PMAC weekly update 16th to 23rd November

New Zealand Industry and Community news

This weeks’ edition contains information on:

Revival of Māori Horticulturists; Mike Chapman to step down as HortNZ CE; Innovative America’s Cup technology helps kiwifruit industry with picker shortage; Zespri makes final shipment of NZ season; Mr Apple fruit handing site up for sale; Millions of flowers now sold on live stream auction platform; Florists feel pressure as flower shortage pushes up prices; 'Never a dud': Gisborne growers tout 'perfect' avocados; European potato ‘dumping’ hurting; NZ tomato industry sees growth potential in greenhouse vegetable growing; Step up to management with new Level 6 Diploma in Horticulture Production; Slim pickings - reporting the shortage of labour for fruit and veges; Hawke's Bay growers hopeful after Pick the Bay work expo draws hundreds; Northland berry farm first business to repay Provincial Growth Fund loan; Aussie Govt attempts to pinch Kiwi seasonal workers, offering $2000 to work in Australia; Cut-flower farming grew after few seeds planted; Katikati orchardists see economic benefits of Farm Environment Plans; Opportunity lies in field peas; Speak out and be 'deleted': Suppliers fear supermarket retribution; Envy™ apples to star in this season's "Countdown to Christmas"

1. New Zealand News

1.1. Revival of Māori Horticulturists The rapid revival of Māori horticulture was unmistakeable at this year’s Ahuwhenua Trophy Awards, with 2020 marking the first time this iconic Māori farming event was dedicated to horticulture enterprises.

Over the past 14 years Aotearoa has had a 300 percent growth in Māori horticulture, with more growth predicted. The proportion of Māori-owned horticultural land area has quadrupled since 2006. It is set to grow substantially, and innovation will catalyse this growth. The inaugural finalists for the horticulture award are all kiwifruit growers from the Bay of Plenty: Ngāi Tukairangi Trust from Tauranga, Hineora Orchard from Te Kaha and Otama Marere from Te Puke.Full article available here

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Commentary 1.2. Mike Chapman to step down as HortNZ CE HortNZ Chief Executive Mike Chapman will stand down in 2021. Mike has given the HortNZ Board notice of his intention to step down as HortNZ Chief Executive during the course of 2021. Mike will continue his duties until his successor takes office, likely to be sometime towards the middle of the year. The Board has now begun the recruitment process.

‘By the time Mike leaves, he will have been our CE for more than five years. He’s made a significant contribution to the organisation and our industry during this period,’ says HortNZ President, Barry O’Neil. ‘While the Board respects Mike’s decision, he will be sorely missed and appropriate arrangements will be made to formally recognise his achievements around his departure.

1.3. Innovative America’s Cup technology helps kiwifruit industry with picker shortage Christopher Miller, a senior software and electronics developer with Emirates Team New Zealand spanning four America’s Cup campaigns, says artificial intelligence and image processing was critical to the team's success. He set about trying to answer the questions can you develop a system that can count kiwifruit and has founded orchard scanning and analytics company Fruitometry The traditional way of counting this block would take one person about 2 hours for about a one per cent sample of that block, Fruitometry can scan 100 per cent of the block in 15 minutes. Full article available here

1.4. Zespri makes final shipment of NZ seasonThe final shipment of this season’s New Zealand kiwifruit export campaign has departed the Port of Tauranga. Alastair Hulbert, chief global supply officer of Zespri, said the single desk marketer used 49 chartered reefer vessels and 17,829 refrigerated containers to ship around 157m trays of kiwifruit to more than 50 countries around the world this season. Zespri shipped over 87m trays of SunGold kiwifruit over the 2020 season, while 70m trays of green kiwifruit were supplied to customers across the globe. Full article available here

1.5. Mr Apple fruit handing site up for saleA housing development, rest home or childcare facility or a boutique retail hub are among future possibilities mooted for a large fruit-handling site for sale on Havelock North’s suburban fringe.The site in Napier Road borders residential housing on the northern edge of the township. Its multiple sheds and cool stores are currently used as a fruit storage facility for New Zealand’s biggest apple exporter, Whakatu-based Mr Apple.Full article available here

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1.6. Millions of flowers now sold on live stream auction platformMillions of dollars worth of New Zealand flowers are being traded using a virtual auction platform which has seen a surge in buyer usage since lockdown. The locally designed online auction took more than three years to build and beta test - and now allows retail buyers to enter an auction remotely, review and purchase their flowers through live streaming cameras - a first for the New Zealand market.Full article available here

1.7. Florists feel pressure as flower shortage pushes up pricesWholesale cut flower prices more than doubled this year, cutting retail margins to the bone, florists in New Zealand say.Supply fell earlier in the year when alert level 4 lockdown restrictions made it hard for growers to work. Some abandoned crops completely because they were unable to tend them.Flowers are sold at auction, which adds competitive pressure on prices. Florists said bidding was starting very high. Full article available here

1.8. 'Never a dud': Gisborne growers tout 'perfect' avocadosGisborne growers David and Judi Grey have developed new varieties they say are perfect, every time. Judi says the green-skinned varieties, Titan, Eclipse and GreyStar, have every attribute you could want in an avocado. David says one of the Hass variety's disadvantages is its skin ."All those little bumps ... get knocked around and shaved off. You see fruit in the supermarket which you wonder if it has rolled the last couple of hundred metres down the road."

Gisborne's Riversun nursery is propagating the new avocados and one of David and Judi's neighbours is planting hundreds of one of the varieties. And Australia's largest grower of Bowen mangoes, who is also an avocado grower and researcher, thinks the new varieties have promise. Full article available here

1.9. European potato ‘dumping’ hurtingAn influx of European potato fries into New Zealand has already impacted on domestic growers, with less product planned for growing and staff job losses.Hewson Farms, in Mid Canterbury, grows on average around 350ha of potatoes a year as part of its operation. Director Ross Hewson said the influx of European fries into New Zealand, as shown in New Zealand trade figures, resulted in more than 40 containers of product flooding into the domestic market. There was an even larger influx into Australia, he said.

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McCain Foods responded to the glut in product by limiting volume being produced to supply to the market this year. As a result, Mr Hewson said the company had reduced the number of permanent employees it has in response to tightening market conditions, increasing costs of labour, inputs and compliance.

Evidence given by industry members, such as Mr Hewson, in the Potatoes New Zealand (PNZ) Pandemic Industry Recovery Plan application, completed in September, has prompted the Ministry for Business Innovation and Employment’s (MBIE) trade remedies team to launch an investigation into the threat posed by surplus frozen fries being imported into the country.

Mr Hewson praised the backing of quick service restaurants such as McDonalds, which had spoken out and voiced their support to only use locally produced product in New Zealand and Australia. "It sets a benchmark we hope all New Zealand food retailers such as Progressive and Foodstuffs will be supporting," he said. Full article available here

1.10. NZ tomato industry sees growth potential in greenhouse vegetable growingIn October, TomatoesNZ formulated its new strategy for the next 3-5 years, with a view to "building a resilient, sustainable and profitable New Zealand tomato industry." Barry O'Neil, chair of TomatoesNZ, sees a number of challenges and opportunities in the country's tomato sector.

In recent years, the fresh tomato production area in New Zealand has remained stable, with some consolidation of ownership. "New Zealand’s fresh tomato production made the transition from outdoor to glasshouses in the 1990’s", Barry explains. "Almost all of the fresh tomatoes consumed in New Zealand are indoor grown. Most of our production (about 90%) is consumed domestically."

In the article Barry touches on the industries challenges that climate change legislation is causing, labour issues. COVID-19 has impacted export trade, with reduced demand in However Barry considers the “ future is very positive, as we are already well on the journey to sustainable growing systems, something our consumers are wanting to see happen, and New Zealand is well placed compared to other countries with renewable energy options. We are working with our government regarding transitioning to renewables, and how we can encourage and support growers in this regard. Technology advances in glasshouses will continue to drive increased productivity, including introduction of more automation." Full article available here

1.11. Step up to management with new Level 6 Diploma in Horticulture ProductionThe New Zealand Diploma in Horticulture Production is a Level 6 NZQA-accredited course available online and nationwide through Fruition Horticulture. The fees-free two-year programme has been designed to develop the skills and knowledge of people employed in the industry so they can contribute at a senior technical or managerial level. Enrolments for the 2021 intake are being taken now.

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“This programme is aimed at people who already have several years of industry experience and who are highly motivated to advance their careers and take advantage of management opportunities as they arise. Students are expected to remain employed during the university-level programme, with course content delivered online to fit around their work.

Fees will be covered under the Targeted Training and Apprenticeship Fund (TTAF) as horticulture is an industry where demand from employers is expected to grow during New Zealand’s recovery from the impacts of COVID-19. This funding provides an avenue for students wanting to upgrade their tertiary qualifications or transfer from other industries. Full article available here

1.12. Slim pickings - reporting the shortage of labour for fruit and veges With borders closed, a severe shortage of people to pick fruit and vegetables could create serious shortages and high prices this summer. Politicians, growers and media personalities have all sounded off about it in the media - but the people who actually do the work are almost entirely absent in coverage of a problem brewing long before Covid-19.

This article is from RNZ and gives examples from around the country of employers affected by the lack of RSE workers. Examples include Mr Heap’ a courgette grower in Northland Southland Blueberry growers, Auckland strawberry grower and Cherries in Central Otago.

The urgent story of the moment is the critical labour shortage - and what it might mean for growers, consumers and workers - and what can be done about it right now. The needs and fears of the growers are real. But this is also the story of a $9 billion dollar industry whose exports have gone up this year in spite of Covid-19 disruption - and how it has ended up highly dependent on about 15,000 foreigners working for low wages. Full article available here

1.13. Hawke's Bay growers hopeful after Pick the Bay work expo draws hundredsAn expo aiming to get people involved in jobs in the horticulture and viticulture industries has drawn about 500 people. It was held to help support the sectors, which have been facing worker shortages this season.Stands at the event provided information about summer work in the industries including picking fruit, forklift driving, packhouse work and longer-term career opportunities. Attendees ranged from high school students to retirees. Full article available here

1.14. Northland berry farm first business to repay Provincial Growth Fund loan A Northland berry farm is the first business to repay a loan from the Provincial Growth Fund.

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Maungatapere Berries received the $2.28 million loan in July 2019 to fund the first phase of a plan to rapidly expand its high-tech hydroponic berry growing operation. It was repaid in full last week.

The loan allowed the family-run Whangarei business to add an extra 4.2 hectares to its operation, which now includes high-value raspberries, blueberries and blackberries, and employ 56 extra full-time workers. During the peak picking season from August to June, up to 180 people are employed.

The business was able to investigate alternative crops which enabled us to provide a reliable 12-months of work to our employees , to train our new people through the development phase and provide many of our full-time employees with ongoing tertiary training and extensive pastoral care.”

By repaying the loan, the business had shown how hydroponics could be commercially successful and deliver increased employment opportunities in Northland, Malley said. Full article available here

1.15. Aussie Govt attempts to pinch Kiwi seasonal workers, offering $2000 to work in AustraliaThe Australian Government is attempting to pinch New Zealand's seasonal workers in a bid to strengthen their agricultural harvesting industry by offering New Zealanders $2000 to move across the ditch. In an email to Kiwis, sent via a not-for-profit hostel, backpackers and travel organisation, the Government is trying to entice New Zealanders by encouraging them to do their "big OE in OZ".The offer, which has been advertised on the Australian Government jobseeker website, promises Kiwis $2000 if they complete six weeks' work of harvesting (20 hours a week minimum) in Australia's regional areas.

"From 1 November 2020 to 31 December 2021, relocation assistance will be available for people to move and take up jobs in agriculture, including harvest work," the ad says. "You may be eligible for financial assistance to help with the costs of travel and accommodation when you relocate to take up a short-term agricultural work opportunity."

There are now calls to the Government to ease restrictions on temporary visas to save many businesses from collapsing. Full article available here

1.16. Cut-flower farming grew after few seeds plantedAnna Mackay, of Spotts Creek Station in the Cardrona Valley, has diversified into cut flowers. I have taken over the farm’s front paddock — a prime position for my new adventure of small-scale floriculture beneath open skies and in clean, fresh air. This is her third growing season.. The article is a summary of a conversation about her business and how she plans to grow and diversify. Full article available here

1.17. Katikati orchardists see economic benefits of Farm Environment Plans

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Orchard management practices that enhance the natural environment can bring economic benefit, ensure growers meet new legal requirements and the demands of international consumers, say Phillipa The couple has been growing kiwifruit since the 1980s and now, as part of the work of the Project Parore catchment group to improve water quality in the northern Tauranga Harbour region, are preparing a Farm Environment Plan (FEP) for their Ongare Point kiwifruit orchards.

While the plan will formally record the years of work that has gone into enhancing the Ongare Point orchard's environment, having an FEP is also in line with the Government's Essential Freshwater Strategy and Zespri's new standards. This article talks about some of the practises thew couple use to minimise their impact on the environment. Full article available here

1.18. Opportunity lies in field peasThe appetite for plant-based meat substitutes has emerged as more than just a fad with consumer preferences now demanding specific brands and ingredients. A new report by agribusiness banking specialist Rabobank reveals the growth of plant-based meat substitutes as creating new opportunities for grains, oilseeds and pulse producers. The report says current New Zealand consumption of plant-based proteins is dominated, as it is in Europe and North America, by soy and wheat proteins accounting for more than 70% of the proteins used.

NZ’s prospects of capitalising on the growth of plant-based animal protein consumption would largely hinge on greater demand for products utilising protein sources other than soy, RaboResearch grains and oilseeds analyst Cheryl Kalisch-Gordon said. In addition she says that for NZ provenance will support success.

Global growth in the total meat substitutes category of tofu, veggie burgers and analogues, averaged 4% a year between 2014 and 2019, well above that of the much larger total global meat consumption.

“Increased usage of field peas as a protein source in meat substitutes creates the greatest opportunity for NZ,” Kalisch-Gordon said. “Currently, field peas are the only pulse produced in NZ at scale.“At just 8,000 tonnes per annum, this is still a relatively small volume.” There is no protein isolate capacity in NZ, so plant-based meat substitute consumption in NZ relies on imported consumer-ready products. There is scope to increase to 20,000 t of field pea production with appropriate price signals, but this would still represent a small supply base on which to build processing capacity. “Given the challenges in achieving competitive unit costs in production and fractionation without scale, a NZ supply chain aiming to secure opportunities from plant-based meat substitutes would be relying on an even stronger provenance premium to be paid by manufacturers and consumers to cover the costs of production,” she said. Full article available here

Bits and pieces1.19. Speak out and be 'deleted': Suppliers fear supermarket retribution

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Some supermarkets are threatening to "delete" suppliers' products from shelves if they speak out about tactics like 45% margins and billing for thefts, a supplier industry group says. The accusations come as the government orders its promised year-long Commerce Commission market study into supermarkets to see if New Zealanders are paying fair prices for groceries.

"In order to get your product on the shelf today you have to offer supermarkets a gross margin of anywhere between 30% and 45%, just to get on the shelf," "Then there will be additional costs to promote, shelf costs, merchandising costs. There'll be additional claims, rebates, any opportunity to get more income out of you, the list is endless. "I believe that most [suppliers] have little or no negotiation power… They're forced to be in a position of being a price taker, it's like, 'take this on board or don't supply us, or have your product deleted'." The Food and Grocery Council's proposed code would protect suppliers from threats of products being pulled from shelves, Rich said. Full article available here

1.20. Envy™ apples to star in this season's "Countdown to Christmas" Envy™ apples will be celebrating the best of the holidays with the Hallmark Channel and its “Countdown to Christmas,” the network’s popular annual series of all-new original holiday films. With its 24/7 holiday programming, the Hallmark Channel has for the past four years ranked as the most-watched network in the USA in Q4 with women aged 25-54.

T&G Global, who owns the Envy™ apple brand, is supporting the effort with additional digital advertising, social media content, and a public relations push for a 6-week activation that is expected to exceed 200 million impressions during the holiday season. T&G Global has launched a new website at HolidaysWithEnvy.com that features a series of recipes inspired by several of the holiday films that will premiere as part of the “Countdown to Christmas” this season. Full article available here

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