But such is the nature of growing onions and exporting from the bottom of the world to more than 40 overseas markets.

We are connected into and reliant on seasonal weather fluctuations as well as macroeconomic shifts and government decisions. Our silver lining is that we have strong demand in Asian markets, and it may possibly not be a bad year to have a reduced crop with some of these disruptions. As a sector and community, we need to remain mindful of what we can and cannot control. We cannot control global pandemics or wars. What we can control is the quality and price of what we sell and market. As we are challenged by a difficult season like this, it is important for the sector to maintain standards, and to set pricing which reflects the increased costs and disruptions.

What can be done by the government to relieve pressure?

Market Access. Market Access. Market Access.

The onion sector needs world leading market access to be able to match supply with demand. There are markets that prefer smaller onion bulbs, but we need to be able to export to them. Current limitations around market access are significantly holding back the New Zealand onion industry. At the time of writing, we do not have access to key markets such as Thailand, the Philippines, China and South Korea. We also have trade prohibitive measures to contend with such as the Indonesian sizing ban, the European Union tariff, fumigation requirements and changing food safety requirements, along with countless other nuances designed to restrict the growth of trade. The New Zealand government has plenty of strategies and ideologies around increasing exports, particularly high value horticulture. Increased onion exports meet all of the government’s objectives including regional development, reduced greenhouse gas emissions, diversified exports and increased exports.

We cannot control global pandemics or wars – what we can control is the quality and price of what we sell and market

But yet we find market access for horticultural products is not prioritised at a senior level. Current trade policy is centred around what will deliver the best return for investment. Nine times out of ten, it will be milk powder. When push comes to shove, we need government ministers to prioritise market access for horticultural products, including onions. If ministers want increased horticultural exports, reduced greenhouse gasses, a diversified export programme and regional development, they need to defend and improve market access at the most senior level. We can set up the New Zealand onion industry for a brighter future, but we need to have the government’s support for market access.