Deloitte report shows need to protect Pukekohe food hub

A report released at a function at Parliament last week – AgScience missed it at the time – warns of a the hefty economic impact on Auckland if the value of fruit and vegetable production in Pukekohe isn’t recognised in land-use policies.

Horticulture New Zealand commissioned Deloitte to report on the significant contribution Pukekohe’s horticulture industry makes to the health and wealth of New Zealand, and in particular its largest city, Auckland.

Agriculture Minister Damien O’Connor seemed to be aware of the issue.   He said:

“New Zealand’s soils are a precious resource, not just for our growers but for every Kiwi who likes to eat their greens. I support efforts to ensure we protect our elite, food-producing soils so our growers can continue to feed us with healthy, natural produce.  “

Horticulture New Zealand chief executive Mike Chapman said the Labour-led Government had shown a willingness to collaborate with horticulture, and this report was part of the evidence-base his organisation would bring to the table as it works on finding the answers to the questions it posed.

Deloitte has made six recommendations in the report.  Horticulture New Zealand agrees with all of them.

Mr Chapman said:

“If decision-makers don’t have a clear view of the value of the Pukekohe food hub, we run the risk of an economic hit to Auckland of up to $1.1 billion in 25 years, with the loss of up to 4,500 fulltime jobs, less fruit and vegetables available, and prices up to 58 percent higher. During that time Auckland will also be hungrier, with population set to rise to 2.3 million.

“It is essential that we have a holistic view of our food supply chain to ensure informed decision-making around critical areas such as land use and water allocation. To meet environmental and health imperatives, as well as consumer expectations, it makes sense to protect growing hubs close to our main population centres. They not only provide food that contributes to the physical health of New Zealanders, but also jobs, and vibrant businesses and communities.

“Food and housing are competing for land and water. We need both, so now is a good time to be smart about long-term planning for food security and domestic supply. We will not always be able to source food from other countries – look at the extremely hot summer the northern part of the world is having and the impact it is having on food production because of drought.”

Deloitte Partner and Agribusiness Lead Andrew Gibbs said the challenges to ensuring the Pukekohe hub remains a bulwark of New Zealand’s food supply are not small.

“We believe success requires central and local government to work together with the industry to best protect and enhance this natural asset, and sustainable business models.

“We hope our New Zealand Food Story report provides valuable insights into the health of a strategic growing region and furthers the conversation on the country’s need for an agreed food security plan.”

The full report is available here and a summary of the report is available here.

Questions and answers on the report are available here.

Source:  Horticulture  New Zealand


Plant & Food data show the value of NZ horticulture climbs to $8.8 billion

New Zealand horticulture had another record-breaking year in 2017, when it was valued at $8.8 billion, up $100 million from 2016, and exported produce valued close to $5.12 billion, up $14 million.

According to the latest Fresh Facts, an industry annual published by Plant & Food Research, horticultural produce accounted for 10.3% of New Zealand’s merchandise export income in the year to June 2017.

The growth was driven by increases in the export values of fresh and processed fruit (excluding wine), from $2.78 billion to $2.82 billion, and fresh and processed vegetables, from $0.61 billion to 0.62 billion.

Kiwifruit continued to be the nation’s top horticultural export at $1.66 billion, accounting for 33% of the total export value. It was followed by wine at $1.54 billion, 30% of the total export value.

New Zealand horticultural produce was exported to 128 countries, with five markets—Australia, Continental Europe, the USA, Japan and China—taking up more than two-thirds of the total exports. Exports to Asia reached $1.95 billion, twice as much as any other continent/region.

“The success of New Zealand horticulture is built on its well-earned reputation of delivering high quality and premium products to the overseas markets,” says David Hughes, chief executive of Plant & Food Research.

“The horticultural industry must keep up the quality and innovate to offer new products that meet international market needs in order to secure our position.

“Adopting new technologies and best practices to minimise environmental and social impact of the production process will further strengthen our clean, green image in the global marketplace.”

Mike Chapman, Chief Executive of Horticulture New Zealand, said his organisation is confident the industry will meet the $10 billion by 2020 target “as long as we  are  committed to listening to local and overseas consumers and offering products they want and desire.”

To view the latest issue of Fresh Facts and all previous issues, visit

Key facts 

  • Produce from the New Zealand horticultural sector exceeded $8.8 billion in the year to 30 June 2017.
  • The total value of horticultural exports was $5.12 billion in 2017, an increase of 91% ($2.7 billion) from 2007.
  • New Zealand’s biggest horticultural export was kiwifruit, worth $1.66 billion. Other key exports were wine ($1.54 billion), apples ($691 million), and avocado ($147.5 million).
  • Avocado export demonstrated significant growth from $82 million in 2016 to $147 million in 2017, likely in part to the biennial nature of avocado production. In 2015 avocado export was valued at $115 million.
  • Exports to five markets: Australia, Continental Europe, the USA, Japan and China accounted for almost $3.5 billion and 67.7% of the total exports.
  • The diversity of horticultural exports is apparent in the 22 categories exported to Asia, each between $5 million and over $1 billion, and 13 categories to Australia, each between $7 million and over $440 million (fob) value.
  • More than $200 million worth of natural honey was exported to Asia and Australia.
  • Source: Plant & Food Research 

    This stink bug must be kept out of NZ – but it has come ominously close in recent days

    stink bug.jpg

    The strong whiff of a serious economic threat…

    Biosecurity Minister Damien O’Connor’s assurance he won’t let the brown marmorated stink bug anywhere near New Zealand has been welcomed by Horticulture New Zealand President Julian Raine.

    But how near is “anywhere near”?

    We ask, because three car carriers reportedly have reached New Zealand’s shores with stink bug infestations this month.  All three were turned away.

    Cargo was being unloaded off one ship in the Port of Auckland when over a hundred stink bugs were found.

    Authorities ordered a halt to discharging – the Japanese ship’s ramp was raised and the vessel sealed.

    Several pieces of heavy machinery that could not be put back on the Japanese ship have since been fumigated in New Zealand.

    Stink bugs were found, too, on a fourth ship bound for New Zealand.

    A Ministry for Primary Industries spokesman has acknowledged there has been a “major jump” in the brown marmorated stink bug (BMSB) being discovered on bulk carriers from Japan.

    “It’s unclear why circumstances have changed, but we have responded to the immediate threat by strengthening our border controls.”

    BMSB is a household pest as well as a threat to horticulturalists, emitting an unpleasant and long-lasting odour when disturbed.

    The Government has said preventing a stink bug invasion is one of its highest priorities.

    The magnitude of the threat was spelled out in this statement from Horticulture New Zealand president Julian Raine, which said the bugs would decimate New Zealand’s $5.6bn horticulture industry if they ever made it into the country.

    “Not only will these bugs invade your homes and cars, they will have a devastating effect on New Zealand’s food supply for years to come and have the potential to wipe out most of a crop in bad years. This bug is horticulture’s number one concern. And, as horticulture is the fourth largest primary industries exporter, so the effect is far reaching for all New Zealanders.”

    The bug will feed on kiwifruit, berry fruit, pipfruit, summer fruit, grapes, avocados and a number of vegetables including tomatoes, capsicum, eggplant,peas, beans, and sweetcorn.

    Mr Raine’s media release included YouTube videos (here and here).

    He said the industry supports all measures to keep the BMSB out of New Zealand and was encouraged to hear the Biosecurity Minister say “we will shut down the pathways wherever we find them”.

    His organisation represents 5,500 growers who employ around 60,000 people and provide New Zealanders with about 1.800 tonnes of fruit and vegetables every day.

    Mr Raine said this  food supply is at risk from the BMSB which has a host range of about 300 plant species and can mate up to five times a day.

    In the United States some farmers have reported crop losses of up to 90 percent.

    The damage leaves some fruit and vegetables unable to be sold, either as a fresh product or for processing.

    “Once the BMSB is established here, the damage is irreversible, long-term and ongoing,” Mr Raine warned.

    “We have had NZIER (New Zealand Institute of Economic Research) do some economic modelling which indicates that at a minimum, real GDP could fall by $3.6 billion by 2038, and horticultural export value could fall by $4.2 billion per annum (both relative to projected ‘business as usual’ figures).

    “We cannot let BMSB into New Zealand. We want all New Zealanders to be vigilant in keeping this pest out. We will continue to support all measures to protect our fruit and vegetables from foreign invaders.”

    New Zealand Winegrowers has applauded the Ministry for Primary Industries’ decisive action in turning back three cargo vessels contaminated with the bug.

    It said BMSB is one of the wine industry’s most significant biosecurity risks due to the insects’ potential to impact on both the production and quality of processed red wine.

    New Zealand Winegrowers CEO Philip Gregan said a BMSB incursion would significantly affect the wine industry’s export success.

    Mr Gregan said his organisation understand the impact of turning the vessels away from New Zealand on vehicle importers, but said this is necessary to protect New Zealand’s biosecurity.

    What does it look like?

    Adults are about the size of a $1 coin and have:

    • white banding on the antennae
    • alternate black and white markings on the abdomen
    • eggs that are light green, barrel shaped, and found in clusters of 20-30.

    You can find out more about BMSB and what to do if you find any here.

    Horticulture industry can celebrate strong export growth

    Primary Industries Minister Nathan Guy is welcoming a new report showing a 40 per cent growth in horticulture export earnings since 2014.

    The strong results are highlighted in Horticulture New Zealand and the New Zealand Horticulture Export Authority’s report New Zealand Horticulture – Barriers to Our Export Trade which is supported by the Ministry of Foreign Affairs and Trade and NZ Fruitgrowers Charitable Trust.

    “Horticulture is a star performer of the New Zealand economy with export revenue just under $5 billion, making it one of our most important industries,” says Mr Guy.

    “The report highlights that tariffs on exported produce have come down by 22 percent since 2012, which is good news but there is still more to be done. Reducing tariffs and non-tariff barriers are a big priority for the Government.

    “Horticulture has a goal of being a $10 billion industry by 2020 and they are well on the way. They are now New Zealand’s fourth largest export industry and employ 60,000 people in New Zealand.

    “It’s very fitting for this report to be released on the day when Horticulture New Zealand is celebrating 100 years of representing growers, starting as the New Zealand Fruitgrowers Federation in 1916.

    This week the Government hopes the Horticulture Export Authority Amendment Bill will pass it’s final reading in Parliament, providing a framework for producers and exporters to collaborate in export marketing their products.”

    The Executive Summary of the report is available on the Horticulture Export Authority website.

    How Govt policy is threatening NZ’s biosecurity – and its primary exports

    This post has been contributed by JOHN LANCASHIRE, a former President of the NZ Institute of Agricultural and Horticultural Science –

    It’s “unbelievable and unexpected” was the comment made by Peter Silcock , Horticulture New Zealand’s CEO, on hearing of the third detection of fruit fly in this country in less than two years.

    Prior to these most recent occurrences it had been 16 years since the last known incursion.

    It may well be unbelievable considering the huge amount of resource being put into biosecurity and the prevention of pest and weed incursions, but unexpected, certainly not. Most of our many serious pest incursions come from Australia, either carried by humans or occasionally blown over. The former comes via formal tourist and visitor routes, typically through airports or informal arrivals via private yachts which have been suggested as a possible source of the recent fruit fly incursion near Whangarei. Indeed, the present massive epidemic of Queensland fruit fly in Australia made such an incursion almost inevitable.

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