New Zealand domestic vegetable production: the growing story - 2017 hortnz.co.nz

 
New Zealand domestic vegetable production: the growing story - 2017 hortnz.co.nz
New Zealand domestic
vegetable production:
  the growing story

          2017
       hortnz.co.nz
New Zealand domestic vegetable production: the growing story - 2017 hortnz.co.nz
Horticulture New Zealand Foreword
Horticulture New Zealand’s vision          We believe it is time to take stock. There   want our food and exports are vital to
is ‘healthy food for all forever.’ Now,    is an assumption that New Zealand            the growing economy, but are we in
more than ever, people are seeking         is a land of plenty and we will always       danger of leaving New Zealanders with
out healthy food and lifestyles.           have enough locally-grown food to            not enough locally grown food to eat?
Indications from the health sector         feed our population, supplemented by
                                                                                        This report is the first step in taking
are that diet is linked to long-term       imported food where there is demand.
                                                                                        stock of what we need to continue
health outcomes. The ideal diet            But things are changing, fast. We need
                                                                                        to grow the vegetables that form
includes plenty of fresh fruit             to look closely at our domestic food
                                                                                        the staple base of healthy New
and vegetables.                            supply and be sure that town, city and
                                                                                        Zealanders’ diets. It is part of a
                                           regional planning decisions are seen in
In addition to seeking out healthy                                                      body of evidence Horticulture
                                           the context of impacting the whole of
food, people worldwide are making                                                       New Zealand is compiling to
                                           New Zealand’s food supply.
purchasing decisions based on values.                                                   persuade decision-makers across
These values might include wanting         The solution is not as simple as             all levels of government that we
to know where the food comes from,         picking up and moving growing                need a domestic food security policy.
and that it is sustainably and ethically   operations somewhere else, or
                                                                                        Before more houses are placed on
produced. Growers and food retailers       moving growing indoors and vertical.
                                                                                        fertile and unique growing land and
need to provide shoppers with              Horticulture started on the outskirts
                                                                                        more decisions are made about
this information.                          of towns and cities to ensure fresh
                                                                                        water, we want there to be a pause for
                                           produce could get to market quickly,
In parallel, there is a perfect storm                                                   breath and some big picture planning.
                                           without spoiling. Each growing area
brewing for New Zealand’s supply           is an ecosystem that has developed
of healthy food. Prime fruit and           over generations and supports local,
vegetable growing land is being            regional and the wider New Zealand
squeezed by rapid growth in towns          economy in many ways, including
and cities and high demand for new         employment.
housing. Emotional battles over water
have the potential to leave growers        Growers are definitely looking at
high and dry. Changes in weather           how they can do more with less. The
patterns across regions and extreme        population they feed is growing, but         Julian Raine
unseasonal weather events such             access to land and water is challenging.     President, Horticulture NZ
                                           Our growing areas and the businesses
as rain, hail, snow, frost or drought
                                           that grow vegetables in New Zealand
becoming more frequent and
                                           have consolidated meaning the need
damaging, are impacting the supply
                                           to protect them for the future is more
of fresh, healthy food. When supply
                                           important than ever.
is short and demand high, prices are
subject to wide variations. This can       Science and technology is driving
potentially put healthy food out of        change and helping meet consumer             Mike Chapman
reach for some people.                     demands. People all over the world           Chief Executive, Horticulture NZ
New Zealand domestic vegetable production: the growing story - 2017 hortnz.co.nz
KPMG Foreword
On a global scale, New Zealand’s          Delivering nutritious produce that is
agri-food sector is made up of a          affordable by all New Zealanders is
plethora of niche, boutique and           a key enabler to encourage a wider
artisan businesses. Greater value         health discussion around healthy
can be generated by joining the           diets and food options.
dots between the producers and
                                          The industry is working collaboratively
the communities from which our
                                          to lead science and technology
products originate and those that
                                          to secure and maintain market
ultimately experience the product.
                                          leading positions.
In a world of almost limitless choices
                                          Connecting the passion of the
for premium consumers, something
                                          producer, and their desire to create
being facilitated by rapidly evolving
                                          amazing products in the way that is
technologies, New Zealand’s vegetable
                                          best for their land, family, community
and fruit producers need to create
                                          and country, to the consumer will
experiences that fully engage with
                                          differentiate a product and help
their consumers. Keeping domestic
                                          secure a premium. This is ultimately
consumers enthusiastic and
                                          connecting farmers with their reason
passionate about our products, will
                                          for being. Most forget to acknowledge
help our nation to flourish not only as
                                          our farmers as the providers of our
a nation, but on the global stage.
                                          food and our health and, ultimately,
Capturing value relies on telling the     as those who support society to
stories that underlie the products        function effectively.
we grow. These stories must be
substantive and leverage all aspects
of the products we grow. The
provenance story of our products is a
key differentiator for both domestic
and international consumers, with
traceability back to the grower a
fundamentally important attribute.
                                          Ian Proudfoot
As technology evolves, New
                                          KPMG Global Head of Agribusiness
Zealand has an opportunity to
add value to our natural products
through securing our reputation
as a sustainable and ethical nation.
New Zealand domestic vegetable production: the growing story - 2017 hortnz.co.nz
4 | HORTICULTURE NEW ZEALAND
New Zealand domestic vegetable production: the growing story - 2017 hortnz.co.nz
Executive
Summary

New Zealand horticulture is big          The make-up of New Zealand’s                This report looks at domestic
business, and growing fast. With         population is changing, with                vegetable supply, particularly of
an industry value of $5.6 billion        city dwellers no longer having              what would be considered staple
(excluding wine), we export 60           connections with rural communities          vegetables, to examine all the factors
percent of what we grow, that            that they once might have had.              that go into getting them from
is, $3.4 billion in value to 124         There is not the understanding of           the field to the plate. It looks at the
countries. Exports increased by 40       what goes into getting fresh food           challenges to supply, through to
percent from June 2014 to 2016.          onto their plates, but there are a lot of   what is driving demand and price.
The 5,500 commercial fruit and           demands for convenient packaging            Most of the vegetables grown in New
vegetable growers employ about           and year-round availability at an           Zealand are eaten here, which is why
60,000 people and the demand for         affordable price.                           they make a strong study group.
workers across the skill spectrum is
                                         New Zealand growers are early               Information and evidence is required
outstripping supply.
                                         adopters of science and technology          to enable good decisions about
Such growth doesn’t come without         to match changes in consumer                New Zealand’s domestic food supply
some growing pains. While there has      demands. There has been                     going forward.
been a strong focus on more exports,     considerable investment in all aspects
                                                                                     Security of supply is essential. We
with primary production still being      of production and some of our
                                                                                     need to look at the full picture of
New Zealand’s big economic driver,       packhouses are driving efficiencies
                                                                                     what is grown where and when;
what is happening to our domestic        and improving quality with cutting-
                                                                                     where it goes and who it feeds; what
food supply?                             edge technology and innovative
                                                                                     the future ‘disruptors’ to the supply
                                         working practices.
Trends indicate a strong desire                                                      chain will be – beyond the standard
by consumers to buy fruit and            We have the ideal climate and soils,        variables growers have managed
vegetables that are locally grown, and   efficient people and systems, and           for decades; the importance of
to understand what has gone into         ideal location with proximity to            balancing housing and water
producing their food. While some will    key markets.                                supply with food supply; what role
always buy on price, a section of the                                                vegetables play in a healthy nation;
                                         So what is missing?
population seek more information                                                     what our import needs might be
before they buy.                         Domestic supply is not being viewed         should we lose domestic supply;
                                         as a national system, with identified       and how we might feed a
A Consumer New Zealand survey in
                                         strengths and weaknesses, to give           growing population.
early 2017 showed that 71 percent of
                                         New Zealanders continued access to
New Zealanders want to know where                                                    This report doesn’t answer all the
                                         all the fresh fruit and vegetables they
their fruit and vegetables come from                                                 questions. It provides a snapshot of
                                         need in the future. Local, district and
and 70 percent also want to buy                                                      domestic vegetable production to
                                         regional decision-making doesn’t
New Zealand-grown. Consumers                                                         start the conversation about food
                                         look beyond its borders. While this
want mandatory Country of Origin                                                     security in New Zealand.
                                         is appropriate in the context of their
Labelling (CoOL) for fresh fruit and
                                         planning, no consideration is given
vegetables, something New Zealand
                                         to national food supply when land
lags behind other countries on – it is
                                         is zoned for housing, or water is
only voluntary here and not law.
                                         allocated. A decision made in Hawke’s
Off shore, our food commands a           Bay for example, may impact on food
premium because it is known to be        supply to the whole South Island.
safe, high-quality and healthy. There
                                         Assumptions are made without
is a lot of talk about selling the New
                                         substance, about the footprint of
Zealand story, yet we don’t even
                                         horticulture production. Growers have
label our own fruit and vegetables in
                                         been busy working sustainably and
our own country. Tourists who have
                                         improving environmental outcomes
bought into the clean and green
                                         without telling the world about it.
image and travelled all the way here,
                                         They need to better engage with
struggle to get a New Zealand
                                         their communities so there can be
food experience.
                                         broader understanding of seasonal
                                         food supply and greater trust in its
                                         provenance.

                                                                                                  HORTICULTURE NEW ZEALAND | 5
New Zealand domestic vegetable production: the growing story - 2017 hortnz.co.nz
BROCCOLI & CAULIFLOWER

                                                                                                                      49,000
                                                                                                                        Tonnes produced
                                                                                                                     in 2016 in New Zealand

                                                                                                             $6.36 / $4.02
                                                                                                               Average retail price per kg of fresh
                                                                                                                 (Broccoli / Cauliflower) in 2016

                                                                                                         Broccoli contains vitamin C, vitamin A, vitamin K.
                                                                                                             Cauliflower contains vitamin C, folates,
                                                                                                                         and pyridoxine.

To give an example of the New                                                                                             KUMARA
Zealand domestic food story, we
have focused on key vegetables
                                                                                                                      22,000
                                                                                                                        Tonnes produced
                                                                                                                     in 2016 in New Zealand
that are staples of the Kiwi diet:
                                                                                                                         $4.22
Broccoli & Cauliflower                                                                                         Average retail price per kg of fresh
                                                                                                                        Kumara in 2016

Carrots & Parsnips                                                                                       Contains vitamin A (in the form of beta-carotene),
                                                                                                            pantothenic acid pyridoxine (Vitamin B6).

Cabbage
Kumara
Lettuce
Onions
Potatoes                                                                                                                   ONIONS

Tomatoes                                                                                                               211,510
                                                                                                                         Tonnes produced
                                                                                                                      in 2016 in New Zealand

                                                                                                                         $2.26
                                                                                                                Average retail price per kg of fresh
                                                                                                                         Onions in 2016

                                                                                                                Contains vitamin C, pyridoxine and
Sources:
Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf
                                                                                                                           magnesium.
Statistics New Zealand Average Food Prices 2006-2017
www.vegetables.co.nz/health/vegetable-nutrition/ www.nutritionfoundation.org.nz/nutrition-facts/
www.hsph.harvard.edu/nutritionsource/what-should-you-eat/vegetables-and-fruits/
www.fruitsandveggiesmorematters.org/wp-content/uploads/UserFiles/Images/DiseasePreventionPotential.pdf
www.medicalnewstoday.com – Health Media UK Ltd

6 | HORTICULTURE NEW ZEALAND
New Zealand domestic vegetable production: the growing story - 2017 hortnz.co.nz
CARROTS & PARSNIPS                                     CABBAGE

        159,000                                        56,000
            Tonnes produced                               Tonnes produced
         in 2016 in New Zealand                        in 2016 in New Zealand

 $2.26 / $5.43                                             $2.12
   Average retail price per kg of fresh          Average retail price per kg of fresh
      (Carrots / Parsnips) in 2016                       Cabbage in 2016

 Contains vitamin A, vitamin C, vitamin K.      Contains vitamin C, vitamin K, folates.

         10
                                                          LETTUCE

                                                        8,400
                                                        Tonnes produced
                                                     in 2016 in New Zealand

                                                        $4.98
Key vegetables                                 Average retail price per kg of fresh
                                                        Lettuce in 2016

that are staples                             Contains vitamin A, vitamin K, vitamin C.

of the Kiwi diet

            POTATOES                                    TOMATOES

       525,000                                       102,900
            Tonnes produced                              Tonnes produced
         in 2016 in New Zealand                       in 2016 in New Zealand

             $1.83                                       $5.97
   Average retail price per kg of fresh         Average retail price per kg of fresh
           Potatoes in 2016                             Tomatoes in 2016

 Contains vitamin B complex, vitamin C       Contains vitamin A, vitamin C, vitamin K.
            and high in fibre.
New Zealand domestic vegetable production: the growing story - 2017 hortnz.co.nz
New Zealanders eat most of the vegetables grown here.
Some parts of our country grow and harvest all year-round.
The value of the domestic vegetable supply is $1.26 billion,
and exports currently sit at $615 million. While exports
are growing, and new markets are being explored, most
vegetables will continue to be grown for domestic supply.
Kumara has increasingly gained popularity in the New
Zealand diet. However, the unreliability of New Zealand’s
weather has impacted on supply, particularly in 2017. Given
that supply has not been able to keep up with demand, this
has resulted in higher prices for locally grown kumara and has
opened the door for kumara imports.
New Zealand is a leading producer of onions.
Excellent soil types and climate conditions are suited to
growing quality onions. Of the nation’s fresh vegetable
exports, onions are the star. New Zealand serves as a counter
season to the Northern Hemisphere, which provides us with
export market opportunities.

Production
                                                                 New Zealanders love potatoes.
                                                                 Potatoes are New Zealand’s
                                                                 largest crop in terms of
                                                                 production hectares and
                                                                 volumes produced.

                                                                 They are a high-yielding crop.
                                                                 They require less water than
                                                                 comparable crops, and they
                                                                 adapt to growing in a range of
                                                                 conditions.

                                                                 They are one of the few crops
                                                                 grown outside that can be
                                                                 produced in most regions of
                                                                 New Zealand and harvested all
                                                                 year round.

                                                                 They contribute significantly
                                                                 to the New Zealand diet;
                                                                 by combining nutritional
                                                                 value with low cost due to
                                                                 high production, ensuring
                                                                 accessibility to the population.

8 | HORTICULTURE NEW ZEALAND
New Zealand domestic vegetable production: the growing story - 2017 hortnz.co.nz
In 2016...

                                                                                                                         1,133,800
                                                                                                                         TONNES
                                                                                                                         PRODUCED IN NZ
                                                                                                                        (OF THE 10 KEY VEGETABLES)

                                                                                   Tomatoes                                                                Potatoes*
            What we
            do with our                                                            96%                                                                     94%
            New Zealand                                                            NZ consumed                                                             NZ consumed
                                                                                   or processed                                                            or processed
            production
            (Estimated        figures)
                                                                                   4%                                                                      6%
                                                                                   Exported                                                                Exported

              Cabbage                                                              Onions                                                                 Carrots

              97%                                                                  10%                                                                    91%
              NZ consumed                                                          NZ consumed                                                            NZ consumed
              or processed                                                         or processed                                                           or processed

              3%                                                                   90%                                                                    9%
              Exported                                                             Exported                                                               Exported

              Kumara                                                                 Lettuce                                                              Broccoli &
                                                                                                                                                          Cauliflower

              99%                                                                    99%                                                                  99%
              NZ consumed                                                            NZ consumed                                                          NZ consumed
              or processed                                                           or processed                                                         or processed

              1%                                                                     1%                                                                   1%
              Exported                                                               Exported                                                             Exported

*42%    of total sales revenue for potatoes is from processed potato exports
Sources: Statistics New Zealand Household Economic Survey 2016 Expenditure tables | Statistics New Zealand Overseas Trade Exports - Merchandise Trade 2016
         Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf | Consumer NZ and Horticulture NZ Consumer Survey, February 2017 | Potatoes New Zealand
                                                                                                                                                                 HORTICULTURE NEW ZEALAND | 9
New Zealand domestic vegetable production: the growing story - 2017 hortnz.co.nz
Regions
The location of where vegetables          Broccoli and cauliflower production          Depending on their climate, New
are grown in New Zealand has              is mostly in New Zealand’s northern          Zealand’s vegetable-growing regions
changed significantly over the years.     and mid-regions, with warmer                 supply markets at different times
This is due to a variety of factors,      climate conditions allowing year-            of the year. For instance, Pukekohe
                                          round production. Production is also         supplies the market with Christmas
including the increasing ability to
                                          impacted by extreme weather events,          new potatoes, while Oamaru is
chill and transport food, as well as
                                          which can create large peaks in pricing.     famous for Jersey Benne potatoes
developments in packaging and                                                          that are harvested around November.
                                          Similarly, cabbage can be planted and
processing to suit market demand.         harvested anytime during the year,           During winter, there are times when
                                          leading to relatively stable pricing year-   Southland is the only region supplying
While the majority of vegetables
                                          round (subject to weather conditions).       the domestic market with carrots.
were grown near main centres 40-
50 years ago, there is now more of        Almost all (93 percent) of tomato            Understanding domestic food supply
a reliance on large food production       supply originates from the North Island,     - and potential risks to this supply in
                                          where tomatoes are mostly grown              the long-term - is one of the purposes
hubs - such as Pukekohe, the
                                          indoors. Accordingly, prices increase        of this document. Extreme weather
Horowhenua and Canterbury -
                                                                                       events can be mitigated against if
to feed New Zealand’s various             during the winter due to increased cost
                                                                                       there is supply coming from other
population bases.                         of heating glass houses.
                                                                                       New Zealand regions that have not
                                          Lettuce is both an indoor and outdoor        been affected. One example of this is
Below is an outline of where some
                                          crop in New Zealand. It is not an export     the rural suburb of Outram, in Otago.
of the main staple vegetables
                                          crop due to its short shelf life. Like       Formerly a large market garden and
(for New Zealand consumption)             tomatoes, lettuce is more expensive          orchard area supplying the city of
are grown.                                during winter months due to heating          Dunedin, there are now only a few
                                          costs for indoor production and              smaller market gardens remaining.
                                          the length of time it takes to grow          Most of the produce for Dunedin now
Potatoes are grown throughout                                                          comes from outside the immediate
                                          outdoors.
the country; with the main growing                                                     area. Market gardening in this area has
regions being Auckland, Waikato,          Production of onions is fairly evenly        now made way for lifestyle blocks and
Manawatu/Wanganui and Canterbury.         split between the growing regions of         pasture.
Crops are grown all year around, and      New Zealand, with the predominant
potatoes keep well in cool storage        onion-growing regions being Auckland,        Growing vegetables for commercial
which contributes to the low and          Waikato, Canterbury and Hawke’s              supply requires the right soils and
stable price throughout the year. It is   Bay. Onions have the largest export          microclimates. While technology and
worth noting that two-thirds of New       production of New Zealand vegetables.        centralised distribution have made it
Zealand’s potato production goes into                                                  easier to transport vegetables from A to
                                          Approximately half of the carrot and         B, it is important that we don’t ‘put all
processing.
                                          parsnip production is in Canterbury,         our veges in one basket’. The aim is to
Due to Northland’s warm climate,          followed by Manawatu/Wanganui                have a sustainable, year-round supply
97 percent of kumara is grown in          and Southland. Southland’s unique            of produce for New Zealand. This will
the region. Kumara production is          growing conditions and winter                only be possible if the different growing
highly impacted by extreme weather        chill temperatures produces sweet            regions work in conjunction to ensure
events, so any severe weather events in   parsnips and carrots. Another famed          that seasonality and other variables,
Northland will have an impact on the      carrot-growing region, Ohakune, also         such as diseases and weather, do not
country’s supply.                         experiences winter chilling.                 drastically interrupt that supply.

10 | HORTICULTURE NEW ZEALAND
Main growing regions by volume for the 10 key vegetables (2014)

                                 NORTHLAND, P: 171,400 (4%)
                                 97% of Kumara                                                                                WAIKATO, P: 449,200 (10%)
                                 2% of Lettuce                                                                                32% of Onions
                                                                                                                              28% of Tomatoes
                                                                                                                              19% of Potatoes

    AUCKLAND, P: 1,614,400 (35%)
    39% of Tomatoes                                                                                                                                         BAY OF PLENTY, P: 293,500 (6%)
    33% of Cabbage                                                                                                                                          14% of Lettuce
    32% of Lettuce                                                                                                                                          1% of Cabbage
    25% of Broccoli & cauliflower
    19% of Potatoes

                                                                                                                                                                  HAWKES BAY, P: 161,500 (3%)
              MANAWATU-WANGANUI, P: 236,900 (5%)
                                                                                                                                                                  16% of Onions
              22% of Broccoli & cauliflower
                                                                                                                                                                  4% of Carrots & parsnips
              20% of Cabbage
                                                                                                                                                                  3% of Potatoes
              15% of Carrots & parsnips

TASMAN, P: 50,200 (1%)                                                                                                                               WELLINGTON, P: 504,800 (11%)
6% of Lettuce                                                                                                                                        1% of Broccoli & cauliflower
2% of Broccoli & cauliflower                                                                                                                         1% of Lettuce
1% of Onions

                                                                                                       CANTERBURY, P: 599,900 (13%)
                                                                                                       47% of Carrots & parsnips
                                                                                                       46% of Potatoes
                                                                                                       16% of Lettuce

                                                                               OTAGO, P: 219,200 (5%)
                                                                                                                                                                         P = Population in 2016
                                                                               6% of Broccoli & cauliflower
                                                                               6% of Cabbage                                                                                    Over 1,000,000
                 SOUTHLAND*, P: 98,000 (2%)                                    2% of Lettuce                                                                                    500,000 - 1,000,000
                 15% of Carrots
                                                                                                                                                                                200,000 - 500,000
                 2% of Potatoes
                                                                                                                                                                                100,000 - 200,000
                                                                                                                                                                                Under 100,000
Note, only showing main growing areas.
*Percentages of Southland figures represents planted hectares for these vegetables

Sources: Statistics New Zealand Agricultural Production Survey 2014 Indoor Outdoor Vegetables by Region | Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf | www.podgardening.co.nz
        www.handymanmagazine.co.nz/how-grow-onions | www.gardengrow.co.nz | Statistics New Zealand Estimated Resident Population for Regional Council Areas 2016
From the
grower

Kylie Faulkner                              Terry Olsen                          Allen Lim
Sutherland Produce Ltd -                    Olsen Partnership - Manawatu         Jade Garden Produce –
Pukekohe                                    “The vegetable industry in New       Canterbury
“For our business, access to irrigation     Zealand is taken for granted. All    “Growing vegetables on a large
isn’t a nice-to-have, it’s essential. For   the things we are used to such       scale all year round, like we do in
leafy vegetable crops, especially           as a continuous supply of safe,      Canterbury, can be challenging.
in summer, it really is a case of no        affordable, wholesome vegetables     The produce is delicate and
water, no crop. Water is critical to        are under increasing threat.         susceptible to weather events. Parts
maintaining the consistent volumes          It is everyone’s responsibility to   of Canterbury have top quality soils
and quality of our crops needed to          ensure that the industry can         and mild climatic conditions that
supply our supermarket customers            continue to flourish.”               are vital, but increasingly hard to
almost every single day of the year.                                             come by. Access to this type of land
Some of our products are eaten                                                   needs to be protected to
uncooked so microbiological quality                                              ensure fresh affordable food.”
of the water applied to them is also
very important.”

12 | HORTICULTURE NEW ZEALAND
Brent Wilcox                           Brent Lamb                             Bharat Jivan
A.S.Wilcox and Sons Ltd –              Pypers Produce Ltd - Southland         Jivan Produce Limited -
Pukekohe                               “Southland is a wonderful place but    Pukekohe
“Customers today want year-round       is a very hard place to grow produce   “Urban encroachment on valuable
continuity of supply, so this is a     in as we can get four seasons in one   food growing soils is threatening
business necessity for us. To keep     day. Due to the climate we have        the sustainability of growers in the
up this supply, we must have access    to organise our planting and staff     Pukekohe region. Pukekohe’s frost
to land to grow on a regional and      around the weather. Sometimes this     free slopes which for years grew the
seasonal spread, so if one region is   can mean a very small margin to        country’s first new season potatoes
impacted for some reason we can        plant to have produce ready in time    are now covered in bricks and
supply from another region.”           for the new season.”                   mortar. A lot has been lost but it’s
                                                                              not too late to protect this valuable
                                                                              resource for future generations.”

                                                                                         HORTICULTURE NEW ZEALAND | 13
Average
                                                                                             2016 - 2017

                                                                                             Average weather
                                                                                             conditions across
                                                                                             New Zealand

Climate
Weather is one of the variables          To some degree, the spread of
of food production. While some           crops across New Zealand can                        Average retail price
events may be considered                 mitigate extreme weather impacts                    August 2016 -
                                         on vegetable supply. With localised
                                                                                             August 2017
“business as usual”, growers have
faced extreme weather in the             weather events, if one area is hit by
past couple of years. These more         bad weather, another region can meet
extreme floods and droughts affect       supply. However there can be years
supply – and consequently, pricing –     where all production areas are hit by
of some of the staple vegetables.        extreme weather at the same time.

Broccoli has been significantly
affected by weather events. The
                                         Research around climate change
                                         suggests extreme weather events          Broccoli
                                                                                             $7.62    per kg

March/April 2017 North Island            may become more frequent, and
flooding had a direct effect on crop     more extreme. To mitigate this,
supply. With about 50 percent            promoting greater land utilisation for
of supply grown in the North             horticulture and protecting existing
Island, this reduced supply for the      high-production areas will ensure food
entire country and raised prices
significantly from March 2017
                                         security and sustainability.

                                         .                                        Carrots
                                                                                              $2.58  per kg

to May 2017.

Potatoes and carrots are seemingly
less sensitive to weather extremities.
Large production volumes, spread
across the country, reduces the

                                                                                              $1.93
risk that supply of these crops will
be impacted by extreme weather                                                                      per kg
conditions. However, long periods of                                              Potatoes
wet weather can prevent harvesting.

14 | HORTICULTURE NEW ZEALAND
The following weather events had a strong
impact on the growth and supply of vegetables
(predominantly broccoli) causing a price
difference shortly after each event.

August                                  January                                  March                                    April                         May
2016                                    2017                                     2017                                     2017                          2017

                                                                                 North NZ,                                                              North Middle NZ,
Middle / South                          Middle / South                                                                    Cyclone Debbie,
                                                                                 Tasman Tempest,                                                        Cyclone Donna,
of NZ, heavy                            of NZ, torrential                                                                 a month of rain
                                                                                 Auckland’s                                                             torrential down-
snow fall with                          downpours                                                                         in 24 hours,
                                                                                 wettest March                                                          pours with slips
rain warnings                           with strong winds                                                                 extreme floods
                                                                                 in 58 years                                                            and flooding

Price one month                         Price one month                          Price one month                          Price one month               Price one month
after the weather                       after the weather                        after the weather                        after the weather             after the weather
event:                                  event:                                   event:                                   event:                        event:

                                                                                      ABOVE AVERAGE                            ABOVE AVERAGE              ABOVE AVERAGE

$7.60         per kg                    $5.67         per kg                     $9.41        per kg                      $10.56         per kg         $9.25     per kg

                                              ABOVE AVERAGE

$2.01         per kg                     $3.53        per kg                     $2.53         per kg                     $2.29      per kg             $2.30    per kg

                                              ABOVE AVERAGE                                                                    ABOVE AVERAGE               ABOVE AVERAGE

$1.69       per kg                       $2.07         per kg                    $1.86       per kg                       $2.03      per kg             $1.96   per kg

Sources: Statistics New Zealand Average Food Prices 2006-2017 | www.nzherald.co.nz/weather-home | www.stuff.co.nz/national/weather

                                                                                                                                                  HORTICULTURE NEW ZEALAND | 15
Water
Water is a vital resource to help        Water is used throughout the             Irrigation schemes such as the
New Zealand secure its place as          horticultural supply chain; from         Waimea Community Dam, which is
a world-leading food producer,           growing the plants, to frost fighting    proposed in the Tasman region, will
as well as maintain a year-round         (e.g. some fruits), and washing          provide growers with a continuous
production base for domestic             and processing for market. To            and reliable water source year-
consumption (including the               service these activities, the industry   round. By securing reliability of
staple vegetables we have looked         requires sufficient quantity of water    water supply, such schemes provide
at in this report). The reliability of   supply, particularly in summer.          the potential – and confidence
water supply for vegetable crops         For crops that are grown above           – to grow New Zealand’s wider
during growth periods is very            ground – such as lettuce, broccoli,      horticultural production.
important to ensure quality as           cauliflower and cabbage – the
                                                                                  Diversification of land offers a buffer
well as yield. During dry periods,       quality of water is also critical in
                                                                                  against unpredictable markets,
access to water is essential to          terms of food safety.
                                                                                  in other sectors such as dairy or
sustaining crops and maintaining
                                         The key constraints to growth            livestock production, which in turn
quality and quantity of supply
                                         in horticultural production are          benefits the rural community and
required by the market.
                                         access to land and water. Of the         the economy.
                                         5.5 percent of land appropriate
As increasing pressure is placed                                                  At the other end of the scale,
                                         for vegetable production in New
on water resources in New                                                         some regions are facing a future of
                                         Zealand, roughly 1/10th has been
Zealand, the question of ensuring                                                 potential water scarcity. Pukekohe
                                         subdivided for lifestyle blocks
reliability of supply becomes more                                                is a key region for vegetable
                                         in the past 15 years. Access to
pronounced. We face the twin                                                      production, which sources its
                                         water and land is becoming a
demands of ensuring that we                                                       irrigation needs from ground water
                                         key constraint to growth, due to a
can feed our growing population                                                   and from the Waikato River. There
                                         number of factors. These include
domestically, while maintaining our                                               is competition for water from the
                                         competition for versatile land for
valuable exports.                                                                 river from municipal and industrial
                                         housing, the availability of highly-
                                         reliable water sources, and water
                                         quality constraints.

16 | HORTICULTURE NEW ZEALAND
users, and with increasing pressure
on the water resource, the ability
for growers to maintain a reliable
supply of water for irrigation and
processing can be compromised.
This, along with pressure from
urbanisation, means that the
ability for the region to grow its
horticultural area is severely limited.
At this stage, under the Resource
Management Act, water is allocated
on a first-in-first-served basis.
This means that water for food
production is competing with
all other uses of water; and is
not elevated in status to ensure
that domestic food supply is
maintained. Future allocation of
water in fully allocated catchments
may have to assess water use on a
value-based framework, to ensure
that New Zealanders can be
sustainably ‘fed and watered’ as a
priority above other uses.

Sources: The Water Footprint of Agriculture Products in New Zealand, The Impact of Primary Production on Water
         Resources, Massey University, 2013 | Ministry for the Environment, Stats NZ, and data providers, licensed
         by the Ministry for the Environment and Stats NZ for re-use under the Creative Commons Attribution 3.0
         New Zealand licence Resource Management Act, Ministry for the Environment, 1991

                                                                                                                     HORTICULTURE NEW ZEALAND | 17
Distribution
When it comes to New Zealand’s            Consumer behaviour and
domestic market, distribution             preferences are also influencing             Estimated percentage of
channels have evolved over time. Due      new, dynamic distribution channels.        distribution based on annual
to innovations in technology, these       My Food Bag is an example of                household expenditure of
channels have become more efficient       meeting consumer preferences for                   fresh produce:
and streamlined.                          instant access to convenient food,
                                          delivered to the doorstep. With
While the ability to transport chilled
                                          ingredients measured to fit exactly
fruit and vegetables has reduced
                                          to a desired recipe, food wastage is
reliance on locally-grown produce,
                                          virtually eliminated. The ingredients
it also creates risk if distribution
                                          provided are also locally grown
channels are unexpectedly altered.
                                          and fresh.
For example, a blocked highway
following an earthquake could restrict    In 2016, an estimated $330 million
access between fruit and vegetable        was spent on processed vegetables
hubs and their markets.                   in New Zealand households.

Another emerging concern in our           This diagram (to the far right) is
food system is tracking the country of    a macro-level view of the food               43% Ready-to-eat food
origin. New Zealand has started down      ecosystem. Other channels not
the path of implementing Country          considered include the likes of food
of Original Labelling; a move which       for hospitals, schools, prisons, family
is viewed as adding value to our food     home and farm composting, and
system. The country’s reputation          farmers markets. While we recognise
                                                                                       29% Restaurant meals
for high-quality produce, coupled         the future’s evolving supply chain
with the consumer preference to           (with the likes of My Food Bag), for the
‘eat locally’, supports the strategy to   purpose of this report, we are focusing
origin-label our food.                    on the typical consumer journey for
                                          whole fruits and vegetables.
                                                                                             28% Retail

18 | HORTICULTURE NEW ZEALAND
Below is an example of what a potential fruit and vegetable supply chain in
                                            New Zealand can look like covering multiple channels:

                                                                                          OUR PEOPLE

                                RETAIL                                                   FOOD SERVICE                                                      ONLINE
                            (Supermarkets)                                                   (Restaurants)                                              (Home & Family)

                              IMPORTS                                                                                                                      WASTE
                                                                                                                                                      Waste is contributed
                                                                                                                                                       from every point
                                                                                                                                                       of the value chain
                                                                                                  Fresh                           Processed

                              EXPORTS                                                     WHOLESALE                                                    PROCESSORS

                                                                                            GROWERS

Sources: Statistics New Zealand Agricultural Production Survey 2014 Indoor Outdoor Vegetables by Region | Fresh Facts 2016 Report - www.freshfacts.
co.nz/files/freshfacts-2016.pdf | Statistics New Zealand Household Economic Survey 2016 Expenditure tables | Euromonitor International November
2016 Report – Processed Fruit and Vegetables in New Zealand                                                                                                HORTICULTURE NEW ZEALAND | 19
Consumption
Consistency of price and quality         In order for New Zealanders to
are key influencers for New
                                                                              New Zealand
                                         meet their recommended dietary
Zealanders to purchase and               requirements, and promote good

                                                                              eats 1,800
consume specific vegetables.             health, it is important to protect
                                         and strengthen our local supply
From the 10 vegetables analysed,

                                                                              tonnes of fruit
                                         to ensure seasonal vegetables are
potatoes are by far the most highly-
                                         affordable for all.
consumed vegetable, at nearly 23 kgs
per year per person. Kumara is viewed
as a similar product, however we only
                                                                              and vegetables
consume approximately 3.66 kgs
per year per person. The significant                                          per day
difference in consumption between
these two very similar vegetables                                             (Based on recommended
is predominantly due to difference                                            servings of fruit and vegetables
in price – driven by potatoes year-                                           per day and 2016 volumes)
round availability and the spread
of growing regions. Compared to
kumara, potatoes are a lower cost
option. This is reflected in the wider
picture, with New Zealand’s vegetable
consumption being largely governed
by price and availability.

20 | HORTICULTURE NEW ZEALAND
In 2016, each New Zealander consumed
                           approximately the following portions
                                 of these fresh vegetables:

               Tomatoes                              Broccoli & Cauliflower                                           Cabbage                                 Carrots & Parsnips

           7.56kgs                                            4.43kgs                                            4.37kgs                                           7.88kgs

                                                                                   11%                              3%

                                                                                                                                       6%

                                                                                                                                                              7%

                                                                                                                                                                              12%
                        38%

                                                                                                                                                                       5%

                                                                                                                                                       7%

                                                                                                                12%

                 Potatoes                                           Onions                                            Lettuce                                           Kumara

          22.90kgs                                            7.44kgs                                           5.06kgs                                            3.66kgs

Sources: Statistics New Zealand Household Economic Survey 2016 Expenditure tables | Ministry of Primary Industries | Horticulture New Zealand Annual Report 2017 | Statistics New Zealand 2013 Census
         Statistics New Zealand Average Food Prices 2006-2017 | Statistics New Zealand NZIER population quarterly predictions – June 2017
                                                                                                                                                              HORTICULTURE NEW ZEALAND | 21
There has been a constant national
                                                                             increase in obesity in New Zealand
                                                                             over the last 10 years.

Human health
In New Zealand, almost one-third of            2017 showed that 70 percent of those       Science continues to explore the
adults are obese, with a further 35            surveyed wanted to buy New Zealand         wellness and health-promoting
percent being overweight.                      grown fresh fruit and vegetables. Our      compounds within vegetables, and
                                               strong connection to our food creates      identify the best way to consume them.
One in nine children are obese, with a         trust in our growers, and consumers
further 21 percent being overweight.                                                      Education campaigns can help drive
                                               are more likely to eat food they know
                                                                                          consumption choices. 5 + A Day is a
Globally, eighty percent of deaths are         the provenance of.
                                                                                          charitable trust set up to encourage
caused by chronic health conditions            Due to high concentrations of vitamins     New Zealanders to eat five or more
that are largely preventable. Of the           and minerals, diets high in fruits and     servings of colourful, fresh fruit and
80 percent, six percent are diabetic,          vegetables are recommended for             vegetables every day. Its purpose is
five percent have heart disease, and           their health-promoting properties.         not only to encourage consumption
31 percent are obese – all of which are
                                               The World Health Organisation (WHO)        patterns; but also to help people
conditions that can be addressed via
                                               has identified vegetables as playing       understand the benefits of eating a diet
good nutrition.
                                               a vital role in providing a nutritious     rich in fruit and vegetables, and how
Low fruit and vegetable intake is a risk       diet, contributing to health outcomes      this contributes to health.
factor for global mortality. Globally,         and lessening the burden of chronic
                                               disease in Western societies.              A recent survey by the 5 + A Day
approximately 1.7 million (2.8 percent) of
deaths worldwide are attributed to low                                                    Charitable Trust found that New
                                               New Zealand has high consumption           Zealanders are rated among the
fruit and vegetable consumption.
                                               rates of broccoli, potatoes and carrots;   highest consumers of fruit and
As a nation, New Zealand has enviable          all of which have high levels of vitamin   vegetables globally, but that there was
access to year-round fresh fruit and           C. Vitamin C helps contribute to           still room for improvement.
vegetables. As our population grows,           prevention of inflammatory diseases,
increased supply will be required to           fighting infections, and the growth of     A 2015 joint study between Auckland,
maintain this access to healthy food. If       bones, tendons, ligaments and skin. It     Otago and Oxford Universities
we cannot supply fresh locally-grown           also facilitates the absorption of iron    investigated the potential impact of
fruit and vegetables to an increasing          from our foods.                            price subsidies on fruit and vegetables
population, prices will inevitably increase.                                              in New Zealand. It found that a
                                               A diet rich in fruits and vegetables       20 percent subsidy on fruit and
This will both reduce or limit the
                                               also provides necessary                    vegetables, with the resulting impact
population’s access to healthy food, and
                                               micronutrients that cannot be found        on affordability, could prevent or
open the door to increased imports.
                                               in staple grains, meat or dairy.           postpone around 560 deaths a year.
A Consumer survey released in March

22 | HORTICULTURE NEW ZEALAND
1.7m deaths                                                                                                            31% obese
Globally, approximately 1.7 million                                                                                    Of those numbers, 6% are diabetic, 5%
(2.8%) of deaths worldwide are                                                                                         have heart disease, 31% are obese; all of
attributed by low fruit and vegetable                                                                                  which are conditions that nutrition, or
consumption.                                                                                                           lack of, have a heavy contribution.

World Health Organisation (WHO) global statistics on obesity increase

40%

35%

30%

25%

20%

15%

10%

5%

0
                      2-4                 5-9              10-14               15-24              25-34              35-44               45-54               55-64              65-74                  75+
                                                                                                            AGE
                          2006/2007                            2013/2014

Sources: Environmental Health Indicators New Zealand, Massey University | Ministry of Health. 2013. New Zealand Health Survey: Annual update of key findings 2012/13. Wellington: Ministry of Health
         Statistics New Zealand. Disability Survey: 2013. Hot Off the Press. Wellington: Statistics New Zealand. | Obesity and Overweight fact sheet June 2016, World Health Organization
         Boeing, Heiner et al. “Critical Review: Vegetables and Fruit in the Prevention of Chronic Diseases.” European Journal of Nutrition 51.6 (2012): 637–663. PMC. Web. 5 Oct. 2017.
         Report on New Zealand Cost-of-Illness Studies on Long-Term Conditions, 2009, Ministry of Health New Zealand | New Zealand Nutrition Foundation, Vitamin Facts
         Effects of Health-Related Food Taxes and Subsidies on Mortality from Diet-Related Disease in New Zealand, 2015, University of Auckland, University of Otago and Oxford University
Prices
Production and prices for broccoli, carrots and potatoes only.

2012                                            2014                                      2016
NZ domestic production:                         NZ domestic production:                   NZ domestic production:
687,000TN                                       609,000TN                                 632,000TN
Average price per kg:                           Average price per kg:                     Average price per kg:
$1.70                                           $1.93                                     $2.03

To gain a better understanding of price and production, we have taken three vegetables in focus and mapped domestic annual
production against an annual average weighted retail price per kg. As the production tonnes of broccoli, carrots and potatoes
has decreased, this has had a direct correlation to an increase to the average weighted retail price per kg.

New Zealand’s diverse geography                 conditions, the ability to produce        Protecting the supply of fruits and
leaves the country susceptible to               vegetables also changes. When             vegetables against varying weather
rapid weather changes.                          there is a drop in production, and        conditions is challenging.
This unpredictability can influence             demand is unchanged or increased,
                                                                                          There are specific areas across New
local production, supply and                    prices start to rise. Demand for fresh
                                                                                          Zealand which are naturally more
ultimately pricing.                             produce has been driven by shifts
                                                                                          conducive to fruit and vegetable
                                                in consumer preferences to whole
Production of vegetables can be                                                           growth. Where there is neighbouring
                                                fresh foods as part of a healthy diet.
affected by weather conditions,                                                           land accessible, this represents an
available land, and natural resources.          Stable production throughout the year     opportunity to replicate production
Inconsistent weather conditions                 results in more consistency of pricing.   in similar conditions – and therefore
(such as floods and droughts),                  Some vegetables are more prone to         reduce the risk of unstable production.
coupled with the effects of climate             be impacted by weather changes. For       In turn, this results in more stable
change, have an impact on vegetable             example, broccoli is more dependent       prices and creates greater access to
production. If natural resources are            on weather than carrots and potatoes.     fresh fruit and vegetables.
altered significantly due to weather

24 | HORTICULTURE NEW ZEALAND
Broccoli snapshot

                                                                                                                                       Of our 10 vegetables studied in this report,
                                                                                                                                       broccoli has seen the most significant price
                                                                                                                                       increase over the past 24 months.

                                                                                                                                       Strong broccoli production is reliant on
                                                                                                                                       stable weather. This is reflected in events
                                                                                                                                       such as the North Island storms, early in
                                                                                                                                       2017, when there was a spike in broccoli
                                                                                                                                       price shortly after the weather event. This
                                                                                                                                       suggests there is a high variation to price
                                                                                                                                       when there are weather events which
                                                                                                                                       cause a decrease in production, coupled
                                                                                                                                       with the inability to compensate in other
                                                                                                                                       areas and grow more to fill the gap.

                                                                                                                                       Prices reached their lowest point in the
                                                                                                                                       past 24 months during the period of
                                                                                                                                       November/December 2016. The majority of
                                                                                                                                       supply is split between the top and middle
                                                                                                                                       of the North Island; with the lowest price
                                                                                                                                       points coinciding with the peak harvesting
                                                                                                                                       period in the middle of the North Island.

Average Retail Prices per kg over the 24 month period (July 2015 - June 2017)

We looked at three key vegetables - broccoli, carrots and potatoes to understand their pricing trends. Using Statistics
New Zealand data, we have taken the monthly retail price per kg for each vegetable from the 24 months from July 2015
through to June 2017. The average price across all three has increased steadily over the past two years.

                                                                                                                                                                    The prices of

                                                                                                                                             9.25
                                                                                                                                                                    carrots and
           BROCCOLI
                                       $
                                         6.46               $
                                                              4.52               $
                                                                                   6.26 $7.60                             $
                                                                                                                             6.23          $                        potatoes have
                                                                                                                                                                    remained stable
                                                                                                                                                                    compared to
                                                                                                                                                                    broccoli which
                                                                                                                                                                    had a few
                                                                                                                                                                    fluctuations.
           CARROTS                         1
                                         $ .98
                                                                2
                                                             $ .54
                                                                                     2
                                                                                   $ .10
                                                                                                          2
                                                                                                        $ .01
                                                                                                                              3
                                                                                                                            $ .42              2
                                                                                                                                               $ .30                Carrots and
                                                                                                                                                                    potatoes are
                                                                                                                                                                    grown across
                                                                                                                                                                    wider regional
                                                                                                                                                                    geographies,
           POTATOES                         1
                                           $ .70
                                                                2
                                                              $ .11
                                                                                      1
                                                                                     $ .83
                                                                                                          1
                                                                                                         $ .69
                                                                                                                               2
                                                                                                                             $ .25
                                                                                                                                                1
                                                                                                                                               $ .96                which could
                                                                                                                                                                    help explain
                                                                                                                                                                    their price
                                                                                                                                                                    stability.

                                        JULY                 NOV                   APR                  SEP                  JAN               JUNE
                                        2015                 2015                  2016                 2016                 2017              2017
Sources: Statistics New Zealand Average Food Prices 2006-2017 | Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf

                                                                                                                                                         HORTICULTURE NEW ZEALAND | 25
Imports
                                This data helps us to better         in a fortunate position to have
                                understand the effect of imports     these agreements in place.
To understand how               and exports, and how we can look
                                                                     Our data shows that imports make
                                to utilise our local production to
imports and exports             feed our population. Some fruit
                                                                     up a very small portion of New
                                                                     Zealand’s domestic food availability.
will impact local               and vegetables that do not grow
                                in New Zealand will always be        Any food that is imported is
fruit and vegetable             imported to meet demand.             typically in order to fill any
availability, we have           New Zealand has successfully
                                                                     seasonal gaps in availability.

measured the impact             concluded Free Trade Agreements      Our 10 key vegetables made up only
                                (FTAs) with 16 World Trade           0.1 percent of total imports in 2016.
of both imports and             Organisation members. It is          With a focus on fresh local food,
exports on total                important to understand that while   New Zealanders have a preference
                                domestic production is preferable    to eat locally-grown over imported
domestic production             to New Zealanders, our vegetables    fruit and vegetables. This contributes
tonnes available.               will be replaced by imports if       significantly to our economy, and
                                we cannot sustain local supply.      clearly places our growers and
                                For this reason, New Zealand is      producers in a good position.

26 | HORTICULTURE NEW ZEALAND
In 2016...

1,200
TONNES
IMPORTED IN TO NZ
(OF THE 10 KEY VEGETABLES)

Location breakdown of where our imported produce in 2016 came from:
(Vegetables - fresh or chilled)

              Potatoes (processed)*                                                   Carrots                                                                Cabbage

              70%                                                                     71%                                                                    73%
              Tonga                                                                   United States                                                          United States

              30%                                                                     29%                                                                    27%
              China                                                                   China                                                                  Australia
              Total Tonnes Imported:                                                  Total Tonnes Imported:                                                 Total Tonnes Imported:
              18.5                                                                    37.7                                                                   11.8

              Kumara                                                                   Onions                                                                Lettuce

              42%                                                                      100%                                                                  97%
              Tonga                                                                    United States                                                         Australia

              51%                                                                                                                                            3%
                                                                                       Total Tonnes Imported:
                                                                                       555.6
                                                                                                                                                             United States
              China
                                                                                                                                                             Total Tonnes Imported:

              7%                                                                      Tomatoes                                                               122.5

                                                                                      100%
              Fiji, India and Vietnam
              Total Tonnes Imported:
              321.8                                                                   Australia
                                                                                      Total Tonnes Imported:
                                                                                      132.2

*Fresh   potatoes cannot be imported into New Zealand so this only refers to processed potato products such as crisps/fries
Sources: Statistics New Zealand Overseas Trade Imports – Merchandise Trade 2016 | Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf
         www.mfat.govt.nz/en/trade/free-trade-agreements/free-trade-agreements-in-force/ | Potatoes New Zealand
                                                                                                                                                                HORTICULTURE NEW ZEALAND | 27
Exports                                                                               Where do
                                                                                      New Zealand
                                                                                      vegetable

                                          76%
Around the world, New Zealand             In 2016                                     exports*
is regarded as a grower of top
quality fruit and vegetables.
                                                                                      end up?
Fresh Facts recorded that 1,148,316
tonnes of vegetables were grown in                                                    (2016 top export
New Zealand in 2016. According to
Statistics New Zealand, 23 percent
of this volume was exported.
                                          of total exported                           countries by
                                                                                      percentage)
The challenge New Zealand faces           Potatoes
is finding the balance between
feeding our domestic population,
while capitalising on the strong
                                          went to Fiji                                    Kumara
prices that international markets
will pay for our fresh products.
The main countries we export
                                          Fiji is a key vegetable export
                                          destination; where tropical weather
                                                                                          55%
vegetables to are our closest                                                             to French Polynesia
                                          patterns limit stable supply and local
neighbours, such as Pacific
countries and Australia.
                                          consumption exceeds production.
                                                                                          20%
Given fresh produce has a limited                                                         to New Caledonia
shelf life, it is unsurprising that our
key export countries for vegetables
are in close proximity to New Zealand.
                                                                                          12%
                                                                                          to Solomon Islands
                                                                                          Total Tonnes Exported:
                                                                                          12
                                                                                   (Vegetables - fresh or chilled)

28 | HORTICULTURE NEW ZEALAND
In 2016...

                                                                                                             242,400
                                                                                                             TONNES
                                                                                                             EXPORTED FROM NZ
                                                                                                             (OF THE 10 KEY VEGETABLES)

Broccoli                                               Cabbage                                               Cauliflower                                         Carrots

32%                                                    34%                                                   41%                                                 28%
to Fiji                                                to Fiji                                               to Fiji                                             to Fiji

22%                                                    26%                                                   35%                                                 15%
to French Polynesia                                    to New Caledonia                                      to New Caledonia                                    to Japan

13%                                                    15%                                                   6%                                                  12%
to Samoa                                               to French Polynesia                                   to Samoa                                            to Taiwan
Total Tonnes Exported:                                 Total Tonnes Exported:                                Total Tonnes Exported:                              Total Tonnes Exported:
28                                                     1,396                                                 50                                                  14,614

Lettuce                                                Onions                                                Tomatoes                                            Potatoes

47%                                                    18%                                                   37%                                                 76%
to Fiji                                                to Indonesia                                          to Japan                                            to Fiji

17%                                                    13%                                                   20%                                                 6%
to Samoa                                               to Belgium                                            to Australia                                        to French Polynesia

10%                                                    11%                                                   14%                                                 6%
to Hong Kong                                           to Germany                                            to Canada                                           to New Caledonia
Total Tonnes Exported:                                 Total Tonnes Exported:                                Total Tonnes Exported:                              Total Tonnes Exported:
47                                                     189,776                                               3,704                                               32,773

Sources: Statistics New Zealand Overseas Trade Exports – Merchandise Trade 2016 | Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf

                                                                                                                                                        HORTICULTURE NEW ZEALAND | 29
New Zealand
Horticulture is core to providing          To maintain our premium position           Additionally, the organic market
our nation with locally grown fruit        in the global marketplace, the New         highlights the power of consumers
and vegetables. New Zealand is in a        Zealand horticulture industry aims         wanting fresh fruit and vegetables,
unique possition, in that we have the      to increase total export revenue to        in their most natural form. Organic
ability to grow fruit and vegetables       $10 billion by 2020, with a focus          consumers have demonstrated a
directly in our collective backyard.       on innovation. As New Zealand’s            willingness to pay a premium for
                                           population is predicted to grow to         crops grown in a way that they
Food systems around the world              just over five million by 2020, we also    believe benefits the environment.
are rapidly changing. Innovation           need to secure access to sufficient        This premium provides an incentive
is disrupting traditional methods          resources to feed our nation.              for growers to grow crops using
of farming and distribution. New                                                      organic methods.
                                           A consumer survey released in
Zealand has an opportunity to
                                           March 2017 proved the importance           Labelling food and educated
provide high quality food if we can
                                           to New Zealanders of buying local.         purchasing decisions will support
ensure we continue to have enough
                                                                                      the New Zealand horticulture sector
access to natural resources and land.      Clearly labelled local produce creates
                                                                                      to grow, flourish, and be first choice
We are fortunate to have access to         a compelling reason for consumers to
                                                                                      when people pick their food.
natural resources. As a nation, we are     purchase home-grown products.
at an advantage as we can add value
                                           Temperature and oxygen exposure
to our products that other countries
                                           will affect fresh produce and can
naturally do not have the ability to do.
                                           alter the nutritional composition,
As demand for housing increases,           making it less nutritious, supporting
rural areas located close to urban         the need for local food. For example,
areas are coming under pressure for        transporting fruit without refrigeration
land use change. While housing may         or adequate packaging may cause
achieve the highest value for the land,    over-ripeness and potentially damage
it reduces New Zealand’s ability to        the fruit.
support horticulture and secure
year-round supply of fresh fruit
and vegetables.

30 | HORTICULTURE NEW ZEALAND
New Zealand would benefit from an authentic food story.
The story we create behind our food captures added value for
New Zealand. We need to identify our regional ‘superfoods’ and
encourage chefs and foodservice distributors to promote these
products so they can be experienced to their full capacity.

Consumers have said they want
Country of Origin Labelling.

71% of New Zealanders want to know where
their fruit and vegetables come from.

70% consider New Zealand-grown fruit and
vegetables as being important to them.

Sources: Food Miles – the international debate and implications for New Zealand exporters, Business & Sustainability Series briefing paper 2006, Landcare Research
         ‘Food-miles’ danger for NZ exports, 2009, Otago Daily Times | Country of origin labelling, Consumer NZ and Horticulture NZ Consumer Survey 2017
         Local Nutrition, Center for Health and the Global Environment, Harvard School of Public Health
Population
Will New Zealand be able to feed its future population?

Using Statistics NZ import and                                                     To forecast domestic consumption,
                                         Our current consumption levels
export data, combined with                                                         we first estimated the weekly average
                                         of fresh produce in retail and food
the Fresh Facts 2016 Report, we                                                    consumption per person in 2016.
                                         service shows that net production is
have made projections around                                                       (We took the average household
                                         already below what is required for
annual food volumes available for                                                  weekly spend on fresh vegetables
                                         domestic consumption, meaning
consumption in New Zealand.                                                        and divided this by the average retail
                                         we can expect food shortages.
                                                                                   price per kg of fresh vegetables). Given
This is based on assumptions that        This further highlights the
                                                                                   that the average household consists
every New Zealander will eat all 10      importance of food security, land
                                                                                   of 2.7 people, we are able to calculate
vegetables - at the same current         production and future-proofing the
                                                                                   the average weekly consumption per
proportions and at the                   availability of resources to supply our
                                                                                   person. Using Statistics New Zealand
same rate - across retail, fresh and     growing population.
                                                                                   population growth forecasts, and
food services.
                                         While we have plenty of land              assuming consumption per person
With New Zealand’s population            available for fruit and vegetable         does not change over the next five
expected to reach 5,045,000 by 2020      growth, there is no strategy in place     years, we can forecast the increase
(based on annual growth between          to protect this valuable land as a way    in domestic consumption as our
1.5 - 2 percent), domestic food supply   to future-proof our food supply.          population grows.
will not be able to sustain our future
population consumption needs.

32 | HORTICULTURE NEW ZEALAND
New Zealand’s population growth forecast to 2020

 New Zealand’s population is forecast to grow annually for the next three
 years, which highlights the need to increase our food production.

 2.5%                                                                                                                                                                          5.045M
                                                                                                                                         4.958M
 2.0%
                                                                                                  4.863M

                                                            4.762M
 1.5%                4.662M

 1.0%

 0.5%

 0%

                      2016                                   2017                                   2018                                  2019                                  2020

                             Annual Population Growth Rate (%)                                               Total Population

 Domestic consumption vs net availability of the 10 key vegetables

 If we apply our 2016 food availability estimate, we won’t be able to feed
 our current and growing population.
                                                                                                                                                                           996,600 TN
                                                                                                                                979,670 TN
                                                                                    960,730 TN
                                        940,690 TN
921,660 TN

  2016                                         2017                                       2018                                        2019                                       2020

                             Domestic food tonnage available
                                                                                                             Domestic consumption
                             for consumption

Sources: Statistics New Zealand Household Economic Survey 2016 Expenditure tables | Statistics New Zealand Agricultural Production Survey 2014 Indoor Outdoor Vegetables by Region
         Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf | Statistics New Zealand NZIER population quarterly predictions – June 2017
         Statistics New Zealand Average Food Prices 2006-2017 | Statistics New Zealand 2013 Census
A self-sufficient
New Zealand
                                Horticultural exports are valued at        Highlighting the natural connections
                                $3.4 billion with vegetable exports        between people and food can
The horticulture                valued at $615 million. Maintaining        be a powerful way to get the

sector not only                 and growing this level of economic
                                contribution is heavily reliant on
                                                                           community involved and interested
                                                                           in horticulture. For example, urban
provides our                    having a sufficient labour force.          gardens and organic collectives
population with                 The 5,500 fruit and vegetable              create an emotional connection

vital nutrition, it also        growers. in New Zealand employ
                                about 60,000 people.
                                                                           between the food we eat, the value
                                                                           of the land it comes from, and
makes a significant                                                        the grower.
                                Continued growth in the sector will
contribution to the             require greater numbers of skilled,        Horticulture in New Zealand
wider economy;                  educated workers available to work in      also plays an important role in
building a stronger,            the sector. Not only does this include     supporting our Pacific neighbours.
                                those that work on-farm; but also the      The Recognised Seasonal Employer
more self-sufficient            related professions of scientists, agri-   (RSE) scheme allows companies in
New Zealand.                    tech specialists, educators, and even      the horticulture industry to recruit
                                robotics designers.                        seasonal staff from other Pacific
                                                                           countries, when there is a limited
                                Without planning to attract and
                                                                           amount of resource in New Zealand.
                                keep younger generations interested
                                                                           This scheme sees more than $40
                                and passionate about a career in
                                                                           million invested back into Pacific
                                horticulture, we will not have enough
                                                                           nations, and is used to fund housing
                                workers in the industry.
                                                                           and education in local communities.

34 | HORTICULTURE NEW ZEALAND
Despite these good news stories, there
are also some sobering statistics. The
spread of new housing areas around
our cities is resulting in prime growing
areas for horticulture being lost.
Between 1975 and 2012, nine percent
of our growing land (or 10,399ha) was
converted from horticulture to other
land use. If this rate of conversion
continues, it will have long-term
consequences for New Zealand, and
place at risk the country’s ability to feed
its population.

If we do not have enough land to
produce the fruit and vegetables our
population requires, prices will increase
as demand increases, resulting in more
imports to fill the gap.

Sources: 2016 NZIER report ‘Horticulture and Viticulture Labour Market Forecasts -- Kiwifruit, Pipfruit, Summerfruit
         Fresh facts 2016 | Data: Plant & Food Research’s Fresh Facts annual accumulated statistics.
         Implications of Urban Form on Suburban Food Production Potential:
         The Case of Auckland City-New Zealand, June 2016, ResearchGate
         Horticulture New Zealand

                                                                                                                       HORTICULTURE NEW ZEALAND | 35
Megatrends
1. Future world consumers              People want to know where their       2. Growing populations
                                       food comes from and would
More than ever before, consumers                                             By 2050, it is projected that the
                                       like to connect with the grower
are shaping and influencing                                                  global population will reach nine
                                       directly and understand their
our food systems. Technology is                                              billion. Growers and agricultural
                                       story. Companies such as My Food
providing them with instant access                                           companies will be required to
                                       Bag are changing our access to
to the latest in food solutions via                                          re-think how they can grow
                                       food. The provision of these food
multiple digital platforms.                                                  more with less. As life expectancy
                                       solutions - delivered straight to
                                                                             increases, and health improves, it is
As populations increase, and ethical   our doorstep, with customised
                                                                             estimated that globally we will need
standards for food production          ingredients and instructions
                                                                             60 percent more food by 2050.
hit the spotlight, novel ways to       on how to create chef-inspired
create “clean” food will flood the     meals - is changing the convenience   Increasing resource constraints –
food systems. Cellular agriculture     of food and and shaping our           coupled with the effects of climate
and agri-food technologies will        food systems.                         change and water scarcity - mean
recreate food to get more out                                                that growers are under pressure to
of less resources. Foods that are                                            find viable alternatives to traditional
specifically tailored to meet unique                                         farming practices. As a nation with
requirements for each individual                                             access to natural resources, New
will recreate how we eat food, and                                           Zealand can capitalise on this and
reflect the move towards ‘food as                                            add value to the wider food system
fuel’ for maximum nutrition.                                                 with our natural products.

36 | HORTICULTURE NEW ZEALAND
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