6.1 Kiwifruit and kiwiberry
6.1.1 Kiwifruit industry profile
The kiwifruit industry is the biggest sector in New Zealand's horticulture industry. Today, 2,843 kiwifruit growers produce approximately 184 million trays for export from 13,610 productive hectares. In 2021/22 this was worth $2.911 billion in gross sales.
The Bay of Plenty is the focus of kiwifruit growing (principally Katikati, Puke, Tauranga, Opotiki and Whakatane), producing over 80% of the crop.
The New Zealand kiwifruit industry continues to recover from the devastating effects of a bacterial canker disease specific to kiwifruit, Pseudomonas syringae pv. actinidiae (termed Psa). Psa was detected in New Zealand in November 2010, and rapidly caused widespread and severe impacts to New Zealand's kiwifruit industry. It is now well managed year-round through monitoring, canopy management, spray protectant use, hygiene and movement controls. Psa is also present in other countries including Italy, Japan, South Korea, Chile and, most recently, Australia. There is no current cure for the disease.
The New Zealand kiwifruit industry’s ‘Hayward’ variety (‘green’ kiwifruit) is relatively tolerant to the disease, and new varieties are being developed.
Gold cultivar. There are 6,774 productive hectares of the gold kiwifruit cultivar, commonly known as Gold3 or SunGold, licensed in New Zealand. These produced 99.8 million trays in 2021/22. The cultivar was fast-tracked to commercial launch in response to the identification of Psa in 2010, and is a cornerstone in the Psa recovery pathway and the major driver of the kiwifruit industry’s expansion. SunGold’s market performance has been very strong, and as a result Zespri released an additional 400 hectares of licence in 2016, 400 hectares in 2017 and 750 hectares in 2018, 2019 and 2020. In 2021, Zespri released licences for 700 hectares of SunGold and 50 hectares of Organic SunGold.
Red cultivar. In 2020, 150 hectares of licences for the red cultivar Red19 were released to New Zealand growers. The new cultivar is subject to provisional plant variety rights (PVR) protection in New Zealand and elsewhere in the world. Based on the current expected market demand of 15 million trays in Asia during the current supply window for Red19, Zespri has planned to license 1,500 hectares between 2020 and 2023. Zespri released 150 hectares of licences for RubyRed in 2021.
Table 6.1.1: Kiwifruit industry statistics
|
Season (to 31 March) |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
2018-19 |
2019-20 |
2020-21 |
2021-22 |
|
Trays submitted (million) |
105.7 |
97.69 |
97.8 |
123.4 |
148.9 |
125.8 |
157.7 |
150 |
161 |
184 |
|
Trays sold (million) |
101.3 |
95.1 |
95.2 |
117.0 |
137.7 |
123.2 |
148.8 |
145.2 |
158 |
175 |
|
Yield (trays/ha) |
8,621 |
8,684 |
8,076 |
10,157 |
11,838 |
9,913 |
12,373 |
11,650 |
11,804 |
13,007 |
|
Planting (ha) |
12263 |
11,250 |
11,233 |
12,185 |
12,578 |
12,692 |
12,747 |
12,905 |
13,334 |
13,610 |
|
Growers |
2636 |
2,556 |
2,540 |
2,516 |
2,435 |
2,405 |
2,756 |
2,792 |
2,813 |
2,843 |
|
Pack-houses |
59 |
54 |
50 |
51 |
50 |
47 |
44 |
44 |
41 |
38 |
|
Coolstores |
76 |
68 |
62 |
64 |
73 |
67 |
64 |
63 |
59 |
65 |
Kiwifruit Vine Health (KVH). KVH is the industry-funded entity that leads New Zealand’s recovery in Psa-affected regions. This includes a comprehensive research and development programme involving researchers from New Zealand and around the world, working to develop strategies to combat the disease. KVH is also tasked with leading wider biosecurity for the kiwifruit industry. Its vision is 'a biosecurity resilient kiwifruit industry'. The key focus areas in support of this vision are: advocacy, promoting best practice biosecurity to growers, providing technical advice, removing wild kiwifruit and abandoned orchards, profiling new and emerging risks, managing industry preparedness and response, and ensuring innovation in biosecurity management.
Zespri. As a result of the Kiwifruit Industry Restructuring Act 1999, Zespri Group Ltd is a single-desk exporter of kiwifruit to countries other than Australia. Zespri Group Ltd (Chief Executive Dan Mathieson, www.Zespri.com) is a private company owned by current and past New Zealand kiwifruit growers, employing around 600 people.
Kiwifruit to Australia Product Group. Kiwifruit exported to Australia are a prescribed product under the New Zealand Horticulture Export Authority Act. The New Zealand Kiwifruit to Australia Product Group Manager is Neil McLoughlin. The nine HEA-licensed exporters to Australia are represented by Kiwifruit Exporters to Australia (KETA).
Kiwifruit New Zealand (KNZ). KNZ is the industry regulator charged with applying the Kiwifruit Export Regulations 1999. Kiwifruit can be exported to countries other than Australia in collaboration with Zespri, by applying to KNZ for a collaborative marketing programme. In 2021/22, 15 companies operated 23 collaborative marketing sales programmes with Zespri, exporting just over 4.1 million trays of kiwifruit from New Zealand to markets other than Australia.
New Zealand Kiwifruit Growers Inc. (NZKGI). The interests of growers are represented by NZKGI. NZKGI’s vision is ’innovative leadership - succeeding through change’. Its mission is to advocate, protect and enhance the commercial and political interests of New Zealand kiwifruit growers. NZKGI activities are led through strategic objectives in the areas of communication, labour and education, external relations, industry stability, performance and organisational management.
6.1.2 Kiwiberry industry profile
The kiwiberry (Actinidia arguta) is a species within the genus Actinidia (in which kiwifruit also belongs). The main plantings are in the Bay of Plenty, with smaller plantings in Nelson and Gisborne. Harvesting of kiwiberries occurs from early February to mid-April. In 2022, total production was 220 tonnes from 18 hectares of vines.
Exports of kiwiberries are regulated under the Kiwifruit Export Regulations, and by the Horticulture Export Authority for exports to Australia. New Zealand KiwiBerry Growers is the industry body representing the interests of kiwiberry growers, and is a product group affiliated to Horticulture New Zealand.
New Zealand kiwiberries are currently exported to 14 countries worldwide.
6.1.3 Exports
Kiwifruit. Kiwifruit continues to be New Zealand’s largest single horticultural export by volume and value. Exports exceeded $2.9 billion in 2022, representing a 15% increase in value from 2020, while volumes have increased 20% during this period. In 2022, there was a 5% decrease in the average value from $3,989/tonne in 2020 to $3,810/tonne in 2022.
There was growth across most major markets. From 2020 to 2022, the EU and China markets increased in value by 26% and 30% respectively, with the value of exports to the EU exceeding $800 million. Exports to Japan decreased by 16% to $563 million. These top three markets take 73% of export volume. Almost all the top ten countries have shown an increase in export value from 2020 to 2022, and together contribute to 95% of the total export value.
Table 6.1.2: Kiwifruit (0810.50.00) export markets 2020-2022 (year ending June, tonnes, $NZ FOB)
|
Market |
2020 |
2021 |
2022 |
|||
|
Volume |
Value |
Volume |
Value |
Volume |
Value |
|
|
European Union |
225,330 |
637,190,640 |
268,854 |
791,462,193 |
272,873 |
801,424,954 |
|
China |
112,905 |
564,743,221 |
134,061 |
648,491,151 |
148,401 |
736,047,770 |
|
Japan |
125,521 |
670,496,781 |
121,010 |
559,030,751 |
133,654 |
562,883,973 |
|
South Korea |
38,664 |
126,798,972 |
46,092 |
188,822,828 |
48,847 |
208,205,417 |
|
United States of America |
29,100 |
120,010,975 |
38,674 |
120,651,706 |
46,710 |
165,017,498 |
|
Taiwan |
33,289 |
146,859,006 |
31,495 |
129,747,608 |
32,422 |
141,406,712 |
|
Australia |
17,534 |
54,393,858 |
19,807 |
59,480,759 |
23,212 |
65,396,189 |
|
Hong Kong |
7,669 |
40,774,245 |
7,319 |
35,917,760 |
7,334 |
37,498,207 |
|
Canada |
7,109 |
24,695,963 |
7,756 |
25,559,517 |
8,157 |
30,767,175 |
|
Viet Nam |
4,848 |
22,848,691 |
5,334 |
23,582,720 |
5,597 |
26,017,282 |
|
Singapore |
3,979 |
25,131,106 |
3,997 |
24,382,045 |
3,932 |
23,528,064 |
|
India |
5,924 |
16,739,071 |
5,827 |
17,061,589 |
6,743 |
21,190,682 |
|
Malaysia |
3,273 |
13,899,653 |
3,380 |
13,699,783 |
3,446 |
14,199,140 |
|
Indonesia |
2,502 |
10,757,762 |
2,738 |
11,048,268 |
2,893 |
12,119,559 |
|
Thailand |
2,883 |
10,902,358 |
2,713 |
10,571,268 |
3,206 |
11,481,638 |
|
Brazil |
2,147 |
6,025,868 |
3,050 |
8,647,516 |
3,575 |
10,173,477 |
|
Saudi Arabia |
1,877 |
7,261,748 |
1,236 |
4,476,860 |
1,838 |
6,757,471 |
|
Mexico |
987 |
3,183,023 |
1,092 |
3,157,647 |
1,970 |
6,279,695 |
|
United Arab Emirates |
1,901 |
7,211,374 |
1,875 |
6,596,234 |
1,627 |
6,088,904 |
|
Israel |
1,278 |
4,211,594 |
1,034 |
3,541,367 |
1,507 |
5,204,375 |
|
Philippines |
1,369 |
4,332,890 |
1,151 |
3,593,439 |
1,329 |
4,434,566 |
|
Russia |
1,114 |
3,665,054 |
1,155 |
4,205,579 |
1,042 |
3,806,362 |
|
South Africa |
1,393 |
3,442,534 |
1,106 |
2,772,084 |
1,400 |
3,497,314 |
|
Reunion |
515 |
1,629,052 |
521 |
1,747,795 |
490 |
1,713,757 |
|
Mauritius |
431 |
1,367,735 |
386 |
1,282,627 |
404 |
1,374,179 |
|
New Caledonia |
289 |
856,128 |
319 |
1,027,203 |
288 |
999,247 |
|
Bahrain |
310 |
1,187,682 |
293 |
1,045,091 |
272 |
948,427 |
|
Kuwait |
365 |
1,400,713 |
326 |
1,172,724 |
213 |
822,199 |
|
French Polynesia |
186 |
679,828 |
149 |
514,758 |
205 |
769,390 |
|
Costa Rica |
53 |
133,194 |
200 |
390,496 |
108 |
305,528 |
|
Guatemala |
77 |
178,700 |
111 |
228,869 |
110 |
254,668 |
|
El Salvador |
46 |
94,921 |
88 |
172,652 |
77 |
186,409 |
|
Panama |
0 |
0 |
25 |
62,698 |
49 |
165,790 |
|
Fiji |
67 |
181,991 |
32 |
92,242 |
46 |
154,375 |
|
Pacific Islands |
24 |
90,212 |
46 |
151,790 |
40 |
143,082 |
|
Papua New Guinea |
1 |
3,117 |
7 |
9,235 |
1 |
4,010 |
|
Antarctica |
0 |
0 |
0 |
0 |
0 |
160 |
|
Myanmar |
46 |
168,165 |
22 |
68,537 |
0 |
0 |
|
Cambodia |
11 |
58,888 |
11 |
42,989 |
0 |
0 |
|
Total |
635,017 |
$2,533,606,713 |
713,289 |
$2,704,510,378 |
764,020 |
$2,911,267,645 |
|
% change (Yr/Yr) |
1% |
10% |
12% |
7% |
7% |
8% |
|
Market |
2020 |
2021 |
2022 |
|||
|
Volume |
Value |
Volume |
Value |
Volume |
Value |
|
|
Japan |
42 |
765,859 |
74 |
1,254,660 |
82 |
1,472,636 |
|
Australia |
91 |
1,334,297 |
125 |
1,827,672 |
77 |
1,124,224 |
|
Taiwan |
85 |
1,404,656 |
51 |
832,509 |
42 |
799,151 |
|
United States of America |
63 |
720,697 |
43 |
4,277,068 |
41 |
472,780 |
|
Singapore |
7 |
109,086 |
5 |
73,199 |
5 |
70,561 |
|
Indonesia |
1 |
17,888 |
2 |
26,611 |
4 |
68,496 |
|
Thailand |
4 |
54,762 |
2 |
30,167 |
3 |
55,415 |
|
South Korea |
0 |
0 |
0.63 |
12,449 |
2 |
36,603 |
|
Hong Kong |
21 |
306,951 |
8 |
130,238 |
1 |
22,846 |
|
Viet Nam |
3 |
50,757 |
3 |
39,265 |
0.48 |
9,472 |
|
Malaysia |
3 |
40,178 |
1 |
18,697 |
1 |
7,460 |
|
United Arab Emirates |
1 |
19,493 |
2 |
32,143 |
0 |
0 |
|
Canada |
0 |
0 |
1 |
21,453 |
0 |
0 |
|
French Polynesia |
0.07 |
1,408 |
0.48 |
7,261 |
0 |
0 |
|
New Caledonia |
0 |
0 |
0.17 |
2,042 |
0 |
0 |
|
European Union |
2 |
34,102 |
0 |
0 |
0 |
0 |
|
Philippines |
1 |
9,780 |
0 |
0 |
0 |
0 |
|
Total |
323 |
$4,869,914 |
319 |
$4,735,434 |
258 |
$4,139,644 |
|
% change (Yr/Yr) |
25% |
39% |
-1% |
-3% |
-19% |
-13% |
6.1.4 Barriers to export
Cost of tariffs
Kiwifruit. There are no tariffs on kiwifruit to most markets, with two key exceptions being the EU and India. The EU tariff of 8 to 8.8% is one of the higher single tariffs for exports to the EU, totalling $64.3 million in 2022 and accounting for 91% of tariffs for 27.5% of the FOB value. Tariffs on kiwifruit to the EU will begin to phase out from 2024 when the New Zealand-EU FTA is expected to enter into force. India’s tariff of 30% cost $6.4 million on 0.7% of the FOB value.
Under the CPTPP, the tariff into Japan has been eliminated, and the tariff into South Korea was phased out in 2020 under the New Zealand-Korea FTA. Under the New Zealand-China FTA the kiwifruit tariff has been zero since 2016. FTA negotiations with India commenced in 2010 however the timeframe for completion is not clear. For the 2,843 kiwifruit growers, the $70.8 million estimated cost of tariffs equates to $24,900 per grower.
Table 6.1.4: Cost of kiwifruit tariffs (based on 2022 FOB value)
|
Country |
Tariff rate |
Value |
Estimated cost of tariff ($) |
|
European Union |
8-8.8% |
801,424,954 |
64,323,462 |
|
China |
0% |
736,047,770 |
0 |
|
Japan |
0% |
562,883,973 |
0 |
|
South Korea |
0% |
208,205,417 |
0 |
|
United States of America |
0% |
165,017,498 |
0 |
|
Taiwan |
0% |
141,406,712 |
0 |
|
Australia |
0% |
65,396,189 |
0 |
|
Hong Kong |
0% |
37,498,207 |
0 |
|
Canada |
0% |
30,767,175 |
0 |
|
Viet Nam |
0% |
26,017,282 |
0 |
|
Singapore |
0% |
23,528,064 |
0 |
|
India |
30% |
21,190,682 |
6,357,205 |
|
Malaysia |
0% |
14,199,140 |
0 |
|
Indonesia |
0% |
12,119,559 |
0 |
|
Thailand |
0% |
11,481,638 |
0 |
|
Mexico |
0% |
6,279,695 |
0 |
|
United Arab Emirates |
0% |
6,088,904 |
0 |
|
Philippines |
0% |
4,434,566 |
0 |
|
Russia |
0% |
3,806,362 |
0 |
|
New Caledonia |
5% |
999,247 |
49,962 |
|
French Polynesia |
8% |
769,390 |
61,551 |
|
Fiji |
0% |
154,375 |
0 |
|
Total |
2.5% |
$2,522,393,364 |
$70,792,180 |
Chile is a competing Southern Hemisphere supplier and has negotiated free trade agreements with 12 countries including China, South Korea, Japan, the USA, Mexico, MERCOSUR countries (Brazil, Argentina, Paraguay, and Uruguay), and the EU. There were concerns that the trade advantage enjoyed by Chile will reduce prices in these markets and make it more difficult for New Zealand to compete, however the entry into force of the New Zealand-EU FTA will reduce barriers for New Zealand trade. Chile also wants to double kiwifruit export to India within next 2 to 3 years.
Kiwiberry. The USA imports 11% of kiwiberries by value, however the 2.2% tariff was responsible for all of the tariffs on kiwiberry exports.
Table 6.1.5: Cost of kiwiberry tariffs (based on 2022 FOB value)
|
Country |
Tariff rate |
Value |
Estimated cost of tariff ($) |
|
Japan |
0% |
1,472,636 |
0 |
|
Australia |
0% |
1,124,224 |
0 |
|
Taiwan |
0% |
799,151 |
0 |
|
United States of America |
2.2% |
472,780 |
10,401 |
|
Singapore |
0% |
70,561 |
0 |
|
Indonesia |
0% |
68,496 |
0 |
|
Thailand |
0% |
55,415 |
0 |
|
South Korea |
0% |
36,603 |
0 |
|
Hong Kong |
0% |
22,846 |
0 |
|
Viet Nam |
0% |
9,472 |
0 |
|
Malaysia |
0% |
7,460 |
0 |
|
Total |
0.3% |
$4,139,644 |
$10,401 |
SPS market access barriers - kiwifruit
Kiwifruit can be exported to around 60 countries, generally with very few phytosanitary barriers.
Australia. Kiwifruit is imported into Australia under the Compliance-Based Intervention Scheme (CBIS), which is explained in detail in Section 7.8.3. The Department of Agriculture, Fisheries and Forestry (DAFF) is concerned at an apparent high rate of non-compliance at on-arrival inspection of kiwifruit (and other crops). The industry is working with MPI and other sectors to understand and resolve the reasons for interceptions, and interception rates have reduced in recent seasons. However, many intercepted organisms are not identified to a level where they can be categorised as non-actionable, and are actionable by default.
China. An import protocol is being developed for kiwifruit and kiwiberry to China. Current access is based on historic trade, with no formal analysis of risk, and the protocol will bring trade into line with new import protocols that China has developed for other crops. Good progress is being made, and is nearing completion. The protocol will also provide renewed market access for kiwiberry.
Colombia. A potential new market. It was clarified in May 2017 that fresh kiwifruit did not have access without a pest risk analysis being completed. A technical information package has been provided and Colombia has completed the Pest Risk Analysis. Discussions are being held regarding proposed phytosanitary measures.
Ecuador. A potential new market. Information to support a market access request was submitted to Ecuador in 2017/18. Discussions have stalled due to unfeasible proposed conditions and reprioritisation of new markets.
European Union. Some EU member states still require, or have even recently begun to require, wet signatures on phytosanitary certificates, so the clearance process still remains very much paper- based. The COVID-19 pandemic has prompted some developments in electronic document exchange, and these are expected to continue.
Indonesia. Uncertain market for all fresh fruit and vegetables because of the Indonesian regulatory system. Kiwifruit is not subject to the same restrictions as other fruit and vegetable exports. However, new import licensing requirements have been introduced that may further complicate access to Indonesia. The country recognition agreement (CRA) of New Zealand has been renewed. Explanation on CRA is provided in Section 7.15.3.
Japan. Unnecessary on arrival fumigation often occurs. A system of listing non-quarantine pests means that if a pest occurs in Japan but is not on that list, it is still considered to be a quarantine pest. MPI has successfully negotiated expansion of the non-quarantine pest list, but fumigation of non-quarantine pests still occurs.
Jordan. No access. A change to import permits from the 2016 season closed access to Jordan. The new requirement is for an additional declaration that the consignment is free of Pseudomonas syringae pv. syringae. Kiwifruit is a well-known host of this common bacterial blast, and Zespri has not pursued a case via MPI about this. The requirement seems to be targeted at New Zealand product as there is no such requirement for exports from Europe, where this bacterium is also present.
Mexico. Occasional detections of Fuller’s rose weevil result in fumigation. Fuller’s rose weevil is categorised as a quarantine pest even though records show that it is present in Mexico. Mexico has stated that the only sightings were a number of years ago, and no further sightings have occurred.
Peru. A potential new market. A market access package was submitted to Peru in 2017/18 to support a new access request, and Peru has agreed to commence work on access.
Philippines. Access continues but is restricted. In 2019 Philippine authorities reduced the validity of import permits from 60 days to only 20 days. This is not aligned with the industry’s supply chain order lead times and is interpreted as a technical barrier to trade.
South Korea. Regulations on residue testing upon arrival are significant. These are exacerbated by frequent MRL revisions, which mean each supplier or post-harvest operator needs to be re-tested with each change.
USA. The final rules for the Food Safety Modernisation Act are being implemented and will result in additional compliance costs. Discussions are being held on the equivalence of the New Zealand- USA Food Safety Recognition Agreement.
Labelling. There are international guidelines for labelling, but Argentina, Brazil, India, Indonesia, Malaysia, Qatar, Russia, Saudi Arabia, South Korea, and Viet Nam all require additional labelling to be applied before export.
SPS market access barriers - kiwiberry
China. In 2016 China reviewed the list of crops permitted entry to China and added the scientific names associated with the importable commodities. Kiwiberry had previously been classed as 'kiwifruit' because of its inclusion in the Actinidia genus and had entered on this basis for several years. However, in the review China considered that Actinidia arguta was not part of the kiwifruit group so kiwiberry was excluded from the list of permitted crops.
Work continues on developing an import protocol for kiwiberry and kiwifruit to China. The protocol will bring trade into line with new import protocols that China has developed for other crops. The protocol will provide renewed market access for kiwiberry.