Horticulture growers in New Zealand are doing well despite tough economic conditions, and returns on apples and kiwifruit will be good over the next year, according to the country’s Ministry of Agriculture and Forestry (MAF).
The Ministry’s annual horticulture and arable monitoring report says that financial results for many growers in 2008 had improved regardless of rising costs, according to Radio New Zealand.
MAF deputy director of general policy Paul Stocks said while the majority of fruit and arable growers had a positive year, most vegetable crops were worse off, because rising costs weren’t overcome by yield or price increases.
The report also predicted a good demand for pipfruit in New Zealand’s export markets, with prices improving to a forecast average of NZ$22.40 per carton, the highest price in six years.
For kiwifruit, the report said prices are expected to improve due to good market conditions in Europe, good size and quality from orchards and a falling exchange rate on the New Zealand dollar.
The report pegged growth of further returns for growers this season at 20 per cent. MAF senior policy analyst Murray Doak said the report also predicts a 23 per cent increase in farm working expenses.
New Zealand group Federated Farmers said the Ministry is underestimating farmers’ input costs, and calls the 23 per cent figure optimistic.
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