Hort News 05 November 2019

HORTNEWS NOVEMBER 2019, ISSUE 7

Will apple trees replace pines in North Canterbury?

– Page 8

ISSN 2624-3490 (print) ISSN 2624-3504 (online)

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Hort’s star keeps rising

Pam Tipa pamelat@ruralnews.co.nz

HORTICULTURE WAS once again the star in export revenue growth terms in the primary sector, jumping 13.7% in the year ended June 2019 to $6.1 billion, according to MPI’s Situation and Outlook September update.

But dairy was the biggest in monetary terms, growing 8.7% to $18.1b – a $1.47b increase.

Overall primary exports were also up 8.7% to $46.4b to the year ending June 2017 but are expected to drop 0.5% in the current year to $46.2b.

Prices are forecast to remain high for most products, but lower export volumes are forecast in most sectors, says the report.

Horticulture export revenue is forecast to grow 3.8% to $6.3b in the year ended June 2020, with slightly lower yields in the main crops contributing

to lower growth this year.

New Zealand apple exports to China in the first half of 2019 were double that for the same period last year.

Apple and pear export revenue for the calendar year 2019 is expected to exceed $800 million due to increases in both export volumes and prices.

Strong demand from Asian markets, in particular China, has helped offset weaker demand in Europe, the latter attributable to large domestic stocks

from the 2018 harvest.

Export prices have dropped for apple varieties mainly sold in Europe, such as Braeburn.

Higher kiwifruit prices bring the forecast revenue up 4.5% to $2.53b for the kiwifruit season ending March 2020, despite production volumes for 2019-20 being on par to slightly below last season.

The recent harvest notably saw gold kiwifruit production volume overtake

green for the first time, with some green kiwifruit areas being replaced by new gold licence releases.

The early start to the gold kiwifruit harvest saw March and April break records for export volume and revenue. Kiwifruit export prices have held through June and are expected to remain strong throughout the export season. @rural_news facebook.com/ruralnews

SPEAR THEM! Horowhenua asparagus grower Geoff Lewis is facing the same problems as thousands of fellow growers in Australia, the USA and the UK: a declining potential labour force. He says asparagus is a very expensive crop to harvest and process for market and is labour intensive.

Lewis says it requires an awful lot of work to harvest a bunch of asparagus compared with other crops such as broccoli, lettuce and similar crops. So what’s the extent of the problem and how is he helping to solve a world-wide problem? The answer and more questions on page 4

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HORTNEWS

Zespri funds hort scholarships at Massey Pam Tipa pamelat@ruralnews.co.nz

A NEW hort scholarship worth up to $15,000 over three years has been launched by Zespri for up to five students during each year of their studies towards Massey University’s bachelor of horticultural science degree.

The Zespri Science Scholarships are aimed at students considering a career in the fast-growing kiwifruit industry, says Dr Kylie Phillips, Zespri innovation team leader, supply chain.

The scholarships include mentoring opportunities, and exposure to and support from the wider industry.

PAYING TO LEARN PRIMARY ITO is launching a scholarship for apprentice fees.

Applications are open in October and November and will cover fees for the whole duration of the apprenticeships, which generally take two-three years.

“Our industries are facing unprecedented challenges right now and we believe scholarships for apprentices will help business gain the skills they need,” says Primary ITO’s incoming chief executive Nigel Philpott.

“Zespri is on track to nearly double global sales from 2010 levels to $4.5 billion by 2025 and we can only do this by attracting the right people

“Offering scholarships for apprenticeships is one way of encouraging people to build a career in the primary industries, particularly as we know there is huge demand for people in all industries.”

The scholarships are available for apprentices in dairy farming, sheep and beef, and horticulture production.

Philpott says an apprenticeship sets people on a pathway to a successful career.

with the right skills,” Phillips said.

“Zespri’s extensive research and development programme is building scientific under-

standing of how best to grow and deliver premium quality kiwifruit to consumers all over the world. “Technology and science are

KIWIFRUIT BOUND! EMMA SIMPSON is Massey University’s top horticultural student for 2019.

She received her award at the 26th Annual Agriculture Awards dinner in Palmerston North recently, which was attended by about 200 students, staff, industry representatives and sponsors including Rural News Group.

Simpson, who has just completed her final year of a Bachelor of AgriScience (Horticulture), will shortly begin a career in the marketing and quality assurance team at Zespri in Mt Maunganui.

She told Hort News that her move into the horticultural industry was sparked when she was at school.

“I had this really cool agriculture and horticultural teacher at school and she

really reinforced the idea of going into the primary sector as a career.

“I saw the benefit of going into horticulture – and that really drew me into the industry – and I haven’t regretted it since.”

Simpson was the recipient of on a Zespri scholarship and says the summer work placements, international experience and in-class visits have greatly expanded her knowledge and love for the New Zealand kiwifruit industry.

“These experiences and connections have now provided me with the awesome opportunity to work for Zespri after graduation. I am looking forward to working within a dynamic and innovative company like Zespri,” she said.

– Peter Burke

changing our industry and the horticulturalists of tomorrow will need different skillsets from the growers and postharvest operators of today.

“With the industry growing strongly in New Zealand and around the world, we want to attract talented young people with the skills [we need]... This is an exciting time to be starting a career in the kiwifruit industry.”

Massey’s School of Agriculture and Environment head Professor Peter Kemp says the scholarship will be a great opportunity for students and the kiwifruit industry.

“Zespri’s investment

NOVEMBER 2019

Professor Peter Kemp says the scholarship will be a great opportunity for students and the kiwifruit industry.

shows additional support for the degree and the students it will produce. The Bachelor of Horticultural Science welcomed its first cohort this year, aiming to fulfil a real need in a booming industry.

“It was created with close engagement from industry leaders, including Zespri.

By working closely with industry, we will continue to produce students with the broad knowledge they will need to excel within this industry and prepare them for future jobs,” said Kemp.

Applicants for the scholarships should show how they are

helping, or are planning to help, develop the New Zealand horticultural industry, with a particular emphasis on kiwifruit.

They should show their own personal passion and commitment to kiwifruit and horticulture as a career.

This scholarship is part of Zespri’s broader programme of education and personal development at every age and stage from science in junior schools to scholarships for tertiary study, and career development for future and current leaders of the kiwifruit industry.​ Applications are now open and close at the end of January 2020.

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HORTNEWS

NOVEMBER 2019

Hort strong, but uneasy – survey Pam Tipa

tion from growers that export markets might tighten up a bit in the next 12 months. This is relative to what we are seeing globally with some geopolitical issues and the ongoing trade war between US and China.”

Overall Higgins

pamelat@ruralnews.co.nz

POSITIVE SENTIMENT still prevails across horticulture, but Government policies are weighing on the minds of growers, says Hayden Higgins, Rabobank horticulture senior analyst.

He was commenting on results of Rabobank’s early September confidence survey of 59 horticulturalists (see sidebar for details).

The results saw only minor shifts, some up and some down, in results pertaining to their own businesses.

But 30% of horticultural players surveyed expected the wider agricultural economy to worsen in the next 12 months, which was up from 17% in June. Among reasons for expecting this worsening, 68% cited Government policies.

Higgins says there is positivity across horticulture, underpinned by increasing demand for products. Export receipts were up about $600 million in the year to June 2019 with the total export value of fruit, nuts and vegetables at $3.9 billion.

Kiwifruit, apples and other key products have had export growth for a long time. But at micro ‘NZ Inc’ level concern is rising about Government intervention, regulation and policies that may

says positive sentiment prevails across the horticulture sector, notwithstanding lack of clarity about what regulatory changes may bring over the next 12 months.

Confidence is still good possibly because growers feel good returns will help

them address problems.

“But still we need to see the impact of what those regulatory changes might be, particularly for water over the next survey in December as growers get a better feel for what they might look like.”

OUTSIDE INFLUENCES impact horticulturalists.

Concern in Rabobank’s surveys about Government policies spiked at the time of last election. Before that, from 2009 concern was virtually non-existent -- never more than 25%, Higgins says.

It peaked at 100% in September 2017, started dropping after the election but is now back to 68% in this survey.

This latest survey was run in early September before the water consultation process was announced.

“So it is possible concern over Government policies could worsen in our December survey.

We will need to see the results but that could be the case.”

But it is not all bad news from the horticulture sector.

Positivity is reflecting through into some of the on farm costs, with the expectation of those lowering. Positive news on labour may have helped, such as improved RSE scheme caps, Higgins says. But horticulture will still complete with some other agri and non agri sectors for labour, he says.

The survey results also show continued strong desire by growers to invest in their own businesses -- in capital or productive assets.

“Twenty seven percent expect to increase their investment in the next 12 months and around 69% expect it to stay at the same level as the previous 12 months. So close to the 100% still have strong investment intentions in their business.”

About 83% of all respondents see their

business as viable or highly viable in the current environment and for the next 12 months.

“Much of that is underpinned by strong export prices received in the market. They are seeing strong demand for their product which is encouraging them to continue to invest in their business.”

Businesses’ viability has seen a rising trend since September 2018, Higgins says. That relates to continued growth in export values following back to orchard gate return. Some sectors may be a bit more challenged if they rely on the domestic market.

“But certainly the overall theme is a strong response to viability and investment.

“Tempering that is likely some expecta-

3

A ‘WATCHING note’ of caution that influences outside New Zealand could impact horticultural returns in the short-medium term is being sounded by Rabobank senior horticulture analyst Hayden Higgins.

Any downside risk in the Chinese economy has potential to flow into disposal incomes, he says.

China including Hong Kong accounted for about 20% of our fresh fruit, nut and vegetable exports last year. Export receipts to those destinations grew by $147 million in the year to June 2019.

“We have a lot of eggs in one basket.”

Adding in Taiwan brings us up to 27% of our exports. And the wider Southeast Asian region is also heavily dependent on China for GDT and trade.

“Any downside can have an impact on disposable incomes. So we are yet to see how that plays out and we are expecting to see a slowdown in economic growth occurring across some of those key trading markets.

“But we are still seeing import growth and consumption growth in those markets so it is very hard to crystal ball gaze when that might flow into reduced spending in middle classes in developing economies on some of those fresh fruit and product groups.”

But China is not the only region with challenges.

“You are seeing an ongoing shambles occurring in the UK with the Brexit process and a lot of uncertainty there.

“Also there is a potential economic slowdown in the US which is another big trading partner for New Zealand.

“It is not just China and Asia it is also Europe, UK and potentially North America.”

4

HORTNEWS

NOVEMBER 2019

Labour pains ahead for industry Peter Burke

in vision technology over the years. The challenge is to get a camera to distinguish an asparagus spear from a piece of grass and then get it to do what a human does well -- pick the crop. Essentially it’s to get a machine to be decision maker.

The Lewis family has been at the forefront of innovation in this area.

Geoff’s son Andrew is a robotics graduate from Canterbury University.

About six years ago, as part of his degree, he did a proof of concept for a mechanical harvester.

He’s since taken a job at Fonterra and the proj-

peterb@ruralnews.co.nz

GEOFF LEWIS and his family company grow about 100ha of asparagus on land just north of Levin.

They also have a dairy farm and grow strawberries. But it’s the asparagus that presents the biggest challenge in terms of harvesting the crop.

Lewis employs local people in his modern, high-tech packhouse.

But he relies heavily on workers from the Pacific Islands who come every year to NZ under the Recognised Season Employer scheme (RSE).

Workers do the picking all by hand and it’s hard work. They are trained to select the asparagus spears that are ready for picking on a given day and leave the others for the following days.

“What a human is very good at doing is walking down a field and selecting those spears ready for harvest and leaving the smaller spears for tomorrow and the next day’s harvest,” he told Hort News.

“You can’t cut them all off at the same time because they don’t grow at the same rate and you risk destroying the whole crop.”

Above: Currently asparagus picking is all by hand and it’s hard work. Right: Geoff Lewis currently relies heavily on workers from the Pacific Islands who come every year to NZ under the Recognised Season Employer scheme.

While RSE workers play a vital role in harvesting asparagus as they do other crops, Lewis says in the longer term these people may not be available as the economies of their own countries develop. At present, workers from the Pacific Islands under the RSE scheme make better money than they might earn at home. But he believes long term the writing is on the wall.

Australia employs workers from Asia and the Pacific, the United States uses Hispanic workers from Mexico and

other places, while the UK relies on workers from Eastern Europe. The UK is now in a very difficult position with Brexit and the free flow of labour may dry up or be severely curtailed when Britain leaves the EU. Lewis and other asparagus growers worldwide have been aware of this problem for several years.

“Over the last 20 years there have been many attempts at creating mechanical harvesting,” he explains. But these have generally not succeeded because of the need to select spears of a

certain quality, size and length.

Lewis says they are now looking to combine the elements of camera technology – where a camera will picture the areas in front of the harvester and then through algorithms identify spears ready for harvest.

“Then a robotic device will go and cut those asparagus that the computer has identified for the harvest and put them into crates ready for shipping to the packhouse.”

Lewis says huge advances have occurred

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Despite a lot of work on this project, it will be several years before a commercial asparagus harvester gets to market, Lewis says.

Labour supply and cost are the core of the problem for asparagus growers worldwide. For example, Lewis used to export lots of his product to Japan, but Mexico, Peru, Chile and the Philippines – where labour rates are low – are competing vigorously.

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HORTNEWS

NOVEMBER 2019

Rebrand aims to advantage growers Pam Tipa pamelat@ruralnews.co.nz

BETTER CONNECTION to the market provides a huge advantage to the grower, says Seeka chief executive Michael Franks.

He was comment-

ing on the relaunch of its wholesale and distribution service SeekaFresh on September 30 at its rebranded centre in Mt Wellington, Auckland.

“SeekaFresh is a revitalised aspect of our business,” Franks told Hort

News. “We are taking produce that we grow and other produce grown in New Zealand and supplying it through our wholesale operations and supplying it to supermarkets and independent stores.

“It is creating a market for local produce.”

They also import tropical and other fruits, depending on what the market is requiring.

“As growers this move gives us the full supply chain, so we are grow-

The new SeekaFresh division’s aim is to keep growers better connected to the market.

Protection at the start pays off in the end

ing on the orchards and on the land, and we have our own infrastructure for processing and packing fruit. The SeekaFresh refresh connects us through to the market.

“We export out of that business as well so it is a completion of the value chain.”

He says the company is exporting kiwifruit and avocados to Australia and across Asia, and kiwiberries to Australia and Japan.

“SeekaFresh is the division that does that in our business.”

Franks says there is a big advantage for growers in being better connected to the market.

“First it provides a leaner supply chain without multiple margins [being] taken.

“At times as growers we will modify our harvest depending on what is happening in the market.

For example, in the case of avocados, if the market is calling for large fruit we will selectively pick to get the fruit the market

is looking for to deliver our growers an optimal return.

“We will be far more market focused as a result of having this business in our tent.”

As growers it is better if you are connected all the way to the market, he says.

“Having that grower focus is all about getting as much money back to the grower as possible so that is why the whole system is sustainable.”

Seeka is investing in digital systems to deliver a smoother and more efficient supply line.

“But in this game and this part of the world we are not connecting to the consumer. We are selling through the supply chain to someone who sells to the consumer and so we are not treating fruit or produce as a fast moving consumer good.

“This is all about relationships. With Seeka you are getting extremely good produce and the people who buy from us are going to make money.”

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THE LAUNCH reflects the revitalisation of Seeka’s fresh produce business which provides a variety of locally grown and imported seasonal fruit and vegetables to wholesalers and retailers.

The rebrand follows Verena Cunningham’s appointment as general manager SeekaFresh.

A number of appointments have been made in SeekaFresh’s business as it responds to increased customer demand.

Cunningham has 20 years of extensive industry and professional services experience across business management, transactions and operations including positions at T&G, Ernst & Young and Bayer CropScience/Bayer AG, both in New Zealand and overseas.

She is also a director of the Produce Marketing Association (PMA) for Australia and New Zealand.

SeekaFresh is a key part of Seeka’s retail services operation, marketing local and imported produce in New Zealand.

HORTNEWS

NOVEMBER 2019

Potential for NZ kiwifruit in US THE US could be a growth market for New Zealand kiwifruit exporters, says a Rabobank expert.

But consumers will need ‘educating’ and value-added products will be needed to make the most of this opportunity, says RaboResearch senior analyst Roland Fumasi.

While kiwifruit is not yet a “big deal” in the US market, demand is moving in the right direction, Fumasi told kiwifruit growers via a webinar.

“At 0.25kg per person each year, kiwifruit consumption in the US falls a long way behind some of the more popular fruits like strawberries, which are close to 4kg per capita each year,” he said.

“However, we have seen good growth in kiwifruit consumption in recent years and it is now one of the more rapidly growing products in the

ORGANIC POTENTIAL

DESPITE LOWER growth in US organic food sales in recent years, Fumasi says the organic market is another area which shows great growth potential for NZ kiwifruit.

“Whilst surpassing US$46 billion of sales in 2018, growth in retail value of organic food sales in the US has moderated to 6% over the past two years, in comparison to 10% between 2010 and 2016,” he said.

“However, I still see plenty of potential for increased sales of organic kiwifruit as the reported volumes of organic kiwifruit are currently really low and increased supply in the short run will not outstrip demand.”

US fruit and nut space.”

Fumasi reckons the healthfulness of kiwifruit is “off the charts” and explains growing demand over recent years, particularly in households with more disposable income.

“We’ve also seen good growth in sales of gold kiwifruit, with the sweeter flavour proving a hit with many consumers.

Another factor in its popularity is it’s more ready to eat when you buy it and provides a more consistent eating experience,”

he said.

“Another factor in growing demand is that the product is supplied to the US market 52 weeks of the year, which helps consumers to establish a regular consumption pattern.”

Fumasi says NZ kiwifruit exports played a vital role in ensuring yearround supply to the US market and that the high quality of our kiwifruit had helped establish a price for it.

“During the early and

late months of the year, the US market is reliant on domestic kiwifruit which comes almost exclusively from California, and kiwifruit from Italy. But from April to October the market is dominated by fruit supplied by NZ and Chile.

“After losing some ground in 2012 and 2013, we’ve seen sales of NZ kiwifruit into the US trending upward and, during this period, NZ product has been able to maintain a clear price

New Zealand kiwifruit exports play a vital role in ensuring yearround supply of the fruit to the US market.

premium over kiwifruit sourced from elsewhere.”

He says consistency of eating experience has been a challenge for kiwifruit over the years.

“The gold cultivar helps, because it provides more consistency.

However, I think more education is required to improve US consumer understanding of when a kiwifruit is ripe to eat and to highlight all of its great

health benefits.

“I like the idea of point of purchase education because it captures the consumer’s attention right there when they’re thinking kiwifruit and gets US customers cutting into a kiwifruit when it’s ready to eat.”

He concedes that kiwifruit is not as convenient as some of the fruit it competes against, like blueberries or blackber-

ries.

“To the younger generation, especially those who always have a mobile device in one hand, it’s a lot easier to throw a couple of blueberries in your mouth than to scoop kiwifruit with a spoon.”

The industry should think about what valueadded opportunities are available that could add convenience.

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HORTNEWS

NOVEMBER 2019

Will apple trees replace pines in North Canterbury?

Staff Reporter

APPLE TREES could be replacing pines in North Canterbury.

Ngāi Tahu Farming has ordered tree stocks for planting a trial orchard in the Culverden/Balmoral area in 2021. The initial 15ha commercial pipfruit orchard could be the first in the wider Amuri Basin.

The area is known for long, hot, fine days and low rainfall.

Local farmers have been known to grow fruit trees successfully for home consumption and it was partly this knowledge that prompted Ngāi Tahu

Farming to consider trialling horticulture as an option in the area.

Ngāi Tahu Farming has at least 9000ha of pine forest and beef in Amuri Basin, but it has been looking at alternative land-uses for several years.

A Plant and Food Research study found the local soils and temperature extremes could potentially suit a range of horticultural options.

Ngāi Tahu Farming business development manager Ben Giesen told Hort News that following the Plant & Food study,

Ngãi Tahu Farming business development manager Ben Giesen.

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TEAMWORK NGAI TAHU Farming was advised extensively at the trial stage by Plant and Food Research.

And Fruitfed Supplies provided pest and disease prevention and the chemistry for the various trial block crops, fertiliser and fertigation programmes and herbicide recommendations.

Fruitfed Supplies also supplied

data showed one limiting factor for orcharding in Amuri Basin was the relatively short number of growing temperature days. The data indicated Culverden was at the lower end of the accepted range, meaning the fruit would not grow to the size it did in other regions.

An ongoing trial, now in its third year, is showing positive signs across a range of horticultural crops being trialled.

Working with outside advisors including Plant and Food and Fruitfed Supplies, Ngāi Tahu Farming first prepared its old pine country for horticulture. The company planted a 2.5ha trial orchard, mostly stonefruit, olives and nut trees.

The trial trees did reasonably well in the first year, though it was soon apparent the orchard would need better water infrastructure and wind protection to thrive,

the wood and steel trellis structure, irrigation systems, a sprayer and wind machine, and equipment for harvesting and the like.

“It’s an exciting step for Ngāi Tahu Farming. This ticks a lot of boxes in terms of a good alternative use of the land and income stream for our business,” Giesen told Hort News.

Giesen said.

A Ngāi Tahu Farming team including orchard manager John Blackadder sought support and advice from Fruitfed Supplies and AgFirst consultants on spray and fertiliser programmes, different irrigation and trellis systems and application rates.

In the second year of the trial the focus turned to apples as the company planted Envy, Jazz, Galaxy, Lady in Red, and some berries, nut trees, stonefruit and olives.

The following year Ngāi Tahu Farming and its advisors started monitoring growth rates to get hard data about how these trees perform in the area. Growth rates varied from 600-800mm, with the majority between 700-800mm.

By then the trees were doing well and the company felt confident it was planting in the right conditions. About four months ago, Ngāi Tahu Farming asked itself the crunch question, could an

orchard be commercially viable?

After an extensive search, the new orchard developers managed to secure about 40,000 trees for 2021, enough for a 15ha site.

Giesen said they would initially have enough tree stock to plant 15ha. Apples would be the initial focus, but stonefruit was also a possibility and the company was taking advice on production and pathways to market.

Final requirements to allow the trial block to run as a commercial orchard have finished, including the installation of an Orchard-Rite wind machine to counter the area’s biggest orchard risk – frosts.

The installation of NIWA weather monitoring stations, in key locations, will allow data to be collected to help mitigate other potentially damaging climatic risks – such as Canterbury’s infamous nor-wester winds.

HORTNEWS

NOVEMBER 2019

9

More RSE workers still needed HORTNZ SAYS the Government is moving in the right direction with its increase in recognised seasonal employers (RSE) workers.

But it says even more RSE workers are still needed to support horticulture’s big growth.

RSE is the name for the seasonal labour scheme where workers from the Pacific come to NZ for six to seven months for harvest and pruning.

Once that work is done they return home to their families in the Pacific.

“RSE workers are playing a key role in the horticulture industry’s continued growth in response to rising export and domestic demand,”

says HortNZ chief executive, Mike Chapman.

“NZ’s horticulture export revenue jumped 13.7% to $6.1 billion in the year to June 30, 2019.

It’s expected to grow by another 3.8% to $6.3b in the current financial year.

“This growth is why we asked the Government for an even greater increase in RSE worker numbers, to support our growth and make up for the shortage of available NZ workers, particularly during peak times like harvesting and pruning.”

Chapman says it is good to have certainty for the current season and next season. The Government has provisionally announced that another

1600 RSE workers will be added, pushing the total from 14,400 this season to 16,000.

He says the RSE scheme has enabled the continued expansion of fruit, vegetable and wine grape growing in NZ. “The availability of

RSE workers also gives certainty to NZ businesses so they can continue to grow and employ additional permanent NZ workers.”

Hort NZ says last season Pacific RSE workers earned at least NZ$50 million.

The RSE scheme enables workers from the Pacific to come to NZ for six or seven months for harvest and pruning.

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FIGURES CHALLENGED HORTICULTURE’S EXPORT revenue growth is likely to be about 10% in the current financial year – not the 3.8% forecast by the Ministry for Primary Industries.

Horticulture NZ (HortNZ) chief executive Mike Chapman says he doesn’t know where MPI got its figure in the Situation and Outlook report for Primary Industries.

Growth for horticulture was 13.7% in the year ended June 2019 in the September updated report. But it is forecast to be down to 3.8% in the current year.

HortNZ has asked how MPI arrived at that forecast because the report doesn’t say.

“That’s their estimate. It sounds strange when you go from 13.7% to 3.8%.

“That is quite a significant drop especially when we have more volume particularly of kiwifruit and berries going into the ground. That will drive more sales and of course we are at the premium end of the market.

“So more sales will make quite a difference.”

In Chapman’s view growth will remain about 10% dependent on the trade situation.

“If you track back 20 years we have actually tripled our value in that time which shows how far we’ve come and progressed over that time,” he said.

“That growth doesn’t really show much sign of slowing down except we’ve now got issues with freshwater proposals and climate change. These are challenging and difficult.”

He says the sector is working with growers and the Government to try to find the best path forward so we can sustain growth.

“There are some headwinds and we have to work out with growers and all the representative groups how we go forward.”

Chapman says domestic supply is challenging on price and the return to the growers and has been for some time.

“It is about urban and rural New Zealand getting together and working together to ensure we have vegetable supply for the future.” – Pam Tipa

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HORTNEWS

NOVEMBER 2019

Winner applauds sector’s opportunities Pam Tipa pamelat@ruralnews.co.nz

HORTICULTURE IS a great career to investigate for young people deciding on their future, says 2019

Young Grower of the Year, Jono Sutton (26).

“If you have an interest in working outside and being able to produce something every year I suggest horticulture

is somewhere to look,” Sutton advises young people.

“Because it is a seasonal industry you’re never doing the same thing for very long. There

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The 2019 Young Grower of the Year Jono Sutton.

is always something around the corner which lasts for a couple of months and then there’s something different again and vice versa so there’s a lot of variety.”

He agrees not enough young people are coming into the industry but that presents an opportunity in itself.

“Businesses are generally owned by slightly older people and they keep getting older and not a lot of younger people are coming through,” he told HortNews.

“So if you can get into a place where there is potentially a succession plan there for you then there are many areas of opportunity.”

When Sutton came out of school he did a year at another orchard before joining his family boysenberry and apple business started by his grandparents. The idea was to get experience elsewhere before joining the Nelson family business full time.

“My role is pretty vast, I do all sorts of things.

I do weekly planning, staff management, machine operation and quite a bit of repair and maintenance.”

In summer there are other jobs again including packhouse management.

Sutton was competing in the national Young Grower competition for the second time.

“Doing it once prior is of much benefit. It was a very enjoyable experience and all of the modules are hard so they test your knowledge at quite an advanced level.

“The personal development you get from it is massive so it is very valuable.”

Sutton says some past winners have gone on to do amazing things in horticulture, “so to have my name next to theirs is

overwhelming”.

HortNZ chief executive Mike Chapman says the Young Grower of the Year is important because it highlights horticulture as a vibrant career for young people.

“Our $6 billion industry continues to grow in response to worldwide and domestic demand for fresh healthy food. At the same time, our industry is responding to new requirements, particularly in the areas of freshwater, land use, food safety, and health and safety.

“These areas offer young people many and varied career opportunities. I am positive that all entrants in 2019’s Young Grower competition have benefited from the experience and will continue to grow and support horticulture.”

Sutton proved his impressive skills and knowledge throughout the competition. As the regional Nelson finalist, he was up against six other contestants from around New Zealand in the Tauranga finals.

Sutton’s grandparents came to support him.

“It’s great to have genuine support where, win or lose, they think you’re the best anyway,” said Sutton.

“They’ve been in the industry since the 1980s, when they transferred from agriculture to horticulture with the help of my father. For them to be able to pass the baton on to me is a real blessing.”

The annual Young Grower of the Year competition is run

by Horticulture New Zealand and supported by platinum sponsor, the Horticentre Charitable Trust. @rural_news facebook.com/ruralnews

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HORTNEWS

NOVEMBER 2019

Cherry on top for station’s returns TWELVE HECTARES of cherry trees planted in September at Mt Pisa Station, Central Otago complete the first stage of a $15.5 million cherry project by the horticultural investment firm Hortinvest.

Mt Pisa Station’s landowners, the MacMillan family, are among the investors who underwrote the planting.

The sheep and beef business has set aside 80ha of prime pastoral land for the venture as it diversifies into horticulture. The orchard will produce cherries for export from the summer of 2021-2022. Hortinvest project and orchard manager Ross Kirk said the stage one planting of 7500 trees had gone to plan.

The second and largest planting is scheduled for winter 2020 and the final planting for winter 2021.

In total, 53,000 trees will

be planted. “Irrigation is now being installed so we can start piping water (from the Clutha River) to the newly planted trees,” Kirk said.

The Mt Pisa development is one of two $15.5 million cherry developments in progress in the region. Stage one planting at the Lindis River development at Lindis Peaks Station is also complete.

Station manager Shane MacMillan said projected returns from the family’s shareof the cherry development will equal the whole farm’s return in one year.

The intensive nature of cherry production means the returns come faster (than agriculture),” he said. MacMillan, his parents Murray and Jackie and sisters Nicki Cleave and Kendra Breen and their families will directly benefit from the development. “Diversification -especially given current

MT PISA PROJECT AT A GLANCE • Value: $15.5 million • Hectares: 80 • Water source: Clutha River • Existing and emerging markets: Asia, Europe • Minimum investment: $100,000

Mt Pisa Station’s landowners, the MacMillan family, are also investors in a $15.5 million cherry projet on their property by horticultural investment firm Hortinvest.

fluctuating wool prices -and succession planning were our objectives and this will help the business no end,” he said.

“We’re lucky to have the land which is ideal for cherry production, and access to the Clutha River for water. It’s happened pretty quickly since we

• IRR: 20.8-25%, first 10 years • ROI at peak mature production: 34-59%

started talking about it and by this time next year the second planting will be complete,” he said.

The development is a small parcel of the 4600ha Mt Pisa Station owns in the region.

Hortinvest’s growerpacker-shipper investment model offers

investors maximum returns by managing all services in-house including sourcing land, setting up and managing high-tech orchards and packhouses, and marketing and exporting produce. Since the release by Mt Pisa in January 2019, investors have included

individuals, syndicates and iwi groups NZ-wide and overseas, Kirk said.

With 30 years’ experience in growing and marketing New Zealand cherries globally, Hortinvest has existing and developing markets for its cherries in Asia, Europe and the US.

When in production, the cherries will be harvested from December to February and take advantage of the growing seasonal and Chinese new year market globally. Kirk said Hortinvest’s developments are a response to global demand for New Zealand cherries which are perceived as a luxury product.

Other orchard projects are on the agenda.

HORTNEWS

NOVEMBER 2019

He’s just mad about saffron Nigel Malthus

“I ALWAYS reckoned you could make a living off 10 acres,” says Canterbury saffron grower Geoff Slater.

“I think if you get the right products you definitely can.”

For Slater and his wife Jude, their 10-acre (4ha) slice of paradise at Eyrewell, north of the Waimakariri River, is

regarded at the world’s most expensive spice.

Supermarkets in New Zealand and Australia offer it in 0.5 and1 gram packets, at prices equivalent to between $10,000 and $15,000/kg.

Slater says the 100,000 plants he hopes to have in production next season might net them about 750g. He reckons they have enough space eventually to plant about 5

beds for the new plot and is now building his own corm planter “which I believe is the only one in New Zealand.”

Up to now, the Slaters have exported all their saffron harvest to Tasmania in conjunction with

another local grower.

Slater says that makes for a guaranteed income, but they are diversifying into their own products, including a saffron and kumara-leaf tea, for which they will be growing their own kumara.

13

Geoff Slater’s crocus beds in flower SUPPLIED

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Geoff Slater with the crocus corms he will soon be lifting, separating and replanting in a major expansion to his saffron farm. RURAL NEWS GROUP

where they are building a multi-faceted business trading under the Canterbury Saffron banner.

Saffron, a highly valued and brightly coloured spice, harvested from a particular species of crocus flower, was always part of the plan when the couple moved to the block in a lifestyle change prompted by Jude suffering a stroke a few years ago.

Their first 6000 corms have now been in the ground four years, which means this November is time for their first big expansion. The corms multiply annually in the ground and the Slaters expect to have about 100,000 by the time they have lifted, separated and replanted the best of them in a new 1ha plot.

Used for millennia for flavouring, food colouring and as a fabric dye, the valuable parts of each flower are the three bright red or orange “threads” carrying the stigma, or female pollen receptors.

But at roughly 170,000 flowers to a kilogram of threads, it is a labourintensive crop, which is why it has long been

million corms.

At this time of year, crocus plants are dying back to lie dormant through summer. They start producing leaves in March, closely followed by the flowers.

“Then it’s all flat knackers,” adds Jude.

The flowers are manually picked as fast as they appear, every morning for about a month. They are then brought inside to the Slaters’ “packing shed” the living room table – to separate out the valuable threads.

Up against cheaper international labour, New Zealand growers rely on the quality of their product.

“We had ours tested last year so we know that we’ve got premium, Grade One saffron,” Slater explains.

He says it is no more difficult than mainstream market gardening “if you put the hard work in.”

“You don’t get anywhere, sitting around.”

Slater is trying to make the operation as mechanised as possible. He has built his own row-former which he towed behind a tractor to build the raised

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HORTNEWS

NOVEMBER 2019

Strawberry growers back sector levy Pam Tipa pamelat@ruralnews.co.nz

A LEVY will help modernise the $35 million strawberry industry, says Michael Ahern, executive manager of Strawberry Growers NZ Inc. This may include expanding its $8.8m export industry.

Ahern explains that newcomers to the industry have different growing seasons and they are prolonging the season.

“There will be export volumes at times of the year when we don’t produce at the moment. So that’s a positive,” he told Hort News.

Current production is intensely seasonal, with a big surge from October to early December.

“We would love to develop more export markets around that pre-Christmas time just to take the pressure off the local situation. One of the benefits of the booming trade is we have a lot more flights coming into the country… and then going out more importantly, to a huge range of destinations.

“Everything has to be airfreighted with strawberries, it is not a seafreight product. There are freight possibilities that we could have only dreamed of 30 years ago.”

The proposed compulsory levy received 84% support on an individual grower basis and 71% on a weighted volume basis. Voter return was 30.67% by number of eligible voters and an estimated 71.99% by weight. This now allows Strawberries NZ to proceed with an application to the Minister of Agriculture.

Ahern hopes that approval will come through by Christmas, with final legislation in place by the end of February, so the new funding mechanism can be introduced by the new season.

Another key issue behind the levy proposal for Strawberry Growers NZ is that it is currently funded by one dominant plant producer which is

The levy is aimed to help modernise NZ’s $35m strawberry industry.

a 100% subsidiary of the industry body, Ahern says.

“There are new entrants and we want to bring those new entrants into the fold, into the church. There are new ideas, new ways of growing, new plant material and therefore this system that has worked very well in the past may not be appropriate going forward.

“The board has decided now to go out and broaden the catchment of members and so everybody gets to pay, which is a fairer system. When we have canvassed newcomers, they are quite keen on the idea.

“Obviously growers quite like the idea as well because they have voted accordingly.

“It is genuinely intended to be a more inclusive industry where every-

body now pays the industry good component.”

The levy funds will be spent in the specific areas outlined in the consultation document (visit www. strawbsnz.co.nz) because that document is all important when seeking a commodity levy, he told Hort News.

“It is where all the questions should be answered if anyone needs to know.

“There we are talking about matters that are of genuinely common interest. If there are areas which might apply to Tom and Dick but not Harry then generally speaking we are not going there.

“We need to get involved in things that actually affect everyone. Biosecurity is a big issue, so is provision of labour -- it is a monster in fact -food safety regulations and compliance, and export market access.

“There are a few others but those ones have to be done on a collective basis and they are best done so. No individual operator could really take on those issues by themselves.

“That mainly involves working with government agencies who want to deal with a single body as well.

“All of that requires expertise: you’ve got to run the place, you’ve got to keep up to speed, you might have to contract specialist knowledge and services, and there are endless meetings in Wellington which all costs money.

“No one really like levies, let’s face it. If it is articulated to them that it is not excessive and it is about right for what they need to do collectively then they will sign on.”

Strawberrie Growers NZ is happy with the levy result vote.

GROWERS HAPPY STRAWBERRIES GROWERS NZ is “pretty pleased” with the result of the levy vote, which came after extensive consultation, says Ahern.

Only 50% were needed for both votes.

“You really need to have pretty good numbers. Even though technically you need 50% I don’t think anyone would like to have 51%,” he said.

Ahern says there are much greater governance demands when you are granted a levy by the Government which is similar to “the power to tax your constituents”.

“It is fairly powerful, there are obviously strings that go with that,” he explained.

“There are a bunch of rules the board will need to comply with every year by way of information and reporting to the minister to be sure you are behaving yourself and acting in accordance with

the detailed rules of running a commodity levy.

“That leads to greater transparency because a key part of the operation of a commodity levy is the reporting that you do at your annual meeting. That has to be really well organised, a budget for the new year has to be laid out and that has to be approved by the growers every year.”

A levy rate of $26/1000 strawberry plants sold is planned.

Currently the peak body for commercial strawberry growers, Strawberry Growers New Zealand Inc, is funded voluntarily by members plus a dividend from its 100% subsidiary NZ Berryfruit Propagating Company Ltd. Strawberry Growers NZ has over 70 paid up members which account for about 75% of total production. The levy is expected to raise about $375,000 per year.

Voting closed on July 12.

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16

HORTNEWS

Platform removes ladders from harvest Mark Daniel markd@ruralnews.co.nz

WHILE MUCH of New Zealand’s apple crop is grown in the traditional manner, some growers are now reverting or establishing new plantings in a two-dimensional row/hedge style.

This system brings with it greater opportunities for better agronomy, automation and easier fruit access.

The concept also offers the opportunity to use machines like the Blueline OPH 100 orchard platform marketed by FMR Limited, Blenheim. Built

by Yakuma, Washington, US, the platform provides safer pre and harvest access and raises daily output rates.

Health and safety

The orchard platform is said to provide both safer pre and harvest access to crops and raise daily harvest output rates.

is being improved in orchards by doing away with basic or hydraulic ladders, which expose workers to the risk of falling. Instead the Blueline platform places the worker near the crop on a secure structure.

It is powered by a 28hp Cat 3-cylinder diesel

engine mated to a hydrostatic transmission with a limited slip differential to improve traction. The the unit moves through the crop at 1-2km/h depending on crop volume and the number of workers on the platform.

It comes with automated 4-wheel steering

using ultrasonic sensors that keep the machine on track while sensing trees, support frames and other obstacles.

In use, empty bins are located throughout the orchard and frontmounted forks on the platform lift and carry them to the pickers by

chain conveyor. The platform can carry up to 10 bins with the empties placed close to the pickers.

Offering a workspace for two or four operators on the platform, the set-up allows different working heights to target different areas of the trees.

Once filled, the boxes can be returned gently to the ground for transporting to the packhouse.

Control is via a single point, with joystick control for steering taking care of manoeuvring at the headland.

Operator safety while picking requires the workers to use a safety harness, connected to a support ‘tree’ at each end of the machine.

NOVEMBER 2019

DRONE MAY GET BETTER RESULTS

USING BENEFICIAL insects in growing crops to control insect pests is not new, but the use of drones might see the process being used more widely. This would help farmers and growers to reduce their reliance on insecticides.

Australian company Parabug says the current industry methods of applying beneficial organisms leaves a lot to be desired. It cites intensive labour requirements, lack of precision and timeliness, and health and safety issues.

By contrast, the company claims its system centres on the use of a commercial grade, DJI Matrice 600 drone which can carry two 10L tubes of the beneficial organisms. Parabug also says the set-up allows growers to cover about 10ha in about 30 minutes -an improvement on traditional methods. Distribution throughout the crop is also aided by the downdraught from the drone rotors.

In practice, the beneficial insects are incorporated into a carrier material, typically vermiculite.

The drone is flown 3-6m above the crop at speeds of 20-35km/h. A key part of the system is the rolling action of the deployment tubes, which allows insect survival rates comparable with that of hand release.

The company says this gentle handling of the insects means the system can distribute a wider range of beneficial organisms over a broader range of crops.

They might be mealybug destroyers, predatory mites, green lacewing eggs, larvae and various parasitoids such as wasps.