The USDA expects it The area planted to New Zealand apples in the current campaign is 22,733 hectares. The reduction in acreage was due to the effects of Cyclone Gabriel, which brought large-scale flooding, silt, debris, wind and surface flooding to key apple-producing areas such as Hawke’s Bay and Gisborne. The report describes how farm performance for producers will be a significant factor in selecting future varieties, as the replacement of currently damaged farms and increasing interest rates on financial loans. As a result, the department predicts Hectares of older varieties such as Braeburn are declining in favor of newer varieties such as Reckitt.
Exports will increase
New Zealand apple exports are forecast to reach 330,000 tonnes in 2023-2024. 7% increase Compared to last season’s 309,084 tonnes.
As a result of off-season production from New Zealand to other countries, the USDA expects market demand to remain strong, with export priorities particularly focused on Asian markets such as Vietnam, Thailand and China. In the first quarter of the year, India has become a significant growth market. It is New Zealand’s second largest destination from January to March
Last season, Hurricane Gabriel reduced apple exports, with overseas exports the lowest since the 2012-2013 season. According to the report, farmers in the Hawke’s Bay and Gisborne regions are in the process of deciding whether to save or repair damaged orchards. The estimated cost of re-establishing apple orchards is between US$108,000 and US$150,000 per hectare. Trees and planting, support structures, irrigation systems and land preparation.
Apple trees take two to three years, with additional time before the trees reach maturity. There is uncertainty about the number of hectares that cannot be repopulated in the future. Also, the country’s total bank credit for horticulture activities stood at US$ 4.7 billion in February 2024,” the report said.
Since 2017, The total value of loans to horticulture producers has increased at a compound annual growth rate (CAGR) of 11.5% per annum., compared to loans to combined dairy, livestock and grain producers, which declined at a CAGR of -0.6% annually. 84% of loans to the agriculture sector are disbursed at variable rates, which translates into higher costs for farmers as interest rates are higher.
“The impact of this situation is that for the rest of the campaign, farms will use less capital for new purchases, improvements and innovations as companies prioritize debt service,” the USDA concluded.
Source: Simfruit/USDA.
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