Farming and Food: NZ setting up a billion-dollar Apple and Pear industry in 2 years

Summary

• Amid COVID-19, harvesting of apples and pears in NZ continued by following strict regimes, with ~14 thousand workers harvesting ~ 600 thousand tonnes of fruit (as on 3 April 2020) for processing, as well as consumption in both domestic and international markets.
• At the virtual AGM meeting of New Zealand Apples and Pears Inc (NZAPI) conducted on 5 August, the total export returns for the season 2019/20 were highlighted as NZ$870 million (US$577 million), representing a substantial increment of NZ$500 million in the past eight years.
• Mr Alan Pollard Chief Executive of NZAPI stated that, with a considerable number of exports, and policy and regulatory settings in place, the apple and pear industry is well-positioned to reach its target of NZ$1 billion by 2022 and NZ$2 billion by 2030.

We often hear an apple a day keeps the doctor away! But an apple may do more than just keeping the doctor away!

Read on!

Apple is deemed as one of the most popular and most supplied fruits worldwide, which is used in making a range of food items such as cakes, shakes, pies, and wines obtained from apple fermentation.

Do you know, this healthy fruit (containing numerous vitamins and minerals) grows on trees in mostly temperate regions across the globe.

Interestingly, New Zealand has the ideal apple-growing weather condition, as the island nation gains higher sunshine levels and has a milder climate as compared to other countries.

Apple and pear are the most widespread fruits worldwide

As per U.S. Department of Agriculture (USDA), world production of apples for 2019/20 has been projected to rise ~5.0 million metric tons (tons) to 75.8 million and for pears is expected to increase by 2.5 million tons to 23.0 million. This estimation incorporates the effects of COVID-19 on trade and consumption in apples and pears.

Organic food industry is gearing up for an unprecedented growth

You must have heard about organic food. Right!

Well, the food cultivated, or grown sans any application of artificial chemicals, antibiotics, hormones, or genetically modified organisms are believed to have a higher level of antioxidants and vitamins.

With numerous nutritional advantages and purity attached with the process of production and the actual output, the organic food industry is thriving, and without a doubt, organic food has potential to be the mass product.

Having said that, Kiwi nation’s apple growers choose either “soft chemicals” or biological interventions for pest control, meaning low levels of chemical residue on the skin of an apple.

Furthermore, the NZ apple industry has an abundance of intelligent, as well as pioneering minds who are continually looking towards-

• Creating new, and tastier apple varieties;
• Safer and effective methods of pest control; and
• Smarter pack house technology, encompassing the capability to offer consistent quality, safe and delicious food to the consumers across the world.

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A quick fact!

NZ apples are appreciated around the globe for their exceptional flavour, minimal chemical residues, beauty, colour, and crisp texture.

Moreover, owing to different apple preferences by evolving palates of consumers across markets of North America, Asia and Europe; Kiwi nation’s apple exporters have developed several varieties of apples for meeting their diverse preferences for taste, size and colour.

Apple and pear harvest continued under strict regimes

Amid pandemic, the harvesting of apples, pears were well underway, with over 14,000 workers harvesting ~ 600 thousand tonnes of fruit (as notified on 3 April 2020) intended for processing and consumption across both domestic, as well as international consumers. Notably, the picking, packing, and shipping of fruits had continued with very stringent regimes in place.

In addition to providing fresh and healthy fruits to Kiwi natives, the apple growers were also focussing on export.

Did you read; Did you miss anything around COVID-19 Quarantine fees: How Kiwis are dealing on the economic front?

As per a report by USDA, apple exports are forecasted to rise by 2.3% in comparison with the previous year to 400 thousand metric tons (MT) in 2019/2020 and pears are estimated at 4 thousand MT in 2019/2020.

Source: USDA report

Source: USDA report

Apple and pear industry on track to be billion-dollar export industry by 2022

The representative industry body for the apple, pear and nashi industry, New Zealand Apples and Pears Inc (NZAPI) held its virtual Annual General Meeting in Hastings on 5 August 2020.

NZAPI reported that the gross volume of the 2019/2020 crop reached 566,200 tonnes, similar to the previous year and the export volumes noted an upsurge of 5 per cent y-o-y to 395,000 tonnes.

The industry body highlighted that the total export returns for the year reached NZ$870 million (US$577 million), reflecting an increment of NZ$500 million over the last eight years.

Notably, NZAPI’s published results for the period ended 31 March 2020, demonstrated trading conditions of pre-pandemic period, which were for 2019 growing season and 2019-20 selling season.

Mr Alan Pollard, Chief Executive of NZAPI, said that “with export earnings at this level, and despite the impact of COVID-19, with the right regulatory and policy settings in place to support industry confidence and growth, the apple and pear industry is well placed to reach its NZ$1 billion target by 2022 and NZ$2 billion by 2030,”

Additionally, Mr Alan said that NZAPI is looking forward to next year by focussing primarily on how the pipfruit sector could support Kiwi nation in rebuilding and recovering during post-pandemic phase.

Furthermore, Mr Alan added that “NZAPI is playing a crucial role in that recovery strategy, working collaboratively with government and across the horticulture sector to identify opportunities domestically and overseas. This will lead to growth and innovation across horticulture, increased sustainable job opportunities for New Zealanders, and a shot in the arm for provinces at a time when they really need it.”

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