Source: Canvas.
A new step A report by the US Department of Agriculture (USDA). New Zealand apple production and exports will increase in the 2023-2024 campaign, although acreage will decrease.
New Zealand’s harvest season starts in January and ends in June, with the peak apple harvest from March to May. According to the company, the production of this fruit will reach 480,000 tons, which represents an increase compared to 440,000 tons in 2022-2023. “This reflects an expected recovery due to the El Nino weather pattern, availability of seasonal labor and implementation of innovations in the agricultural system,” the report described.
The USDA predicts that the area planted to New Zealand apples in the current campaign will be 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.
With the USDA now replacing damaged orchards and increasing interest rates on financing loans, farm performance for producers will be a significant factor in selecting future varieties. As a result, the sector expects to see fewer hectares of older varieties like Braeburn in favor of newer varieties like Reckitt.
Increase in exports
New Zealand apple exports are forecast at 330,000 tonnes in 2023-2024, an 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 became a significant growth market, becoming New Zealand’s second 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, growers in the Hawke’s Bay and Gisborne regions are in the process of making decisions to restore damaged orchards. Irrigation systems and land preparation.
Apple trees take two to three years, with additional time before the trees reach maturity. There is uncertainty over the number of hectares that cannot be replanted in the future, “and the country’s total bank loans for horticultural 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 dairy, livestock and grain producers, which have declined at a CAGR of -0.6%. per year. 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.
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