Apple export outlook brighter

Stephen Darling, at his Teviot packhouse with a box of New Zealand rose apples, bound for...
Stephen Darling, at his Teviot packhouse with a box of New Zealand rose apples, bound for Thailand. Photo by Sarah Marquet.
Increased demand and near-record prices in some markets are strengthening the New Zealand apple industry, although growers are still yet to see much of those higher returns, due to the unfavourable exchange rate.

Bad weather, such as hail in Argentina and drought in America, had decimated competing crops, meaning some New Zealand growers were seeing returns of more than $US40 per carton (18kg or about 100 apples) for their apples, Pipfruit New Zealand chief executive Alan Pollard said.

"The industry has suffered ...from low returns so the more we get the better but the exchange rate is not helping."

Yesterday, $US40 was worth about $NZ50.

Ten years ago, that would have been about $NZ90.

For Otago apples, in particular, exports to India were a "success story", Pipfruit director and Teviot orchardist Stephen Darling said.

Latest figures show apple exports into India have almost quadrupled, from 275,000 cartons in 2008 to almost a million so far this year.

He said it was becoming a more important market, especially for varieties such as royal gala and red delicious, as the European market had been weaker, although a recent Ministry of Primary Industries report noted slightly higher returns for jazz apples that did sell in Europe.

However, the Indian market was not without problems.

Growers, already hampered by unfavourable exchange rates, have to pay a 50% trade tariff.

"But in spite of that, we are still building volumes ... so it is important that the Government's free trade negotiations come to a conclusion, because any reduction in that tariff will strengthen our ability to send apples into India," Mr Darling said.

New Zealand began negotiating a free trade deal with India in January 2010.

The New Zealand Ministry of Foreign Affairs and Trade website refers to the latest round of negotiations, which took place in June.

It said "useful progress was made in a number of areas, but progress overall remains mixed".

About 15 million cartons are expected to be exported this season.

 



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