Bay of Plenty Business News January/February 2018

18 BAY OF PLENTY BUSINESS NEWS January/February 2018
Key hort crops escape
worst of storm’s wrath
Despite the impact on many Bay of Plenty holidaymakers’
vacations, January’s intense storm inflicted relatively little
damage to the region’s high value avocado and kiwifruit crops.
Expected high prices for avocados this year are expected to be
maintained.
By RICHARD RENNIE
Seeka chief executive
Michael Frank said the
major impact had come
from avocado supply chain
interruption, with the storm
forcing picking to stop during
the peak harvest period.
“The interruption has meant
that most exporters were
required to air freight avocados
to Australia to ensure supply
continued,” he said. “But
in terms of crop damage on
trees, that was minimal.”
Some orchards had experienced
fruit drop, but it
had come when the bulk of
orchards had harvested their
main crop.
With avocado harvesting
now on the home straight, he
said growers will be well satisfied
with prices that are now
sitting at record highs of $38-
$40 a tray, thanks in part to
supply pressure during the past
low fruiting season. Avocados
typically bear higher volumes
in alternate seasons.
The previous record price
high for avocados has been
$26 a tray. Prices in Australia
have experienced spikes as a
Seeka’s Michael Franks: record high prices
for avocados expected. Photo/Supplied.
result of the weather disruption,
with reports of them hitting
$A60 a tray.
“Supply was expected to be
down significantly, by 50 percent
on last year,” said Franks.
“But it has been down even
further again, about another 10
percent.”
This year’s harvest is
expected to be about 2.2 million
trays, well down on last
year’s 5 million. However,
crop quality has been high,
while the low local supply has
coincided with lowered supply
out of Australia.
Franks anticipated prices
would approach near normal
again next year as fruit volume
again increased, and could
be around the mid-$20 a tray
mark.
John Cotterell, who works
with Avoco’s grower services,
said getting volumes into
Australia to keep retailers
happy had proven a struggle
in the later part of the season.
It had not been helped by
key supplier state Western
Australia also experiencing
low fruit volumes.
“Prices have gone through
the roof, but you have to take
them while you can.”
Cotterell said indications
were that next year’s Western
Australian crop may be light
again, which may bode well
for prices next season in what
is expected to be a high cropping
year.
New Zealand hopes to be
exporting fresh avocados to
China soon after the Ministry
for Primary Industries
signed a protocol late last
year with China’s General
Administration of Quality
Supervision, Inspection and
Prices have gone
through the roof,
but you have to
take them while
you can.
Quarantine, which will audit
the new imports.
Cotterell said he was cautious
about commenting on the
implications of the approval
by China, given the supply
challenges that can come with
the fruit.
“But then we are most likely
only going to be aiming at
the top end of that market,”
he said, adding that the fruit
set for the coming season was
looking good. “It will be up on
this year, but then that would
not be hard.”
In terms of kiwifruit,
Seeka’s Franks said the first
seasonal estimate on volumes
was expected in February, but
initial indications were that the
storm had little impact. The
Hayward Green yields were
looking better than last year,
which was affected by a poor
spring pollination.
“And Gold also looks better
again. There was some wind
damage and some marking
from the storm, but nothing of
significance.”