6.8 Summerfruit (cherries, apricots, peaches, nectarines, plums)
6.8.1 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 recognised 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. Summerfruit New Zealand represents grower interests, managing a 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 (especially 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 |
|
|
New markets |
Opening up markets that we don’t currently have access to |
|
|
Maintaining access to existing markets |
Fighting to maintain or regain access to a market where the import or phytosanitary conditions have changed, affecting the ability to export |
|
|
Improving access to existing markets |
Challenging unjustified aspects of importing countries |
|
The industry comprises around 250 growers with a total of 2,350 hectares of orchards. The main growing areas are Central Otago where two-thirds of the planted area is established, and Hawke’s Bay which accounts for most of the remaining one-third. Summerfruit production is expanding, with large plantings of cherries now starting to drive up export volumes, while there are increased plantings of apricots in Central Otago and Hawke’s Bay as new New Zealand-bred varieties are released.
Figures from the last season show that cherries are still by far the most important summerfruit crop by value (Table 6.8.1). Central Otago produces most of the cherries grown in New Zealand, of which the majority is exported. Small volumes of pre-Christmas cherries are exported from Marlborough. Apricot exports are also very important to Central Otago.
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. Cherry varieties grown in Hawke’s Bay are more suited to the warmer climate and fewer winter chill days, and do not attract the premium returns achieved for Central Otago-grown cherries. 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.
Table 6.8.1: Value of domestic and export summerfruit sales 2021-2022 season
|
Cherries |
Apricots |
Nectarines |
Peaches |
Plums |
Total |
|
|
New Zealand market 1 |
$22,488,497 |
$7,548,534 |
$18,876,756 |
$10,366,379 |
$8,113,449 |
$67,393,615 |
|
Export |
$83,220,482 |
$1,031,870 |
$8,089 |
$248,191 |
$28,460 |
$84,537,092 |
|
Total value New Zealand market and export 2 |
$105,708,979 |
$8,580,404 |
$18,884,845 |
$10,614,570 |
$8,141,909 |
$151,930,707 |
|
% Value NZ market |
21% |
88% |
100% |
98% |
100% |
44% |
|
% Value export |
79% |
12% |
0% |
2% |
0% |
56% |
1 Source: Summerfruit New Zealand, 2 Does not include processed summerfruit
6.8.2 Exports
Total summerfruit exports are worth $79.3 million in 2022, increasing by 43% compared to 2020. This increase was mainly due to a 52% increase in the value of cherries which are the most valuable summerfruit export, representing 98% of total export value.
Cherries. Following steady growth of cherry exports to 2018, export values declined in 2020 due to weather related production issues, but have bounced back with a 52% increase to be worth $77.8 million in 2022. Taiwan remains the largest market for New Zealand cherry exports, taking 47% of the exports by value. Exports to this market have increased by 72% to $37.0 million in 2022.
Exports to other key markets have also experienced growth from 2020 to 2022 including China - up 34% to $15.2 million, and Viet Nam – up 41% to $10.5 million. Exports to the USA and Malaysia also increased, 119% and 134% respectively, while there was a 4% decrease in exports to Thailand.
Collectively the top three markets, Taiwan, China and Viet Nam account for 81% by value of all cherry exports. The average value for cherries in 2022 was $20,805/tonne.
Table 6.8.2: Cherry (0809.29.00.00) export markets 2020-2022 (year ending June, tonnes, $NZ FOB)
|
Market |
2020 |
2021 |
2022 |
|||
|
Volume |
Value |
Volume |
Value |
Volume |
Value |
|
|
Taiwan |
965 |
21,484,994 |
1,215 |
25,212,424 |
1,612 |
36,963,774 |
|
China |
514 |
11,396,049 |
643 |
12,834,310 |
685 |
15,218,150 |
|
Viet Nam |
402 |
7,473,539 |
505 |
8,047,939 |
559 |
10,528,979 |
|
Thailand |
219 |
4,096,713 |
196 |
3,313,577 |
236 |
3,944,893 |
|
United States of America |
78 |
1,078,248 |
112 |
1,263,653 |
174 |
2,362,626 |
|
Malaysia |
44 |
935,426 |
75 |
1,350,277 |
104 |
2,193,320 |
|
Singapore |
51 |
858,365 |
46 |
933,867 |
85 |
1,462,498 |
|
Japan |
70 |
1,061,627 |
54 |
801,716 |
100 |
1,458,165 |
|
Philippines |
31 |
512,468 |
15 |
191,509 |
74 |
1,374,249 |
|
Hong Kong |
39 |
957,806 |
19 |
391,742 |
51 |
1,180,843 |
|
South Korea |
51 |
703,642 |
51 |
686,387 |
28 |
510,131 |
|
Cambodia |
12 |
212,274 |
18 |
277,212 |
16 |
293,401 |
|
Canada |
16 |
174,637 |
0 |
0 |
8 |
149,522 |
|
United Arab Emirates |
0 |
0 |
0 |
0 |
4 |
97,306 |
|
New Caledonia |
5 |
87,366 |
4 |
81,189 |
2 |
46,323 |
|
Indonesia |
2 |
40,958 |
2 |
38,631 |
1 |
26,665 |
|
Pacific Islands |
1 |
11,764 |
1 |
17,789 |
1 |
16,344 |
|
India |
6 |
118,214 |
0 |
0 |
1 |
14,282 |
|
French Polynesia |
0 |
8,188 |
1 |
23,482 |
1 |
11,598 |
|
Fiji |
0 |
3,969 |
0 |
0 |
0 |
1,165 |
|
Myanmar |
3 |
48,023 |
0 |
0 |
0 |
0 |
|
Australia |
4 |
34,330 |
0 |
0 |
0 |
0 |
|
European Union |
1 |
22,370 |
0 |
0 |
0 |
0 |
|
Kuwait |
1 |
12,532 |
0 |
0 |
0 |
0 |
|
Total |
2,515 |
$51,333,502 |
2,956 |
$55,465,704 |
3,742 |
$77,854,234 |
|
% change (yr/yr) |
-24% |
-26% |
18% |
8% |
27% |
40% |
Apricots. Apricot exports decreased by 70% to $1.1 million in 2022. Much of this decline is a result of an 81% decrease in exports to Australia, the primary market for New Zealand grown apricots. The value of apricots exported to other markets has also declined over this reporting period. The average value for apricots in 2022 was $5,179/tonne, a 5% decrease from $5,459/tonne in 2020.
Table 6.8.3: Apricot (0809.10.00.00) export markets 2020-2022 (year ending June, tonnes, $NZ FOB)
|
Market |
2020 |
2021 |
2022 |
|||
|
Volume |
Value |
Volume |
Value |
Volume |
Value |
|
|
Australia |
539 |
2,794,452 |
115 |
626,777 |
179 |
896,022 |
|
United Arab Emirates |
31 |
173,833 |
5 |
27,605 |
12 |
111,415 |
|
United States of America |
62 |
331,929 |
24 |
117,188 |
19 |
64,605 |
|
Viet Nam |
3 |
60,171 |
11 |
137,854 |
2 |
13,867 |
|
Kuwait |
4 |
37,270 |
0 |
0 |
1 |
12,057 |
|
French Polynesia |
0 |
0 |
1 |
9,670 |
1 |
7,800 |
|
Pacific Islands |
0 |
874 |
0 |
134 |
0 |
1,475 |
|
New Caledonia |
0 |
2,076 |
0 |
0 |
0 |
866 |
|
Fiji |
0 |
1,612 |
0 |
0 |
0 |
295 |
|
Hong Kong |
0 |
0 |
1 |
2,330 |
0 |
0 |
|
European Union |
17 |
124,388 |
0 |
0 |
0 |
0 |
|
Saudi Arabia |
14 |
98,883 |
0 |
0 |
0 |
0 |
|
Taiwan |
3 |
44,588 |
0 |
0 |
0 |
0 |
|
Qatar |
3 |
20,388 |
0 |
0 |
0 |
0 |
|
India |
1 |
4,996 |
0 |
0 |
0 |
0 |
|
Total |
677 |
$3,695,460 |
157 |
$921,558 |
214 |
$1,108,402 |
|
% change (yr/yr) |
97% |
80% |
-77% |
-75% |
36% |
20% |
Peaches, nectarines, and plums. In comparison to cherries and to a lesser extent apricots; peaches, nectarines and plums are minor export crops with the domestic market representing over 90% of fruit sales. From 2016 to 2018 peach exports were stable at around $600,000, dropping to $325,617 from 2018 to 2020 and there has been a further decline of 14% to $279,624 in 2022. The value of exports of nectarines and plums has also declined over this period, by 71% and 65% respectively. Peaches, nectarines and plums each have one or two major markets: Singapore for peaches, New Caledonia and Pacific Island countries for nectarines; and the USA for plums.
Table 6.8.4: Peach (0809.30.00.09) export markets 2020-2022 (year ending June, tonnes, $NZ FOB)
|
Market |
2020 |
2021 |
2022 |
|||
|
Volume |
Value |
Volume |
Value |
Volume |
Value |
|
|
Singapore |
24 |
150,457 |
22 |
163,753 |
25 |
188,918 |
|
Kuwait |
0 |
0 |
0 |
0 |
9 |
65,564 |
|
Pacific Islands |
2 |
13,018 |
2 |
11,468 |
2 |
7,971 |
|
United States of America |
3 |
11,812 |
6 |
13,188 |
2 |
6,545 |
|
Australia |
11 |
42,245 |
10 |
51,146 |
2 |
4,292 |
|
New Caledonia |
4 |
19,411 |
2 |
8,917 |
1 |
3,115 |
|
French Polynesia |
2 |
9,450 |
1 |
2,739 |
0 |
1,632 |
|
Fiji |
2 |
8,786 |
0 |
507 |
0 |
1,587 |
|
Taiwan |
14 |
64,257 |
31 |
189,641 |
0 |
0 |
|
Hong Kong |
1 |
6,181 |
8 |
49,951 |
0 |
0 |
|
Papua New Guinea |
0 |
0 |
0 |
625 |
0 |
0 |
|
Total |
62 |
$325,617 |
82 |
$491,935 |
40 |
$279,624 |
|
% change (yr/yr) |
-12% |
-23% |
32% |
51% |
-51% |
-43% |
Table 6.8.5: Nectarine (0809.30.00.01) export markets 2020-2022 (year ending June, tonnes, $NZ FOB)
|
Market |
2020 |
2021 |
2022 |
|||
|
Volume |
Value |
Volume |
Value |
Volume |
Value |
|
|
Pacific Islands |
3 |
13,222 |
2 |
9,331 |
1 |
8,112 |
|
New Caledonia |
4 |
18,413 |
2 |
10,302 |
1 |
5,835 |
|
Fiji |
1 |
6,604 |
1 |
1,994 |
0 |
373 |
|
French Polynesia |
2 |
9,519 |
0 |
1,686 |
0 |
325 |
|
Hong Kong |
0 |
0 |
0 |
115 |
0 |
69 |
|
United States of America |
0 |
0 |
1 |
1,784 |
0 |
0 |
|
Papua New Guinea |
0 |
183 |
0 |
819 |
0 |
0 |
|
Taiwan |
0 |
2,162 |
0 |
0 |
0 |
0 |
|
Australia |
0 |
1,187 |
0 |
0 |
0 |
0 |
|
Total |
10 |
$51,290 |
6 |
$26,031 |
3 |
$14,714 |
|
% change (yr/yr) |
-19% |
-18% |
-46% |
-49% |
-55% |
-43% |
Table 6.8.6: Plum (0809.40.00.01) export markets 2020-2022 (year ending June, tonnes, $NZ FOB)
|
Market |
2020 |
2021 |
2022 |
|||
|
Volume |
Value |
Volume |
Value |
Volume |
Value |
|
|
United States of America |
29 |
81,826 |
7 |
18,840 |
10 |
26,016 |
|
Fiji |
3 |
13,352 |
0 |
234 |
2 |
9,435 |
|
Pacific Islands |
1 |
6,463 |
0 |
3,029 |
3 |
4,534 |
|
Singapore |
0 |
0 |
3 |
15,073 |
0 |
0 |
|
New Caledonia |
2 |
10,509 |
1 |
5,925 |
0 |
0 |
|
Hong Kong |
0 |
0 |
2 |
3,950 |
0 |
0 |
|
French Polynesia |
0 |
432 |
1 |
3,172 |
0 |
0 |
|
Papua New Guinea |
0 |
306 |
0 |
242 |
0 |
0 |
|
Australia |
0 |
42 |
0 |
0 |
0 |
0 |
|
Total |
35 |
$112,930 |
14 |
$50,465 |
13 |
$39,985 |
|
% change (yr/yr) |
-26% |
-46% |
-60% |
-55% |
-6% |
-21% |
6.8.3 Barriers to export
Cost of Tariffs
Cherry exports represent 71% of tariffs on summerfruit, largely due to a 0.8% tariff into Japan which will phase down to zero in 2023 under CPTPP, and a 30% tariff into India. Exports into India represent only 0.02% of FOB value but contributes 25% of the tariff costs for cherries. There are no tariffs on cherries into the major markets of Taiwan and China.
EU tariffs on New Zealand summerfruit are high compared to those imposed on other Southern Hemisphere exporting countries. For example, New Zealand apricots are subject to a 20% tariff while apricots from Chile and South Africa are not subject to any tariff. Tariffs on exports to the EU will be eliminated when the New Zealand-EU FTA enters into force, which is expected in 2024. The cost of tariffs across all crops equates to an average of $95 for each of the 250 growers.
Table 6.8.7: Cost of summerfruit tariffs (based on 2022 FOB value)
|
Tariff item |
Country |
Tariff rate |
Value |
Estimated cost of tariff ($) |
|
Cherries |
Taiwan |
0% |
36,963,774 |
0 |
|
China |
0% |
15,218,150 |
0 |
|
|
Viet Nam |
0% |
10,528,979 |
0 |
|
|
Thailand |
0% |
3,944,893 |
0 |
|
|
United States of America |
0% |
2,362,626 |
0 |
|
|
Malaysia |
0% |
2,193,320 |
0 |
|
|
Singapore |
0% |
1,462,498 |
0 |
|
|
Japan |
0.8% |
1,458,165 |
11,665 |
|
|
Philippines |
0% |
1,374,249 |
0 |
|
|
Hong Kong |
0% |
1,180,843 |
0 |
|
|
South Korea |
0% |
510,131 |
0 |
|
|
Canada |
0% |
149,522 |
0 |
|
|
United Arab Emirates |
0% |
97,306 |
0 |
|
|
New Caledonia |
0% |
46,323 |
0 |
|
|
Indonesia |
0% |
26,665 |
0 |
|
|
India |
30% |
14,282 |
4,285 |
|
|
French Polynesia |
8% |
11,598 |
928 |
|
|
Fiji |
5% |
1,165 |
58 |
|
|
Total Cherries |
0.02% |
$77,544,489 |
$16,936 |
|
|
Apricots |
Australia |
0% |
896,022 |
0 |
|
United Arab Emirates |
0% |
111,415 |
0 |
|
|
United States of America |
0.2c/kg |
64,605 |
5,580 |
|
|
Viet Nam |
0% |
13,867 |
0 |
|
|
French Polynesia |
8% |
7,800 |
624 |
|
|
New Caledonia |
5% |
866 |
43 |
|
|
Fiji |
0% |
295 |
0 |
|
|
Total Apricots |
1% |
$1,094,870 |
$6,247 |
|
|
Peaches |
Singapore |
0% |
188,918 |
0 |
|
United States of America |
0% |
6,545 |
0 |
|
|
Australia |
0% |
4,292 |
0 |
|
|
New Caledonia |
5% |
3,115 |
156 |
|
|
French Polynesia |
8% |
1,632 |
131 |
|
|
Fiji |
0% |
1,587 |
0 |
|
|
Total Peaches |
0.14% |
$206,089 |
$286 |
|
|
Nectarines |
New Caledonia |
5% |
5,835 |
292 |
|
Fiji |
0% |
373 |
0 |
|
|
French Polynesia |
8% |
325 |
26 |
|
|
Hong Kong |
0% |
69 |
0 |
|
|
Total Nectarines |
5% |
$6,602 |
$318 |
|
|
Plums |
United States of America |
0% |
26,016 |
0 |
|
Fiji |
0% |
9,435 |
0 |
|
|
Total Plums |
0.5% |
$35,451 |
$0 |
|
|
Total Summerfruit |
0.03% |
$78,887,501 |
$23,787 |
SPS market access barriers
The industry has an active market access programme, gaining new or improved access to Japan, South Korea and Western Australia in earlier years, but there has been little progress in recent times.
Australia. Apricots are the main summerfruit export to Australia, and Australia is also the most important export market for New Zealand apricots. The removal of OPI was considered a trade risk for apricot exports, and the decline in exports since the removal of OPI bears this out. Apricots have a relatively short shelf life so any delays at the border can significantly impact fruit quality. In addition, if pests are detected on arrival in Australia the only options are fumigation, reshipment or destruction. Methyl bromide fumigation severely damages fruit quality and further reduces shelf life.
As with many other sectors, the key issues with Australian border clearance is unidentifiable organisms being detected on apricots on arrival in Australia and treated as quarantine pests by default. Discussions are continuing between industry, MPI, and Australian officials about improving pest identification at the border.
China. Summerfruit NZ has been seeking access for apricots, peaches and nectarines into China since 2016, and the access request has been prioritised by MPI. As yet, however, the request for apricots has not been submitted to China and is in a queue awaiting completion of other import risk assessments by China.
Indonesia. Indonesia’s Country Recognition Agreement (CRA) allows listed fresh food of plant origin to be exported to Indonesia with reduced testing/inspection, and preferential port access. Cherries and peaches are included in Indonesia’s list, but Summerfruit NZ is now seeking to add apricots, nectarines and plums to the CRA list as part of the process for the next CRA revision in 2024.
Japan. Summerfruit NZ gained cherry access to Japan in 2005, but Japan still requires that an inspector visits New Zealand annually to review the programme at the cost of the New Zealand industry. In 2020-21 and 2021-22, due to Covid-19 travel restrictions, Japan suspended the inspection visit in lieu of an enhanced inspection of fruit on arrival in Japan. The alternative checks worked well. However, Japan intends to reinstate the annual inspection visits.
The official assurance programme has been very successful, and Summerfruit NZ would like to see an end to the annual inspection visits, as after 15 years of inspection visits procedures in the exporting country have been validated (ISPM No. 20 (5.1.5.2) - “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.”).
South Korea. South Korea also requires inspection visits to verify the cherry export programme but, soon after implementation, reduced the frequency to once every three years. In 2019/20, South Korea recommended the removal of the ongoing visits. Summerfruit NZ is seeking confirmation from MPI that this policy has been implemented.
Taiwan. Taiwan is the biggest export market for New Zealand cherries, and also imports other summerfruit from time to time. In the 2021-22 season exporters were unable to send apricots to Taiwan, as importers were advised that New Zealand apricots are not on the list of permitted imports. The industry believed that all summerfruit could be exported to Taiwan, and the MPI ICPR also stated that apricots were permitted. An access request will be required to reinstate apricot access to Taiwan.
Thailand. Cherries and apricots are exported to Thailand. Summerfruit NZ is seeking to add peaches, plums and nectarines to the range of crops that may enter Thailand. A pest list and technical information package was provided in 2017. Thailand has asked New Zealand to prioritise one of these crops, as a pest risk analysis will only be carried out for one summerfruit type at a time. Thailand has now begun work on the peach PRA, following confirmation this is New Zealand’s priority.