A major strategic review of the NZ top-fruit industry has concluded that New Zealand is losing its innovative edge in the marketplace and its crop profile is too skewed to Gala and Braeburn.
The review was carried out by David Cullwick of Innomarc Consultancy for industry body Pipfruit New Zealand. Full results will be released to members early in 2007, but the review found several key issues that need addressing if the NZ industry is to maintain sustainability.
The review found that the New Zealand industry has a future, but that top fruit is losing its traditional edge with consumers as other fruits and health foods climb up the popularity stakes. Consolidation among major retailers globally is also affecting opportunity for NZ growers and the market perception internationally is that New Zealand has lost its quality edge compared to competitors.
Chile is a major factor. Dr Cullwick’s review showed that Chile has caught up with New Zealand in many areas and also benefits from lower production costs. Meanwhile, NZ exporters are falling behind in terms of best practices in the supply chain and distribution.
But where NZ has been considered to lead the field in the past - in innovation - the gap with competitors is closing. And the new varieties of just a decade ago - Royal Gala and Braeburn - now account for too great a proportion of New Zealand’s export volumes. Pipfruit NZ must now try and promote the activities of its joint venture innovation arm Prevar to the industry in order increase grower confidence.
Other issues to watch for the future are market access and NZ must improve here to thrive in the long term, finds Dr Cullwick. The apples and pears sector is a high risk one in terms of investment compared to other agri-business sectors, but the key finding of the report, according to Dr Cullwick was that there is a future for NZ growers, but market-information sharing will remain crucial to success.
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