6.19 Blackcurrants
6.19.1 Blackcurrant industry profile
Blackcurrants are grown commercially in New Zealand by approximately 21 growers, with production of around 5,000 tonnes per annum. Blackcurrants are a prescribed product under the New Zealand Horticulture Export Authority. The recognised product group is Blackcurrants New Zealand Inc. (BCNZ) (Product Group Manager – Anna Tier, www.blackcurrants.co.nz). Blackcurrants New Zealand’s role is to represent growers, to ensure sustainable growth and profitability in the New Zealand blackcurrant industry, and to promote NZ blackcurrants as a premium product.
The industry strategic plan:
• clearly defines the future direction of the NZ Blackcurrant industry
• provides guiding principles for BCNZ’s investment of grower collected levies
• prioritises the activities to ensure that BCNZ effectively drives the desired change in the NZ blackcurrant industry
As a part of this strategy the vision of the Industry for 2020 is to become: “A fully integrated industry that delivers the goodness of New Zealand blackcurrants to the world”
The Mission of BCNZ in achieving this is: “To inspire, co-ordinate and drive meaningful partnerships between New Zealand Blackcurrant growers, processors, marketers and researchers”
Source: Blackcurrants NZ Inc.
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6.19.2 Blackcurrant exports
Blackcurrant exports had a combined value of $6.9 million in 2018, 46% lower than the total 2016 value of $12.7 million. Frozen concentrate, individually quick-frozen blackcurrants and “other” blackcurrants have all declined over the period. “Other” blackcurrant exports showed a significant increase in exports to Japan.
The main blackcurrant-based export commodity remains frozen juice concentrate, which was worth around $4.5 million in 2018, a 52% decrease on the $9.3 million exported in 2016 (and only 32% of the $14m in 2012). Frozen juice concentrate is an ingredient in drinks such as Ribena®, and it is noted that exports to Malaysia (where Frucor Beverages parent company Suntory Beverage and Food) have a 3rd party producing Ribena®) have reflected this. In 2017, Frucor made a decision to cease purchasing NZ blackcurrants for juice concentrates and this resulted in a number of growers exiting the industry. The rapid fall in exports is a direct reflection of this commercial decision. The global nutraceutical market remains a focus for blackcurrant industry growth.
Table 6.19.1: Frozen blackcurrant concentrate (2009.89.20.15, 2009.89.30.25) export markets 2016-18 (year ending June, 1,000L and $NZ FOB)
|
Market |
2016 |
2017 |
2018 |
|||||
|
Volume |
Value |
Volume |
Value |
Volume |
Value |
|||
|
Malaysia |
612 |
6,932,162 |
532 |
6,654,698 |
158 |
1,886,444 |
||
|
Australia |
145 |
658,369 |
45 |
377,853 |
115 |
1,103,157 |
||
|
Japan |
67 |
684,051 |
75 |
780,535 |
67 |
648,659 |
||
|
Philippines |
38 |
447,448 |
38 |
480,902 |
19 |
232,658 |
||
|
United States of America |
55 |
226,427 |
74 |
360,709 |
37 |
196,290 |
||
|
Taiwan |
14 |
117,452 |
13 |
77,600 |
16 |
142,928 |
||
|
Barbados |
27 |
151,149 |
33 |
106,294 |
10 |
115,406 |
||
|
Korea |
0 |
0 |
29 |
182,816 |
13 |
86,619 |
||
|
European Union |
0 |
1,146 |
0 |
0 |
8 |
29,060 |
||
|
Indonesia |
1 |
11,964 |
1 |
1,401 |
1 |
9,004 |
||
|
Thailand |
0 |
0 |
1 |
6,644 |
0 |
0 |
||
|
China |
6 |
49,194 |
0 |
0 |
0 |
0 |
||
|
Trinidad & Tobago |
8 |
47,563 |
0 |
0 |
0 |
0 |
||
|
Total |
974 |
$9,326,925 |
841 |
$9,029,452 |
443 |
$4,450,225 |
||
|
% change (yr/yr) |
33% |
19% |
-14% |
-3% |
-47% |
-51% |
||
Volume = 1,000L
Source: Statistics New Zealand
Exports of individually quick frozen (IQF) blackcurrants were worth $1.3 million in 2018, a 29% decrease on the $1.9 million exported in 2016. Japan remains the largest market with 75% of all exports by value in 2018 being sent there. Other markets fluctuate between years.
Table 6.19.2: Individually Quick Frozen blackcurrant (0811.20.09.21) export markets 2016-18 (year ending June, tonnes and $NZ FOB)
|
Market |
2016 |
2017 |
2018 |
|||
|
Volume |
Value |
Volume |
Value |
Volume |
Value |
|
|
Japan |
373 |
1,220,645 |
315 |
865,635 |
361 |
1,013,234 |
|
China |
97 |
356,507 |
0 |
0 |
100 |
229,040 |
|
Taiwan |
22 |
111,793 |
40 |
146,509 |
15 |
41,860 |
|
Indonesia |
0 |
0 |
0 |
0 |
5 |
31,213 |
|
Korea |
45 |
211,789 |
10 |
40,676 |
6 |
25,631 |
|
Thailand |
0.4 |
3,334 |
16.0 |
61,948 |
0.4 |
3,309 |
|
Fiji |
0.5 |
3,130 |
0.5 |
3,040 |
0.3 |
1,948 |
|
Singapore |
0.05 |
354 |
0.15 |
1,004 |
0.10 |
636 |
|
Norfolk Island |
0.04 |
235 |
0.06 |
331 |
0.09 |
496 |
|
Tonga |
0.0 |
0 |
0.0 |
0 |
0.002 |
35 |
|
Papua New Guinea |
0.00 |
0 |
0.04 |
170 |
0 |
0 |
|
Myanmar |
0.2 |
1,496 |
0 |
0 |
0 |
0 |
|
Philippines |
0.02 |
145 |
0 |
0 |
0 |
0 |
|
Viet Nam |
0.002 |
1 |
0 |
0 |
0 |
0 |
|
Total |
539 |
$1,909,429 |
382 |
$1,119,313 |
489 |
$1,347,402 |
|
% change (yr/yr) |
-29% |
-23% |
-29% |
-41% |
28% |
20% |
Source: Statistics New Zealand
Blackcurrant exports other than frozen concentrate or IQF product forms includes a number of different products (e.g. puree, pomace) with a wide range of values, including processed powder products which have a value of several hundred thousand dollars per tonne. Exports of these products have decreased by 22% since 2016. China remains the largest market with 95% of the volume and 75% of the value of all 2018 exports. All markets have fluctuated significantly over the last three years. BCNZ have recently worked with NZ Customs & HEA to develop more HS codes to better describe the exported product forms, including 1106.30.00.10, 1106.30.00.15 and 12.99.00.13, which can be used for exports of blackcurrant powder and blackcurrant pomace. Please note that exports under these codes have not been included in table 6.19.3 below.
Table 6.19.3: Other blackcurrant exports (0811.20.09.23, 0811.20.09.28, 2007.99.00.10, & 2008.99.31.01) export markets 2016-18 (year ending June, tonnes and $NZ FOB)
|
Market |
2016 |
2017 |
2018 |
|||
|
Volume |
Value |
Volume |
Value |
Volume |
Value |
|
|
China |
528 |
1,352,123 |
217 |
445,465 |
429 |
923,405 |
|
Japan |
0.01 |
2,311 |
59 |
114,145 |
16 |
159,395 |
|
Malaysia |
0 |
0 |
0.01 |
2,990 |
4 |
37,854 |
|
Singapore |
0 |
0 |
0.2 |
6,570 |
0.4 |
18,018 |
|
Taiwan |
0 |
0 |
1.20 |
8,302 |
0.2 |
13,942 |
|
Hong Kong |
0.08 |
3,565 |
0 |
7 |
0.19 |
8,170 |
|
Fiji |
0 |
0 |
0 |
0 |
3.15 |
1,884 |
|
Thailand |
0 |
0 |
0 |
0 |
0.01 |
312 |
|
Pacific Islands |
0.2 |
1,022 |
0.67 |
3,042 |
0.06 |
220 |
|
French Polynesia |
0 |
0 |
0 |
0 |
0 |
58 |
|
European Union |
0.05 |
2,520 |
124 |
218,299 |
0 |
0 |
|
Korea |
14 |
80,717 |
15 |
170,123 |
0 |
0 |
|
United States of America |
0.56 |
12,480 |
61 |
110,246 |
0 |
0 |
|
Australia |
7 |
29,061 |
0 |
0 |
0 |
0 |
|
Viet Nam |
0 |
1 |
0 |
0 |
0 |
0 |
|
Total |
550 |
$1,483,800 |
478 |
$1,079,189 |
453 |
$1,163,258 |
|
% change (yr/yr) |
-56% |
-43% |
-13% |
-27% |
-5% |
8% |
Source: Statistics New Zealand
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6.19.3 Barriers to blackcurrant exports
Cost of Tariffs
Tariffs on blackcurrant exports cost the industry $0.18 million in 2018, with two thirds of this paid on exports to Japan. Under CPTPP the tariffs to Japan of 6% on IQF will be eliminated on 30 December 2018, the 9.6% on concentrate will be phased down to zero by 2023 and the range of products on 12% tariff will be a mix of elimination or phase out (refer MFAT tariff finder). The $0.18 million equates to an average $8,544 per blackcurrant grower. Various blackcurrant products are included in the Korea NZ FTA and tariffs of between 50% and 30% will be phased out over 10-15 years.
Table 6.19.4: Cost of blackcurrant tariffs (based on 2018 FOB value)
|
Tariff Item |
Country |
Tariff |
Value |
Estimated cost of tariff ($) |
|
Frozen concentrate |
Malaysia |
0% |
1,886,444 |
0 |
|
Australia |
0% |
1,103,157 |
0 |
|
|
Japan |
9.6% |
648,659 |
62,271 |
|
|
Philippines |
0% |
232,658 |
0 |
|
|
United States of America |
0.5c/L |
196,290 |
259 |
|
|
Taiwan |
0% |
142,928 |
0 |
|
|
Korea |
30% |
86,619 |
25,986 |
|
|
European Union |
16.8% |
29,060 |
4,882 |
|
|
Indonesia |
3% |
9,004 |
270 |
|
|
Total Frozen concentrate |
2.2% |
$4,334,819 |
$93,668 |
|
|
Individual quick frozen (IQF) |
Japan |
6% |
1,013,234 |
60,794 |
|
China |
0% |
229,040 |
0 |
|
|
Taiwan |
0% |
41,860 |
0 |
|
|
Indonesia |
0% |
31,213 |
0 |
|
|
Korea |
22% |
25,631 |
5,639 |
|
|
Thailand |
0% |
3,309 |
0 |
|
|
Fiji |
5% |
1,948 |
97 |
|
|
Singapore |
0% |
636 |
0 |
|
|
Total IQF |
5% |
$1,346,871 |
$66,530 |
|
|
Other blackcurrant exports |
China |
0% |
923,405 |
0 |
|
Japan |
12% |
159,395 |
19,127 |
|
|
Malaysia |
0% |
37,854 |
0 |
|
|
Singapore |
0% |
18,018 |
0 |
|
|
Taiwan |
0% |
13,942 |
0 |
|
|
Hong Kong |
0% |
8,170 |
0 |
|
|
Fiji |
15% |
1,884 |
283 |
|
|
Thailand |
0% |
312 |
0 |
|
|
French Polynesia |
8% |
58 |
5 |
|
|
Total other |
2% |
$1,163,038 |
$19,415 |
|
|
Total - blackcurrants |
2.6% |
$6,844,728 |
$179,613 |
SPS and other market access barriers
Almost all blackcurrants are exported as frozen (block frozen or individually quick frozen) or processed forms (concentrate or puree), and as a powdered nutraceutical so phytosanitary access is not a significant issue. The industry operates an enforceable food safety programme as part of its Export Marketing Strategy (EMS) under the HEA structure, to help ensure it retains access to all its key markets.