6.15.1 Industry profile

Blackcurrants are grown commercially in New Zealand by 12 growers, with production of around 2,400 tonnes per year planted on approximately 600 hectares.

Blackcurrants are a prescribed product under the New Zealand Horticulture Export Authority. The recognised product group is Blackcurrants New Zealand whose role is to represent growers, ensure sustainable growth and profitability in the New Zealand blackcurrant industry, and promote New Zealand blackcurrants as a premium product.

The industry strategic plan:

• clearly defines the future direction of the New Zealand blackcurrant industry,
• provides guiding principles for Blackcurrants New Zealand’s investment of levies collected from growers,
• prioritises activities to ensure that Blackcurrants New Zealand effectively drives the desired change in the New Zealand blackcurrant industry

As part of this strategy, the vision of the industry is to become: ‘A fully integrated industry that delivers the goodness of New Zealand blackcurrants to the world.’

The mission of Blackcurrants New Zealand in achieving this is: ‘To inspire, coordinate and drive meaningful partnerships between New Zealand blackcurrant growers, processors, marketers and researchers.’

 

6.15.2 Exports

Blackcurrant exports have a combined value of $11.6 million in 2022. This is a 7% decrease on the total value for 2020. Frozen concentrate and individually quick-frozen blackcurrants decreased 84% and 4% respectively, while there was almost a five-fold increase in the value of ‘other’ blackcurrants to almost $7 million over this period. This illustrates some industry success in raising the value of blackcurrant export products, by further processing on-shore. In 2020, frozen juice concentrate and ‘Other’ blackcurrant exports represented 60% and 11% of the value of all products. In 2022, ‘Other’ blackcurrant exports are 60% of total value. The value of IQF blackcurrants has remained stable at 30% of total blackcurrant value.

Frozen juice concentrate. Exports of frozen juice concentrate decreased by 84% from $7.5 million in 2020 to $1.2 million in 2022. Japan is now the most valuable market taking 46% of volume and representing 48% by value. Malaysia was previously the most valuable market accounting for 64% of value in 2020. The value of this market has fallen dramatically from $4.8 million to just under $0.1 million, representing just 8% of the total value of frozen juice concentrate in 2022. In 2022, exports of frozen concentrate achieved $14,667/tonne, up by 37% from $10,705 in 2020.

The decrease in the Malaysian market reflects a decision in 2017 by Frucor Beverages to cease purchasing New Zealand blackcurrant juice concentrate which is used as an ingredient in drinks such as Ribena®. The rapid fall in exports in 2018 was a direct reflection of this commercial decision. As a result, a number of growers exited the industry. The high point for frozen fruit juice concentrate was $14 million in 2012. The global nutraceutical market is now a focus for blackcurrant industry growth.

Table 6.15.1: Frozen blackcurrant concentrate (2009.89.20.15) export markets 2020-2022 (year ending June, 1,000L, $NZ FOB)

 

Market	2020		2021		2022
	Volume	Value	Volume	Value	Volume	Value
Japan	62	624,602	44	422,080	39	594,783
Australia	61	353,020	97	650,108	13	196,144
South Korea	14	119,439	5	58,023	12	152,421
Taiwan	17	121,521	19	155,638	10	144,950
Malaysia	399	4,810,593	308	3,626,077	8	97,458
China	0	0	0	5	0	30,344
Philippines	57	691,131	0	0	1	15,504
Pacific Islands	0	0	0	0	0	460
European Union	18	130,555	75	518,579	0	0
Indonesia	1	9,526	13	155,232	0	0
United States of America	76	665,197	19	122,768	0	0
Total	703	$7,525,584	581	$5,708,510	84	$1,232,064
% change (yr/yr)	6%	6%	-17%	-24%	-86%	-78%

Volume = 1,000L

 

Individual quick frozen. Exports were worth $3.5 million in 2022, a 4% decrease from 2020. China and Japan are the largest markets for IQF blackcurrants representing 66% and 31% of value respectively. A higher value per tonne is achieved for product exported to Japan ($4,819/tonne) than to China ($3,143/tonne). The value of other markets fluctuates year on year. The average value for IQF blackcurrants increased 27% from $2,790/tonne in 2020 to $3,543/tonne in 2022.

Table 6.15.2: Individually quick frozen blackcurrant (0811.20.09.21) export markets 2020-2022 (year ending June, tonnes, $NZ FOB)

 

Market	2020		2021		2022
	Volume	Value	Volume	Value	Volume	Value
China	871	2,266,647	234	781,744	730	2,294,648
Japan	393	1,221,314	158	621,762	220	1,060,207
Taiwan	12	37,978	0	0	27	95,800
Thailand	1	5,741	0	3,886	2	14,119
Indonesia	0	0	0	0	1	4,292
Fiji	0	1,328	0	472	0	2,334
Australia	0	0	1	7,387	0	881
Norfolk Island	0	259	0	176	0	162
Singapore	0	1,244	0	413	0	0
Canada	19	78,790	0	0	0	0
Myanmar	0	89	0	0	0	0
United States of America	0	11	0	0	0	0
Total	1,295	$3,613,401	394	$1,415,840	980	$3,472,443
% change (yr/yr)	123%	129%	-70%	-61%	149%	145%

 

Other blackcurrant exports. Blackcurrant exports other than frozen concentrate or IQF products includes a number of different product forms (e.g., puree, pomace, powder) with a wide range of values, for example, processed powder products which are valued at several hundred thousand dollars per tonne.

Exports of these products increased five-fold from $1.4 million in 2020 to almost $7 million in 2022. China remains the largest market with 91% by volume and 78% by value of all exports of ‘other’ blackcurrant exports in 2022. Exports to Malaysia represent 8% of value and are the first products sent to this market since 2018. Other markets have been variable over this reporting period. The average value for ‘other’ blackcurrant exports more than doubled from $2,433/tonne in 2020 to $4,999/tonne in 2022.

Blackcurrants New Zealand has worked with New Zealand Customs and the HEA to develop more HS codes to better describe the exported product forms. These include 1106.30.00.10, 1106.30.00.15 for exports of variable strength blackcurrant powder, and 1212.99.00.13 used for blackcurrant pomace. Exports using these codes are not included in this report.

Table 6.15.3: Other blackcurrant exports (0811.20.09.23, 0811.20.09.28, 2008.99.31.01) export markets 2020-2022 (year ending June, tonnes, $NZ FOB)

 

Market	2020		2021		2022
	Volume	Value	Volume	Value	Volume	Value
China	556	1,346,868	2,390	4,918,975	1,260	5,408,824
Malaysia	0	0	0	0	28	559,896
United Kingdom	-	-	-	-	2	401,627
Japan	24.5	57,999	160.7	585,090	89	280,939
United States of America	0.008	672	0	0	3	246,102
Australia	0	0	0.587	19,410	5	41,599

 

South Korea	0	0	2	36,837	0	0
Hong Kong	0.020	1,187	0.068	20,339	0	0
European Union	0	0	0.17	10,100	0	0
Taiwan	0.037	1,951	0.148	9,142	0	0
Indonesia	0.000	0	1.003	8,040	0	0
Singapore	0.377	2,676	0.070	5,598	0	0
Fiji	2	5,335	0	0	0	0
Pacific Islands	0.380	1,638	0	0	0	0
Total	583	$1,418,326	2,555	$5,613,531	1,388	$6,938,987
% change (yr/yr)	-34%	-37%	338%	296%	-46%	24%

 

6.15.3 Barriers to export

Cost of Tariffs

Almost all of the cost of tariffs on blackcurrant exports are due to tariffs imposed by the UK, USA and Japan. These markets each account for 65%, 26%, and 9% of total tariffs respectively. Exports of ‘other’ blackcurrant products to the UK are subject to a 14% tariff and will be eliminated when the New Zealand-UK FTA enters into force. Tariffs imposed by Japan and South Korea for frozen concentrate will phase out in 2023 and 2024 respectively, under CPTPP and the New Zealand-Korea FTA. The estimated cost of tariffs equates to an average $7,235 across the 12 blackcurrant growers.

Table 6.15.4: Cost of blackcurrant tariffs (based on 2022 FOB value)

Tariff Item	Country	Tariff rate	Value	Estimated cost of tariff ($)
Frozen concentrate	Japan	1.3%	594,783	7,732
	Australia	0%	196,144	0
	South Korea	6%	152,421	597
	Taiwan	0%	144,950	0
	Malaysia	0%	97,458	0
	China	0%	30,344	0
	Philippines	0%	15,504	0
	Total frozen concentrate	0.7%	$1,231,604	$8,329
Individual quick frozen (IQF)	China	0%	2,294,648	0
	Japan	0%	1,060,207	0
	Taiwan	0%	95,800	0
	Thailand	0%	14,119	0
	Indonesia	0%	4,292	0
	Fiji	5%	2,334	117
	Australia	0%	881	0
	Total IQF	0.0%	$3,472,281	$117
Other blackcurrant exports	China	0%	5,408,824	0
	Malaysia	0%	559,896	0
	United Kingdom	14%	401,627	56,228
	Japan	0%	280,939	0
	United States of America	9%	246,102	22,149
	Australia	0%	41,599	0
	Total other	1.1%	$6,938,987	$78,377
	Total - blackcurrants	0.7%	$11,642,872	$86,823

 

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), or as a powdered nutraceutical, so there are no significant phytosanitary market access problems. 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.

 

Persimo