HORTNEWS SEPTEMBER 2019, ISSUE 6
sudeshk@ruralnews.co.nz
FARMER GROUPS are backing Government proposals to prevent productive land from falling to housing development. Horticultural land is especially in view. The Government’s draft National Policy Statement for Highly Productive Land (NPS-HPL) proposes a nationwide approach to protecting highly productive land for future generations. About 14% of NZ land is classified ‘highly productive’. A two month consultation is under-
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way. Stats NZ says urban expansion threatens all forms of land based primary production. But horticulture is especially at risk. The scale and value of horticulture hubs, on typically flat, well serviced land at urban fringes, makes that sector more vulnerable to urban expansion than other types of farming. From 2002 to 2016, NZ’s land area used for vegetable growing decreased 29% from 100,000ha to 70,000ha. HortNZ’s natural resources and environment manager, Michelle Sands, says the Government’s proposal is to help retain vegetable and fruit grow-
ing in NZ. “NZ needs its best soils for domestic food production,” said Sands. “Once you build houses on the best soils you cannot get the soils back. “With good planning and buffer zones, houses and horticulture can co-exist, which is important for three main reasons: one, so growers can make best use of available land; two, so growers can quickly get fresh produce to market; and three, so growers have access to workers, given how labour intensive horticulture is.” Sands says keeping the best soils for producing food also helps the transition to a low emissions economy.
HortNZ says poor rules in Auckland are preventing new vegetable gardens being set up to replace land lost to housing. Agriculture Minister Damien O’Connor says NZ’s most fertile and versatile land will get new protection. “Our land is a precious taonga – an irreplaceable treasure and a source of life and wellness,” said O’Connor. “We cannot afford to lose our most highly productive land. “It brings economic benefits including employment for nearby communities, and adds value to NZ’s primary sector.”
In fields of Kalette Ohakune commercial grower Bruce Rollinson is pictured in a field of kalette, a new vegetable that could soon be as popular in New Zealand as it is overseas. Similar to kale, it grows in buttons like Brussel sprouts but is deep purple in colour. Kalette is picked when the leaves or buttons are about 75mm long. Rollinson says they can be used in stir-frys or baked and turned into chips. “They don’t need a lot of cooking because they are a leaf and while they are like a Brussel sprout they don’t have any Brussel sprout flavour. They are more in tune with that kale flavour and are a very marketable product.” Rollinson is trialling the crop with a plant breeder and they are encouraging supermarkets to stock it. Meanwhile the home meal marketer My Food Bag is the main buyer. • See more about Rollinson’s commercial vegetable growing business on page 10
MPI MOVES ON HORT Peter Burke peterb@ruralnews.co.nz
THE RISE and rise of horticulture is prompting MPI to reconfigure its operations. Chief executive Ray Smith says with the sector planning to grow from a $6 billion to a $10b industry there are things MPI needs to do. The first is biosecurity, he says. “Nearly one million containers enter New Zealand, parcels come into the mail centre and there are the tourists.... We must ensure we’re doing all we can to stop pests and diseases getting in. And if they do get in we must act quickly and with industry.” Smith told Rural News he’s been impressed with MPI’s work with industry to contain the recent fruit fly problem -- an example of working together. Now we need to strengthen those bonds. “And there are other issues for an industry that is growing, such as labour supply and skills,” he said. “I think of young NZers who haven’t grown up – as many of us have – with a real connection to the agricultural or horticultural sector, so we have to teach them about that. “We are looking at how to get into secondary schools to get people excited about our primary industries and their job opportunities.” Training and labour supply are not the only things, Smith says. There’s also robotics. He has talked to people part way through designing robotic machines that could help alleviate some labour shortages.
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HORTNEWS
SEPTEMBER 2019
Grower’s contribution Fruit of the future? recognised Peter Burke peterb@ruralnews.co.nz
HORTICULTURE’S BLEDISLOE Cup for 2019 was won by Gisborne horticulture leader Bill Thorpe. The cup goes to an outstanding contributor to horticulture, this year Thorpe, who received it at the Horticulture Conference 2019. The award citation noted Thorpe has been in horticulture for 50 years, including planting the first commercial kiwifruit in 1969. By 1975 he had developed Gisborne’s first, seamless kiwifruit packhouse and export facility. In 1988 he became a founding member of the New Zealand Persimmon Industry Council, of which he remains an active member. As an exporter he helped push
Horticulture’s Bledisloe Cup for 2019 winner Bill Thorpe and wife his Margaret.
Thorpe says it is an honour to receive the award and particularly satisfying since he has spent most of his working life in this dynamic and forward looking industry. “In the twilight of my career I am particu-
into China and the US. His colleagues say he is a “commercially mature and unfailingly courteous gentleman and statesman of the industry” and known to be “relentless in representing the growers of the Gisborne region”.
larly honoured to join the impressive list of people who have their names engraved on this magnificent trophy,” he said. The Bledisloe Cup for horticulture was first presented in 1931 by Governor-general Lord
Bledisloe, going to the orchardist who mounted the best exhibit of NZ apples at the Imperial Fruit Show. It is one of several cups Lord Bledisloe presented to NZ and resembles rugby’s Bledisloe Cup.
AGRICULTURE MINISTER Damien O’Connor wants the horticulture sector to look at developing the feijoa into a “fruit of the future”. He says they are an amazing fruit Kiwis take for granted. “Once a year, everyone picks them up off the ground, puts them in a plastic bag and shares them with friends and family,” O’Connor told the Horticulture Conference 2019 at Mystery Creek.. “Feijoas have huge potential. People say ‘they don’t last long so we can’t do anything with them’, but if we [started] varietal development and selection as they did with kiwifruit we could have another amazing export fruit.” He suggests renaming feijoa as was done with Chinese gooseberries which became kiwifruit. O’Connor says NZ has shown it can produce quality products in which people see health value and good eating. “Among the many varieties must be some we can develop. I like them but I am not obsessed with them and just see this as a lost opportunity.” O’Connor met a group of enthusiastic growers trying to form a cooperative but it didn’t go far enough. Disease challenges exist but science could address those as for other fruits. “We... need a development programme and hopefully would get a positive outcome,” he said. – Peter Burke
INVESTORS HOPPING INTO HORTICULTURE LOW INTEREST rates are driving record enquiries for cash yielding real assets, says the rural syndicate property investor MyFarm Investments. Within three days of the Reserve Bank of NZ cutting the OCR by 0.5% to a record 1%, the company had 60 investors take up its offering of two SunGold kiwifruit orchards ($8.2 million), it says. MyFarm chief executive Andrew Watters says in contrast to many other cash yielding investments, the Bay of Plenty kiwifruit offer was expected to generate average returns of 9% over the next five years. “Investors are seeking cash yield, they are seeking invest-
ment diversity to spread risk and they like the market-led focus of Zespri and the sector’s record of innovation.” The company recently withdrew a diversified horticultural offer, Kakariki Fund Ltd, from the market. It was seeking $40m but raised only $30m. Watters says despite its disappointment, the company sees a clear mandate to offer investors direct investments in single real assets. “It seems investors love the touch and feel of a specific investment, be that a kiwifruit orchard, cherry orchard or hop garden.” MyFarm is now seeking to raise $22.5m for its second large
scale hop garden development in Nelson. Wairua Hop Garden Ltd partnership is a 175ha dairy farm on the Motueka River due for conversion in the next two years. The company expects to distribute cash after 2.5 years, building to 14% p.a. It also expects tax benefits. Its management partner Hop Revolution is targeting global craft brewers wanting the tastes and aromas of NZ bred hops. Other institutional investors, including NZ Super, are also investing in Nelson hop gardens, Watters says. “They’re eager to gain exposure to NZ hops and the premiums the US craft brewers will pay for them,” he said.
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HORTNEWS
SEPTEMBER 2019
Chipping away at convenience
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According to Hort NZ, the RSE scheme helped the industry keep up with production and benefitted the Pacific region by $50m last year.
Peter Burke peterb@ruralnews.co.nz
THE TERM convenience store has taken on a whole new meaning, says the globe trotting, food trend superstar Professor David Hughes. London based, Hughes works with major food companies worldwide, focussing on consumer trends. Topping his list is ‘convenience’. For Hughes, the example is the Amazon Go stores now springing up all over the US. They use a technology which NZ needs to be aware of to capture high value consumers, he says. Amazon Go stores have no checkouts. Consumers download the Amazon Go app on their phone, walk into the shops and begin shopping. Technology called Just Walk Out automatically detects products taken from or returned to the shelves and it tracks them in a virtual cart. When finished shopping the consumer just leaves the store and later will get a receipt and
SCHEME A BENEFIT ALL ROUND Prof David Hughes
their purchases will be charged to their Amazon account. The technologies in the app resemble those in self-driving cars, computer vision, sensor fusion and deep learning. Hughes says the Amazon stores offer a limited range of products such as ready-toeat breakfasts, lunches, dinners, snack options and grocery essentials, eg staples like bread, milk, artisan cheeses and
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locally made chocolates. “It’s quick shopping and convenience,� he explains. “People don’t go in for a bag of carrots. They are not going to buy whole produce there. They want a solution -- a snack or a meal as they are going home or a snack as they go for lunch.� The technology is now used only in the US but Hughes forsees it rapidly spreading worldwide. “Every apartment block in every major
city [will] have one of these stores and potentially every office block as well.� The technology has profound implications for companies, including NZ ones wanting to connect with valuable consumers. “You can have the healthiest product in the world, but if it’s not convenient these consumers will not buy it. It has to be healthy and tasty yes, but if it’s not convenient they won’t buy.�
THE WORKER scheme known as Recognised Seasonal Employers (RSE) last year benefitted the Pacific Islands by at least $50 million, says Horticulture New Zealand (HNZ). And RSE also helped the horticulture industry to keep up with production, says HNZ’s chief executive Mike Chapman. “It’s because of the scheme’s success and vital role in our industry that we would like to see the scheme expand and more Pacific people be able to take up opportunities in NZ,� said Chapman, who attended the RSE Conference in Vanuatu in July. “It’s hard to understand without seeing it firsthand the huge difference money earned through the scheme makes. “It is used in the Pacific to build cyclone resistant housing, pay for education, and set up businesses such as coconut pressing and furniture construction, plus the more common tourist accommo-
dation and tour businesses.� Chapman says the scheme helps NZ growers to find enough people to harvest their fruit and vegetables, particularly at the peak of the season. “Without the scheme the labour shortages our industry faces would be a lot worse.� The latest Ministry of Business, Innovation and Employment (MBIE) survey of employers in the RSE scheme found that 96% agreed the benefits of participating in the scheme outweighed the costs. Employers also continued to rate RSE workers highly in their dependability, productivity and enthusiasm. “RSE employers in the horticulture industry take their responsibilities seriously. Most go beyond the minimum requirements to ensure workers are well looked after and supported in NZ, and learn skills they can take home,� Chapman said.
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HORTNEWS
Apple industry housing workers HAWKES BAY’S apple industry will spend $30 million on building accommodation totalling 1500 beds for RSE (recognised seasonal employment) workers. The Government is yet to decide on approving 1000 extra RSE workers to help pick Hawke’s Bay’s $650 million apple crop in 2020. The apple industry says it is meeting the Government’s challenge head-on, where RSE employers must show they can provide beds for the 5400 RSEs they need in Hawke’s Bay for next season. New Zealand Apples and Pears manager of trade policy and strategy, Gary Jones, says the RSE scheme will solve the apple picking crisis and the housing crisis in Hawke’s Bay. He says this season millions
NZ Apples and Pears’ Gary Jones believes the RSE scheme can help solve the apple picking crisis and housing issues in Hawke’s Bay.
of dollars of apples were left rotting on the trees in Hawke’s Bay before the Government declared a seasonal labour shortage for the second consecutive year. “We’ve listened and responded to the Government’s challenge,” Jones said.
“Together we’ve developed a partnership and we will work positively with the Government, in helping the region out of a housing crisis and growing our economy and export industry.” The new RSE accommodation -- estimated at $25,000 per bed –
will be in new buildings and large scale ‘fit for purpose’ renovated buildings. About 1350 beds are consented and 400 more are in the pipeline. The work will see almost all the 5400 RSE Hawke’s Bay workers housed by the industry. Rented houses will not be needed in urban areas. Jones says the buildings will help to house “vulnerable New Zealanders” short term, and some will be offered apple industry jobs and a ride to work each day. “The RSE scheme is [providing] fulltime employment and career pathways especially in new technology areas,” he said. “But we can’t grow jobs if millions of dollars of apples are left rotting on trees.” Hawke’s Bay is the largest apple and pear growing region in NZ.
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BLACKCURRANT RECOVERY BENEFITS A NEW study by Plant & Food Research has found that an extract from New Zealand blackcurrants could help active people. The study, published in Frontiers in Nutrition, contributes to mounting research on the benefits of anthocyanin-rich NZ blackcurrants on exercise recovery and post-exercise immune function. “NZ blackcurrants may have benefits for those living an active lifestyle,” says Dr Roger Hurst, a biomedical scientist leading the work at Plant & Food Research. This new study looked at the minimum serve size required and found that consumption of a single serve of 1.6mg of NZ blackcurrant anthocyanins per kg of bodyweight taken one hour before exercise had positive effects on exercise recovery. According to this study, the benefits are unlikely to be attributable to the antioxidant properties of the extract and more likely due to the blackcurrant extract activating adaptive defensive pathways in cells and tissues. A separate pilot trial explored the effects of the NZ blackcurrant supplement on immune function, which can be compromised following prolonged or intense exercise. The researchers looked at neutrophils – the body’s first line of defence against infection – and found that consumption of the NZ blackcurrant extract one hour prior to exercise preserved circulating neutrophil function. This could benefit active people wanting to maintain performance and avoid decreased immune function that can accompany training. Previous studies by Plant & Food Research found that NZ blackcurrants could promote a positive mood and the desire to exercise for longer. Other intervention studies are underway.
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HORTNEWS
SEPTEMBER 2019
Consumer trust key for future success Peter Burke peterb@ruralnews.co.nz
CONSUMER TRUST has never been more valuable to the New Zealand food industry and will play a major role in its future success. That’s the view of a visiting international agricultural expert, Tim Hunt, general manager of RaboResearch Australia and NZ, from Sydney. He told the Horticulture Conference 2019 in Hamilton in July that winning and sustaining consumers’ trust is very complex
relations, and new technology creating the capacity of consumers to trace product through the supply chain.” Hunt cited a recently launched app, now used in Australia to verify free range egg labelling, as an example of how organisations outside the food industry are using technology to influence consumer perceptions of food brands. “Australian consumer advocacy group Choice hasn’t been happy with the standards the Government and industry set for free-range eggs. So
by consistently meeting those standards time after time and year after year.” Hunt told the conference it will also be essential for the NZ food sector to capitalise on evolving technology to highlight the strong provenance and health
and welfare story that’s already in place. “We’re going to see more technological developments which enable us to trace the standards of food in the supply chain,” he said. “And it’s essential that NZ food producers use
this technology to tell the NZ food story and put the industry on the front foot, because if they don’t they risk outside groups stepping in and shaping the story in this valuable area.”
Rabo Research’s Tim Hunt told this year’s Hort NZ conference that consumer trust is an increasingly precious commodity for NZ food producers.
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“NZ’s emerging markets China and Southeast Asia place high value on food safety and the process of food preparation, while more mature wealthy markets are willing to pay for sustainability, animal welfare, fairness and attractive provenance.”
and it’s an increasingly precious commodity for NZ food producers. “NZ’s emerging markets China and Southeast Asia place high value on food safety and the process of food preparation, while more mature wealthy markets are willing to pay for sustainability, animal welfare, fairness and attractive provenance,” he said. “In both cases, the attributes customers are looking for are not self evident at the point of purchase or when they consume the food. So to win their business and hopefully extract a premium it is vital that food producers win their trust.” But he cautioned that earning and maintaining consumers’ trust is now more complex than ever. “Trust in companies, the Government and regulators is declining and the integrity of the food industry is under attack by media and documentary makers. “We’re also seeing a shift to online food sales, which is changing the environment in which we are building consumer
they’ve set up their own app to download to your phone, which you can use to scan cartons of eggs labelled as free range in the supermarket. “Via augmented reality, the app generates a 3D image on top of each egg carton which either shows densely packed chickens -- if Choice deems the eggs not to have been produced freerange -- or one happy dancing chicken if Choice deems they were freerange. “The app then enables you to photograph the image and share this with all your friends and followers via Facebook, Instagram or WhatsApp.” Hunt says industries that succeed in building strong consumer trust there are big rewards, and the NZ food industry is well placed to do this. “It won’t be easy, but winning this trust starts by setting high standards of food production and supply chain management that aren’t too far out of whack from what local communities and customers expect,” he said. “And it’s sustained
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HORTNEWS
SEPTEMBER 2019
7
Hydroponics diversifies business Pam Tipa pamelat@ruralnews.co.nz
MOVING INTO hydroponic berries about four years ago was a Malley family strategy to diversify their Whangarei kiwifruit orchard into a year-round on farm business. Patrick Malley had seen higher tech growing systems involving protection covers and hydroponics during a trip to California in 2015 as part of his 2014 Young Grower and Young Horticulturalist of the Year prize packages. “I saw that this method
of growing wasn’t yet being embraced in New Zealand berryfruit,” he told HortNews. “At the time the family operation was kiwifruit growing and horticultural contractors. Going into berries was a challenging thing to do, but would enable us to deliver a 12 month supply of work based on farm.” The family business Onyx Capital Ltd, which produces berries under the Maungatapere Berries brand name, has just received $2.37 million from the Provincial Growth Fund (PGF). The partnership will
The Malley family’s (Patrick far right) move into hydroponic berries about four years ago was a strategy to help diversify their Whangarei kiwifruit orchard into year-round on farm business.
enable Maungatapere Berries to develop the
BERRIES FOR ALL MAUNGATAPERE BERRIES grows raspberries, blackberries, blueberries and its own unique variety of golden raspberries called Solberries. Hydroponic tunnels first went in during November 2015 and the first crop was in early 2016. “Traditionally Northland has not been an area for growing berry fruit at all because the winters haven’t been cold enough,” says Patrick Malley. “We found the right variety, growing area, system and processes and put them all together with other growing knowledge. We created a product we can harvest nine months of the year – fresh raspberries -- pretty much unheard of in New Zealand. “We have a big focus on delivering taste, quality and food safety and giving people a really good experience with the product.” Berries grown under cover have taste and quality consistency which outdoor berries struggle to
provide, Malley says. Their raspberries, blackberries and solberries are domestic products sold NZ-wide under the Maungatapere Berries brand. They plan to export as with their kiwifruit and blueberries. “We also loved fresh berries as a family. My kids absolutely demolish them and it always helps to love your product. “Also, originally being just a kiwifruit grower we wanted to have an arm of our business that was domestically focused because eventually NZ will have biosecurity issues and we wanted to make sure we diversified our risk.” The main reason for Patrick Malley’s study tour to California was to look at water usage and labour issues which are worldwide problems. Their plan, as part of the PGF partnership, is to further build on their extensive work already done in hydroponics providing permanent employment for locals.
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first phase of a high-tech education, training and employment operation as part of a 20ha hydroponic orchard expansion. It expects to double its workforce to 360 within five to eight years. Maungatapere Berries won the 2019 Northland Ballance Farm Environment Awards. It had pre-
viously won other awards and commendations for sustainability, innovation and employment. Patrick and Rebecca Malley are excited at the potential of hydroponics as a great untapped opportunity for sustainable horticulture in Northland. Malley is quick to
point out the PGF loan is a commercial one requiring repayment of the principle plus interest to the Government despite the partnership being for public benefit. And the development will have wider implications for Northland beyond expansion of the berry business.
“We aim to use it as a template designed to help create better-paying jobs and lifelong careers for young Northlanders as well as improving the social and economic benefits for local communities,” says Malley. “We will use that money to assist with some of the strategies we have on employment development, employee training, training of people not in education, employment or training and further developing the hydroponics industry in Northland.” The Malley family, including parents Dermott and Linzi, have been in horticulture for almost 40 years. Their kiwifruit operation started in 2011 and they previously grew herbs, pipfruit and summer fruit. Dermott and Linzi were also in sheep and beef farming.
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HORTNEWS
SEPTEMBER 2019
Growers urged to keep track of ‘messy middle’ Pam Tipa pamelat@ruralnews.co.nz
NEW ZEALAND and Australia have done “wonderful work” in their produce industries. But after it leaves the farm or orchard it can get into the “messy middle”, says Gary Loh, a Singapore blockchain entrepreneur. Loh says the “messy middle” can be anywhere between the farm and the consumer. He’s had personal experience as former chief executive of fresh fruit company SunMoon Food Ltd, which he bought as a banker and had to completely turn around. That experience led him to found DiMuto, a Singapore trade technology service company with a Track & Trace blockchain platform for the produce industry. The “messy middle” needs to change, he says, and he wants to help solve the problems, he told this year’s PMA A-NZ HortConnections confer-
ence in Melbourne, attended by HortNews. Disputes and problems in the “messy middle” can take 5-10% off the bottom line – they are the “pain point”. “I had to talk to my finance team, I talked to my salesperson, I get to the shipping documents… and it all works in a manner where basically you have a barcode which doesn’t actually link it back to the documentation when you export. So you can see the batch but you can’t see the documentation.” Examples of global trading problems include the needles-in-strawberry sabotage which happened mainly in Australia but affected export markets in Singapore, Malaysia, Thailand, Philippines and Vietnam. Or documentation can be cleared by one government then not accepted by another. Also, big retailers tell the little suppliers what to do but they all have different systems. Computer company consultants can be expensive just to sort out one problem with one product.
Singaporean blockchain entrepeneur Gary Loh was a keynote speaker at this year’s PMA A-NZ HortConnections conference in Melbourne held in July.
“This is the reality for us with global trade and it is such a pain for all of us.” He says his business name DiMuto means “digital barter”, and with this we go back to the rule of the trade -trust, he says.
“Every day I’d go to work and people tell me there’s a problem with an apple or an avocado and it is coming from different parts of the world. We needed to solve the four Ts – trace, track, transparent and trust.” They saw the need for all records for the produce, from every box of fruit to all the documentation needed for that transaction, available in the cloud for everyone. “I don’t have to go into your ERP (business process management software program) to see everything that you have done and you don’t have to go into my ERP to see what I have done. This is the basic background of what we have done.” He says we need to close the loop. “That does not mean joining the growers to the retailers. It means being able to speak to the consumer.” Closing the loop means being able “to take that apple, scan it and know whether it has a five star rating or not”. Blockchain enables everyone to have the same record of transactions.
HORTNEWS Introducing Hort News, a new national publication serving the needs of our booming horticulture sector. Distributed with the leading national farming publication Rural News, Hort News will be delivered to all key horticulture regions nationwide. It is the complete solution for readers and advertisers, covering every aspect of the wider horticulture industry – news, agribusiness, management, markets, machinery and technology.
But many people are doing blockchain, he says. “We said ‘we want to be agnostic (not knowing) about what kind of blockchain you use’. We allow different systems to communicate on the platform. “What are the benefits? It keeps track in large numbers, it is easy to verify what we see and it proves the error. One of the biggest problems, when I speak to people about blockchain, is they ask how can it errorproof the trade? “One of the biggest problems in global trade is we could never prove the error. We did not know who, in which part of the chain, made that mistake. That was the fundamental basis of what DiMuto was trying to prove.” It can tell you which box has the problem, Loh says. He cites a case in his produce company of a consumer complaining about a spotty apple. He was able to pinpoint where the problem lay, ie the retailer had not put the apples in the coolroom.
HORTNEWS
The secret behind success – Page 6
ISSUE 1
! g n i k s i t i u r f i w Ki WS.CO.NZ WWW.RURALNE
OCTOBER 2018
Peter Burke
peterb@ruralnew
s.co.nz
by consumers to A UNIVERSAL trend er lives is driving live better and healthi Zealand kiwifruit. the demand for New ve Don Mathieexecuti chief Zespri fits perfectly into son says kiwifruit strong demand that scenario, causing in all its markets. growth has Mathieson says sales
in that space “Kiwifruit is a real king this year: 150 mils and fibre and been strong again with all the vitamin about 120 million ts it has versus lion trays, up from the nutritional elemen we see Based on that trend fruits. trays last year. other by the SunA lot of that is driven strong demand.” is good growth group of congold variety, and there He says their target conto be very health also in Zespri green. that sumers tend but see we specific term, region“Looking long scious, which is not with consumers the board. Zespri is trend continuing tends to be across ts, great food green and both produc in great growth g wantin getting good with nutrition,” China going very with Asia, in items that are filled gold News. Mathieson told Hort
attractive price and sumers at a more d. well. has helped drive deman and they are that Taiwan is doing “It’s going well in Japan “At the same time, conr-one market in now our number-one once again our numbe great well and is seeing also are We per capita in the Asia this year. sumption market and have seen the Korea in growth world.” lly come down. consumers have always an duties start to gradua Europe duty on our ters of Zespri green, “We used to pay 45% been strong suppor but with NZ’s free consumers there exports to Korea, but Mathieson says them the duties be attracted to Suntrade agreement with are now starting to e Sunoff and we have believes this is becaus have started to come to con- gold. He is it kiwifru our sweeter taste and been able to offer gold has a slightly RURAL NEWS GROUP
Jack Frost never sleeps Cromwell orchardist d at Simon Webb picture ss sunrise after a sleeple night of frost-fighting. Overhead sprinklers d are a common metho frost ting of preven damage as water on buds releases a little as warmth into the buds ts it freezes, then protec of them from the worst the cold air. 7 – See more page
easy to eat. and continues “France is going well market for us. In to be a high growth a years, it has been the last couple of European region. real performer in the good growth in And we are also seeing s in Spain, the Benall our major market Italy.” and ny elux region, Germa
YOUR HORT NEWS!
first issue of Welcome to the Hort News. is proud Rural News Group national to launch this new the fastpublication to serve sector. growing horticultural op one-st a is Hort News lture read for all horticu industry sectors, covering , markets, news, management nery, technology, machi opinion and more. Rural News Distributed with regions, in key horticulture the only be will Hort News tion publica ndent indepe horticulcovering the entire tural industry. it. We hope you enjoy Adam Fricker General manager Rural News Group
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HORTNEWS
SEPTEMBER 2019
Dairy farm to be converted to kiwifruit Pam Tipa pamelat@ruralnews.co.nz
CRAIGMORE SUSTAINABLES will invest $38 million to convert 137ha of established dairy farm at Kerikeri into a kiwifruit orchard. This will increase local kiwifruit production by at least one third and create 29 fulltime equivalent jobs. The project is approved by the Overseas Investment Office (OIO). Craigmore Sustainables is a New
bringing with it increased regional development and employment,” said Charteris. “Our focus is to build the best NZ orchards producing top-selling fruits that include kiwifruit, apples, wine grapes, plus emerging crops such as cherries and avocados.” Charteris says access to capital is a barrier to realising the full potential of horticulture. Through its Permanent Crop Partnership, Craigmore is building at least $200m of
farming only half of the land.” Charteris says Craigmore has strong support from the local council as well as local growers, packagers and exporters who can build their businesses alongside
the developments. “Ultimately, at a time of growing consumer demand for sustainable products and wider societal standards for managing farmland, Craigmore Sustainables’ mission is to support NZ’s
reputation as a premium food and fibre supplier in a way that spreads the benefits across the regions of Aotearoa.”
Craigmore Sustainable chief executive Che Charteris.
The Kerikeri move follows recent approval from the OIO to buy land in Hawke’s Bay and Gisborne where Craigmore is investing $52m to develop apple orchards which will offer almost 100 fulltime equivalent jobs. It expects to boost NZ exports by $30m.
Zealand owned and controlled business set up to help fund development and grow regional NZ food and fibre businesses. While it mostly uses European funding sources, Craigmore appoints and employs local NZ management and governance for every business. The Kerikeri move follows recent approval from the OIO to buy land in Hawke’s Bay and Gisborne where Craigmore is investing $52m to develop apple orchards which will offer almost 100 fulltime equivalent jobs. It expects to boost NZ exports by $30m. Craigmore Sustainables chief executive Che Charteris says these investments are part of the company’s Permanent Crop business which is expanding and diversifying horticulture in key central and northern regions. “NZ’s horticulture sector is a world leader in many areas, with exports growing at 7% per annum for the past 20 years,
horticultural businesses, many being orchard conversions from pastoral land. “One of our core sustainability values is ‘right land, right use’. NZ has vast areas well suited to grazing livestock, but some areas should be converted to horticulture and forestry.” Craigmore still has about $50m to invest and is looking to buy minority stakes in existing horticultural businesses to help them grow. “This is helping diversify the economy and create significant gains for regional communities as well as helping address soil and water challenges, and reduce greenhouse gas emissions,” said Charteris. “With the Kerikeri land, for example, we’ll be planting riparian areas around the orchards, with indigenous species to provide a buffer to waterways from sediment, nutrient and other runoff and to provide corridors for wildlife movement. “We are generating 10 times the benefits by
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HORTNEWS
Consumers rule growers’ business Peter Burke peterb@ruralnews.co.nz
CONSUMERS’ DEMANDS are driving the way Ohakune commercial vegetable growers Bruce and Stephanie Rollinson produce and package their Brussel sprouts and parsnips. They supply sprouts to all Countdown supermarkets in the North Island, and other retailers, with these vegetables. They are also a significant grower of parsnips and supply directly to My Food Bag. Bruce (BAgComm) and Stephanie (BAgSc) are both graduates of Lincoln University. Bruce first worked in the tourism sector and Stephanie as a fertiliser and agronomy rep around Ohakune. Both come from farms: Bruce from a South Canterbury arable property and Stephanie a Hawkes Bay sheep and beef farm. Their farming backgrounds brought them back to the land to ensure their children were raised on a farm. The Rollinsons have farmed their present property for 19 years and witnessed many changes including new environmental regulations. They say the changes in consumer demand have shaped their business, notably the expectation that food is produced sustainably, says Bruce. They operate under NZ GAP (good agricultural practice), a Government approved quality programme under which they are independently audited by Asure Quality. He says they also get random checks on their chemical applications to ensure they are meeting withholding periods and residuals. The crop itself has changed a lot because of consumer wants, Bruce told Hort News. Essentially they want smaller, gourmet vegetables. In the past, there was demand for a large parsnip for the Sunday roast, but now people want
SEPTEMBER 2019
The Rollinsons have farmed their present property for 19 years and witnessed many changes including new environmental regulations.
smaller parsnips and Brussel sprouts. Management in the field is vitally important so that most products are the correct size and blemish free, he says. Rollinson believes the change to producing smaller Brussel sprouts has led to a resurgence in this vegetable. People were often put off by large fluffy sprouts that
were not always as fresh as they are today due to the auction system which delayed the movement of product to consumers. These days the Rollinsons pick in the morning and the produce is in the supermarkets the next morning, he says. Another change is the move to more pre-packed vegetables, Rollinson says. Ten years ago about 5% of their sales were in consumer packs. Today about half of their vegetables are in pre-packs because consumers don’t want to spend all day at the supermarket. To use retailer’s terminology, they just want to grab and go, he says.
Ohakune commercial vegetable growers Bruce and Stephanie Rollinson. Left: Brussel sprouts management in the field is vitally important so that you provide the majority of your products the right size and blemish free according to Bruce.
The Rollinsons employ 15 staff at the peak of the season in both harvesting and packing their produce.
This is also a win for retailers who no longer see wastage at the bottom of a crate of loose product. In a supermarket, people may sift through lose vegetables, some getting damaged and any of poor quality getting left behind. Pre-packs result in less waste for supermarkets. Rollinson says they have looked at sustainable packaging -- a pack that is compostable and biodegradable. But this would cost about $1/pack and the retailers don’t believe consumers will pay that premium. @rural_news facebook.com/ruralnews
THE VALUE OF GOOD STAFF THE ROLLINSONS employ 15 staff at the peak of the season. They own 28ha and lease another 28ha and have a sheep and beef operation at nearby Waiouru. Like all commercial growers, managing rotations is crucial to the health of the crop. The Rollinsons and their neighbours, who produce different crops, often work together to get the best use of the fertile volcanic soils of the central plateau. Over time, new plant varieties have come on the market and these have helped meet consumers’ demands. Despite the rise of mechanical harvesting and robotics, the
Rollinsons believe hand picking works best for them, especially because they have good, local hard working workers. These are paid on a contract basis and, provided they meet the quality specifications, the more they pick they more they are paid. Essentially they do a twograding process, Bruce says. In the paddocks, staff must pick to a certain specification. “When it comes back to the packhouse it’s very efficient in putting it through our wash systems, because we have already taken out the obviously poor items. The grading done in the packhouse is taking out
what wasn’t obvious in the field. So that’s very efficient,” he said. “Yes, you can go for mechanical harvesting of these products. But you are going to be all day in the shed grading product and that slows things down.” Living in the shadow of Mt Ruapehu, and farming in at times challenging conditions, the Rollinsons have moved with the times. They have tuned in to the demands of the retailers and consumers and have a strong focus on sustainability in all its forms. Success has come about by running an agile, innovative business grounded in common sense.
HORTNEWS
SEPTEMBER 2019
High tech research for hort Peter Burke peterb@ruralnews.co.nz
A MAJOR research initiative in horticulture is underway in Bay of Plenty with the formation of the PlantTech Research Institute at Tauranga. Its research director is Ian Yule, best known for his time as the professor heading precision agriculture at Massey University. Yule describes PlantTech Research as an exciting venture bringing together technology companies in the Tauranga region to advance the use of artificial intelligence, machine learning, robotics and automation. Eight companies and the Government have helped fund it. Now Yule is recruiting ten scientists, hoping to have them in place early in the new year. “We are trying to recruit people who’ll
Ian Yule is behind a new research initiative for horticulture in Bay of Plenty with the formation of the PlantTech Research Institute at Tauranga.
make a real difference... people with strong analytical mathematical skills,” Yule said. Each of the companies
invested in PlantTech will have a project undertaken by the science team and this is initially how they will get a return on their
investment. Also, several demonstration projects will be undertaken, including one on autonomous
Gypsum delivers Gold for Kiwi Orchardists
vehicles. And they will look at machine vision, which involves interpreting imagery, a technique improving all the time,
Yule says. “For example, how do we interpret fruit ripeness? Traditionally we have had to go to a lab and work out the quality of fruit but we can do this more often in the orchard. “We can analyse what’s happening in the orchard so as to pick at the prime time and get the best quality fruit and results. “Data analytics is very important and huge amounts of data are being collected across the horticulture industry. “Now we are able to analyse that better than in the past.” Autonomous vehicles will have the institute’s close attention, Yule says. The idea of programming these vehicles to do certain tasks in an orchard, and avoid obstacles, is attracting a lot of interest. Robotics is technically
feasible, depending on whether a machine can compete cost-wise with a human. “I was recently in America where a situation arose of not enough workers to pick a crop, so the whole crop was lost,” Yule explained. “As a result of this the asparagus industry is moving from California to Mexico and strawberry growers are saying they may go the same way because of the labour issues.” Waikato University is developing a machine that will mechanically harvest asparagus. Yule says PlantTech is trying to build teams with more ‘potency’ than other research institutes in specialist areas of horticulture in the hope they can generate extra value for the industry. @rural_news facebook.com/ruralnews
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HORTNEWS
SEPTEMBER 2019
Adding value not bulk Nigel Malthus
WHILE CONVENTIONAL growers would aim for a yield of about 10t/ha, Howey aims for about 5ha. He says the ViBERi business model is all about added value. When they started there was only a little organic blackcurrant concentrate being imported. “No-one else was doing organics of any consequence,” he told Hort News. “We realised there wasn’t a market sitting there waiting. We had to develop the market and the brand.” Howey leases space at a coolstore in Washdyke where all the initial destrigging, size and colour grading and packing is done with the berries in a deep frozen state. ViBERi’s first product was a simple pack of free flow frozen berries. The product range now includes powders, chocolate covered freeze dried berries, soft dried berries infused with organic apple juice, and a couple of white chocolate coated lines -- one dusted with the deep purple powder.
The powder is made from freeze dried berries and can be used for smoothies, yoghurt and decoration, giving both colour and flavour. The Howeys sprinkle it on their breakfast cereal. “It’s so good,” says Afsaneh. “Because it’s raw it’s just like eating fresh or frozen so it’s convenient.” They plan to expand online sales while continuing to develop product ideas. The couple also take their enthusiasm for blackcurrants on the road, presenting their products directly to the public at events such as the recent Go Green expos. Howey says a lot of collaboration arises at such shows when exhibitors meet up and explore ways to use each other’s products in combination. Less than half their production now goes to retail. The Howeys have powders and dried or frozen berries going as ingredients in about 25 other branded products including breakfast cereals, smoothies, juices and supplements.
Tony and Afsaneh Howey take their organic blackcurrant business,Viberi, to the public at the recent Go Green expo in Christchurch. RURAL NEWS GROUP
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HORTNEWS
SEPTEMBER 2019
Taking blackcurrants to the top of the tree Nigel Malthus
SOUTH CANTERBURY organic blackcurrant grower Tony Howey wants to topple blueberries from being publicly perceived as the ‘king of antioxidants’. Instead blackcurrants, with their very high vitamin C and anthocyanin levels, actually contain up to 2.5 times more antioxidants, he says. “In terms of all the goodies in them they’re just great. That’s one of the reasons we’re concentrating on blackcurrants,” Howey told Hort News. “It’s such a great product.”
on December 17, 2004 – the date and time etched in Howey’s memory – a monster hailstorm flattened his fields. He says he lost 160% of the crop – all of that year’s harvest -- and sustained so much damage to the bushes that they took two more seasons to recover. “So that was a welcome to the industry. But we persevered.” By about 2001 the industry was moving to low chemical input, nil-residue regimes, so Howey decided it was no big leap to go fully organic and create that as their point of difference.
anything much above ground level. The blackcurrant bushes take about three years from cuttings before they are tall enough for the mechanical picker but they can produce for 20 years “if you take care of them,” says Howey.
At 12-15 years they may be renewed by cutting them off at ground level to come away again. He has also done this to help combat clearwing. Mechanical side pruning keeps the bush sizes under control and the rows clear.
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Tony Howey with young blackcurrant plants growing through straw mulch on his farm at Pleasant Point, South Canterbury. He is also trialling plastic weed mat, and sheep to keep the grass down, saying weed control is the toughest part of running a fully certified organic operation. RURAL NEWS GROUP
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Howey is well known in South Canterbury agribusiness – farming potatoes, carrots, onions and other crops. He’s also taken leading roles in developments such as the Opuha dam, packing, processing and milling, and serving on boards including Ravensdown and Horticulture NZ. Howey is well known in South Canterbury agribusiness – farming potatoes, carrots, onions and other crops. He’s also taken leading roles in developments such as the Opuha dam, packing, processing and milling, and serving on boards including Ravensdown and Horticulture NZ. But he recently sold out of his cropping business to concentrate on his ‘semi-retirement project’ – the 70ha organic blackcurrant farm and the retail brand ViBERi, which he is developing with his wife Afsaneh. Enthusing over the health benefits of blackcurrants, Howey says new research in England points to them being “like a legal performance drug” for athletes. “We can’t say ‘have this and it’ll cure that’ but we can point customers to the research papers.” The operation is based on a farm on the outskirts of Pleasant Point, which already had blackcurrants when the Howeys bought it in 2004. But their start was far from easy. At 4pm
His 70ha is now the only significant organic blackcurrant farm in the country, fully certified and BioGro-audited. For organic status, Howey is allowed only limited fertilisers, simple copper and sulphur sprays for disease control, and pheromone traps to control the insect pest clearwing. The hardest thing is weed control, and he is experimenting with growing the bushes in straw mulch or plastic weed mat, which he says has its own challenges but has provided much better control. Grass is a problem, especially in the sections set up before he converted to organic. In summer he mows between the rows, but that cannot control grass within the rows. In winter, he grazes sheep among the bushes, but they must be taken out in spring to keep them from eating the blackcurrants’ new growth. This season, Howey will trial special muzzles developed for use in vineyards, which are supposed to prevent sheep eating
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HORTNEWS
SEPTEMBER 2019
Report shows value of ag chem A LANDMARK report reveals that without crop protection products, New Zealand’s economy would lose $7.5 million to $11.4 billion. The report covers horticulture, vegetables, forestry, pasture and field crops. The NZ Institute of Economic Development recently released the report, ‘The Importance of Crop Protection Products for The New Zealand Economy’, showing that, on average, crops would lose 30% of their value without these products. The horticultural sector alone would lose 75% of the value of its crops, resulting in a $4b loss to the industry and the economy. This would severely affect our grow-
INDUSTRY COMMENT
The industry ensures a continuing variety of new pest control products on offer solutions to growers and farmers.
ers, who wouldn’t be able to grow commercial quantities of crops without these products. Yields would be much lower and the economic impact substantial. Not only does the crop protection industry have an important part to play in supporting the economy, it is also vital for producing safe food and
protecting crops from damaging pests and disease. It develops tools to manage biosecurity incursions which damage our native species and crops. A severely reduced kiwifruit production would have resulted from the 2010 PSA outbreak. The use of these products was a vital part of managing the deadly bacteria
Mark Ross
which could kill a kiwifruit vine if left unmanaged. On the plus side, even a small increase in horticultural productivity has a ripple effect in boosting the economy. Innovation can have a substantial effect on productivity, with a small increase being worth $10m to $100m. The industry ensures a continuing variety of new pest control products on offer solutions to growers and farmers. Agrichemicals that are more environmentally friendly, more effective and more targeted allow farmers to better kill target pests while protecting human health and allowing beneficial flora and fauna to
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prosper. This is reflected in the importance of the regulatory regime which approves these products for use. The report highlights that delays in this process mean that newer, softer and more environmentally friendly chemistries take longer to get to market. It says that a one-
year delay means a loss of $7m to $70m to the GDP over 10 years. The crop protection industry in NZ is small. In fact, its contribution to the GDP is less than 1%, but it has far-reaching effects. Without these products, NZ’s growers would not be able to grow enough crops. The impact
of this would affect more than just the economy. The report can be found on the Agcarm website www.agcarm. co.nz • Mark Ross is chief executive of Agcarm, the industry association for makers and distributors of crop protection and animal health products.
Trade will feed the world Pam Tipa pamelat@ruralnews.co.nz
GLOBALISATION IS the only way to feed 9.6 billion people by 2050 with a healthy diet on a healthy planet, says a global food expert. And there is no vegetarian wave moving across the planet, he says. Some regions, such as Southeast Asia, need more red meat and eggs, says Australian doctor Sandro Demaio, chief executive of the global foundation EAT, in Norway. EAT tackles human malnutrition and planetary challenges such as climate change. Demaio spoke at the Produce Market Association A-NZ’s HortConnections conference in Melbourne, attended by Hort News. His words have implications for Australian and NZ agriculture. Demaio says there is a discrepancy worldwide in the quality and quantity of food we can grow on a hectare of land -- partly about “climate and access to water”. “We need to think about that. We need to be growing food where it is going to grow most efficiently.” Demaio disputes any obsession with winding back globalisation. “In fact the only way we are going to feed 9.6b people is to dramatically increase trade.” Countries must get over the idea of
food sovereignty or the historic need to produce enough food for an entire country. “Some countries will obviously be exporters, but with others we will need to strengthen multilateral relationships to ensure trust exists so that long term our global trading system will be able to feed a growing world,” Demaio said. The biggest challenge now is not just to produce more food from present resources, but to produce more of the right food. “It sounds simplistic, but we live on one planet, we have one global food system. Food needs to be grown where it can be grown most efficiently with the limited amount of resources we have.” He says globally we are under-consuming fruit and vegetables, whole grains, nuts, seeds and healthy oils. But the South Asian region is under-consuming in different ways. “We will need to increase red meat consumption by most Southeast Asians -- and eggs. “There is a huge investment now in scaling up egg production in Africa and the same need will emerge in the Southeast Asia region.” The nutrition potential of eggs for the most vulnerable people worldwide needs to be realised. That includes the young, especially young women, who need animal-sourced protein in general.
A BIT OF MEAT ON THE SIDE WHILE VEGAN and vegetarian numbers in Europe and North America are stable, interest is surging in ‘flexitarianism’ – a plant based diet with some meat. “There is no vegan wave moving across the world with everyone giving up meat tomorrow,” Demaio explains. “But people are interested in the meat they are eating in a way they haven’t been previously.” This holds a challenge to meat producers and an opportunity “because those same people are interested in paying more for quality meat”. “How do we shift the economic incentives and levers to ensure we put more vegetables on the plate or move to farming practices that better support farmers and farming communities and give them a fair wage?” Demaio asks. “How do we take consumers with us so that policymakers are able to rethink the market incentives and the fiscal policies that allow us to make that transition?”
HORTNEWS
SEPTEMBER 2019
Automation answer to labour issues Mark Daniel markd@ruralnews.co.nz
MORE AUTOMATED asparagus harvesting now in progress is expected to address the industry’s seasonal labour bottleneck. The harvester project started in 2015 and is now well advanced. The asparagus industry harvests $9.2 million of product (year end June 2018) from 570ha where about 40 growers produce 1800 tonnes. The harvest season starts in mid September in the key regions of Waikato, Hawkes Bay and Horowhenua, hits a peak during October-Novem-
ber and is over by late December. Crops are picked daily, meaning skilled labour is in high demand for a relatively short time. A recent report by the NZ Asparagus Council (NZAC) says sourcing and managing labour is one of the top three demands on growers. So the development of a more highly automated harvester was welcomed by the NZAC at its recent annual meeting. The council endorsed a University of Waikato project and voted to approve its funding application to the Government. The harvester project started in 2015 when
Dr Shen Hin Lin, a lecturer at the university, was seeking a worthwhile practical project. He met with Callaghan Innovation, then Geoff Lewis, of Tendertips, a Levin asparagus grower, to discuss practicalities. Work began with Robotics Plus Ltd, and funding was granted by Callaghan Innovation to support a PhD student at Waikato. A key challenge is machine selection of the asparagus spears: it needs to know where individual spears are located across the width of the harvester. This task fell to PhD student Matthew Peebles,
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The automated asparagus harvester in action.
who developed a spear recognition system in real time, using a time of flight camera. Several test rigs were constructed and used to collect data during the harvest at Tendertips, Boyd’s Farm in Hautapu, and the Kaimai Fresh operation. Following these trials and talks with growers,
technical officer Josh Barnett was brought onboard to construct a proof of concept harvester. This unit was designed to adopt the spear recognition system and to demonstrate a harvest concept based on cutting, picking and collection. A proof of concept trial took place in May 2019 in California. The
machine successfully located spears, cut them with an arm, then placed them in a collection bin. “The technologies we are using see data from the time of flight camera delivering height and location information of the spears,” Hin Lin explains. “And the harvesting arm uses a motor encoder to approximate
where to cut, based on the speed of the unit.” The project had to overcome variables, such as sunny or cloudy conditions, that affect the visual system for spear location, or the problems of dealing with spears growing in clusters. More testing is expected to lead to a fully autonomous harvester.
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CO INTUITIVE OPERATING
16
HORTNEWS
SEPTEMBER 2019
Flavour and sweetness a hit Peter Burke peterb@ruralnews.co.nz
THE UNIQUELY sweet flavour of this year’s kiwifruit crop – green, organic and SunGold -- has been a hit with consumers world-wide. Zespri chief executive Dan Mathieson says the strong consumer demand for our kiwifruit has been driven by the “spectacular taste” of the fruit this year, caused mainly by the long dry New Zealand summer. The strong sweet flavours are creating incredible repeat business in Asia, where people prefer sweeter fruit, and in all other markets. This applies to the green, gold and organic varieties. Mathieson says last season’s great growing season resulted in fruit being in the marketplace early which put Zespri in a strong position.
FOCUS ON SUSTAINABILITY ZESPRI HELD its annual meeting in late July and, says Dan Mathieson, it was well attended and positive. He says 2018 was a big year for the industry with a bumper crop that stretched sales staff, but the end result was great, with good returns to growers. Mathieson says this season the emphasis will be on sustainability. “This was one of the big conversations at the AGM – looking at what our customers and consumers are wanting from us. “They not only want to know that we are producing a quality product but that we are focused on sustainability issues such as water, plastics, packaging and looking after our workforce.” Mathieson says the industry is doing a good job in these areas, but has plans for other initiatives in the coming year.
“Generally, when consumers are looking for fruit they are looking for a sweet flavour and we know from our market research that taste is the number one driver for repeat purchase. So, as an industry we are focused on providing the best tasting fruit we can.” While the fruit is unquestionably the tastiest for many a year,
Mathieson says the slight downside is that it is smaller. A lot of effort has gone into repositioning the fruit at the retail level and focusing on the attribute of flavour. “We are doing a huge amount of sampling in store with thousands and thousands of sampling activities happening in all our markets around the world.
“The aim is to get consumers to really taste the difference in our product and enjoy it, put it in their fruit bowl and keep coming back to buy more,” he told Hort News. “We pride ourselves on having the best quality and because we can deliver that we are obviously able to get a premium return for our product.
Zespri says the sweet flavour of this year’s kiwifruit crop has been a hit with consumers world-wide.
“I think consumers recognise and value the difference in the quality of the product, as opposed to some of the other kiwifruit that’s sourced from other coun-
tries.” Mathieson says Zespri is looking for every opportunity to promote the product – such as the promotion a few years ago when McDonald’s res-
taurants in Mexico put kiwifruit in their Happy Meals. He says this promotion resulted in a significant lift in kiwifruit sales in local supermarkets.