Avoscene June 2012

WINTER 2012

His Excellency Lieutenant General The Right Honourable Sir Jerry Mateparae GNZM, QSO, Governor General of New Zealand at Andrew and Maria Watchorn’s orchard, Omokoroa.

T H E N E W Z E A L A N D AV O C A D O G R O W E R S ’ J O U R N A L

Inside this issue • The Commodity Levy for avocados • Strategy to improve quality • Roadmap to exporter contracts

• Pruning: managing inclusions • New cultivars update

Directors Bay of Plenty Ashby Whitehead Ph 07 573 6680 alwhitehead@xtra.co.nz Far North

Contents

Ian Broadhurst Ph 09 406 7308 m. 021 395 906 bernian.avos@xtra.co.nz Mid North Mike Eagles Ph 09 434 7271 m.eagles@xtra.co.nz At Large Roger Barber Ph/Fax 09 435 0785 barbers@ihug.co.nz John Cotterell Ph 07 552 0880 johncotterell@actrix.co.nz John Schnackenberg (Chairman NZ AGA/AIC) Ph 07 549 0717 jschnack@ihug.co.nz Tony Ponder Ph 07 572 3019 tony@southernproduce.co.nz Rest of NZ David French Ph 09 238 3359 or 0274 375 315 famille@ps.gen.nz Export Directors Andrew Darling, Alistair Young

Regular Columns Chairman’s comment CEO comment Exporters comment Organic Grower comment Local Market comment Grower comment Regional roundups

4 7 8 10 11 13 14

Features Avocentric – Motuhoa Island The Commodity Levy – have your say New Cultivars: Clonal rootstocks start to show off?

Roadmap to exporter contracts

20 24 26 23

News Avoscene Advertising & Editorial Avoscene is published by the Avocado Industry Council For editorial contact: Natasha Mitchell Sun Media Ltd No.1 The Strand, Tauranga Ph: 07 578 0030 Fax: 07 571 1116 email natasha@thesun.co.nz For advertising contact: Daphne Keller at Sun Media Ltd email daphne@thesun.co.nz Design and production: Kym Johnson, Sun Media Ltd email kym@thesun.co.nz

Industry highlights Industry news Strategy to improve quality Local market promotion review 2011-12 Export market promotion review: Australia 2011-12 Pruning trial field days AIC staff profiles Health and Safety: Keep safe around overhead power lines

18 49 44 32 35 51 53 54

Research

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Fax: 07 571 6145 www.nzavocado.co.nz

Research projects update Avogreen: Pesticides and bees Pruning: Managing inclusions part 2

42 38 29

I Chairman’s Comment I

Maximising grower v The industry has grown, picked, packed and exported the largest number of trays in our history in the season just finished.

More than six million trays grown, picked and packed and in excess of 3.7 million exported. Our largest season ever, with bigger crops coming, yet very little celebration.

Values and yield The returns have just not been there on a per tray basis, but many growers who have had higher yields per hectare and above average export packouts (greater than 2,727 trays per ha, 15t per ha) are likely to have generated a modest operating surplus or indeed, at yields say greater than 3,750 trays per ha, returned quite a reasonable surplus.

An industry goal has been to get the industry average production to 15t per ha at which point it might be considered that a grower can be profitable. This season the industry average is about 8t per ha, half of the goal, and similar to the last ‘big’ season, 2007/08 when we harvested just on 5 million trays in total.

The AGA is reviewing the data we hold on productive area as there is a strong sense that it is overstated. But even if it is 25% overstated – as it may be – this will raise average production per ha to just 10t, the ‘average’ remains well short of the target, 15t.

No wonder most growers are concerned at the viability of this industry when even in a high production year a significant proportion of growers’ orchards are producing less than ‘average’ and can’t be economically viable 4

at this year’s values.

It is ironic that, for those who achieved it, we celebrate $17 - $20 per tray export returns (season 2009/10 and 2010/11) when industry average production was 4t – 5t per ha. How many orchards were uneconomic those two seasons? Unfortunately many growers have anticipated such returns as being maintainable and the reality in our current market places is that it is not.

The Australian market in January 2010 and January 2011 produced values not previously seen there, certainly not seen at all this season, and not likely to be seen again as Australia’s own production increases.

Viability will come primarily from substantially lifting average yields and export packouts with reasonable per tray values. This is why the AGA wants to shift focus from “per tray orchard gate return (OGR)” to “per ha OGR” – total money in the gate per ha pays the per ha costs. For example, it is suggested that yields of 3,000 trays per ha with 75% export at $12 per tray deliver a per ha OGR equivalent to or greater than a average kiwifruit green orchard, with less costs. Exporters are suggesting that export returns in the ‘low teens’ is what we should be considering over the medium to longer term, and clearly at or above a production of 15t per ha with high export packouts, our orchards are profitable.

The future The AGA has rightly been challenged by growers as to what went wrong this season and how can the AGA ensure that the outcomes experienced this year are not repeated?

This is the first year all ‘systems’ have been severely tested, and yes, AGA/

AIC reporting processes were not as well managed as they could have been, and significantly, our exporters acted independently with respect to managing crop flows to our largest market harming values achievable there.

But first let’s look at what we can celebrate. Six million trays were harvested in a well organised fashion notwithstanding the weather, and delivered for packing. Well done harvesters! At an average cost of $2 per tray, perhaps $12m of economic activity is covered from harvesting, either remaining ‘on orchard’ where growers manage their own harvest, or paid to contractors.

Six million trays have been packed and shipped for export, sent to the local market or delivered to processing companies. Congratulations packers for a job well done on our behalf! All packers will have packed their biggest crops ever, one – Apata – packed over 1.4 million trays! This area of activity covers another $20m plus of economic activity in our respective regions.

While I don’t have a final ‘FOB’ figure to hand, it is probable that exports have earned New Zealand nearly $70m and the local market approaching $20m ‘FOB’, a total of nearly $90m. This will be our biggest value year. That is worth celebrating - perhaps soberly - as I acknowledge possibly only half of that sum has got to the orchard gate.

The industry must find ways to consolidate capacity and to co-ordinate better to reduce off orchard costs.

The AGA, through the EMS review process in conjunction with exporters has identified areas where the AIC can tighten up processes and reporting.

Exporters themselves have looked closely at their performance on our behalf

Chairman’s Comment

By NZAGA and AIC chairman John Schnackenberg

value in the long term and as part of lifting their game are in the process of incorporating their umbrella body, AVEC in order to better manage themselves and their collective participation and performance. The AGA itself has clarified its purpose – see below and Jen Scoular’s commentary.

When we reflect internally we can miss what those outside see in our industry.

Our avocados – brand NZ – have high potential off shore, particularly throughout Asia, China and Japan.

Japan is working well for us and will grow; opening up access to China and reducing or eliminating excessive tariffs to Korea remain key strategic goals for the AGA which will then absorb significant new volume. If Australia is successful in growing their per head consumption from 3kg to 5kg per annum as they intend, we will continue to have a significant but variable and growing presence in Australia during ‘our’ window, even with their increasing Western Australian crops which happen to be hugely alternate bearing.

To the critic who says “If the industry cannot sell 4m export trays effectively in 2011/12, how are we going to sell 6m+ export trays in 2015/16?” I say, “Watch this space.”

AGA and AIC structure Some are suggesting that to achieve better outcomes for growers, the AGA (grower association) and the AIC (operating arm and export systems manager) need to be separated.

As part of our recent strategic review, the AGA representatives reviewed the objectives of the AGA. First objective is to “promote the sale and consumption of avocados in New Zealand and overseas.”

The second is to “promote the production of avocados in New Zealand

and to foster and establish a closer bond of unity and co-operation amongst all those engaged in the production and/or sale of avocados in New Zealand”. Other objectives are logical from establishing and maintaining a grower association through to research and development and to acquire and disseminate knowledge.

The second objective is critical here in my view. As I read this, the growers before us absolutely intended the AGA to have a close relationship with our marketers and exporters for the benefit of growers. This is achieved through the AIC where we are joined by two exporter appointed directors for the management of the export systems and the industry in general.

At an earlier AGA strategy meeting under my watch as Chairman (Kinloch, September 2008) we agreed to work much more closely with exporters than the AGA had been for some time and have achieved that through bringing all AGA representatives onto the AIC board, not just four as previously occurred.

The bit that has been missing that our CEO Jen Scoular has been driving us to define is our accountabilities. At our most recent Strategy Meeting which included the export directors, we have defined what AGA’s role is, from which accountabilities flow. Jen has covered this, but I’ll repeat it.

AGA on behalf of growers monitors and reports performance of the industry throughout the value chain.

AGA’s role is to ensure industry structure and processes are set up, including documenting accountabilities, fostering innovation and facilitating industry participants to perform to the benefit of growers, to maximise grower

value in the long term.

The exporter is accountable to their growers for OGR performance and the accountability should be set out in the grower/exporter contract.

With separation, clear respective coordinated accountabilities cannot exist.

Representative elections Two representatives, Vice Chair Ashby Whitehead (BOP) and At Large representative John Cotterell are up for re-election having completed their two year terms (although in John’s case, he replaced Kim Crocker last October and inherited Kim’s term).

Both are indicating a willingness to re-stand. From this election on, all representatives will serve three year terms. Nominations are about to be called for. If you have an interest in standing for a representative position and consider you can bring skills and experience to the industry table that can add value to our strategic goal of maximizing grower value in the long term I strongly encourage you to put your name forward.

Commodity Levy The Commodity Levy is the primary mechanism by which the AGA funds itself to deliver services for grower benefit. Levy Orders last six years and ours needs to be reviewed and reinstated

by August 2013 for the 2013-14 season and ensuing six years.

We will shortly be undertaking a thorough consultation round and I look forward to meeting with as many of you as can join us at these road shows so we can outline how the AGA plans to ensure our industry is viable and that your organisation is “maximizing grower value in the long term”.

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I CEO Comment I

The way

ATP ATP 6

By AGA CEO Jen Scoular jen.scoular@nzavocado.co.nz

forward Thank-you to the growers who joined us at the Orchard Chats.

I enjoyed the meetings I was able to attend, and found the smaller groups allowed for good discussion around a wide range of topics and issues. There is acknowledgement across the industry that all of us could have performed better, and one question coming out clearly is; what are we doing to stop what happened this year happening again?

The grower reps and AVEC directors met recently for two very constructive days and looked at our structure, roles and accountabilities and strategy. We came away from these meetings with more clearly defined accountabilities and headline statements around our roles, as reported in AvoConnect.

The AGA, on behalf of growers, monitors and reports performance of the industry throughout the value chain.

The AGA’s role is to ensure industry structure and processes are set up to maximise grower value in the long term. This includes documenting accountabilities, fostering innovation and facilitating industry participants to perform to the benefit of growers.

The exporter is accountable to their growers for OGR performance, this should be clearly set out in the grower/ exporter contract.

We discussed how the AGA can monitor the extent that market development is being undertaken for future volumes of New Zealand avocados. We agreed that I will need to collect market and business plans more regularly from exporters, not just for the current year but for the next five years. Those plans will be consolidated and discussed to collectively agree that we are doing what we need to do to secure markets for our fruit.

My team’s role is to open markets, it is the exporters’ role to undertake market development. We agreed that exporters

may need industry support in market research or generic marketing collateral and early planning would allow that to be undertaken by AIC. Information is such a valuable tool, and we need to share that information, whether it is about market potential or issues of likely market capacity. Let’s collect and share that information to better allow New Zealand avocados to be sold more widely.

We also need to better understand consumer preference. As well as planning an industry that continues to increase the amount of avocados it produces, we also need to be very careful to ensure we are producing what consumers want.

We know they want quality avocados and growers need to follow best practise to produce high quality avocados, particularly as markets outside Australia need longer transit times. Exporters will also need to consider the selling points for NZ avocados. Are consumers more likely to buy for health reasons, or for the high oil content? Messages about consumers need to make their way back to the growers so we are producing avocados to meet market needs.

I had a very good trip to Shanghai at the end of April as part of the NZ Delegation attending the CODEX Committee on Pesticide Residues, which is a global committee but the meetings are hosted

by China. Ensuring we set up processes to gain and maintain market access to export markets is hugely important and I attended the meetings to better understand the processes we need to follow. I attended a working group meeting on setting residue levels for minor crops, which includes avocados.

New Zealand does not have phytosanitary access to China, which is negotiated at government to government level by the Ministry for Primary Industries (formerly MAF). Wayne McNee, the Director General of MPI, was also in Shanghai, so I took the opportunity to impress upon him the importance of access to China for avocados. I met with NZTE in Shanghai and gained some good market

research on the retail and food sector in China. I had a look at supermarkets and purchased some good tasting Mexican and Australian avocados.

Nici and I put the 2012-13 budget up to the Board at the May meeting.

Looking forward, we recognise the need to deliver better value to growers, especially in the R&D programmes we undertake. Alvaro, Glenys, Adam and Bart are all getting their feet firmly under the table in the lab and on the orchard – I hope you have had a chance to meet them at field days or around the pruning trial. Henry has been actively involving in assessing the research projects within the Avocado Research Consortium (the ARC Project) and the Board approved our participation in this international research project to find a solution to irregular bearing. We are working at better communication around all of the projects we are undertaking.

Bevan is doing a great job on communications while Midge is on leave in South America. He is also working with Nici on the commodity levy renewal.

Sheryl and Jo will be available over the next few months as you register for export and you will be receiving information from Edwina about the AGM. You will have received a pack from us in June outlining the commodity levy process. We included some detail on our proposed plans for the coming five years, and the impact that may have on commodity levies. Our plans continue to forecast increasing volume, which will allow the levy rates to trend downwards.

We will be holding roadshows from June 18-25 across the regions to get your feedback on the levy proposals outlined in the grower packs. Please make the time to attend the roadshows. We are asking for your support for the commodity levy renewal. We hope that you can see the importance of the levy and that you will vote in favour of renewing it in the referendum in late August/early September 2012.

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I Exporters’ Comment I

Relishing new challe Having just participated in, and contributed to, what will be recorded as one of our most challenging and poorest performing seasons as an industry on record, I’m sort of thinking perhaps it’s not a great place to enter as the new AVEC chairman.

Having said that tongue and cheek, I am honoured to have the opportunity as AVEC chairman to further participate in the leadership of what is an exciting and vibrant industry that has huge international opportunity and potential and I write my first AVEC chairman’s column with that outlook at the forefront.

I would firstly like to recognise John Carroll’s contribution to the industry during the past 16 years. John, who has filled the role of chairman of AVEC for many of these years, has contributed to the leadership of the industry whilst it has evolved and matured, facing increasingly complex issues from that of a cottage industry to what has now become New Zealand’s third largest horticultural export earner.

Through his experience he has guided the exporters and made a significant contribution to the AIC. John’s experience will still be available to us, he remains a committed exporter in the avocado industry as we now move through a time of managing the challenges around marketing large volumes internationally in difficult times.

So, while one of my challenges is to take over the mantle from John, the others are clearly to help AVEC understand the issues of the past in respect to learning from them as exporters and as an industry, as we prepare for the 2012/2013 season.

I don’t wish to dwell on the last season but it would be remiss of me not to acknowledge that it was a season that had much that we 8

By AVEC chairman Andrew Darling andrew.darling@nzavocado.co.nz

enges would not wish to repeat. It is my hope that we have all learnt from this and will take these lessons into the next season and beyond. But, in order for that to happen, we need to improve our level of understanding of the market place and the way we engage with one another.

Growers may well have an expectation that this coming season will be better, particularly with a smaller crop. As much as I would like to assure growers that this season will be better than last season, I cannot give that assurance. Even with a short crop being projected, it will not be an easy season for a number of reasons.

Critically the Australian industry has got the largest crop it has ever had. Their previous largest crop of nine million trays is estimated to reach 12 million this season, of which 4.5 million trays are expected to arrive in the market between October and February. This will have a two-fold impact on our retail programmes into Australia; the volume required from New Zealand will be down and sales will start later as the Australian crop is cleared from the market. With an over-supply of product, experience tells us the wholesale market will be depressed.

So once again we are faced with a challenging season and the prospect of lower returns. As an industry we need to plan for this. Clearly we cannot rely on the Australian market to give us the returns we have come to expect.

In my view we must export 50 per cent of our crop to markets outside of Australia. I cannot stress how important this is for the well-being of the industry.

But I don’t underestimate how difficult this goal will be.

In order to achieve this goal, there are three key things that need to happen.

First is a structural change for AVEC, second is understanding and agreement around the exporters’ relationship with their growers, and the third being new

market development.

Recently AVEC has agreed to formalise its structure and become an Incorporated Society. AVEC (Avocado Exporters Council) is the body that represents the interests of the avocado exporters.

It has a responsibility to its exporter members; however there has been limited accountability. This is largely due to the fact that AVEC has not been a legal entity and there have been no formal processes in place to ensure this occurs.

The benefits of AVEC forming a legal entity are about changing the culture and the mind-set of the members and it will allow for AVEC to speak with one voice and represent the exporters in a united manner. Ultimately what AVEC is trying to achieve is greater cooperation amongst its exporters to ensure maximum returns are achieved for the industry. This is not necessarily a direct outcome of adopting a legal entity; however a legal entity will provide a framework from which members can operate. But ultimately greater cooperation comes about through trust and a recognised need to work together because there is a commercial imperative to do so.

There is an understanding and recognition that a partnership must and does exist between growers and exporters and both parties have an investment in the prosperity of the industry. Growers need to make sure they engage with their exporter and find out what their marketing plans entail. All exporters should have one and you have the right to ask and be provided with the necessary information. It is after all, your product that is being marketed. Equally you need to ascertain the terms of trade as they apply to you. This is a business arrangement and you are entering into a contract with your exporter. Ask for and expect to see the detail.

This brings me to my last point, which

is one of paramount significance to the industry right now. As innovation is the life blood for the ongoing success of an industry, so too is new market development, without which we cannot hope to grow and prosper. But new market development does not happen overnight. It is a slow and protracted process and requires a significant investment of time and capital.

New markets for avocados are generally in countries where avocado consumption is only just developing. That is, consumers there are still becoming accustomed to avocados. This presents us with enormous growth opportunities but it requires us to be patient and appreciate we cannot sell large volumes in the immediate future. It also comes at a cost to grow these markets and develop the necessary relationships.

Japan is a prime example of the investment that has been made over the past decade and more. Today Japan is our second largest market and exporters are working together to further develop the opportunities in Japan. As chairman of AVEC I ask that growers support their exporter to do this and support them in their endeavours to develop new markets, which may initially pay less but ultimately reward the industry in the long term.

My parting comment for this issue is that as we prepare for the coming season we all understand the importance of protecting access to our export markets.

Gaining access to a market is not a given right and in many instances it is a long and hard road to get access. As producers and exporters of avocados we need to comply with the importing country’s requirements at all times.

This means we must be on our game and ensure we export only the best produce which is free from residues, pests and disease.

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By NZOAGI chairperson Mike Crum mpcjcrum@xtra.co.nz

I Organic Growers’ Comment I

More to learn to secure our future The local discussion group will be visiting our orchard next month.

What I can show them is an orchard that has been left to grow as naturally as possible for the last six years, which is the time it has been under organic certification. It is a bit scruffier than they will be used to, having not been mowed for six years. It also hasn’t been sprayed for six years but interestingly doesn’t really have any pest pressure with six spotted mite, thrips and leafroller all being present at times but none seeming to flourish.

We spend $500 per hectare on fertiliser and prune yearly, which costs another $250 per hectare. We leave the prunings to rot down and they take two years to completely disappear. We don’t have any other orchard costs except for picking.

There is a large population of fungi and bugs in the mulch. The roots go deep and extend well beyond the drip line.

There is a very good crop of high dry matter fruit on the trees. It has missed cropping once in the last six years and reaches 24% dry matter early. Last year we picked at 26% dry matter in June.

The only problem we have is phytophthora and we have removed 20% of the affected trees, with a few more to come out this year. The rest of the orchard is healthy at this stage.

The industry has gone down a different, high input path which has been fine whilst we have had a high paying, protected market such as Australia next door.

That is all changing now and I would suggest for the industry to survive, we

all need to find a way to lower our onorchard costs.

My message to add to the strategic discussions that are going on within the industry now is we have more to learn about growing and marketing avocados than we ever have. We need to undertake all activities now in a more efficient manner.

The need for a co-ordinated approach is greater than ever and the organisational structures of the AIC and AGA are more important than ever, along with the need to fund them so they can not only pay for fixed costs but have money to do more.

I believe we need to reinvent avocado growing and aim to produce high dry matter fruit early to supply the Asian and American markets. This has an added advantage of getting fruit off trees early and giving the trees a chance to recover before flowering with no crop on. The Australian market with its demand for large fruit in November to February has not suited our trees well, with the need to hang two crops at once.

The place to start going forward is with phytophthora control in a manner that doesn’t affect the biology of the soil and the tree. Avocado roots excrete carbohydrate that feeds fungi that becomes the pathway for nutrients to become available to the tree. My observation would be injecting phosphoric acid destroys that relationship.

There are two world renowned experts in biological phytophthora control coming to New Zealand in August to speak at a conference in Christchurch. They have offered to speak to avocado growers in Tauranga which could be a wonderful opportunity.

By Mike Swan of Southern Produce Ltd

I Local Market Comment I

Local market performance in a big season: can we do better?

At the time of writing we are into the final few weeks of the 2011/12 season, and it is now clear that the New Zealand domestic market has indeed experienced the biggest ever year of production as predicted.

The initial crop estimates of 2.5 million trays this season have been realised, and we now need to assess how well we have met the challenges that have come with this record volume, and what we can do better when the next one inevitably comes around.

We have all heard the stories of growers receiving bills for fruit sent to the wholesale market. At one point this season, during four consecutive weeks, we produced more than 300,000 local market trays, with one week topping 100,000 trays. The relatively small local market in NZ means it is even more susceptible to the effects of big volumes of fruit, which typically come during the peak of the export picking in November and December.

It is through these times that suppliers to the domestic market should strive to supply quality avocados, and try to avoid the downward spiral triggered by excessive volumes, fruit age or ripeness issues. We need to ensure the consumer will return for that all-important repeat buy. There is more benefit in removing poor quality fruit entirely than discounting to try and clear

aged stocks. A poor eating experience will damage product loyalty and discourage further buying.

It is also worth considering that the average export pack-out in our industry each year ranges in the mid-60%. Once a 10% allowance for reject fruit is factored, a significant 25% of the fruit remains to be absorbed by the local market.

It makes sense that maximising the returns on this 20% portion of most crops is in every grower’s best interest.

There has been much discussion in a number of forums about the performances of exporters this season. A common theme appears to be that many growers could take a more proactive approach in the decision on who markets their fruit. This applies just as much to the local market fruit. If all suppliers work to maintain as much value as possible in the domestic market, then that 20% of non-export fruit may represent substantial additional income to the grower.

This past season has presented the industry with an ideal opportunity to widely promote avocados, while they were abundant and reasonably priced.

A review of the promotional activity undertaken by AIC and the coverage it received in New Zealand media in 2011-12 can be found on page 32.

11

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12

By Natasha Mitchell natasha@thesun.co.nz

I Growers’ Comment I

Great expectations Avocado growers remain positive about the potential of their industry despite disappointing returns for the 2011/2012 season.

However they also say changes are needed to ensure future success.

The export market offers the best chance of providing good returns but some growers believe the New Zealand industry has been too slow to develop markets other than Australia.

Far North grower Donald Redgrave says Australia now has enough avocado plantings to provide fruit in much greater quantities domestically, thus reducing demand for New Zealand avocados, especially in August/September and through to Christmas.

“New Zealand needs to find other markets; China in particular, though that’s difficult because China is not easy to deal with. It’s happening, but slowly.”

Asian markets are seen as a good option for future growth and the work of some exporters to develop these is recognised by growers, but they say problems with fluctuations in supply due to biennial bearing make it difficult to supply new markets. Collaborative marketing in developing markets is seen as a positive initiative.

Sam Dunlop, whose orchard is at Kauri Point near Katikati, says while New Zealand’s avocado production might only be a small portion of total global production, this provides opportunities for niche marketing and supplementing domestic supply in other countries.

Poroti orchardist Mark Croucher agrees, but says the New Zealand industry needs to work out which markets it can achieve a relative advantage in and leverage off that.

Houhora grower Tony Payton believes there is potential to grow both the American and Asian markets for New Zealand avocados. If new cool storage technology can ensure fruit quality over long sea voyages, New Zealand avocados could be shipped to Europe too, but closer markets are an easier target in the short term.

“We’ve got to chase where the money is. I think competing on quality is the right way to go. We have got to use our New Zealand image and have a point of difference in terms of quality,” says Tony.

“Avocados can be grown more cheaply on land that’s cheaper, with labour that’s cheaper, so we have got to produce a consistent quality product and make sure consumers enjoy a good experience.

“I perceive the world is becoming more health conscious and we have got a pretty desirable health product.”

Tony would like to see copper sprays made mandatory for export fruit to help improve fruit longevity.

One of the challenges experienced in Asian markets is a preference for small fruit. Terry Ridder of Ongare Point, near Katikati, says New Zealand has two options: either growers need to manage their orchards to produce smaller fruit or exporters need to educate consumers that larger fruit offer better value.

A desire for fewer exporters and better market discipline was expressed by all growers spoken to for this article. Some have considered the idea of export marketing via a ‘single desk’ structure, like Zespri, but knew this would require industry-wide support and law changes which were unlikely to happen.

“There are too many people and they’re all undercutting each other,” says Donald.

“Look at what different exporters have paid,” says Terry.

“We need sustainable returns. There will be a lot of small orchardists that are feeling they’re only working to contribute to the community but aren’t making anything themselves.

“Growers also need to compare the cost of picking and packing and have open discussion on prices paid by exporters, so they can make more informed decisions so they can stay in business.

“This year it’s been more open and growers are telling each other, but maybe it should be industry led or encouraged.”

It is expected some people who own small orchards may decide to leave the industry in the future if they cannot achieve sustainable returns.

Exports markets are not the only area that holds potential however. Sam and Terry highlight the opportunity to grow New Zealand consumption of avocados too.

“Australians eat about 14 avocados a year (per person) – New Zealanders eat about nine avocados a year (per person),” says Sam. “I eat several avocados a week. If the rest of New Zealand did too, I don’t know if we’d produce enough domestically (to satisfy demand).”

Terry says the industry should treat the New Zealand market as an export market.

“We should improve quality into that market and get more money out of it.

We should start by getting rid of Tag 3 fruit and half of Tag 2 and put that to processing.”

Mark says in America some 20-30% of avocados are sold in processed form, creating another area for potential development for New Zealand avocados.

13

Regional Roundups once again appear to be well As I write this regional report in front with orchards testing it looks like winter has finally young trees currently achieving arrived, with our first real results between 19 and 20 per wintery south westerly blast cent. along with prolonged heavy Winter nutrition programs can showers. Up to now rainfall and provide plenty of opportunity temperatures have resulted in a to build carbohydrate levels over mild autumn but its noticeable FAR NORTH the winter months. Research now the flush is hardening

By Ian Broadhurst indicates the leaves function off and the transition into well at this time especially in the preparation for flowering has north. Data collected at one Far North begun. orchard indicated soil temperatures Our late summer has been great with don’t generally drop below 12 degrees excellent temperatures and timely rain ,so plenty of opportunity for mineral which has set the trees up well for the next season. Summer flush extended well uptake and starch storage. This can be an excellent time to ensure our trees are with most orchards heading into winter well set up for flowering, as the cooler in pretty good condition. temperatures reduce the trees’ desire Pest pressure from thrips has been the to push vegetative growth and prompt major issue for most orchards over the them to store reserves as part of the fruit past few months, while mites have had setting process and subsequent spring a lesser impact this year as new chemical flush. groups have been available for growers.

May is generally the time when the By now most growers should have trees stop actively growing and is the liaised with their various exporters to recommended time to sample soil and understand any restrictions in terms leaf which should be the basis for the of spray programmes for market fertiliser programmes going forward. compliance. This year more than any The new initiative of ‘Orchard Chats’ other will require growers to be allmarket compliant with a major emphasis is providing an excellent opportunity for growers to communicate with reps and on the Japanese and South East Asian the management of our organisation. markets. To allow for full utilisation Concerns over orchard gate returns have of our size profiles over next season been highlighted, which has resulted in exporters will require larger sizes from intense discussion. Going forward we growers to be potentially exported to need to anticipate that these potentially America. This will create challenges in could be the norm and as growers we terms of LBAM control, so attention to must develop better and more costspray programmes and monitoring will be critical. Fortunately, as I write this the effective growing methods, understand what our inputs are and what factors exchange rate has dropped to $0.76 US influence profitability. Future Orchard to the NZD here’s hoping for a figure Chats in the Far North will focus closer to $0.70 US. on fine-tuning growing inputs and Now is also an opportunity to discuss influencing other stakeholders in our issues and lessons from last season with industry, where possible, to ensure our your exporter, along with strategies to ongoing viability. improve results for the up and coming At an executive level, a series of season.

Crop-wise the Far North is still looking roadshows have been organised to explain our up-and-coming Commodity great, especially on young trees. Wind Levy review. It’s important to have your events during fruit set have resulted in say in this process. A huge amount of pockets of fruit damage but generally the thoughts are export pack-outs will be work has gone into the preparation of the strategy behind the levy and normal. Dry matter results so far appear to be slightly down on the same time last its purpose, your input is critical and welcomed. year, although orchards with young trees 14

All growers will need to be considering their choice of pesticide chemicals very carefully for the remainder of the season, as you will need to have your AT LARGE

By John Cotterell fruit available for all markets. You will or should have been hearing from your packhouse or exporter about All Market Access; you will hear this term a lot more before the next season starts.

You will also need to keep applying those copper sprays, as there will be a lot of fruit going to markets other than Australia. I don’t want to sound like a broken record, but copper is really our only option when it comes to protecting our fruit so that it’s a saleable item when it gets to far-away markets in Asia and the USA. The USA can be a very difficult market just because our fruit is almost 30 days old when arrives, so keep up the coppers.

You also need to be asking your exporter/marketer which markets your fruit is going into this season, because the amount of fruit going into the Australian market will be seriously reduced from last season. The two main supermarkets have reduced the number of New Zealand suppliers and the opportunities in the Australian wholesale market will be very limited.

The reality is that the majority of New Zealand’s crop will need to go to markets other than Australia. If your exporter/marketer only supplied the Australian wholesale market last season, you should be asking them what their market plan is for this coming season.

Yet another export season has come to a close with a lot of reflecting on what went wrong and what we could improve on. Most of the issues were out of the growers’ BAY OF PLENTY

By Ashby Whitehead hands but there were some fruit quality issues which growers need to take ownership of. As growers we have influence and responsibility over the quality of our fruit.

There are five different fungi that produce fungal rots and these can occur at anytime during the year. Spores are produced in dead wood and mummified fruit and are released during any rain event.

Good control relies on the use of copper fungicides as a protectant. To be effective, sprays must be applied prior to rain and the release of the spores. Good coverage and frequent applications are key to maintaining a barrier on the fruit that is essential for effective control.

The Fruit Quality Best Practice Manual advises that copper is best sprayed at monthly intervals and fruit that has received less than eight applications of copper should be tagged as ‘high risk’.

If you are applying the recommended amount you are doing all that is required, but your fruit may be subsidising those growers that choose not to apply copper.

You need to check with your exporter whether he takes this into account when shipping your fruit with fruit that has few or no copper applications.

Does your exporter discuss any fruit quality issues with you? If not, he is most likely not discussing them with other growers in your pool and it is the pool that will carry the loss.

With new market development it will be imperative that our fruit is in the best possible condition and has the legs to travel to new destinations.

If you would like to know more on copper applications I urge you to look at the Fruit Quality Best Practice Manual.

This can be found on the AGA website in the Publications section.

After a disappointing to an international research avocado season, we have been consortium in partnership reviewing the causes that with Mexico, USA and contributed to the marketing Australia. This Avocado problems in Australia, and to Research Consortium (ARC) the structure and functioning will focus the best brains of our industry. A series of involved in avocado research “Orchard Chats” or grower globally on this problem of meetings held around the Alternate Bearing.

MID NORTH regions enlightened us with

By Roger Barber Maximise long term value grass-roots opinions of from the market. growers. This feedback has been helpful in reviewing the Avocado This involves an even closer Industry Strategy, as we build a business relationship with our exporter partners plan for the next five years. and a greater commitment to new The outcome was general agreement market development. that, with some minor tweaking, we Strong representative industry have a sound industry structure.

The strategic objectives to maximise structure. grower value and improve orchard gate This requires all stakeholders in return (OGR) follow below. the avocado industry to combine their collective strengths to improve Maximise on-orchard production. industry outcomes. The AIC Board is The key to this in my opinion is to committed to this objective. replace our tired aging blocks with new plantings on more vigorous, productive Disciplined application of best rootstocks, for example clonally practice. produced trees on Dusa or Bounty Most of the important technical rootstocks. The most productive trees information is already available to generally are those between 6 – 12 years growers in the Avocado Growers old, so clearly many of our orchards are Manual, and subsequent industry well past their “use-by” date. publications outlining best orchard practice. It is now up to growers to Consistent supply. apply these recommendations in their We need to identify and mitigate own production system. A good the causes of Alternate Bearing. This example was evident last season which will include evaluating new cultivars, demonstrated the importance of copper preferably with many of the attributes sprays to ensure adequate shelf life and of Hass, but without its propensity associated post harvest fruit quality. for biennial cropping and small fruit This year the Avocado Growers size. New varieties, such as Carmen Association will be involved in securing with its long, erratic flowering habit, the Commodity Levy for a further and Maluma with its more regular six years. Its is vitally important that bearing and better fruit size profile, are growers vote to support this levy to already being field tested across our safeguard the future of the avocado main production districts. Also the industry.

AIC has recently become a signatory

15

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17

Industry highlights Governor General’s visit The Governor-General, Lt Gen The Rt Hon Sir Jerry Mateparae, made a four day visit to the Western Bay of Plenty region in March which included calls on an avocado orchard and pack house.

Jen Scoular said: “We were very excited to be included in the Governor-General’s itinerary and to let him see and hear firsthand from growers and other participants in the avocado industry. Sir Jerry’s visit helped to promote the industry and region on a national scale.”

Bay of Plenty avocado growers Andrew and Maria Watchorn were visited by the Governor General and had the opportunity to showcase an avocado orchard and highlight the importance of avocados to the Bay of Plenty region.

Sir Jerry also visited the Apata Packhouse to see and hear of another aspect of the industry and returned to Wellington with a tray of avocados.

18

Orchard Chats AGA Grower Reps hosted 12 Orchard Chats in May. Meetings took place in the Far North, Mid North, South Auckland and the Bay of Plenty. More than 200 growers attended in total and spoke to grower reps about a wide range of topics including the Industry Strategic Objectives and the Commodity Levy.

Common themes in the feedback provided by growers at Orchard Chats were: • How might levy rates look going forward?

• What is the industry doing to ensure that a season like 2012-13 is not repeated?

• Can growers ensure that markets are being developed for future volumes?

Feedback from the orchard chats was included in strategy discussions at the

recent Board strategy days. We will send growers an information pack with commodity levy options and proposals before the roadshows and invite further feedback from you at the roadshows.

Jen’s feedback from the Codex meeting in China I attended the Codex Committee on Pesticide residues in Shanghai at the end of April as part of the NZ delegation from Ministry for Primary Industries, MPI, formerly MAF. This is an annual meeting seeking to set global residue levels on a crop by chemical basis. It was also an excellent opportunity to raise our need for phytosanitary access to China with MPI, and coincidentally the Director General of MPI, Wayne McNee, was also in China, so I had the opportunity to raise that directly with Wayne. I also visited NZTE, got some good background information on the

Autumn 2012 retail environment in China and visited a few stores to see how fruit and vegetables were sold.

Jen’s feedback from the ARC Board meeting in USA The Avocado Research Consortium (ARC) Board meeting was held at the offices of the Californian Avocado Association, CAC, in May. The intention was for the ARC board to sign off the three projects which the technical team has approved. No decisions are made without unanimous approval by all four participating countries, NZ, Australia, US and Mexico. Unfortunately John Tyas, the new CEO for Avocados Australia Ltd has found his time on the ARC project rather limited as he picks up the new role, so he wasn’t able to give approval from Australia. I took the opportunity to meet the Hass Avocado Board, HAB, and the team at CAC.

Pruning Trial Field Days More than 250 growers attended the Pruning Trial Field days in Whangarei and Katikati in March.

Thank you to all those who attended and a special thank you to our host growers Bryan and Dianne Cheshire (Bay of Plenty) and Shane and Sue Culham (Whangarei).

A roundup of the pruning trial field days can be found on page 51.

A pruning trial discussion group has been started to further explore growers’ ideas, experiences and feedback on pruning.

If you would like to join the discussion group, please send an email to pruning.trial@nzavocado.co.nz Latest NZ consumer research shows positive results The AGA commissions The Neilson Company for market research to better understand the purchase dynamics

of avocado buyers and measure the performance of avocados in relation to marketing objectives.

The most recent data from Neilson shows promising gains in avocado purchasing, including the following increases from 2010/11 to 2011/12: • Total household penetration increased from 52.4% to 62.4% • Purchase frequency increased over the 24 week summer period from 4.9 occasions to 5.9 occasions • Avocados increased from 3.7% to 4% of total fresh fruit spend.

Overall dollar sales of avocados increased by 4.4% in New Zealand (for the 2500 strong consumer panel surveyed). By comparison, overall household spending on fresh fruit actually declined by -1.5% in the same time period.

The full Neilson report can be viewed at the promotions page of the industry website.

19

I Avocentric I

Motuhoa Island from the air.

Avo’ island a top The team behind one of New Zealand’s highest producing avocado operations, based on Motuhoa Island, say there is no secret to getting great results from an orchard. All that is required are a good site, good trees, good shelter and good management.

Orchardist and former nurseryman Ken Oemcke was asked to be part of a joint venture with DMS ten years ago to lease a 40 hectare block of land on Motuhoa Island, in Tauranga Harbour, and develop an avocado orchard there. The land considered one of the best sites for growing avocados in the region, is owned by the Smith and Bidois families and was leased to the joint venture for a 20 year term.

In the 2011/2012 season the orchard produced 120,000 export trays. The most productive block within the orchard produced 24 tonnes per hectare.

Ken says their goal was to achieve 100,000 trays by year ten of the project, but up until this season production has been a little disappointing.

The scale of the Motuhoa orchard is massive, with some blocks larger than an 20

average orchard and more than 350 metres long.

Ken and wife Mary supplied all the trees and helped with the orchard’s establishment over two years. At first they planted grafted trees but when they ran out they planted seedlings and grafted them in the field later. Initially 7500 trees were planted but many had to be replaced after they lost approximately 1400 trees in a severe frost in year four.

DMS avocado business manager John Emett has overseen management of the orchard for the past seven years and organises picking, packing and selling the fruit. The company employs Mike Bidois as orchard manager to look after the property on a day-to-day basis.

DMS is also involved in a trial plant material agreement with the Avocado Industry Council and has 660 Lamb Hass trees on the island which are now nine years old.

Ken says during the project’s early years some of their practices were seen as unconventional.

For example, grafted trees were protected by a tepee shelter structure rather than the traditional four posted shelter.

“It cost about one third of the conventional way and when you’re doing that many trees, it was a huge saving,” says Ken. “And the tepees were better – the trees grew up with a nice single leader.”

Conventional blocks are 60-90 metres

wide, but this orchard’s are 110m wide and up to 450m long. Two row shelter belts of casuarinas and willow break up the blocks.

Trees were originally planted on a 6.4m x 6.4m diagonal, giving final spacings of 9m x 9m square, with rows running north to south. They are currently part-way through a tree removal programme.

Initially no pollinsers were planted but they have now added some in about a quarter of the orchard.

“We just didn’t think it was necessary at that time,” says Ken. “You get good cross-pollination between Hass.”

He firmly believes some orchardists could have planted unproductive trees.

“As a previous nurseryman I am well aware of the production variability of avocado trees produced from seedling rootstocks. This and other techniques used in some nurseries can impact on the ultimate orchard productivity. Examples are scion wood selection from poorly productive trees, allowing “J” rooting to occur during the potting process, and poor substrate mix. Also the inability of some owners to effectively manage the planting out process, including the questionable use of large planting holes, can affect tree productivity.”

Some of the trees on Motuhoa have a distinctive long trunk, making them look almost like a standardised avocado tree.

These were field grown seedlings grafted

Joint venture partners Ken Oemcke and DMS’s John Emett.

producer

by Mary, who didn’t like bending over to graft.

“From a management point of view, they’re the easiest to manage,” says John.

“They’re straight, compact and easy to prune.”

John has come up with a simple and effective pruning technique that is easy to convey to staff and quick to execute.

“You simply take out the widest branch on one side and one of the highest out of the top. We do one side one year and then do the opposite side the next year, and so on.

“We aim for a single leader tree with about half a metre stump and no low lateral branches. And we have no included branches.”

The past season has been the highest production the orchard has recorded, with just under 2500 bins harvested.

They employed ten ground pickers and six Hydraladas. Thanks to the use of apple picking ladders they were able to harvest between one third and half the crop from the ground, which made picking more economical.

Staff, equipment, supplies, beehives, and fruit are transported to and from the island by boat, whether it is the Omokoroa ferry or a small motorboat owned by DMS. The island’s terrain is flat, it has good free-draining soil and a temperature advantage compared to the mainland. Ken says the island can be up to two degrees

warmer than his home orchard in Te Puna. However there is less rainfall on the island and that is a disadvantage, though they have not installed irrigation.

The top third of the island has avoided having the biennial bearing cycle most of the orchard experiences, but production is not as high from that area. It is also the warmest part of the island.

In terms of pests, John says the orchard experiences six spotted mite pressure but that is common in coastal orchards. Thrip numbers are low and leafroller numbers are about the same as on the mainland.

Rats have been a problem in the past, causing fruit damage, but they have installed bait stations throughout the orchard to control the rat population.

“We have virtually no phytophthora, so we don’t inject our trees, but there is a small block near a swamp that we do as required.”

Leaf tests are carried out regularly throughout the year and a soil test once a year. John says he uses standard fertilisers and combines these with other inputs such as humic acid (to stimulate bacteria and nutrient conversion in the soil) and seaweed-based extracts (to help the trees in times of stress).

“We use NPK fertilisers as required. We run leaf levels at a maximum of 2.2 per cent nitrogen.”

He decided to reduce the amount of nitrogen added as the young trees were very vigorous and vegetative, and they

By Natasha Mitchell natasha@thesun.co.nz

wanted to encourage them to be more productive.

Ken and John agree that reading your trees is the key to effective management.

They say having an annual leaf and soil test done and getting a consultant to provide a programme for the year and then following that month by month just doesn’t necessarily work.

“How can somebody give you a one-off programme for the year ahead and know what the trees will be like say in three months’ time?” says Ken. “I’m not against consultants, don’t get me wrong. For example, zinc and boron are calendar events, but a lot of other things aren’t calendar events.

“You need to feed your trees in response to what they’re doing, rather than to a prescriptive programme. Timing inputs is the most important part of growing avocados.

“You need to be able to read your trees and to interpret what you see and predict what will happen in two weeks’ time, two months’ time and in two years. Therefore, you need observation of the type of growth, leaf internode length, leaf size and root flushes. Those are experience things,” says John.

“People shouldn’t beat themselves about the head because they can’t always get a good crop. The Bay of Plenty is a marginal climate for avocados and biennial bearing is a worldwide problem,” says Ken. 21

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22

Roadmap

to exporter contracts The AGA has been actively encouraging growers to ensure they do due diligence on the contracts they sign with their packer and exporter.

The relationship a grower commits to when they sign up for an exporter to market and sell their fruit is a commercial one, and as such, care should be taken to ensure both parties are aware of the detail of the contract and are happy with that detail.

The AGA sets out here some questions a grower might ask themself or their prospective exporter, about the contract they are entering in to.

1. Who is accountable for my fruit along the supply chain? a. In most contracts, the grower owns the fruit, until it is sold to the retailer or wholesaler in market. b. However, where that fruit is part of a pool, the pool itself takes financial accountability for that fruit, except in circumstances specifically outlined in the contract. This might be in instances of non-compliance to the spray programme or excess residues. c. This does mean that your pool result will be impacted by the quality of all fruit in that pool.

2. What happens to fruit that is shipped but not sold? a. Fruit can be dumped or culled for many reasons, including age or quality issues. b. You might ask the exporter to disclose the volume of fruit in your pool not sold in 2011-12 to calculate the impact on your pool return. Fruit sold for zero value should also be included in this calculation.

3. What insurance cover is provided for my fruit?

4. What happens to fruit with residue levels over the limit? a. You may like to ask your exporter if there were instances in 2011-12 of residue issues preventing fruit entering a market, and any costs associated with that. b. How are the rules around this set out in my contract?

5. You need to know if you are part of a pool or not, and if so, you should understand how the pool rules apply to your fruit.

2. What is your market development plan for the next five years?

6. Some questions you may ask about your pool: a. What is the time period of the pool – is this across the whole season, an early season pool or a late season pool, or some combination of those? b. Is this a regional pool or across all regions the exporter sources from? c. What costs are included in the pool return? d. What is the size profile of the pool for example: are you paying out separately for 28s, 30s and 32s or paying an average return over those sizes?

7. What percentage of growers in my pool are applying a ‘best practice’ copper spray programme? Are these fruit being tracked to see if they perform better?

The setting of a market or business plan by the exporter will be an important aspect to ensure return in value for your fruit is maximised. The market plan may not be part of the contract but explained at grower meetings after the contracts have been signed.

Questions you might like to ask about the market planning include: 1. What are you as my exporter doing to develop markets for the expected high volumes in 2012-13? a. Which markets are you targeting and why?

b. Are you collaborating with other exporters in any market development? c. What sort of activities do you undertake to develop a market? d. How will you measure progress with market development, so I am assured there is demand for my fruit? e. What is the split of export to destinations other than Australia?

3. What promotional support is provided by the exporter to grow the retail programme?

We have all been through a very tough season and looking ahead we need tor recognise that this past season has changed the landscape of the industry going forward. The AGA will work to open and maintain markets while exporters will develop and penetrate new markets in a disciplined manner.

The Australian market is no longer available as a value market for 90% of our exports. New markets being developed are further away, the supply chain therefore more demanding on your fruit. That requires even better application of best practise. Distant markets are more likely to expose any shortcomings in the quality of your fruit.

Growers have a huge role to play in providing exporters with premium quality fruit by applying best practise on-orchard and ensuring through their spray programme their fruit has all market access status. The science around the application of eight coppers to protect the robustness of the fruit in the market is strong. Are you applying coppers based on this best practise science to ensure your fruit is protected for even longer journeys as exporters develop new markets?

Growers need to recognise that good marketing requires excellent planning and a consistent supply of fruit to the customer through the season. Growers need to be aware of how the harvest of their own crop meets the needs to their exporter’s market plan.

23

The Commodity Levy - h What is the Avocado Commodity Levy?

NZAGA collects a compulsory levy on the sale of local market and export avocados to fund industry activities. This levy is collected under the auspices of the Commodity Levies Act. The Commodity Levies Act was introduced in 1990. The Act’s principal role is to provide a method to fund primary industry activities. The Act requires the industry to consult with potential levy payers and conduct a referendum every six years to determine if there is grower support for the levy.

The current rates for the Commodity Levy for Avocados are: • 37.5 cents per tray for export avocados with a maximum of 50 cents per tray.

This is broken down into: 15 cents per tray export commodity levy 20 cents per tray promotion 2.5 cents per tray to repay the costs of the biosecurity scare in 2008 • For fresh local market avocados a maximum of 3% of the local market value at the first point of sale.

• For processed avocados a maximum rate of 3% of the local market value at the first point of sale.

The Levy Order sets the maximum rates but AGA includes a remit at each AGM requiring growers to vote on the actual

Grower reps recently hosted 12 Orchard Chats across the regions, with more than 200 growers participating in some wide ranging topics, including: How do we prevent another year like 2011-12? How can growers ensure that new markets are being developed for future volumes? How might levy rates look in the future?

The AGA Executive met recently to reaffirm the strategy for the industry and we spent time looking right across the value chain from how to increase yield, pack-out and quality on orchard, to how we prioritise markets, understand consumer demand and leverage that demand to meet future production.

Grower reps reported that growers want effective export systems, strong market access and well developed response plans for biosecurity but that we need to better deliver the projects currently being undertaken.

We discussed at the Orchard Chats the way in which AGA is funded, being a combination of commodity levies collected, the EMS management fee and registrations, plus a number of other smaller items.

The commodity levy will expire in July 2013, and we are asking for you to “vote yes” to support the commodity levy renewal in a referendum to be held in September 2012.

8 June 2012 Commodity Levy and 5 year plan info pack sent to growers

rate to be set in the following season. So as levy payers, growers continue to have their say on the levy rates on an annual basis via the AGM process.

What is the levy money used for?

The commodity levy provides funding predominantly for AGA management and governance, promotions, research and communications including: Avoscene, Avoconnect and the grower website.

How does this fit in with other sources of industry funding?

AGA has other sources of funding outside of the commodity levy • 32.5 cents per tray Export Marketing Strategy management fee This covers the cost of the export system including quality, food safety, biosecurity and market access and governance of the EMS through the Recognised Product Group (RPG).

• Registrations • Other income Avoscene advertising Royalties Interest Levy referendum process One of the mechanisms put in place to protect growers is that the levy has a finite life. In order to keep the levy in place there must be consultation with growers and a vote taken every six years to determine the levy structure moving forward.

18-25 June 2012

July 2012

13 August 2012

7 September 2012

Commodity Levy Roadshows & consultation

Final Levy proposal confirmed

Voting papers sent to all growers

Voting Closes

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have your say If there is sufficient grower support in the referendum, the industry body can then make an application to the Ministry for Primary Industries (MPI, formerly MAF) for a levy order.

Each separate component of the levy must be voted on and approved by the majority of voters in the Commodity Levy voting process. The uses of the levy are governed by the Act. Structuring funding through the Commodity Levy ensures that a number of mechanisms to protect growers are in place and enforced by the Act. Of the growers who vote in the referendum, 50% of growers must vote in favour of the levy and they must represent 50% of the production of those who vote.

The AGA must report to growers at its AGM on the levy expenditure.

The AGA must submit a financial report to the Ministry for Primary Industries every year to account for its levy expenditure.

The levy funds can only be used on activities permitted in the Act and specified in the levy order.

The funds cannot be used to fund trading activity.

Growers only pay the levy once they start producing and selling their fruit.

2012 Referendum The current avocado levy order expires in July 2013. To ensure the October 2012 Referendum result announced

Date

Time

Town

Venue

18 June

10am – 12pm

Katikati

Katikati Community 45 Beach Road Resource Centre

18 June

2pm - 4pm

Katikati

Katikati Community 45 Beach Road Resource Centre

Te Puke

Orchard Church

20 MacLoughlin Drive

Opotiki

Opotiki Club

103-105 St John Street

Houhora

Houhora Fishing Club

4126 Far North Rd

Whangarei

Barge Park Event Centre

Maunu Rd, SH14

Whangarei

Barge Park Event Centre

Maunu Rd, SH14

Tauranga

Bureta Park Motor Inn

Vale Street, Otumoetai

Tauranga

Bureta Park Motor Inn

Vale Street, Otumoetai

AGA continues to be funded it 19 June 10am - 12pm needs to submit an application to 19 June 3pm - 5pm the Ministry for Primary Industries 20 June 2pm – 4pm by the end of 2012.

Consequently there 21 June 10am-12pm will be a grower referendum on the 21 June 3pm - 5pm levy in September of this year.

26 June 2pm - 4pm An information pack outlining the 26 June 5pm - 7pm levy proposal was sent to all growers in early June. If you have not received one, or have any queries, please phone us on 0800 AVOCADO (0800 286 2236), or email info@nzavocado.co.nz We will be holding roadshows from June 18-25 to discuss the Commodity Levy and the proposal set out in this grower pack. Additionally you can contact your grower representative to discuss the proposal and what the implications are for you.

Consultation Grower Roadshows will take place in a region near you in June. These will provide growers with an insight into the five year plan for the industry and the role of the commodity levy in helping

If we receive growers’ support in the referendum

Address

us to deliver on the industry strategic objectives. We encourage all growers to attend the meetings and to express your views on the levy proposal.

Future of the Levy The Board has put together a range of funding options for the future, to maximise grower value in the long term.

The proposed options will help to reduce the levy amounts paid by growers whilst allowing the AGA to continue to maintain current operational activity.

These options are outlined in your discussion paper. We would greatly appreciate grower feedback on these proposals at the Grower Roadshows or via your AGA grower representative.

November 2012 Apply to MPI to put levy in place

By July 2013 New levy established

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I New Cultivars I

Clonal rootstocks start The first replicated trial to evaluate the horticultural performance of the clonal rootstocks Dusa and Bounty in New Zealand was established in April 2009 in Mangawhai, Northland.

This article presents the results obtained so far in this evaluation.

Background One of the main problems affecting our productivity as an industry is tree decline.

Avocado tree decline mainly occurs in soils prone to phytophthora and in soils prone to anoxia, lack of oxygen. Trees in these situations suffer from decline in a period that generally varies from 5 to 15 years, producing losses of great impact in the productive area of our orchards.

Replanting areas in an orchard where trees have previously shown decline symptoms and have been removed has generally been unsuccessful, leading to the abandonment of avocado production in those areas of the orchards.

Decline has been a problem for most avocado producing regions in the world for a long time. Some of these industries have approached this problem by implementing breeding programs to obtain tolerant rootstocks. The first breeding programs aimed towards obtaining phytophthora resistant rootstocks were implemented more than 50 years ago. In South Africa, several years of trials and commercial plantings of new rootstocks Latas, Bounty and in particular Dusa have been showing tolerance to decline. These rootstocks were imported by the AIC in early 2005. After almost two years in quarantine and the bulking up of the plant material, the first replicated trial was designed by the AIC and established in Mangawhai at Eran orchard, in April 2009, at the time the property of Jerome Hardy and John and Erika Trebilco.

The trial The trial was set in a replant plot, with heavy soil and high phytophthora pressure with a combination of Hass and Maluma scions grafted on Zutano, Duke 7, Dusa

and Bounty. The results presented in this article correspond to the Hass grafted on these rootstocks. The Maluma part of the trial is taking longer to develop due to a more difficult establishment of these plants at this site.

Before the trial was established, there were 30 year old trees in an advanced state of decline. The trees were pulled out in 2006 and the root systems were removed as completely as possible.

The soil is a heavy volcanic soil with a high percentage of clay and prone to anoxic conditions and Phytophthora development.

Hass trees in this trial were grafted onto the following rootstocks: • 70 trees on Zutano: the most utilized seedling rootstock in NZ. • 36 trees on Duke 7: clonal rootstock obtained in California more than 30 years ago. Duke 7 was considered the standard clonal rootstock for phytophthora tolerance during the 80’s and 90’s.

• 36 trees on Dusa: clonal rootstock obtained in South Africa. Dusa has become the standard clonal rootstock for phytophthora tolerance since the early 2000’s.

• 34 trees on Bounty: clonal rootstock obtained in South Africa. Has shown tolerance to phytophthora similar to Dusa and higher tolerance to anoxia conditions overseas.

Results Health and survival The health of the trees has been periodically assessed classifying them in six categories: Dead, Very Poor, Poor, Good, Very Good, and Excellent (Figure 1).

The last assessment took place at the end of February 2012, almost 3 years after planting. The health of the trees in the trial at that time is described in Table 1. The trees grafted on Bounty had the best health status, followed closely by Dusa. Duke 7 had more trees in the categories of Good and Very Good, and Zutano was showing very bad health. Very few trees grafted on clonal rootstocks had died compared to those grafted on to Zutano.

Excellent

Very Good

Good

Poor

Very Poor

Figure 1. Classification of tree health.

26

to show off?

Table 1. Tree health. Percentage of trees in each health category.

Percentage of trees Category Bounty Dusa Duke 7 Zutano Dead 3 0 3 33 Very Poor 0 0 0 3 Poor 0 3 6 34 Good 0 14 44 16 Very Good 0 22 33 10 Excellent 97 61 14 4 Growth, trunk diameter and height The growth of the trees has been assessed by measuring the height of the tree and the diameter of the trunk above the graft-union, the diameter of the trunk is proportional to the volume of the canopy.

Since they were planted, and especially in the last

two growing seasons, the growth of trees grafted on Bounty and Dusa has been greater than the growth of trees grafted on Duke 7 and Zutano (Figure 2)and in the last season Bounty grew more than Dusa.

Number of fruit per tree The number of fruit on each tree was counted in February to estimate the yield for the 2012 harvest. Fruit will be harvested from the trials this coming spring.

This is the first season in which the trees have had any significant amount of fruit. For trees that have gone through their third growing season, the amount of fruit on them is considered in the low range. Of note many trees are not bearing any fruit (Table 2), with

By Alvaro Vidiella and Bart Hofstee

half of Dusa trees having no crop.

By contrast, 89% of Duke 7 trees are bearing fruit. These differences could in part be due to a difficult establishment period during the first growing season (Figure 2). On top of this, in spring 2011, the trees flowered profusely and suffered a very severe six-spotted-mite infestation. This caused many of the trees to lose most of their leaves (Figure 3).

When comparing the amount of fruit on the trees grafted on different rootstocks, Bounty and Duke 7 had the highest percentages of trees with more than 30 fruit followed by Dusa (Table 2). Zutano trees were carrying a moderate amount of fruit.

Figure 3. A. Tree after heavy flowering and 6-spotted-mite infestation in October 2011. B. The same tree in February 2012.

A

Figure 2. Tree height and trunk diameter of Hass grafted onto the four rootstocks. The vertical bars represent the standard error, n = 34 for Bounty, 36 for Dusa and Duke 7 and 70 for Zutano.

B

Continued ...

27

I New Cultivars I

Clonal rootstocks start to show off?

Continued

Zutano with > 40 fruit

Dusa with > 40 fruit

Duke with > 40 fruit

Bounty with > 40 fruit

Figure 4. Tress of Hass grafted on the four different rootstocks with more than 40 fruit.

Table 2. Number of fruit per tree

Percentage of trees Number of fruit Bounty Duke 7 Dusa Zutano per tree 0 29 11 50 38 1 to 9 24 33 19 28 10 to 19 15 17 8 11 20 to 29 0 11 0 9 30 to 39 15 11 11 4 > 40 18 17 11 11 Discussion When comparing the trees with similar amounts of fruit grafted on different rootstocks, in general: the trees grafted on Zutano are much smaller and present a less healthier aspect; the trees grafted on Duke 7 are also smaller, but with a more healthier aspect; the trees grafted on Dusa have a much healthier aspect and are bigger trees; and the trees grafted on Bounty generally look healthier than the trees grafted on Dusa and show more vigour, with longer flush (Figure 4). This last difference can also be observed in the flush length measurements done in October 2011 (Figure 5).

The trees grafted on Bounty assessed in this experiment are healthier, bigger, have

28

a relatively larger crop and more flush for next year’s crop than the trees grafted on the rest of the rootstocks. However, it would be a mistake to conclude that Bounty is the best rootstock of the four being evaluated, or even the best rootstock for the conditions of the trial. To make the right decisions in the future, we will need to obtain further information in the next few years. This information will be obtained from trials, and from the semi-commercial and commercial orchards that have been established with the new cultivars in the last few years. In the mean time, it is very interesting to begin to see results that have been possible thanks to the efforts undertaken by the industry in the last 10 years to import and evaluate these rootstocks.

We are organising a series of Field Days in July at which we would like to discuss the New Cultivar Program. At these field days, we would like to share the work that we are carrying out through this program on different orchards and we would also like to hear feedback on what this may mean for you as growers.

It is an exciting time for this area of research. The investment made in new

rootstocks was a long term proposition when it began 10 years ago and we are now beginning to see promising results through our recent evaluations, especially given the harsh conditions.

The importance of continuing on with this research should not be understated as advances in new cultivars continue to shape the future of our industry and that of our global competitors. As these trials progress we will keep an eye out for future generations of plant material coming out of the international breeding programmes.

Figure 5. Average length of the flush measured in October 2011.

I Pruning I

By Alvaro Vidiella and Matt Leamy

Reducing the impact of structural failure of trees Part 2 - Managing the risk of inclusions What to do about weak branches Having been through the orchard armed with the information to identify branch inclusions (refer to Avoscene Autumn 2012) and having made some judgments about how severe each of them may be, the next step is deciding what to do about it.

Managing branch inclusion Managing included branch junctions comes down to a strategy of risk management. It is often difficult to be certain about how high the risk is that any given branch will fail, and given that the remedy can be fairly dramatic, informed judgment and an approach that makes use of all the options available is needed. Factors to think about when deciding what to do about any particular tree include the age and size of the tree, the severity of the inclusion, and the

situation of the tree in the long term orchard plan. The most effective time to reduce or eliminate the risk is at the earliest age that any problems have been identified. The younger and smaller the trees, the better.

By identifying which trees are remaining for the long term and which trees are to be eventually thinned, the orchardist is able to identify which trees are the permanent ones well in advance. This information provides a platform to assess what can be done to make sure the long term trees are of sound structure.

The temporary trees will most likely be thinned before the tipping point for branch failure is reached.

In older trees the size and severity of the inclusion will determine how to approach each tree. As a general rule, as age and size of the tree and severity of the inclusion increases, the opportunity to take the risk

What is an inclusion?

An included branch is a defective union between a branch and the parent limb. In an inclusion the bark on the top part of the union between the branch and its parent limb is folded into the union

Fig 1. External

Fig 2. Cross-section

Included The bark separates the wood of both branches.

back to the same as a sound tree reduces.

The options available are: • Complete removal: Best suited when the tree is very young, can be used in medium sized trees if the proportion of canopy to be removed is less than about a third.

• Staged removal over two or more years: Best suited for medium sized trees where the proportion of canopy removed is considered very high and when the canopy may take several years to recover.

• Weight reduction: Best suited for older trees where a potential pruning wound may be at a critical structural point and when the canopy shape may not recover effectively.

• Bolting the weak joint: Best suited for medium and larger trees when complete removal of the branch is not considered to be suitable. Should be used in conjunction with weight reduction.

(Fig. 1 & 2), instead of being pushed upwards as the timber grows (Fig. 3 & 4). The bark is included into the union, preventing the connection between the wood tissue of the branch and the wood tissue of the parent limb.

Fig 3. External

Fig 4. Cross-section

Normal union The bark is pushed out and there is continuous wood through the union.

29

I Pruning I

Reducing the impact of structural failure Continued

• Strapping: Best suited as a short term option to maintain a crop through until harvest time.

Managing inclusions in smaller and medium sized trees Pruning trees at an early age provides the opportunity to completely remove any branch showing signs of an inclusion. The younger the tree is at the time of pruning the more able is to regrow branches to cover the area that has been removed, and lay down wood to compensate for any structural weakness. For example, if a limb which was one third of the tree was to be removed at age three, by the time the tree reaches seven or eight years old it is most likely the space left from removing that limb will not be evident. However, if that same limb is removed at age eight, it may leave a gap for many years and the tree may always have most of its canopy to one side.

Removing the branch entirely

The best option is to remove an included branch as soon as possible, even at the point of planting. On very young trees with leaders of around 120 mm or less in diameter it is usually better to remove the included branch in one go.

Usually this will leave a tree that can grow to a well-balanced shape with no structural weakness.

Staged removal

It is recognised that there is a wide variability in growth rates of trees from one orchard to another. Judging when a tree is medium sized and no longer small is not strictly correlated with age and is very much a subjective view. Once the trees have grown some size, with leaders of around 150mm in diameter, complete removal in one season may not be the best option. This is because complete removal would create a large space in the canopy which may be on a side of the tree that would not readily be filled by growth from the neighbouring branches. In this case staged removal may be preferable.

The advantage of staged removal is that it will keep the root to shoot ratio closer to a balanced state, thus reducing the vegetative regrowth reaction. It will 30

also allow the branches on the rest of the tree to start to compensate for the space that will be left behind; they will have more foliage and size and develop more wood than the partially pruned branch.

Often pruning options can be Tree with influenced by any crop that inclusion. is growing on the included branches and staged removal can allow a start to be made to addressing the problem whilst at the same time maintaining some crop.

A medium sized tree has generally established its main structural framework and is putting resources into extending the established leaders and side branches, as well as growing fruit. Removing a main leader, that could be 30% to 50% of the tree at this stage, is not compensated for as easily as in smaller trees.

There are two ways to go about a staged removal with these trees. The first is to prune the leader from the top down. The advantage of this strategy is it removes a lot of leverage from the stress point, but the lower canopy areas remain competing with the adjacent branches. The second approach is to remove the side branches from the bottom, working upwards.

Removing the branches in this way clears the light to the neighbouring branches, allowing them to develop into the space that is going to be left when the partially pruned leader is finally removed. A space left after pruning at the top of the tree will always fill in easily, unlike space left in the lower sides of the tree.

Managing inclusions in larger trees Removing the branch entirely

In larger trees the decision on whether to remove a branch entirely or not will depend on its size and the proportion of the tree it represents. Often removing a branch with an included junction means removing large proportions of the tree; sometimes this may represent half of the canopy. In such cases, in older trees, it becomes less likely that the tree will recover a balanced shape and the pruning itself may leave behind a weak point. If the part to be removed is not considered

to be too high a proportion, perhaps 25% or less, and the shape is likely to recover sufficiently well, such as when it is surrounded by adjacent canopy, complete removal may be the best option.

A frequently asked question is, will removing one side of the tree put too much weight out to the other side and unbalance the tree? Generally this is not a problem for the tree. Most trees have the ability to lay down supporting wood where the stress points occur.

A limb heading off in one direction grows naturally with the stress of wind movement and weight and develops the necessary supporting wood to provide it with the required strength in the conditions it grows. However, limb failure can occur when the sheltering vegetation, which may be other limbs of the same tree, has been removed, exposing a tree or parts of that tree to wind that it has never been exposed to before. In these cases some weight reduction of the remaining tree may also help to reduce that risk.

Staged removal of included branches

The advantages and methodology of staged removal are much the same for larger trees as in smaller trees. The factors to consider are maintaining a more balanced root to shoot ratio, to preserve some crop while still working to address the identified weakness or to allow some adjacent canopy to grow into the space while minimising the size of the gap. The difference will be consideration for the ability of the remaining tree to maintain its long term stability and canopy cover.

Reducing weight

There comes a point when the size of the cut is so large that the tree may not fully recover from the wound, the beginning of decay at a critical

A

of trees

Pre-prune.

Tree with bolting.

structural point will inevitably set in and the stability of the whole tree will be compromised. If the judgment is that the risk of branch failure from the inclusion is at the low end of the scale, or that removing an included leader will leave the tree in an unstable state, the next option is to reduce the weight. From a structural perspective, the limb is a lever arm with the fulcrum (hinge) point at the branch junction. The most effective place to reduce the weight is from the end of the lever and it can take a relatively modest cut to significantly reduce the pressure on the fulcrum point. In this situation it is better to maintain as many side branches further back down the leader as possible.

It is also important that this type of pruning is on-going, often as frequently as annually. Reducing weight is particularly appropriate if the included branch shows signs of setting a large crop with the potential to significantly increase the weight loading on the included branch in the space of a few months.

Bolting the branch junction

Although the most straightforward way to reduce the risk of failure is by pruning, sometimes the opportunity for pruning effectively may not be possible due to branch structure or the need to maintain canopy for crop. In medium and larger trees the use of bolts to reinforce the weak joint may be appropriate if the included limb on a tree cannot be removed without threatening the stability of the remaining tree, or if pruning would leave the canopy in a shape that would not recover sufficiently.

Reducing the flexibility of the tree can

B

Post-prune.

increase the loading on some stress points including at root level. For this reason the first choice of location for a bolt is through the weak joint itself or just above it. Two adjacent leaders will flex in different directions in the wind and the higher above the joint the bolt is the more it will restrict that flexing, which may increase the load on the stress points.

If one bolt through the joint is not thought to be enough, a second bolt, or pair of bolts in a large limb, between 0.3 metres and 1 metre above the crotch can be added to reinforce the support.

As the tree continues to grow the bolt becomes imbedded into the wood, and providing decay does not develop in that zone, it will continue to provide structural support without compromising the structural integrity of the tree.

Just how effectively the bolts compensate for the weakness is impossible to measure. Regular, probably annual, pruning of some of the top laterals will help moderate the weight on the end of the lever arm on a continuing basis.

Tying branches

The use of truck tie down straps is a quick and easy way to support an at risk branch. These are run between forks higher in the crown effectively sharing the weight of different leaders between themselves. This is a tool best used to nurse an at risk branch on a short term basis, such as a limb considered at high risk of breaking out because it is carrying a crop.

If straps are used they need to be tight enough to prevent the limbs from moving apart but not so tight as to pull them together. Pulling the limbs together reduces the flexibility of the tree and increases the load on stress points during a storm.

Long term use of straps can cause weak points in the tree structure. The ties themselves can easily damage the cambium in the bark creating a wound that may again lead to a weak point

C

Cut.

developing. As the weight distribution on the tree is altered by the straps, so is the reaction growth of wood to that weight distribution. This is made worse if the straps are over tightened pulling the branches together. Weak points will eventually be created, again leaving the tree at increasing risk of structural failure.

Conclusions: reducing the impact of branch failure The first strategy in reducing the impact of branch failure through inclusions is to make an assessment of how much of a problem inclusions are on the orchard (number and severity of inclusions).

The best time for minimising the risk of branch failure from inclusions is when the tree is still very small.

If thinning is still to be done then the second step is to plan which trees are long-term and which trees will be removed and focus inclusion management on the permanent trees.

On young trees, included branches can often be completely removed allowing the tree to recover its shape with a much reduced risk of shedding limbs when the tree gets larger. Stage pruning may be undertaken if removing a whole branch would create too large a gap at one time.

In medium or larger trees, if pruning would leave the tree in an unstable condition, or the canopy is not likely to recover effectively into the gap, bolting those branches that have been identified as at risk can help to reduce the chance of branch failure. Where there is the need to brace a tree for the short term, bracing with straps is an effective strategy.

Having managed the risk of included branch failure, the orchardist is well positioned to judge how well the trees will withstand the rigours of bearing heavy loads and storm winds as the years go by.

If you have any comments or would like us to develop further topics related to this article, please email Alvaro Vidiella: alvaro.vidiella@nzavocado.co.nz 31

Local market promotion review: 2011-12 In recent years, NZAGA domestic avocado promotion has been restricted due to limited resources and a focus on export markets.

With the record crop for the 201112 season, domestic promotion was implemented to increase consumption of the large volume of avocados on the local market.

Research Quantitative research was carried out using Nielsen homescan data. This research looked at basic behaviour statistics and gave a starting point as to which demographic groups to target for domestic promotion.

The research identified young families as a primary target. The avocado is a perfect first food for babies, so targeting mothers with babies was seen as essential.

Discussion groups were held along with ‘Walkabouts’, where shoppers were shadowed and questioned on their purchase decisions.

This research found there is a lack of New Zealand heritage with avocados and a lack of inherent understanding of usages beyond basic salad and sandwiches.

Consumers also see avocados as a risky purchase due to lack of knowledge on choosing, ripening and storage. Consumers said they knew avocados were healthy but specific knowledge of benefits was lacking, as were boundaries as to how much they felt they should eat.

As a result of the research, the campaign strategy was developed to supply a steady diet of avocado information to trusted and influential media and people with key messages around: • Health & Nutrition • Ripening & Handling • Versatility • Avocados as a first food for babies • Add An Avocado Implementation Avocado news releases Targeted news releases were developed and pitched to specific titles where coverage was most desired, before then sending out more widely. Extensive coverage was received, key highlights of this appear on page 33.

32

Recipe releases Each month an avocado recipe was released to media and chefs. Success in this area included achieving coverage on TV One Breakfast through celebrity chef Annabelle White and endorsement of the Add An Avocado campaign from celebrity chef Julie Biuso. Extensive coverage was achieved on the Countdown Facebook page, resulting in a prime time slot with Richard Till on TV One. Releases and recipe drives also attracted the attention of key influencers, foodies and chefs such as Annabel Langbein and Peter Gordon.

Business releases Business and export stories were written throughout the season to raise the visibility of the avocado industry as a key New Zealand export industry with political and trade influencers.

Product drops Avocados were sent to media outlets and chefs on a regular basis to keep avocados top of mind, encourage them to be used and to assist with food photography and recipes.

Social Media Facebook An NZ Avocado Facebook page was created to communicate directly with consumers – the key target being mums, who are generally the main household shopper. A base of active endorsers and followers was then built using a variety of tactics. The goal was to build this base by 500 ‘likes’ per month. There are more than 4573 ‘likes’ so far.

Twitter An NZ Avocado Twitter account was established where all messages posted to the wall on Facebook page were simultaneously tweeted. Twitter is more effective as a B2B medium and a good way to communicate with media and industry/business groups and brands.

Events ACP cooking demo Celebrity chef Peter Blakeway hosted a demonstration at ACP Media to showcase the versatility of avocados in the kitchen to a broad and well attended cross-section of popular mass media. Editors and their teams were present from each of the following publications: Little Treasures, Good Health, Cleo, Next, Australian Women’s Weekly and

Taste.

Katikati Avocado Festival On January 14, NZ Avocado had a large marquee at the Katikati Avocado Food and Wine Festival. The marquee offered cooking demonstrations throughout the day by Peter Blakeway, free avocado smoothies, a Mr Avocado Head competition for kids, a ripeness display and recipe and information booklets.

Key relationships 5+ A Day and NZ Heart Foundation Relationships were initiated with key endorser and support agencies such as Heart Foundation and 5+ A Day to ensure NZ Avocado has their backing and can use their channels to reach out to consumers (such as their 5+ A Day’s Facebook fans, databases).

Two recipe and nutritional information booklets were created for the campaign, one general and one aimed at parents.

Both have the Heart Foundation and 5+ A Day stamps of approval inside after close liaison and processes of approval with both organisations.

5+ A Day also adopted the avocado as their product of the month in October and featured it on the 5+ A Day website and Facebook page with avocado facts and recipes.

NZ Avocado also participated in the annual 5+ A Day event at Britomart – handing out avocados to commuters.

Over the course of the campaign relationships have been initiated with the following key influencers: • Trudi Nelson: Fresh In The Kitchen (Easy Mix radio slot) • Megan Robinson: www.thread.co.nz • Julie Biuso: Celebrity chef. Provided her own exclusive recipes from her latest book for NZ Avocado to distribute to press. Also provided copies of the book to giveaway.

Also talked about avocados during her slot of Jim Mora’s afternoon show of Radio NZ National. Use of material of NZ Avocado website.

• Annabelle White: Celebrity chef. Used avocados sent to her during her slot on Breakfast television on October 21, 2011.

Also then plugged avocados again during her Radiolive afternoon slot on Tuesday February 21.

• Annabel Langbein: Celebrity chef.

Requested avocados for her demonstrations

at Taste NZ in October, plus an October food shoot with Life and Leisure magazine.

Annabel also then requested more avocados for recipe testing for her the second series of her hit television show (and book): The Free Range Cook (series 2).

Plunket Plunket centres have accepted the child/ parent recipe and nutritional information booklets into their centres. They are also now aware of the availability of avocados and nutritional information through NZ Avocado.

Kidicorp NZ Avocado engaged with Kidicorp (New Zealand’s largest childcare and education provider). A selection of their childcare centres in Auckland have seen specially themed ‘avocado days’, along with information distribution (recipe booklets) to their networks of parents and caregivers.

coverage achieved made a positive difference to the volume of avocados sold in New Zealand.

They also commented that there is potential to increase consumption in New Zealand and that further promotion would help to drive this.

Website An upgraded consumer website was developed and built during the campaign and went live in April 2012.

Press feedback Marion Farrell, editorial assistant, Woman’s Day: “I thought the campaign was really thorough and really fantastic. The office team were stoked to receive the avocados. I especially liked the Guinness Book of World Records fact. I featured this on my ‘In Store’ page and it fitted in nicely, looked great in the magazine and readers liked it.”

Vanessa Johnson, Little Treasures magazine: “The Add An Avocado booklet was a great way to continue the awareness running and it’s still on my desk. You guys did a really good job, it was a brilliant campaign and so useful. We got sent a tray of avocados that were spread around the office – they were so yummy.”

Comments from local marketers When asked about the 2011-12 AIC promotions campaign, local marketers unanimously agreed that the media

Expenditure For the 2011-2012 season, AIC spend on promotion in New Zealand was NZD143,564.67

Media Highlights Printed press highlights: • September 26, 2011. Front page Dominion Post Business news: “Gala lunch to plug avocados in Japan”. 231,000 readership daily.

• October 15, 2011. Weekend Herald Peter Gordon column in Weekend magazine: “Green with envy over avocado glut”.

640,000 readership.

• November 2011. Little Treasures magazine: “The green your kids will gobble”. 236,000 readership.

• December 2011. Healthy Food Guide: “Avocados”. 358,000 readership.

• December 14, 2011. New Zealand Herald Viva magazine: “Avocado advocates”. 336,000 readership.

• December 19, 2011. Sunday Star Times Escape magazine: “Nature’s treasure trove”. 554,000 readership.

• December. Littlies magazine: “Add an Avocado”. 236,000 readership.

• December/January. Countdown Indulge magazine: “Avocado delight”.

• January 25, 2012. The Press Zest magazine front cover story: “Amazing avocado”. 237,000 readership.

• January 28, 2012. Weekend Herald Weekend magazine: “ The green jewel in Katikati’s crown.” 625,000 readership.

• February 2012. Taste magazine: “Have an avocado!” 219,000

2012-13 Season The reduced capacity for volumes of New Zealand avocados in the Australian market next season further increases the importance of returning more value to growers from sales of avocados locally.

Key to driving value through the 2012-13 promotional campaign will be improving consumers’ perceptions of quality. AIC recognises the need for quality improvement throughout the supply chain, from grower through to consumer. Further information on plans to improve this will be available in the next Avoscene.

Key local market promotions objectives will be to: • Continue to strengthen endorser relationships established this season.

• Build a relationship with a nutritionist who can be quoted in press releases and be used as a spokesperson.

• Continue to build on established community relationships, such as those initiated this season with Plunket, Kidicorp, 5+ A Day. • Build on the base of well-received and highly publicised business stories to raise export exposure and awareness with key stakeholders and politicians.

readership.

• February 15, 2012. NZ Herald Viva magazine: “Love the skin she’s in. Nature’s bounty.” 336,000 readership.

• February 20, 2012. NZ Woman’s Day: “In store. 5 avocado facts”. 784,000 readership.

Online media highlights: • January 25, 2012. Stuff.co.nz: “Weird, wonderful ways with avocado.” 789,000 visits per week.

• January 26, 2012. Stuff.co.nz/dominion-post/capital-life: “Avocado – the new star of the kitchen”.

Radio highlights: • September 27, 2011. Radio NZ National: “Avocado experts to Japan set to quadruple”. 563,000 listenership daily.

• February 8, 2012. Newstalk ZB national: “NZ avocado export industry set to expand”.

• February 9, 2012. Radio NZ National (Morning and Midday Report): “Avocado industry trials new technology to send fruit further”. 563,000 listenership daily.

Television highlights: • October 21, 2011. TVNZ Breakfast television cooking slot, Annabelle White cooking slot.

• November 9, 2011. TVNZ Countdown recipe slot, Richard Till.

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34

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Export market promotion review: Australia 2011-12 Export Market Promotion Highlights • Promotion covered the period October 2011 to February 2012.

• 2.9m 5.5kg TE of avocados were exported to Australia from New Zealand.

• The promotions campaign theme was to make avocados the “Star Ingredient” and focused on simple ways to incorporate avocados into summer eating and entertaining.

• 34,550 samples and recipe cards were given to consumers through sampling activities.

• PR generated a total of 126 media clips across print, radio and TV, reaching an audience of 5,636,442.

• Digital display campaign created 3,115,542 impressions and reached 1,265,055 unique consumers.

• Promotion spend was NZD481,435.60.

Promotional activity for New Zealand avocados in Australia has finished for the 2011-12 season. A review of the promotion activities undertaken in Australia between October 2011 and February 2012 follows below.

Summary of marketing and promotional campaign The Add An Avo campaign and materials were used in Australia by New Zealand avocados through the months October 2011 to February 2012. During this time 2.9m trays of Class 1 avocados were exported to Australia from New Zealand.

Promotion was undertaken in Australia to continue the Add An Avo campaign’s momentum when New Zealand fruit was in the Australian market and to contribute to the ongoing development of the whole Australian market.

Target audiences The primary target audience for the campaign was the main grocery buyer in Bustling Families - the mother. The secondary target audience is Start-up Families.

In-mall consumer tastings Avocado tasting stands were set up in 11 malls across Victoria, New South Wales and Queensland.

Thirty three sampling session took place and more than 30,000 samples were given out along with recipe cards.

This gave consumers an opportunity to try an avocado, receive information about them and also give valuable feedback about their experience.

Sampling stalls were placed close to fruit outlets and supermarkets for maximum effect.

Stores reported increased sales and activity at their avocado stand on the days that avocado sampling took place within their respective mall.

Zoe Bingley-Pullin – the Australian nutritionist, chef and avocado ambassador – worked at the locations, performing informative cooking demos and engaging consumers.

Her presence added an extra level of interest and credibility to the sampling sessions.

A branded sampling counter was used for these events and staff wore branded caps, t-shirts and aprons. continued...

35

Export market promotion review: Australia Continued....

Number of samples and recipe flyers given to consumers at sampling outlets

State New South Wales Victoria Queensland Total

Number of samples 14,500 9,550 10,500 34,550

Trained promotional staff distributed the samples and recipe flyers as they engaged consumers on a one-to-one basis, passing on key messages about the usefulness and versatility of avocados.

The reaction was positive with many consumers finding the recipe (used in the sample) exciting and very different to the traditional uses of avocado.

Comments during the events from consumers: • ‘This is great. I’m going to purchase the ingredients for this recipe now.’

• ‘What a simple yet great idea.’

MArketing tHe best AvocAdos in tHe world HelPing our growers grow dAve Alderton technical support M +64 21 505 814 e dalderton@freshmax.co.nz

Andrew douglAs export Manager P +64 7 579 9318 M +64 21 760 008 e adouglas@freshmax.co.nz

www.freshmax.co.nz 36

Public relations Press releases Releases were sent out to relevant media throughout the season to create stories. This generated had 126 clips across print, radio and TV, reaching a total audience of 5,636,442.

Ambassador Australian celebrity nutritionist and chef Zoe Bingley-Pullin performed informative cooking demos and engaged consumers at the 2011-12 in-mall consumer tasting sessions. Her presence added an extra level of interest for target consumers and added credibility to these sessions.

Zoe was the key-note speaker at the media event (Summer BBQ Cook School) and generated interest from journalists and bloggers which translated to media coverage. Zoe also was involved in radio drops of avocados to DJs on popular radio shows where she was then put on air and interviewed.

Product drops Zoe personally delivered trays of avocados to radio stations and as a result of this she had three interviews with major Sydney radio stations, including 2GB’s nationally syndicated Alan Jones breakfast programme - Australia’s highest rating breakfast radio show.

New Zealand avocados were also delivered to influential nutritionists/dieticians, resulting in 30 TV segments through nationally syndicated Channel 10 chat show, The Circle.

Summer BBQ Cook School An informative media barbecue lunch took place at Centennial Park in Sydney on November 15, 2011.

The barbecue involved an interactive cooking class with a chef who showed the media how to prepare the dishes, which they were then able to eat. Participants were able to learn about avocados through hands-on activities, as well as from key note speaker Zoe Bingley-Pullin.

Some comments from guests: • “Thanks for having me at the barbecue yesterday; I did learn

INTRODUCING

THE STAR INGREDIENT Stir in coarsely cut avo with your scrambled eggs and it’s a wrap.

Blend some avo in the

Finely chopped avo

tzatziki to create toast of the town.

makes tomato pesto pasta perfecto.

add an avo every day For more quick ideas for healthy summer eating, visit

addanavo.com and

a few things about avocados, which was great. Especially happy that eating a whole avocado a day is approved by Zoe! I was inspired by some of her ideas and am working on some quick avocado recipes for early Feb. 2012.” Woman’s Day • “It was a really nice event and the food was lovely. I have suggested to my editor that we make an avocado collection in our recipe collections online.”

Taste.com.au PR: Traditional media coverage summary Print clips received

47

Radio clips received

49

TV clips received

30

Total Clips

126

Total Circulation

5,636,442

Public relations: industry focussed Avocados Australia Limited made it clear throughout the season that they wanted New Zealand growers to contribute equally to promotions through a levy on imported product.

The resulting media coverage of this topic gave no credit to the efforts and contribution of the New Zealand industry to the Australian market over the years.

AIC responded by sending a release outlining the $500,000 spend on promotions that NZ growers were contributing to Australian promotions this year and also provided information on the history of the Australian market and the New Zealand industry’s effort to establish some of the systems which have helped develop the Australian market to where it is today.

NZAGA and AIC Chairman John Schnackenberg provided a response to the negative media through an article submitted to and published in the Australian Avocado industry magazine Talking Avocados Summer edition.

Variations and improvements made to marketing materials Introducing the star ingredient In addition to the Add An Avo branding, a new concept was introduced

facebook.com/AustralianAvocados

Digital display campaign summary – allrecipies.com Placement

Total Impressions

Summer Seasonal landing page

Total Clicks

7,187

165

Unique Reach 756,629

Co Branding

1,027,735 1,241

0.12%

Healthy Ad Channel

471,638 1,054

315,196

Run of Lifestyle/Retail

1,616,169 1,241

949,859

Total

3,115,542 3,536

1,265,055

focussing on using avocado as the ‘Star’ ingredient. The concept was based around adding avocado to liven up standard dishes, rather than having to follow a step-by-step recipe requiring a range of ingredients.

The idea behind the concept was to position avocados within the target consumers mind as a healthy addition which would not take additional time or effort to include in regular recipes and dishes. The ‘Star’ ingredient branding and logo were added to recipe flyers, web advertising and print media advertising.

Print advertising Full page advertisements were placed in popular foodie magazines, Australian Good Taste and Super Food Ideas in December and January issues. Both are top selling publications with a high reach to our target audience of Bustling Families.

Digitial advertising Add An Avo and The Star Ingredient branding and sponsorship featured on the website allrecipes.com.au through December and January, this also included a page on Add an Avo with links through to the website www.addanavo.com This branding was also used on allrecipes.com’s downloadable mobile phone application called the dinner spinner. The Add An Avo banner featured on every page of search results and avocado recipes were the featured recipes The digital campaign reached more than 1.2 million users throughout the month of November at an average cost per thousand impressions (CPM) of $17.68.

Market challenges Crop forecasts Australian avocado growers underestimated their supply for the 2011 season. This coupled with the bumper New Zealand crop created a surplus of avocados over summer.

Bad weather Australia experienced a wet and dreary summer. Avocados are enjoyed in summer salads however the bad weather may have affected consumption rates.

Supermarket wars Coles and Woolworths were engaged in an ongoing price war. This affected all fruit and vegetable growers, prices were kept low which created a knock-on effect on producers.

2012-13 In 2011-12, the Australian Avocados Ltd’s promotions campaign did not span the summer season. AIC avocado promotions filled a gap in the promotional calendar to support consumption during the New Zealand export season.

For 2012-13, AAL will be promoting Australian avocados heavily throughout the full calendar year to support the large crop expected from Western Australia.

Whilst this will be good for increasing awareness and consumption of the category in general, the low volume capacity for New Zealand fruit in Australia predicted buy exporters coupled with the need to find new markets for the larger New Zealand crop predicted in 2013-14 is driving a move to increase AIC promotional activity in new and developing markets outside of Australia.

Further information on this will be provided in the next edition of Avoscene.

37

I Avo Greeen I

Pesticides The harm that pesticides can cause to honey bees is a very topical issue; one that should be considered carefully when choosing what product to use once monitoring has indicated that a spray is needed.

Unfortunately the issue is also a very emotional one with some facts and much that may be told as fact but is actually supposition and guess work.

Background Although it is obvious that special care must be taken during avocado flowering, when hives of honey bees are brought into the orchard for pollination, the possibility of impacting on bees should be considered whenever a spray is needed. This applies whenever there are any flowering plants present in the orchard or its immediate environment, especially in the orchard sward, which basically means care is needed for every spray.

Protecting bees can be done in three basic ways:  choosing a chemical that has minimal impact on honeybees,  using it so as to minimise exposure of honey bees to the product, and,  ensuring sprays are only applied when needed - the underpinning principle of AvoGreen.

This article touches briefly on how to minimise exposure of bees to pesticides, but the focus is on promoting a better understanding of which chemicals affect bees and how this occurs, so that a better choice of product can be made.

The issue reflects that a special relationship has developed over history between honey bees and human kind. The bees provide honey, which has come to epitomise things natural and good, while also being essential to the effective and efficient production of many crops through being pollinators. Avocados are one such crop, so it is in our industry’s self-interest to look after honey bees.

Minimising exposure Contact between honey bees and pesticides are controlled firstly by law and secondly by growers and contractors needing to follow GAP (Good Agricultural Practice).

As part of the registration process, the potential for chemicals to harm bees is specifically assessed by New Zealand’s Environmental Protection Agency, and any

38

and bees restrictions on application considered necessary by them to prevent harm must be stated on the product’s label.

GAP is the framework that puts these measures into practice, such as:- following any label restrictions on use, particularly those for when the crop is flowering, - mowing the sward before a spray is applied so that bees are not attracted into the area by flowers in the sward (e.g. clovers, dandelions), - spraying when bees are not actively foraging (e.g. late afternoon, at night), even with safe chemicals, - recognising that other orchard plants (e.g. willow shelters) may also attract bees at certain times, and responding appropriately.

These four steps are the basics, but are absolutely essential.

Chemical choice As bees are insects and insecticides are chemicals that kill insect pests, it should come as no surprise that a number of insecticides harm bees. In the past most problems in avocado orchards have arisen from the use (and more especially from the misuse) of residual, broad-spectrum products such as chlorpyrifos (e.g.

Lorsban).

Any impact on bees will vary from chemical to chemical – pesticides are not all the same, even those from the same chemical type, or with the same mode of action. Closely related chemicals tend to be similar, but this is only a trend and cannot be assumed. One measure of the intrinsic toxicity of a chemical to honey bees comes from laboratory tests to determine an LD50 which is the amount of chemical that kills 50% of the bees in the test run (LD = Lethal Dose). The table in the box gives the LD50 for most pesticides used on New Zealand avocados.

An LD50 is best considered as a relative estimate of how toxic a pesticide is rather than as an exact measurement. The tests are standardised, but results still vary among different laboratories, with even greater variability if any aspect of test procedure

By Dr David Steven, IPM Research

changes. For example, contact tests in different countries have been run for 24 or 48 hours, and tests of a chemical as formulated for use can be either higher or lower than for the straight active ingredient.

The potential harm to honey bees can be shown in three levels based on the LD50 values; this is described below and also shown in colour in the LD50s for Avocado Pesticides in the box.

LD50 colour in μg / bee (μg = microgram

= 1 millionth of a gram)

Highly toxic red < 2 (< = less than) Moderately toxic yellow 2 - <11 Relatively non-toxic green > 11 (> = greater than)

As any grower knows only too well, even the use of a chemical known to be highly toxic to a pest is no guarantee that good control of that same pest will result when a spray is used in an orchard, so why do honey bees seem so susceptible? In most cases the bees will be exposed not to a spray directed at the bees, but only to drift or fall out from a spray application.

The actual effect of a pesticide on bee populations in the orchard depends not just on how toxic the active ingredient is but also on other characteristics of the pesticide (e.g. the length of time residues remain lethal or whether it is repellent to bees), how the pesticide is used (e.g. the type of application, the rate of use or concentration of active in the spray mix, stage of plant treated) and how the pesticide interacts with bees (whether it is eaten by bees or only comes into contact with their cuticle).

This last aspect explains much of the sensitivity of bees to pesticides, as it reflects the absolute dependency of honey bee populations on nectar and pollen throughout their lifecycle, and how effectively bees search out and exploit suitable flowering plants.

This also helps explain why beekeepers are so wary of systemic pesticides, since such chemicals not only reach the bees when sprays are applied to open flowers, but can also be translocated inside the

plant with some ending up in the pollen and nectar. This is another potential way the bees can be poisoned, but this does not happen every time a systemic spray is applied. Systemic insecticides except Movento (containing spirotetramat) move in the xylem up towards the growing points. Movento moves in both phloem and xylem, traveling in both directions.

In both cases the systemic pesticide is not spread evenly throughout the plant, but where it disperses to, and how much results in a particular tissue, varies with the chemical and time it is applied. Even when levels are detected in pollen or nectar, they may well be below the amount needed to affect bees.

When systemic activity and high toxicity to bees coincide, great care must be taken or bee deaths will result. This is the situation with most (but not all) of the group of pesticides, the neonicotinoids.

Currently there are seven actives from this group all of which are systemic, but while two of the seven are bee-safe, the rest are highly toxic (Table 1). The only neonicotinoid used on avocados, thiacloprid which is sold as Calypso, Topstar or Alpasso, falls in the category “relatively non-toxic”.

The cry to ban all neonicotinoids because they are highly toxic to bees is incorrect in tarring the whole group. A total ban of all products containing these chemicals is also too broad and ignores that some uses of neonictinoids do not pose any risk to bees, e.g. several of the highly bee-toxic neonicotinoids are also very effective against fleas on pets.

On the orchard choose a chemical that is not toxic to bees whenever possible.

However if the only options, or the best options, are toxic, then they must be used in ways and at times that minimise any adverse impact. It is necessary to consider both negative and positive aspects.

Similarly the honey bee, as well as its many benefits, can have negative impacts as a stinging insect. Both pesticides and bees are potent tools that need to be used carefully, and not mis-used.

39

I Avo Greeen I

Pesticides and bees Continued Table 1. The toxicity to honey bees of some systemic pesticides This gives the LD 50s from tests of contact activity and from feeding trials (oral activity) expressed as nanograms per bee for all seven neonicotinoid pesticides (shown in ) and two other systemic insecticides.

Trade names in brackets are for USA products, given when active ingredient is not registered in New Zealand.

1000 nanograms = 1 microgram μg = 1 billionth of a gram.

By comparison a worker honey bee weighs 0.128 gram = 128,000,000 nanograms. chemical

Products sold as

LD50 oral

LD50 contract

active ingredient

Products

abamectin

Avid Apostle

spinosad

Success Naturalyte Entrust Naturalyte

emamectin benzoate

Proclaim Vitis

milbemectin

Mit-e-mec

chlorpyrifos

Lorsban 50 EC, 750 WG Chlorfos 480 Toppel

permethrin

Attack

pirimiphos-methyl

Attack

taufluvalinate

Mavrik Aqua Flo Dew 600

oral μg/ bee Vantal 18 EC Verdex 18 EC

contact μg/bee

0.009

0.002

-

0.003 0.004

Pychlorex 48 EC Pyrinex Rampage encaps

0.40

0.026

0.36

0.07

0.024

0.130 0.159 0.20

fipronil

Ascend, Regent

4

6

diazinon

Diazol

0.20

0.22

pyrethrins / pyrethrum

BettaCrop Garlic & Pyrethrum Key Pyrethrum GreenSeals Pyrethrum PyGanic

0.22

thiamethoxam

Actara, Cruiser

5

25

maldison

Malathion 50 EC

Fyfanon 440 EW

0.29

acephate

Orthene WSG

Lancer 750 DF

1.2

clothianid

Poncho

4

44

carbaryl

Sevin Flo

dinotefuran

(Safari, Venom)

56

22

uniconazole

Sunny

thiacloprid

Calypso Alpasso Topstar

17.3

38.4

chlorantraniliprole

Altacor

>104

>100

methoxyfenozide

Prodigy

paclobutrazol

Payback

fosetyl-Al

Aliette Fostonic

metalaxyl-M

Ridomil Gold 2.5G

etoxazole

Paramite

Bt

Bactur 48 LC, WDG Bio-Bit DF BioCrystal kurstaki

BMP 48 LC Delfin WG Dipel DF, ES

tebufenozide

Mimic 700 WP Approve 70 WP

Comic Prolan 240 SC

Source, principally “The Pesticide Manual”, 14th edition

oil, mineral

D-C-Tron Plus, ~ Organic Organic JMS Stylet-Oil

Excel Oil Excel Organic Oil

The Toxicity to Honeybees of Pesticides used on Avocados in New Zealand The table gives the contact LD50 for most pesticides used on avocado crops in New Zealand from most toxic to least. Those rated as “Highly toxic” are in red (< 2 μg/bee),with “Moderately toxic” in (2- 11 μg/bee) and “Relatively non-toxic” in (>11 μg/bee). Oils, copper compounds and Serenade Max are classed as ‘Relatively non-toxic ‘ in some publications without an LD50 being given. A maximum of six brands are listed for each active ingredient.

An LD50 shown as e.g. “> 20 μg/bee” (= greater than 20 micrograms/ bee) indicates that the amount required to kill 50% of a sample was not reached at this, the highest rate tested.

Oral LD50s for some chemicals are also included.

copper products

Blue Shield DF Champ DP , Flo, WG Cuprofix Disperss

Kocide Opti Nordox 75 WG Oxi-Cup 50 WG

Bacillus subtilis

Serenade Max

phosphorous acid

Agrifos 600 Foli-R-Fos 400

silicon dioxide

Insecta-Kill *

nitepyram imidacloprid acetamiprid thiacloprid spirotetramat

(Capstar) Confidor, Gaucho (Assail) Calypso, Topstar Movento

31 14,523 17,320 107,300

138 153 8,090 38,380 100,000

0.17

>20

>100 >100 462

>100 > 127

>200

>200 >234

100-800

>234

Phosgard Tree-Doc 400 SL

In acute contact tests a solution of pesticide is placed directly onto a honey bee to obtain the underlying toxicity of the chemical. In the orchard much of the exposure of bees is with dried residues which can be very much less toxic. This is why some labels claim a spray is safe to bees once dry. In some cases (such as the mectins) contact with bees is reduced by uptake of the active into the plant.

If you have any further queries or comments, please phone David Steven on 0508 286 7378, the Avopest Helpline, or email dsteven@ipmresearch.co.nz

40

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41

Research

By Alvaro Vidiella, Henry Pak and Glenys Parton

Pruning trial The eleven orchards in the AIC Pruning Trial receiving the standard treatment have all had the second application of treatment applied to the trees marked for autumn pruning.

All of the Bay of Plenty orchards were completed within the last two weeks of April with the two Whangarei orchards being pruned on May 9th. The single orchard receiving remedial treatment has not been visited at this time, having had staghorn pruning applied to all of the trees during the first round of pruning.

All trees have now been pruned for the second time. In most cases the shaping structural work is still on-going; particularly with the 15% light prune treatment. However, in some cases the long term structure, of between three and five well spread out main leaders, has been achieved and the pruning focus shifted from formative work to maintenance work. In some orchards it was a combination of both. This shift appears to be more frequent in younger trees than the older ones and this may be because it is potentially simpler to create the framework shape in younger trees.

In the initial round of pruning a large number of trees with inclusions were observed and a second article on inclusions and how to manage them has been published in this Avoscene.

Following the harvest of this seasonâ&#x20AC;&#x2122;s fruit and the spring pruning treatments, a summary of the results will be published in Avoscence in autumn 2013.

High Health Scheme (HHS) The HHS aims to put together a certification programme for tree production in nurseries, mainly around four subjects: producing trees free of phytophthora; producing trees free of ASBVd; that the fruiting cultivar and the rootstock of the tree are correctly identified by the tag; and that the trees meet minimum physical characteristics.

The HHS also implies the establishment of a traceability system in the nursery production system. The program was discussed at the last General Meeting of the NZ Avocado Nursery Association, and the decision was made to implement the system in the next 18 months, by the end of 2013. The first step towards the implementation of the HHS will be to assess the needs of the nurseries towards being able to comply with the scheme.

Cultivar trials The AIC has a cultivar trial running on three orchards with phytophthora challenges, one planted in 2009 in Mangawhai, two others planted in autumn 2011 in the Far North and in Whangarei, with a fourth orchard scheduled for planting in the Bay of Plenty during spring 2012.

This yearâ&#x20AC;&#x2122;s results for the Mangawhai trial are very promising and show significant consistent differences between the different 42

projects update rootstocks. An article in this issue of Avoscene page 26, has been presented with details of the trial.

The trees in the cultivar trials planted in the Far North and Whangarei in autumn 2011 unfortunately did not get well established on either site. The trees are struggling to grow and many have died. The trees are following a recovery program that will hopefully help maintain the integrity of the trial.

Sunny ® trial The application of Uniconazol (Sunny®) is becoming more frequent in avocado orchards around the world. A collaborative Uniconazol trial Figure 1. Reed fruit prior to fruit was established in spring 2011 between AIC, Plant and Food and Grow assessment.

Chem. Uniconazol is being used in this trial to assess its effect on fruit retention, fruit quality and canopy Table 1. Summary of the Reed quality standards trial structure. management in New Zealand conditions.

Harvest 1 Harvest 2 Harvest 3 Harvest 4 Reed quality standards Reed has been grown for a long time in our orchards. It has been traditionally harvested from January until March-April, depending on region and season. Fruit from the present season is being evaluated for storage potential. The evaluation is looking at four harvesting dates, three storage temperatures, three storage durations, three regions and two orchards in each region (Table 1). The last fruit was harvested April 1 and the last fruit analysis took place on May 14. A total of 6580 fruit were analysed. A spread sheet with more than half a million cells has been produced and is now being validated. A detailed report will be presented in the spring issue of Avoscene after the data has been thoroughly analysed.

BOP A

BOP B

WH A

WH B

FN A

FN B

Maximum residue level project The second round of visits for Henry Pak (AIC) and Dave Lunn (NZFSA) to Asian markets was carried out February 11-19.

Henry and Dave meet with officials in Korea, Japan and Hong Kong. All three countries are moving toward revising the list of chemicals allowed for use on fruit destined for these countries. New Zealand has an opportunity to develop import tolerances for both the Hong Kong and Korean markets over the next few months.

It is clear from these visits that food safety

Harvest date Dry Matter Content (%) Storage Temperature (˚C) Storage Duration (days) Harvest date Dry Matter Content (%) Storage Temperature (˚C) Storage Duration (days) Harvest date Dry Matter Content (%) Storage Temperature (˚C) Storage Duration (days) Harvest date Dry Matter Content (%) Storage Temperature (˚C) Storage Duration (days) Harvest date Dry Matter Content (%) Storage Temperature (˚C) Storage Duration (days) Harvest date Dry Matter Content (%) Storage Temperature (˚C) Storage Duration (days)

19/12/2011 17/01/2012 19.97 22.25 5 5 21 21 19/12/2011 17/01/2012 20.89 22.89 5 3, 5 21 (28 ) (21,28) 21/12/2011 17/01/2012 24.5 28.09 5 5 21 21 21/12/2011 17/01/2012 19.87 23.09 5 5 21 21 20/12/2011 17/01/2012 23.63 25.73 5 5 14, 21, 28, 35 21 20/12/2011 17/01/2012 28.13 30.21 3, 5, 7 3, 5 14, 21, 28 21, 28

is an increasing concern throughout Asia.

Extending the marketing window This year AGMARDT funding has been obtained for a commercial Dynamic Controlled Atmosphere (DCA) evaluation and the trials are currently underway. One shipment is complete, with three more scheduled. The intention is to have this technology widely available for industry use in the next season.

New chemistry AIC is jointly funding a Ministry for

20/02/2012 29/03/2012 25.6 27.43 5 5 21 21 20/02/2012 29/03/2012 24.37 29.16 3, 5 3, 5 21, 28 21, 28 14/02/2012 1/04/2012 29.69 33.92 5 5 21 21 14/02/2012 1/04/2012 27.01 31.72 5 5 21 21 14/02/2012 1/04/2012 28.73 29.41 3, 5 3, 5 21, 28 21, 28 22/02/2012 1/04/2012 31.14 33.32 3, 5 3, 5 21, 28 21, 28

Primary Industries Sustainable Farming Fund project involving a range of industry groups. The purpose of this project is to facilitate the registration of a number of chemicals on minor crops. Registration of new chemistry on these crops is difficult due to the economics for the chemical company. Of particular interest for the avocados industry are the international relationships that are being developed which will help facilitate development of maximum residue limits.

43

Strategy to Improve Quality The Quality Standards working group met on March 27 and April 17 to consider the six grower, five packer and five exporter submissions and to finalise their proposal for consideration by the RPG. The first

SUBMISSION

meeting also took into consideration the quality standards proposal from the previous season and the seasons overview provided by AsureQuality. The RPG met on May 30 to consider the proposal.

WORKING GROUP RECOMMENDATION

Waterblasters On review of the 2011 Quality Standards memo proposal the working group considered that the reporting requirement for non-compliance was not being met in the way that was originally envisaged. The AQIS pre-clearance failure rate was an indication as to how effective waterblasters were in removing pests.

That the recommendation on grower notification from the Quality Standardâ&#x20AC;&#x2122;s committee process in 2011 be amended to read: At any time a waterblaster is not being used or being used but not in a way to meet the relevant specified performance criteria then the affected exporters and growers are to be notified.

Such notification to be delivered at the point of packing to the affected parties.

Where the non-compliance is intentional then advance notice must be provided to the grower prior to picking.

Harvesting wet fruit In the view of the submitter the AIC is not enforcing the rules surrounding harvesting of â&#x20AC;&#x2DC;wetâ&#x20AC;&#x2122; fruit. It was noted that the 5mm guidelines are best practice only and not an EMS requirement. Also there is no hard and fast rule for when harvesting can commence following a period of rain.

It was recommended that sec 2.2 in the Grower section of the Quality Manual be changed to further clarify the conditions under which harvest can recommence following a period of rain i.e., 2 hours after rain has stopped or when fruit are dry to the touch. The appropriate period of time will be dependent on the drying conditions at the time (see the Best Practice).

Definition of fresh lenticel damage This submission related to the definition of fresh lenticel damage and abrasion damage that is referred to in the grade standards.

That the AIC provide clarification to the submitter and include in the Quality Manual a definition of abrasion damage. To be highlighted in the pre-season training.

Local market fruit quality The submission commented on the poor state of local market fruit.

With no regulatory means of enforcement any improvement relies on voluntary compliance, peer pressure and customer pull.

As the submission was general in nature no specific recommendation was made.

Need for local market standards The AIC has no regulatory authority for fruit sold in NZ. The submission will be forwarded onto the Local Market Working Group.

That the AIC canvas opinions and potential solutions to the local market quality issues.

Fruit colour This issue has been raised over the two previous seasons. The results of storage trials indicate that the grade standard as currently set is appropriate and that excessive colour of fruit does impact negatively on fruit quality.

That the AIC look at updating the colour chart in the Quality Manual.

Thrip damage The submitter argued for a greater tolerance for thrip damage on the basis that it is not readily apparent on ripe fruit. The Packer Forum did not support this submission and commented that thrip damage actually looks worse as the fruit ripen. It was felt that the problem should be addressed through improved pest control and more frequent AvoGreen monitoring over the high risk period.

44

The current standard is appropriate and the submitter should address the issue of thrip damage in the field through AvoGreen monitoring, timely sprays and good coverage.

SUBMISSION

WORKING GROUP RECOMMENDATION

Post harvest treatment with Nylate This submission was about the use of Nylate vs Geosil as post-harvest treatments. The working group would like to see Nylate trialled immediately post-harvest i.e., within 6 hours of harvest. Any postharvest treatment would need to be acceptable to all markets if it were to be applied in the field or on arrival at the packhouse.

That the AIC do some research on work done previously and conduct some experiments into the treatment of Nylate and Geosil subject to the AIC budget approval process.

AvoGreen The background to this submission was a dissatisfaction with AvoGreen as the grower had incurred a loss in pack-out as the thresholds for a pest application had not been exceeded using the ground based monitoring but fruit picked from the top of large trees had a high level of thrip damage.

Firstly that the grower carefully review the effectiveness of their spray applications and secondly that they arrange for Hydralada monitoring from the top of the trees.

GAP certification The submitter was of the view that the AIC is moving to a requirement for GAP certification. This is not correct. With the introduction of the new Food Bill all local market growers will be required to be food safety compliant. However the requirement is only to have a food safety programme in place which does not need to be a GAP based system.

It is not a requirement of the EMS for GAP certification and the AIC is not currently contemplating it. The AIC to find out the food safety compliance cost across the whole of the industry.

Timing of first packer audit The submitter raised concerns about an excessive delay between commencing packing and timing of their first audit by AsureQuality. It was acknowledged by the working group that this was a concern and needed to be addressed with AsureQuality. The importance of this is to ensure consistency of interpretation of grade standards and minimise any variability between packers.

That the AIC provide increased emphasis at pre-season training around interpretation of grade standards and the first audit for each packer to take place within the first week of their commencing export packing for the season.

Individual fruit weight monitoring The submitter requested that the frequency of individual fruit weight monitoring be reduced to twice per day, once after the commencement of packing and again after the lunch break. Subject to the accuracy of the calibration of the grader the amount of individual fruit weight monitoring currently being done was seen to be redundant.

Monitor twice daily, if a problem occurs then revert to 4 times a day until compliance is re-established as per a corrective action procedure to be written into the Quality Manual.

Class II export This submission was about exporting Class II to developing markets. The Currently Class II is allowed by exemption to some markets. The Class of fruit working group was very strong in the view that the industry EMS aims to to be exported by market classification is outlined within the EMS. The current develop NZ as a premium supplier of avocados. That notwithstanding the EMS strategy is to position NZ as a premium supplier.

EMS does allow for exemptions to export Class II product in the way that the submitter has suggested.

EMS SUBMISSIONS referred to Quality Standards Working Group Waterblaster specifications The submitter proposed that all fruit bound for the Australian market should meet the same criteria designated for USA. The Packer Forum executive did not support the submission. The view of the packers was that there are some reservations in respect of packer efficiency and that it needs to impact everyone equally. By way of clarification, the level of removal required for the US is 95%. The point was made that many of the AQIS failures are for live leafroller and the question was posed that perhaps the efficacy test should be extended to cover removal of live leafroller. There was further discussion around change to the AQIS pre-clearance program this season and the increased ramifications for any grower in the affected consignment in the event of a pre-clearance failure. It was agreed that the industry should over time move to implement this.

That the AIC set a timeline by advising that by season 2014-15 all packers will have to operate their waterblasters to the same operating procedure as specified for the US for fruit destined for all export markets. The AIC should not lose sight of the original proposal to engage a suitably qualified engineer to review efficacy of individual installations. Since this recommendation there has been further discussion about wether the industry can wait until 2014-15 to implement this change. Further work is being undertaken to evaluate the market access risk of pests being found against the cost of this additional specification.

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Strategy to Improve Quality Continued SUBMISSION

WORKING GROUP RECOMMENDATION

Distressed fruit The submitter indicated the need to extend the current definition of distressed fruit to capture the scenarios which happened in the Australian market this season where excess fruit age led to in-market fruit quality failures. Under this proposal all such failures would need to be reported as per the current provision in sec 4.2.2.22 in the EMS.

The AIC will come back to the next Quality Standards working group meeting with revised wording for section 4.2.2.22 the EMS.

Maximum fruit age Suggestion that a maximum in market fruit age of 35 days be imposed and that any fruit in excess of this age to be disposed outside the retail and wholesale market.

That the maximum fruit age be referred to the previously mentioned working group to be convened on fruit age.

Sportak and Geosil The submitter proposed that the EMS requirement for Sportak use on fruit destined for Australia be amended to become best practice. Sportak has been a mainstay of the industry quality program for many years.

There was a reluctance to support the submission on the basis that changing compliance to best practice on a voluntary basis would reduce the amount of Sportak treated fruit into the Australian market. While NZ continued to have quality issues in Australia this was seen as less than desirable. Alternatives to Sportak were discussed although at the moment none of these appears to be a viable option, it was suggested that the AIC undertake evaluation trials on Geosil.

That the AIC retain the status quo and investigate potential reasons for this issue with the packer and suggest areas of improvement.

Endorse the packer submission to investigate the use of Geosil.

Fertiliser diary The submitter wanted to remove the requirement to submit a copy of the fertiliser diary where the grower and packer are part of an accredited food safety system or GAP system that includes on-orchard audits. The Packer Forum executive supported this submission.

It was noted during discussion that this would only impact on those growers who do not use the AIC electronic fertiliser diary. It was agreed the relevant section of the quality manual would be amended.

The AIC to include 3.4.1 wording in the fertiliser diary.

AsureQuality recommendations Following a review of the recommendations from the annual AsureQuality report the following were agreed:

For the 2013-14 season sprays will need to be entered into the electronic spray diary within 7 days of an application occurring.

That the electronic spray diary be modified to allow for automatic notification to the packer where a spray has been applied following the verification by the packer.

RPG DECISIONS The RPG approved the recommendations of the working group with the following two changes: That all product to Japan is residue tested prior to harvest so the result is understood prior to shipment.

As set out on page 45, further evaluation to assess the need to require that those packhouses that are able to operate their waterblasters to the US specification are required to operate to that specification across all markets from the 2012-13 season onwards. Those that canâ&#x20AC;&#x2122;t will not be allowed to send fruit to the US.

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Industry News Export Marketing Strategy (EMS) 2012-13 approved The Export Marketing Strategy (EMS) 2012-13 was approved by the Horticulture Export Authority (HEA) in May 2012. The EMS was significantly overhauled this year to more clearly set out the strategy and strategic objectives of the industry following six years of minor adjustments during the annual review.

The EMS has been restructured based on a structure recommended by the HEA, which must approve the EMS each year.

Thirteen submissions were received from growers, packers and exporters, with requests in particular for greater accountability for new market development and for improvements in the reporting of market performance back to growers.

The EMS 2012-13 intends to set out the accountabilities of the industry stakeholders; AIC, AVEC, exporters, packers and growers.

All registered growers will be posted a hard copy version of the revised 2012-13 EMS in June.

A copy of the new EMS can be found on the industry website under Publications.

Export registrations now open Export registrations are now open and can be completed online at https:// secure.nzavocado.co.nz/ Grower export registration is due 30 June for the earlybird price.

Those growers who are unable to register online can either seek assistance through their packhouse/exporter or can request a paper form to fill in, which will incur an additional $20 administration fee.

We are asking growers to review the hectares they include in their registration to improve the accuracy of our database. Information on how to calculate hectares is available on the

online registration forms.

CEO Jen Scoular appointed as Ambassador for Western Bay @ Work 2012 Western Bay @ Work is a monthlong event, running from July 26, that highlights and showcases the many varied and exciting career opportunities available in the Western Bay of Plenty. This years theme is ‘connect to cdlaborate’. As this year’s ambassador, Jen Scoular will help to profile the event to students, school leavers, those re-entering the workforce, migrants and those returning to the Bay. The event launches with a Careers and Industry Showcase at TECT Arena on July 27 and 28 that will include the Rotary Club of Tauranga’s annual Careers Expo and the Bay’s inaugural FutureFocus 2012 - a business industry showcase.

Spearheaded by Priority One, this event will showcase the vibrant and varied industry career options available now and in the future regionally.

For a full list of what’s on during Western Bay @ Work month, check out the events calendar at www.westernbayatwork.org.nz NZAGA AGM The AGM will be held August 24, 2012, 11am-3pm at TECT Arena in Tauranga. An AGM mail-out will be sent to growers in July.

Grower Forum Two grower forums will be held in August: • Tauranga 10am-4pm, August 23 • Whangarei 11am-3pm, August 29 Further information on these grower forums will be circulated in June via AvoConnect.

Commodity Levy The existing (2007) Commodity Levies Order for Avocados is due to expire in July 2013.

The Levy Order now needs to be renewed and a grower referendum will be

held in September 2012.

An information pack on the Commodity Levy and Five Year Plan has been sent to all registered growers. If you have not yet received in information pack, please email Jo jnunn@nzavocado. co.nz or phone the AIC on 0800 286 2236 to request one.

Grower Roadshows will be held across the country from July 18 to 25. We encourage all growers to try to attend the Roadshows to have your say on the Commodity Levy.

Further information to the Commodity Levy and a Roadshow timetable can be found on page 24.

July Field Days The AGA will be holding New Cultivars Field Days in July. Further information on these will be circulated via Avoconnect.

Young grower competition AIC will be facilitating an avocado event for contestants at the Bay of Plenty Young Fruit Grower of the Year competition on Wednesday June 20 at Baypark, Mount Maunganui.

The competition is billed as a fun-filled and challenging day in which contestants undertake a range of horticulture related theory and practical activities.

The emphasis of the competition is on practical production skills relating to orcharding, business skills associated with growing, and knowledge of the industry.

The winner of the Bay of Plenty contest will go on to compete for the title of New Zealand Young Grower of the Year.

Changes to the industry website The consumer side of the website has been updated to fit with the Add an Avocado domestic promotional campaign. The consumer homepage is now the homepage for nzavocado.co.nz and addanavocado.co.nz To access the industry side of the website, click the tab labelled ‘Industry’ on the right hand side of the consumer homepage.

Continued...

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Industry News Horticulture New Zealand Seeking Grower Support for Levy.

HortNZ works with AGA on industry wide issues, AGA works on avocado specific issues.

HortNZ is seeking growers support for a levy of 3 cents/$20 of sales. This levy makes up 80% of HortNZ’s funding.

Hort NZ has a strong presence in Wellington and builds on the strength of NZ’s 6,000 fruit and vegetable growers to work on industry wide issues in all regions.

Critical HortNZ issues include; biosecurity, the Resource Management Act, labour and water.

Text reminders We are now able to text you reminders for important events. If you change your mobile phone number or have not given us one previously, please email your current number to Jo, jnunn@ nzavocado.co.nz or phone 0800 286 2236.

Library tray reports To see the reports for fruit that has completed green and ripe fruit assessments, go to the industry website www.nzavocado.co.nz, click on PackingExporting in the top menu and then click on Library Trays found in the drop

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Continued

down menu and then follow the links.

If you do not know your Username and Password, please phone AgFirst, 07 549 1044, for assistance.

The library tray reports are updated on the website on a weekly basis throughout the season.

Growers - are you connected?

Don’t miss out on important updates and industry information; make sure you register your email address with the AIC to receive AvoConnect - the NZ Avocado industry e-newsletter.

Phone 0800 286 2236 or email jnunn@ nzavocado.co.nz to register.

Important note: To avoid AvoConnect being blocked or ending up in your junk email folder, make sure you add info@ nzavocado.co.nz to your email’s “Safe Sender List”.

Grower letters in Avoscene If you want to express a view or ask a question (technical or other) that you would like other growers to read in Avoscene then please contact us.

The deadline for letters to be featured in the upcoming Spring issue of Avoscene is 18 September.

Please be aware that we will not be able to print every letter due to space constraints. All letters must be 300

words or less.

Letters must be in good taste and focus on issues of general concern, not personalities.

Letters must contain a name, address and daytime phone number of the author. Unsigned letters or those submitted without a phone number will not be considered.

Regular contributors should submit letters on varied subjects. Letters by the same author that reiterate opinions previously expressed will not be published.

Avocado Industry Council reserves the right not to publish any material which may offend readers and may reject or edit any letter.

Forward your letter to Jen Scoular at avoscene@nzavocado.co.nz or fax to 07 571 6145 or you can post to Avocado Industry Council, PO BOX 13267, Tauranga 3141.

Timetable of events June – September 2012 The avocado event calendar is jampacked for winter with important industry events taking place around all regions. If you have an enquiry about any of the events in the table below, please phone Bevan on 0800 286 2236 or email bevan.jelley@nzavocado.co.nz

Date

Event

Location

18-25 June

Commodity Levy Roadshows

All regions

20 June

BOP Young Grower 2012 Competition

Mount Maunganui

30 June

Export Registration Early-bird deadline

All regions

5-14 July

New Cultivars Field Days

All regions

23 August

Grower Forum

Tauranga

24 August

AGM

Tauranga

29 August

Grower Forum

Whangarei

13 August

Commodity levy voting opens

All regions

7 September

Commodity levy voting closes

All regions

21 September

Commodity Levy Referendum result announced

All regions

By Alvaro Vidiella

Pruning trial field days More than 250 growers attended two Pruning Trial Field Days held in Whangarei and Katikati in March. Thank you to all those who attended and a special thank you to our host growers Bryan and Dianne Cheshire (Bay of Plenty) and Shane and Sue Culham (Whangarei).

The field days consisted of a series of presentations followed by a closer look at some of the trial trees in each of the orchards. The host growers talked about the history and structure of their orchards, AIC Scientist, Alvaro Vidiella, presented the main characteristics of the pruning trial and Matt Leamy talked about general aspects of pruning and how they are being applied in the pruning trial. A summary of these presentations can be found on the industry website.

After the presentations growers had the opportunity to look at the treatment effects on the trial trees in the orchards and to talk to the participants (growers, contractors, pruning overseer and scientists) of the Pruning Trial. In

Whangarei discussions took place around the trial treatments and pruning in general.

In Katikati, growers were divided in four groups that rotated between four different stations. This allowed growers to hear the different perspectives of the host growers, AIC scientists, pruning contractors and pruning consultants. It also allowed for a closer interaction between those who were contributing to the trial and the visiting growers.

Following the Field Days we received several expressions of interest for pruning discussion groups. A group has since been organised in Whangarei by Sue Culham.

This discussion group has had its first meeting at Sue’s orchard in May, at the time when the autumn prune treatment of the AIC Pruning Trial trees was being applied. The feedback from this group has been very positive.

Discussion groups in other regions are being set up and are yet to meet. If you would like to join a discussion group on pruning, please send an email to

pruning.trial@nzavocado.co.nz AIC would like to acknowledge and thank all the Pruning Trial participants for making this project possible: • Bay of Plenty Trial Participants o Growers: Murray Angle, Dianne and Brian Cheshire, Mike Darling, Lisa Edmonds, Brien James, Peter Kampfraath, Matahui Orchards (Phil Merriman), Maria Watchorn, Phil Withy. o Pruning Contractors: Brendon Cheshire, Michael Dillon, Mike Darling, Brien James, Brett Murray • Whangarei and Far North Trial Participants o Growers: Roger Barber, Sue and Shane Culham, Kimberley Orchard (Diane Bryant-Jones) o Pruning Contractor: Bob Harding

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