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6.12      Summerfruit (cherries, apricots, peaches, nectarines, plums)

6.12.1      Summerfruit industry profile

Summerfruit is the term used in New Zealand to collectively describe cherries, apricots, peaches, nectarines, and plums.

Funded by grower levies under the Commodity Levies Act, Summerfruit New Zealand is also the recognized Product Group for summerfruit under the New Zealand Horticulture Export Authority Act. Summerfruit has been subject to export licensing since November 1987. The industry representative body is Summerfruit New Zealand (Chief Executive – Marie Dawkins, www.summerfruitnz.co.nz). Summerfruit New Zealand represents grower interests, managing an extensive research programme, providing strategic direction, growing relationships between growers, marketers, retailers and exporters, and promotional activities.

Summerfruit New Zealand has a strong focus on export, with a market access portfolio overseen by a Summerfruit New Zealand Director and implemented by a contracted Market Access Manager. Several Official Assurance Programmes (specially negotiated export programmes or negotiated export protocols) have been developed, and the industry operates one industry management programme and a residue assurance programme to minimise risks of non-compliance in export markets. The main priorities are obtaining access to new markets and repealing unjustified aspects of existing programmes.

Summerfruit production is expanding, with large plantings of cherries now starting to drive up export volumes while increased plantings of apricots are being seen in both Central Otago and Hawke’s Bay as new varieties are released. The industry is comprised of around 280 growers with a total of 1,800 hectares of orchards. The main growing areas are Central Otago (61% of the area planted) and Hawke’s Bay (32%).

Cherries are by far the most important summerfruit crop by value. While small volumes (~50t) of pre-Christmas cherries are exported from Marlborough, Central Otago produces 93% of the cherries grown in New Zealand, of which 55% is exported. Apricot exports are also very important to Central Otago. While only 33% of apricots are exported, they account for 43% of the value of apricots produced. Meanwhile 64% of cherries are exported accounting for 82% of value.

Production in Hawke’s Bay focuses on the local market with very little summerfruit being exported. Traditionally not considered as a cherry producing area, Hawke’s Bay has seen a rapid expansion of pre-Christmas cherry production with this doubling to 155 tonnes in the last five years. While this fruit is consumed within New Zealand, there is potential for early season exports to develop.  This will provide early access to key Asian markets.

The growth of cherries continues with export volumes exceeding 3,500 tonne, up from 1,600 tonne in the 2013-14 season. China has rapidly emerged as a significant market for cherries taking 28% of exports last season, only marginally behind Taiwan at 31%.

The implementation of the Korean NZ Free Trade Agreement in late December 2015 meant that the majority of the cherries exported to Korea were tariff free. The elimination of the tariff from 25% to 0% at (Entry into Force) EIF saw a tripling of the volume of cherries shipped to Korea to 335 tonnes.

The 2015-16 season also saw the emergence of a small but promising export market for plums into China.  While only 12 tonnes was exported there has been no previous sale of plums to this market. Feedback suggests that this market may continue to grow.

Source: Summerfruit NZ, FreshFacts 2015

 

Table 6.12.1: Value of summerfruit sales 2015-16 season

 

Apricots

Cherries

Nectarines

Peaches

Plums

Total

NZ Market

$8,651,760

$15,003,464

$16,333,556

$13,498,052

$10,136,084

$63,622,916

Export

$6,565,165

$67,981,834

$49,309

$607,822

$311,065

$75,515,195

Total value NZ Market & Export *,1

$15,216,925

$82,985,298

$12,116,920

$14,105,874

$10,477,149

$139,138,111

             

% Value NZ Market

56.9

18.1

99.7

95.7

97.0

45.7

% Value Export

43.1

81.9

0.3

4.3

3.0

54.3

* Does not include processed summerfruit.

NZ market data collected from the week ending 29/11/2015 to week ending 1/05/16

Export data collected from the week ending 13/12/2015 to week ending 13/03/16

1Source: Summerfruit NZ

6.12.2  Summerfruit exports

Cherries

Taiwan remains the largest market for New Zealand cherry exports, taking 31% of exports. Exports to China have increased significantly over this reporting period, increasing in value by more than $10 million, and China has become the second largest market for export cherries. The implementation of the Korean Free Trade Agreement in late December 2015 (removing the 25% tariff) meant that the majority of the cherries exported to Korea were tariff free. Thailand, Korea and Vietnam remain key markets for export cherries and have shown consistent increases over this reporting period. Cherries were exported to 21 countries but only seven of these have a value over $1 million.

Table 6.12.2: Cherry (0809.20.00.00, 0809.21.00.00, 0809.29.00.00) export markets 2014-16 (year ending June, tonnes and $NZ FOB)

Market

2014

2015

2016

Volume

Value

Volume

Value

Volume

Value

Taiwan

719

9,474,866

1,564

20,624,779

1,259

22,437,289

China

382

5,536,975

732

11,461,571

1,020

18,503,152

Thailand

303

4,559,719

437

6,029,955

449

7,481,677

Korea

134

1,826,137

202

2,124,601

413

5,547,081

Vietnam

75

1,109,601

282

4,115,684

336

5,275,007

Hong Kong

65

929,066

104

1,795,372

150

2,997,327

Singapore

123

1,810,188

196

2,622,171

144

2,512,154

Malaysia

58

913,266

132

1,854,431

54

922,637

United States of America

5

78,665

13

198,743

42

709,092

Japan

82

1,414,447

17

204,436

27

409,987

Russia

6

110,421

21

336,649

17

364,896

Philippines

13

136,445

13

150,293

15

261,651

Australia

3

34,775

19

232,165

18

158,141

Cambodia

0

0

11

144,199

11

146,304

European Union

1

26,324

5

80,022

13

121,462

India

3

24,278

11

126,041

4

62,560

French Polynesia

0.1

642

0.05

672

3

44,048

Saudi Arabia

0

0

0

0

1.5

16,022

New Caledonia

0.1

1,861

0.6

10,084

0.3

2,375

Pacific Islands

0.1

774

0.1

828

0.1

1,036

Fiji

0.1

990

0.04

709

0.1

994

Canada

0

0

6

76,000

0

0

Indonesia

0

0

1

18,000

0

0

Switzerland

0

0

1

10,746

0

0

United Arab Emirates

0

0

4

75,615

0

0

Total

1,969

$27,989,440

3,771

$52,293,766

3,977

$67,974,892

% change (yr/yr)

30%

31%

91%

87%

5%

30%

Source: Statistics New Zealand

Cherry exports are still reliant on Taiwan; however a number of Industry-initiated market access projects have targeted new markets and reduced the industry's reliance on Taiwan from 85% in 2002-03 to 46% in 2012 and to 31% in 2016.

 

Apricots

Australia has been the largest market for New Zealand grown apricots for many years and the overall percentage of exports going to this market remains high at 75%. There has been a decline in apricots exported to Japan and Singapore since 2014.

 

Table 6.12.3: Apricot (0809.10.00.00) export markets 2014-16 (year ending June, tonnes and $NZ FOB)

Market

2014

2015

2016

Volume

Value

Volume

Value

Volume

Value

Australia

1,187

5,239,179

725

3,857,251

996

4,807,248

European Union

164

1,126,266

113

680,006

169

820,225

United Arab Emirates

47

250,019

47

205,796

95

493,588

United States of America

91

588,827

45

238,368

64

396,163

Russia

7

37,613

5

25,193

5

25,413

Saudi Arabia

0

0

0

0

1

11,101

Hong Kong

5

34,699

2

10,591

1

8,179

Switzerland

0

2,597

2

12,782

1

7,723

Kuwait

0

0

0

0

1

6,990

Fiji

1

9,712

1

6,952

1

5,225

French Polynesia

1

4,457

1

8,018

1

5,097

Pacific Islands

0.2

1,216

0.2

1,814

0

1,640

Japan

1

16,057

0

0

0

0

Singapore

13

36,322

0

0

0

0

Taiwan

4

17,017

28

300,182

0

0

Thailand

4

47,543

0.3

1,349

0

0

New Caledonia

1

2,557

0

0

0

0

India

0

0

1

2,242

0

0

Philippines

1

5,439

0

0

0

0

Total

1,528

$7,419,520

968

$5,350,544

1,336

$6,588,592

% change (yr/yr)

18%

11%

-37%

-28%

38%

23%

Source: Statistics New Zealand

 

Peaches, nectarines, and plums

Peaches, nectarines, and plums continue to be minor export crops in comparison to cherries and apricots. While peach exports have steadily increased in recent years, the volume is still only a quarter of that exported in the mid-1990s. Nectarines and plums remain minor export crops which show quite significant year to year variations in volumes. Each of these crops essentially has one or two major markets: peaches - Singapore and Hong Kong; nectarines - New Caledonia; and plums - the USA.

Table 6.12.4: Peach (0809.30.00.09) export markets 2014-16 (year ending June, tonnes and $NZ FOB)

Market

2014

2015

2016

Volume

Value

Volume

Value

Volume

Value

Singapore

23

150,955

24,805

167,865

41

235,000

Hong Kong

6

36,174

23,942

150,225

34

220,546

United Arab Emirates

0

0

0

0

6

57,279

Russia

20

120,554

9,516

59,022

5

30,427

New Caledonia

4

22,828

2,219

6,692

7

30,300

Australia

11

66,149

0

0

3

23,598

European Union

6

37,363

3,705

28,100

3

18,300

French Polynesia

1

4,891

1,574

8,382

3

11,873

Fiji

2

7,780

951

3,829

2

6,248

Taiwan

9

57,314

6,435

44,542

1

3,802

Pacific Islands

1

6,033

343

1,469

0.6

3,148

United States of America

0.2

836

221

1,230

0

0

Total

85

$510,877

73,711

$471,356

104

$640,521

% change (yr/yr)

24%

50%

87044%

-8%

-100%

36%

Source: Statistics New Zealand

 

Table 6.12.5: Nectarine (0809.30.00.01) export markets 2014-16 (year ending June, tonnes and $NZ FOB)

Market

2014

2015

2016

Volume

Value

Volume

Value

Volume

Value

New Caledonia

7

36,691

13

44,634

6

26,880

Hong Kong

0

0

0

0

3

18,175

United Arab Emirates

0

0

0

0

1

15,695

Fiji

2

8,295

2

6,336

2

7,819

Pacific Islands

2

7,142

0.7

4,299

10

7,704

Russia

0

0

6

45,598

1

6,329

French Polynesia

1

4,421

1

4,307

1

4,492

United States of America

0.1

607

0.2

1,166

0

0

Australia

0.1

383

0

0

0

0

Total

12

$57,539

23

$106,340

24

$87,094

% change (yr/yr)

-60%

-44%

92%

85%

6%

-18%

Source: Statistics New Zealand

Table 6.12.6: Plum (0809.40.00.01) export markets 2014-16 (year ending June, tonnes and $NZ FOB)

Market

2014

2015

2016

Volume

Value

Volume

Value

Volume

Value

United States of America

31

223,201

31

147,285

42

208,615

China

0

0

0

0

8

83,621

Fiji

10

34,435

7

26,302

3

13,858

New Caledonia

6

27,297

27

38,221

3

13,252

French Polynesia

2

7,276

2

7,322

1

5,021

Pacific Islands

1

5,516

1

4,989

0.6

2,926

Taiwan

0

0

0.01

13

0.3

1,290

Hong Kong

0.3

1,390

0

0

0.2

1,258

Australia

0

0

0.1

292

0

0

Singapore

0

0

0.01

13

0

0

Thailand

0

0

0.01

13

0

0

Total

50

$299,115

68

$224,450

59

$329,841

% change (yr/yr)

-27%

-7%

36%

-25%

-14%

47%

Source: Statistics New Zealand