SPONSORED
Elevate Magazine
October 23, 2024

Apple, Pear Sector’s Revenue Reaches $2 Billion

apple, pear sector’s revenue hits $2 billion

New Zealand’s apple and pear sector contributes almost $2 billion to the country’s national economy in 2023, new research has found. 

The research from consultants MartinJenkins commissioned by industry body NZ Apple and Pears Inc. (NZAPI) said the apple and pear sector boosted its export value, rising from $347 million in 2012 to over $892 million in 2023, primarily driven by an increase in productivity and value gains. 

It has also hired over 12,000 permanent and seasonal employees.

The industry has regained significance and has contributed largely to regional GDPs. In Hawke’s Bay, the industry injected $424m to the region’s GDP, $166m in Tasman, $25.5m in Tairāwhiti, and $28m to Central Otago’s regional GDP.

NZAPI chief executive Karen Morrish noted that it has been a decade since the industry last assessed its economic worth. 

“We knew we were having a considerable impact on the communities around us, but we actually quantify that. We knew there had been significant growth in the last ten years, but to get that in writing is great.”

Morrish said that the investments made by growers in new varieties and productivity improvements have paid off.

“Growers have been planting higher-value apple varieties like Rocket, Dazzle, Joli, and Envy, which are doing really well in Asian markets. They’re also growing in smarter ways; it’s all about growing yields on the tree and getting more from the same amount of hectares,” she added. 

Morrish also stated that the industry is positioned to double its exports once more over the next ten years.

“We have an industry strategy to double exports within 10 years. That aligns with the government’s desire to double food and fibre export revenue in the same period.”

Morrish noted that despite the industry’s growth, profits for growers have not seen a corresponding increase. The overall production costs have risen, similar to trends in other areas of horticulture and agriculture, which has tightened profit margins. NZAPI aims to enhance returns for growers by examining various factors within New Zealand, including labour, capital compliance, market access, trade terms, and environmental regulations. 

She said there are numerous elements to consider, but the focus will be on finding smarter ways to operate moving forward.