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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.

 

  1. 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

 

  1. 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.