North Canterbury News: July 08, 2021
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NEWS<br />
16 <strong>North</strong> <strong>Canterbury</strong> <strong>News</strong>, <strong>July</strong> 8, <strong>2021</strong><br />
Truffle ‘price war’ divides growers<br />
The harvest of Perigord black truffles has started and a‘‘price war’’<br />
continues as values remain athird of historical prices. Allied Press’<br />
Shawn McAvinue investigates the factors impacting the price of the<br />
‘‘black gold’’ and the state of the industry.<br />
Ablack truffle‘‘price war’’ is ragingin<br />
New Zealand.<br />
LimestoneHillsowner Gareth<br />
Renowden, of Waipara Valley, grows<br />
Perigord blacktruffles in his truffiereof<br />
about 220 trees in <strong>North</strong><strong>Canterbury</strong>.<br />
The truffle species was the first type to<br />
be planted in New Zealand, had the most<br />
growers devoted to it and fetched the<br />
highest prices,hesaid.<br />
The average market price for a<br />
premium Perigordtruffle in New Zealand<br />
had been about $3 agram for the past 20<br />
years,hesaid.<br />
In the past two years, more growers in<br />
New Zealandhad beensupplying<br />
Perigord truffles to the domestic market.<br />
Demandfor truffles dropped lastyear,<br />
after restaurants closeddue to the<br />
financial impact of Covid19.<br />
Consequently, some‘‘newcomers’’tothe<br />
sectorbegansellingPerigord truffles fora<br />
‘‘ridiculously low price’’last year.<br />
A<strong>North</strong> Island truffle cooperative<br />
‘‘triggered the price war’’ by workingwith<br />
Bidfresh—adivision of foodwholesaler<br />
Bidfood —bymarketing truffles for $1 a<br />
gram.<br />
Bidfreshused lowprices as a‘‘weapon’’,<br />
ratherthan creating aclient base by<br />
building relationships,like truffle growers<br />
had over several years.<br />
George’sTruffles owner and New<br />
Zealand Truffle Associationacting<br />
presidentGeorge Wilkinson,ofTasman,<br />
sold his Perigord truffles from $1 agram <br />
‘‘undercutting’’ the market,MrRenowden<br />
said.<br />
Many growers were‘‘ropeable’’bythe<br />
price being ‘‘hammered’’ down.<br />
‘‘There was alot of illfeeling about how<br />
the markethad been devastated by these<br />
veryrash and illconsidered shortterm<br />
plans.’’<br />
Asteadyprice was important, as<br />
growers created abusinessplan on a<br />
forecast financial return,sowhen the<br />
price dropped it had aseriousimpactona<br />
truffiereoperation, he said.<br />
As Mr Wilkinson had ‘‘ledthe price war’’<br />
he was in no positiontoadvocate for the<br />
sectorand to get growers cooperating to<br />
create exportopportunities, or to make<br />
efforts to rebuild grower returns.<br />
‘‘Dumping truffleinthe market is not a<br />
verynice thing to do to your colleagues.’’<br />
The sharpfall in pricing was an ‘‘eyeopener’’<br />
for growers.<br />
‘‘Noone expected the pricing in the<br />
market to collapse quite as dramatically.’’<br />
The drop had resulted in him losing ‘‘a<br />
few sales’’ but most of his clientsstayed<br />
withhim because he had built ‘‘close<br />
relationships’’ withthem overthe past 15<br />
years.<br />
Mr Wilkinsonsaid he grew Perigord<br />
truffles among the 2200 treesofhis<br />
commercialtruffiereinMotueka.<br />
He beganselling in 2016 and was now<br />
selling a‘‘high volume’’oftruffles <br />
offeringthree grades exclusively to chefs<br />
in New Zealand.<br />
The lowest grade soldfor $1 agram.<br />
He sold truffles at pricesheconsidered<br />
to be fair, ratherthanworkingtoa‘‘price<br />
point’’, like some other growers.<br />
The aim was nevertopoachclients from<br />
other growers but to offer aproduct at a<br />
price and let the chefs decide on the best<br />
deal.<br />
Truffle scuffle ... Limestone Hills owner Gareth Renowden, of Waipara Valley, smells a<br />
truffle in <strong>North</strong> <strong>Canterbury</strong>.<br />
PHOTO: PAUL THOMPSON<br />
‘‘It’ssimple business. Idon’t see it as a<br />
price war.’’<br />
Bidfresh Hamilton generalmanager<br />
Gus Tissink said he rejectedMr<br />
Renowden’s claim Bidfresh had triggered<br />
aprice warbyreducing prices.<br />
About 30 percentofBidfreshtruffle<br />
supplylast season —about 15kg —was<br />
offered at $1 agram to specific clients.<br />
The remaining 70% of truffle was<br />
offered to the market at the normal price<br />
of $2.50 agram.<br />
Bidfresh was selling all its truffle at<br />
$2.50 agram this season and the produce<br />
was ‘‘moving’’ at that price.<br />
He expectedanoversupplyoftruffle to<br />
be an ongoing issue as there were more<br />
than 250 truffieres in New Zealand<br />
producing up to 400kg of produce.<br />
‘‘The marketisnot goingtobeable to<br />
holdthat value domestically.’’<br />
Mr Renowden doubtedtruffleprices<br />
would recover to the $3 agram price but<br />
expected it to settlebetween $2 and $2.50<br />
agram if the sector beganexporting.<br />
An association member and former<br />
president, Mr Renownden saidexporting<br />
was asolutiontothe issue of oversupply<br />
on the domestic market.<br />
Truffles had a10day shelflife and<br />
would need to be airfreighted to<br />
international markets.<br />
He agreed international markets would<br />
wantmuch more than individual growers<br />
could supply, so the industry neededto<br />
‘‘pool their crop’’ to meet the demand.<br />
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