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

6.7.1      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 fall into three categories

Focus

Current activity

i

New markets

Opening up markets that we don’t currently have access to

  • Application for apricots to China
  • Access to Myanmar

ii

Maintaining access to existing markets

Fighting to maintain or regain access to a market where the import or phytosanitary conditions have changed, affecting our ability to export there

  • Restoring access to Russia due to a change in requirements around brownrot
  • Restoring access for peaches, nectarines and plums to Thailand
  • OPI

iii

Improving access to existing markets

Challenging unjustified aspects of importing countries

  • Reduction of the frequency of audits by the Japan inspector
  • Change of the phytosanitary inspection requirement by Korea from 2% to the standard 600 inspections

The industry is comprised of around 280 growers with a total of 1,808 hectares of orchards. The main growing areas are Central Otago (61% of the area planted) and Hawke’s Bay (32%). 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 New Zealand bred varieties are released.

Figures from the 2017-18 season show that cherries are still by far the most important summerfruit crop by value. While small volumes of pre-Christmas cherries are exported from Marlborough, Central Otago produces most of the cherries grown in New Zealand, of which 72% is exported. Apricot exports are also very important to Central Otago. While only 20% of apricots are exported, they account for 33% of the value of apricots produced. Meanwhile the amount of cherries exported account for 90% of its value.

Production in Hawke’s Bay focuses on the local market with very little summerfruit being exported. Traditionally not considered a cherry producing area, Hawke’s Bay has seen a rapid expansion of pre-Christmas cherry production which last season increased to approximately 300 tonnes. 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.

Source: Summerfruit NZ

 

Table 6.7.1: Value of summerfruit sales 2017-18 season

 

Apricots

Cherries

Nectarines

Peaches

Plums

Total

NZ Market

$5,864,641

$9,091,192

$9,720,652

$8,116,679

$6,445,731

$39,238,894

Export

$2,828,541

$84,119,816

$118,830

$596,046

$298,282

$87,961,515

Total value NZ Market & Export *,1

$8,693,182

$93,211,008

$9,839,482

$8,712,725

$6,744,013

$127,200,409

% Value NZ Market

67.5

9.8

98.8

93.2

95.6

30.8

% Value Export

32.5

90.2

1.2

6.8

4.4

69.2

* Does not include processed summerfruit.

NZ market data collected from the week ending 19/11/2017 to week ending 29/04/18

Export data collected from the week ending 10/12/2017 to week ending 19/03/18

1Source: Summerfruit NZ

6.7.2  Summerfruit exports

Cherries

The growth of cherries continues with export volumes exceeding 4,935 tonnes. Taiwan remains the largest market for New Zealand cherry exports, taking 35% of exports by value. Exports to China have increased significantly over this reporting period, increasing in value by more than $10 million (55%) since 2016, and China now makes up almost as large a share of the market as Taiwan (34%). Other changes in exports to key markets include a $3.4 million decrease (62%) in exports to Korea and a $1.3 million increase (24%) in exports to Vietnam since 2016. Cherries were exported to 24 countries with nine markets having export values greater than $1 million. This is up from 21 countries that were exported to in 2016, where seven destinations had a value over $1 million.

Table 6.7.2: Cherry (0809.20.00.00, 0809.21.00.00, 0809.29.00.00) export markets 2016-18 (year ending June, tonnes and $NZ FOB)

Market

2016

2017

2018

Volume

Value

Volume

Value

Volume

Value

Taiwan

1,259

22,437,289

1,440

26,089,007

1,645

29,719,286

China

1,020

18,503,152

972

18,889,265

1,509

28,712,064

Thailand

449

7,481,677

486

7,490,308

580

8,064,501

Vietnam

336

5,275,007

426

7,907,806

400

6,561,837

Hong Kong

150

2,997,327

115

2,208,231

153

2,813,789

Korea

413

5,547,081

152

2,613,674

181

2,111,330

United States of America

42

709,092

146

1,366,801

199

1,830,017

Singapore

144

2,512,154

88

1,627,909

97

1,513,646

Malaysia

54

922,637

61

1,249,640

66

1,140,959

European Union

13

121,462

6

121,684

17

433,313

Japan

27

409,987

20

281,770

30

380,703

Cambodia

11

146,304

14

221,331

21

321,958

Philippines

15

261,651

10

131,185

17

311,146

Indonesia

0

0

1

22,988

7

94,102

India

4

62,560

8

153,447

7

68,781

Canada

0

0

0

0

3

46,521

New Caledonia

0.3

2,375

0

0

1

11,804

Pacific Islands

0.1

1,036

0

3,342

1

3,420

French Polynesia

3

44,048

1

13,074

0

1,547

Fiji

0.1

994

0

401

0

1,067

Russia

17

364,896

32

691,447

0

0

Australia

18

158,141

17

146,267

0

0

United Arab Emirates

0

0

1

24,884

0

0

Saudi Arabia

1

16,022

0

0

0

0

Total

3,977

$67,974,892

3,996

$71,254,461

4,935

$84,141,791

% change (yr/yr)

5%

30%

0%

5%

23%

18%

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 35% by value in 2018.

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 72%. There has been sharp decline in total apricot exports, driven by a 58% decrease in exports to Australia, as well as a $600,000 decline in exports to the European Union, and a $465,000 decline in exports to United Arab Emirates since 2016. This decline is due to a number of reasons including lower production, poor growing season, and more complicated market access.

Table 6.7.3: Apricot (0809.10.00.00) export markets 2016-18 (year ending June, tonnes and $NZ FOB)

Market

2016

2017

2018

Volume

Value

Volume

Value

Volume

Value

Australia

996

4,807,248

1,069

4,532,203

445

2,036,062

United States of America

64

396,163

31

163,123

56

511,686

European Union

169

820,225

66

347,921

32

208,942

United Arab Emirates

95

493,588

21

105,302

4

26,824

New Caledonia

0

0

1

19,376

3

26,374

Thailand

0

0

0

0

1

6,893

Fiji

1

5,225

1

9,341

1

6,600

Hong Kong

1

8,179

0

0

1

3,205

Switzerland

1

7,723

0

0

0

2,840

Pacific Islands

0

1,640

0

1,153

0

2,361

French Polynesia

1

5,097

0

55

0

1,998

India

0

0

0

0

0

1,745

Malaysia

0

0

0

0

0

1,280

Russia

5

25,413

4

37,687

0

0

Saudi Arabia

1

11,101

0

0

0

0

Kuwait

1

6,990

0

0

0

0

Total

1,336

$6,588,592

1,194

$5,216,161

543

$2,836,810

% change (yr/yr)

38%

23%

-11%

-21%

-55%

-46%

Source: Statistics New Zealand

 

Peaches, nectarines, and plums

Peaches, nectarines, and plums continue to be minor export crops (over 90% of sales are in the domestic market) in comparison to cherries and apricots. While peach exports have generally increased in recent years but now remain stable, 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 – Hong Kong and Singapore; nectarines – Taiwan and Hong Kong; and plums - the USA.

Table 6.7.4: Peach (0809.30.00.09) export markets 2016-18 (year ending June, tonnes and $NZ FOB)

Market

2016

2017

2018

Volume

Value

Volume

Value

Volume

Value

Hong Kong

34

220,546

48

262,657

38

227,430

Singapore

41

235,000

42

142,080

32

192,611

Australia

3

23,598

0

0

14

72,270

Taiwan

1

3,802

1

6,922

13

70,750

New Caledonia

7

30,300

6

24,342

4

13,563

Malaysia

0

0

4

31,738

2

12,380

Pacific Islands

1

3,148

1

10,232

0.0

5,021

Fiji

2

6,248

2

6,925

1

3,271

French Polynesia

3

11,873

1

2,913

1

1,874

United States of America

0

0

0

385

0

1,571

United Arab Emirates

6

57,279

18

136,736

0

0

Russia

5

30,427

5

37,983

0

0

Qatar

0

0

2

22,358

0

0

European Union

3

18,300

1

8,936

0

0

Indonesia

0

0

0

2,024

0

0

Maldives

0

0

0

12

0

0

Total

104

$640,521

133

$696,243

105

$600,741

% change (yr/yr)

41%

36%

28%

9%

-21%

-14%

Source: Statistics New Zealand

Table 6.7.5: Nectarine (0809.30.00.01) export markets 2016-18 (year ending June, tonnes and $NZ FOB)

Market

2016

2017

2018

Volume

Value

Volume

Value

Volume

Value

Taiwan

0

0

2

7,041

9

36,322

Hong Kong

3

18,175

8

43,379

6

34,034

Australia

0

0

0

0

2

12,570

Malaysia

0

0

2

10,045

3

11,891

Singapore

0

0

25

27,912

2

8,886

New Caledonia

6

26,880

4

19,809

3

6,580

Pacific Islands

10

7,704

1

7,493

1

5,845

Fiji

2

7,819

2

7,136

1

5,211

French Polynesia

1

4,492

0

1,457

0

1,493

Switzerland

0

0

0

0

0

1,000

Russia

1

6,329

3

22,223

0

0

United Arab Emirates

1

15,695

2

17,942

0

0

Qatar

0

0

0

4,340

0

0

Indonesia

0

0

0

3,890

0

0

Total

24

$87,094

50

$172,667

28

$123,832

% change (yr/yr)

6%

-18%

106%

98%

-44%

-28%

Source: Statistics New Zealand

Table 6.7.6: Plum (0809.40.00.01) export markets 2016-18 (year ending June, tonnes and $NZ FOB)

Market

2016

2017

2018

Volume

Value

Volume

Value

Volume

Value

United States of America

42

208,615

46

179,674

41

181,309

China

8

83,621

7

43,972

8

66,667

Fiji

3

13,858

8

26,203

13

43,747

New Caledonia

3

13,252

6

26,211

3

11,066

Taiwan

0

1,290

1

6,131

1

9,749

Pacific Islands

1

2,926

0

3,987

0

6,176

French Polynesia

1

5,021

1

3,157

1

4,722

Malaysia

0

0

0

0

0

3,220

Hong Kong

0

1,258

1

11,936

0

182

Maldives

0

0

0

10

0

0

Total

59

$329,841

71

$301,281

69

$326,838

% change (yr/yr)

-14%

47%

21%

-9%

-3%

8%

Source: Statistics New Zealand

 

6.7.3  Barriers to summerfruit exports

Cost of Tariffs

Tariffs for all summerfruit were $0.166 million in 2018, a 40% decrease on the tariffs paid in 2016. This decline was mainly in response to decreased apricot exports to the EU, which attract a 20% tariff. The EU tariffs on New Zealand summerfruit are high compared to those imposed on other Southern Hemisphere exporters – for example New Zealand apricots are subject to a 20% tariff while apricots from Chile and South Africa are not subject to any tariff. The $0.166 million estimated cost of tariffs in 2018 equates to $596 per summerfruit grower. Under CPTPP the 8.5% tariff into Japan will be halved to 4.2% at entry into force on 30 December 2018, then phased down to zero by 2023.

 

Table 6.7.7: Cost of summerfruit tariffs (based on 2018 FOB value)

Summerfruit Type

Country

Tariff

Value

Estimated cost of tariff ($)

Cherries

Taiwan

0%

29,719,286

0

China

0%

28,712,064

0

Thailand

0%

8,064,501

0

Vietnam

0%

6,561,837

0

Hong Kong

0%

2,813,789

0

Korea

0%

2,111,330

0

United States of America

0%

1,830,017

0

Singapore

0%

1,513,646

0

Malaysia

0%

1,140,959

0

European Union

12%

433,313

51,998

Japan

8.5%

380,703

32,360

Philippines

0%

311,146

0

Indonesia

0%

94,102

0

India

30%

68,781

20,634

Canada

0%

46,521

0

New Caledonia

25%

11,804

2,951

French Polynesia

8%

1,547

124

Fiji

5%

1,067

53

Total Cherries

0.1%

$83,816,413

$108,120

Apricots

Australia

0%

2,036,062

0

United States of America

0.2c/kg

511,686

157

European Union

20%

208,942

41,788

United Arab Emirates

0%

26,824

0

New Caledonia

25%

26,374

6,594

Thailand

0%

6,893

0

Fiji

5%

6,600

330

Hong Kong

0%

3,205

0

French Polynesia

8%

1,998

160

India

0%

1,745

0

Malaysia

0%

1,280

0

Total Apricots

2%

$2,831,609

$49,028

Peaches

Hong Kong

0%

227,430

0

Singapore

0%

192,611

0

Australia

0%

72,270

0

Taiwan

0%

70,750

0

New Caledonia

17%

13,563

2,306

Malaysia

0%

12,380

0

Fiji

5%

3,271

164

French Polynesia

17%

1,874

319

United States of America

0%

1,571

0

Total Peaches

0%

594,149

2,788

Nectarines

Taiwan

0%

36,322

0

Hong Kong

0%

34,034

0

Australia

0%

12,570

0

Malaysia

0%

11,891

0

Singapore

0%

8,886

0

New Caledonia

17%

6,580

1,119

Fiji

5%

5,211

261

French Polynesia

8%

1,493

119

Total Nectarines

1%

$116,987

$1,499

Plums

United States of America

0%

181,309

0

China

0%

66,667

0

Fiji

5%

43,747

2,187

New Caledonia

25%

11,066

2,767

Taiwan

0%

9,749

0

French Polynesia

8%

4,722

378

Malaysia

0%

3,220

0

Hong Kong

0%

182

0

Total Plums

1.7%

$320,662

$5,332

Total Summerfruit

0.2%

$87,679,820

$166,766

SPS market access barriers        

The industry has an active market access programme however, there is little progress in most cases. The main success in 2017 was Korea formally agreeing to allow the 600-fruit inspection instead of the previously required 2% cartons from each grower. This change which will be implemented for next season 2018-19, has been well received by export packhouses.

Australia – Australia is the most important export market for New Zealand apricots. To facilitate the rapid clearance of consignments in Australia the industry has, for over 20 years, participated in Australia’s offshore pre-shipment inspection (OPI) programme, which involves bringing an Australian inspector to New Zealand (funded by the NZ industry) to pre-clear fruit prior to shipping. In 2016 Australian Department of Agriculture and Water Resources (DAWR) announced that the OPI programme would be phased out, and 2018-19 will be the last OPI season for summerfruit. The OPI programme is very important for trade facilitation and a withdrawal of the programme is concerning. In response the industry has developed Vapormate™ as a “generally regarded as safe” treatment and this is being implemented. However, there are major concerns over potential trade disruptions.

China New Zealand has access for cherries and plums, due to historic trade in these crops, and there is historic access for Japanese apricot (Prunus mume). A new risk analysis is needed for NZ apricots (P. armeniaca) before they can be exported. Summerfruit NZ has proposed that simultaneously negotiating access for apricots, peaches and nectarines would significantly speed up the access request for New Zealand summer fruit to China. An access request has been prioritised by MPI for apricots to China, but for all summerfruit to be considered a revised prioritisation request would be needed. China has applied for access to New Zealand for all summerfruit crops.

Japan – The official assurance programme (for management of codling moth) has been very successful, but Japan still requires that an inspector visits New Zealand annually to review the programme at the New Zealand industry’s cost. This is contrary to the requirements of ISPM No. 20 (5.1.5.2) which states that “These types of audit procedure should not be applied as a permanent measure and should be considered satisfied as soon as the procedures in the exporting country have been validated.” Japan has been asked to modify this requirement but has not yet changed its regulations. There has been no progress on these discussions.

Participation in the programme has reduced significantly due to the high costs, of which the inspector’s visits are a significant proportion. There are concerns that exports may cease as a result.

Thailand – New Zealand is seeking new access for peaches, plums and nectarines. Thailand has agreed to consider this access request and will process the applications for peaches and nectarines simultaneously. Thailand is intending to make a market access visit to New Zealand in summer 2018-19.

Russia – Russia has notified of new import regulations for summerfruit. Fruit must be sourced from production sites free from brown rot. New Zealand proposed alternative measures to Russia but these were not accepted. An Official Assurance Programme is being developed that may enable trade to commence in the 2020-21 season.

Vietnam – Summerfruit New Zealand is seeking access to Vietnam for peaches, plums and nectarines.

Myanmar - In 2017 the industry provided technical information for all Summerfruit to Myanmar. Myanmar will consider new access requests and prohibit all crops for which access has not been requested. There has been no progress on this application.