A decade ago, the Otago Daily Times reported the Central Otago apple industry was crumbling. Growers were leaving fruit unpicked and some were cutting down their pipfruit orchards. Ten years later, a labour market survey paints a rosier picture with new pipfruit plantings on the rise, especially in the Teviot Valley. Central Otago reporter Lynda van Kempen finds out what has changed.
Cherries might be the glamour crop nowadays in the Central Otago fruitbowl but they have not upset the apple cart.
In fact, the apple industry is experiencing something of a renaissance, more than a century after early plantings in the district.
Growers are planning a 12% increase (53ha) in pipfruit plantings in the next five years, mostly in the Roxburgh and Ettrick areas.
Orchardists interviewed for the recent Central Otago Labour Market survey represented almost 100% of the total hectares in horticulture and revealed strong growth in the industry.
The growth was predicted to continue, mostly driven by increased plantings of cherries and pipfruit.
Pipfruit New Zealand director and Teviot Valley orchardist Stephen Darling says there has been a ''quiet revolution'' in apple growing in Otago over the past decade.
''Pipfruit has seen considerable growth in new plantings during the last five years especially.
''The planted area statistics show an increase for Otago from 350ha in 2007, growing to 407ha in 2015.
''However, what this doesn't show is the very major restructuring that has occurred in most orchards, with the removal of older trees and varieties, and the re-establishment of new varieties and new closer plantings that are much more efficient and produce higher yields.''
In 1998, there were 790ha planted in pipfruit in Otago and the export production was 8460 tonnes.
Following poor export returns from Europe in the 2005-06 year, many growers left the pipfruit industry, and the planted area had decreased to 350ha by 2007, he said.
The export production from Otago that year was 6857 tonnes.
By last year, the area had increased by 11% but the export apple production increased to 12,925 tonnes - almost double the export volume compared with 2007.
''And the 2014 numbers don't portray the future yield of apples from current planted young trees that are part of the planted area stats, '' Mr Darling said.
The growth in pipfruit growing in Central Otago had been the result of long-term determination and dedication by growers in the face of hard times and poor returns.
''Those growers who have persisted have expanded their orchards, invested in new trees and high tech sophisticated packing operations.
''The confidence to make these investments has come largely from the security of labour supply provided by the Government RSE [recognised seasonal employment] scheme, which allows Pacific Island people to come for seasonal pruning, harvesting and packing work.''
This security had created many permanent fulltime skilled jobs for Otago people, at a supervisory and operational level, he said.
''Any failure to maintain and enhance the RSE scheme will directly threaten our Otago fruit industry and the local people and communities employed by it.''
The change in export markets for apples had been dramatic, and the prospect for increased prices and sales to non-traditional markets was exciting, Mr Darling said.
''We are still paying a 50% entry duty to export apples into India. Any progress from the present Government FTA negotiations with India will be very beneficial for apple sales there.''
The change in varieties was driven from the need for higher yields, faster production, better taste and looks.
''Our hope is that these attributes, together with better market returns, will restore profitability.''
The pipfruit industry was investing $2.7million over three years in the Plant and Food Research pipfruit new variety breeding programme, he said.
''Several of the most promising new releases may form the basis of our next generation of new apples and pears.''
The Central Otago horticulture industry grew from gold-miners turning their hand to fruitgrowing when the gold ran out, especially in Alexandra, Earnscleugh and Cromwell areas.
''What is less well-known is that large-scale commercial orchards were bankrolled and developed in Central by prominent Dunedin businessmen early in the 20th century.''
Any expansion in pipfruit plantings should have major benefits for the local economy, he said. In 2014, export pipfruit from Otago earned an estimated $23million.
Fruitgrowing was the most intensive employer of all Otago primary land use.
An estimated 40% to 60% of all orchard income was returned to local communities in the form of wages.
''No other farming type even comes close,'' Mr Darling said.
''When the investment in orchard and packing facilities is included, the economic benefit to orchard supply businesses, transport companies and local townships is very substantial.''
So, despite fluctuating fortunes along the way, the pioneering pipfruit growers a century ago were on the right track.
