New Zealand domestic vegetable production: the growing story - 2017 hortnz.co.nz
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Horticulture New Zealand Foreword Horticulture New Zealand’s vision We believe it is time to take stock. There want our food and exports are vital to is ‘healthy food for all forever.’ Now, is an assumption that New Zealand the growing economy, but are we in more than ever, people are seeking is a land of plenty and we will always danger of leaving New Zealanders with out healthy food and lifestyles. have enough locally-grown food to not enough locally grown food to eat? Indications from the health sector feed our population, supplemented by This report is the first step in taking are that diet is linked to long-term imported food where there is demand. stock of what we need to continue health outcomes. The ideal diet But things are changing, fast. We need to grow the vegetables that form includes plenty of fresh fruit to look closely at our domestic food the staple base of healthy New and vegetables. supply and be sure that town, city and Zealanders’ diets. It is part of a regional planning decisions are seen in In addition to seeking out healthy body of evidence Horticulture the context of impacting the whole of food, people worldwide are making New Zealand is compiling to New Zealand’s food supply. purchasing decisions based on values. persuade decision-makers across These values might include wanting The solution is not as simple as all levels of government that we to know where the food comes from, picking up and moving growing need a domestic food security policy. and that it is sustainably and ethically operations somewhere else, or Before more houses are placed on produced. Growers and food retailers moving growing indoors and vertical. fertile and unique growing land and need to provide shoppers with Horticulture started on the outskirts more decisions are made about this information. of towns and cities to ensure fresh water, we want there to be a pause for produce could get to market quickly, In parallel, there is a perfect storm breath and some big picture planning. without spoiling. Each growing area brewing for New Zealand’s supply is an ecosystem that has developed of healthy food. Prime fruit and over generations and supports local, vegetable growing land is being regional and the wider New Zealand squeezed by rapid growth in towns economy in many ways, including and cities and high demand for new employment. housing. Emotional battles over water have the potential to leave growers Growers are definitely looking at high and dry. Changes in weather how they can do more with less. The patterns across regions and extreme population they feed is growing, but Julian Raine unseasonal weather events such access to land and water is challenging. President, Horticulture NZ Our growing areas and the businesses as rain, hail, snow, frost or drought that grow vegetables in New Zealand becoming more frequent and have consolidated meaning the need damaging, are impacting the supply to protect them for the future is more of fresh, healthy food. When supply important than ever. is short and demand high, prices are subject to wide variations. This can Science and technology is driving potentially put healthy food out of change and helping meet consumer Mike Chapman reach for some people. demands. People all over the world Chief Executive, Horticulture NZ
KPMG Foreword On a global scale, New Zealand’s Delivering nutritious produce that is agri-food sector is made up of a affordable by all New Zealanders is plethora of niche, boutique and a key enabler to encourage a wider artisan businesses. Greater value health discussion around healthy can be generated by joining the diets and food options. dots between the producers and The industry is working collaboratively the communities from which our to lead science and technology products originate and those that to secure and maintain market ultimately experience the product. leading positions. In a world of almost limitless choices Connecting the passion of the for premium consumers, something producer, and their desire to create being facilitated by rapidly evolving amazing products in the way that is technologies, New Zealand’s vegetable best for their land, family, community and fruit producers need to create and country, to the consumer will experiences that fully engage with differentiate a product and help their consumers. Keeping domestic secure a premium. This is ultimately consumers enthusiastic and connecting farmers with their reason passionate about our products, will for being. Most forget to acknowledge help our nation to flourish not only as our farmers as the providers of our a nation, but on the global stage. food and our health and, ultimately, Capturing value relies on telling the as those who support society to stories that underlie the products function effectively. we grow. These stories must be substantive and leverage all aspects of the products we grow. The provenance story of our products is a key differentiator for both domestic and international consumers, with traceability back to the grower a fundamentally important attribute. Ian Proudfoot As technology evolves, New KPMG Global Head of Agribusiness Zealand has an opportunity to add value to our natural products through securing our reputation as a sustainable and ethical nation.
Executive Summary New Zealand horticulture is big The make-up of New Zealand’s This report looks at domestic business, and growing fast. With population is changing, with vegetable supply, particularly of an industry value of $5.6 billion city dwellers no longer having what would be considered staple (excluding wine), we export 60 connections with rural communities vegetables, to examine all the factors percent of what we grow, that that they once might have had. that go into getting them from is, $3.4 billion in value to 124 There is not the understanding of the field to the plate. It looks at the countries. Exports increased by 40 what goes into getting fresh food challenges to supply, through to percent from June 2014 to 2016. onto their plates, but there are a lot of what is driving demand and price. The 5,500 commercial fruit and demands for convenient packaging Most of the vegetables grown in New vegetable growers employ about and year-round availability at an Zealand are eaten here, which is why 60,000 people and the demand for affordable price. they make a strong study group. workers across the skill spectrum is New Zealand growers are early Information and evidence is required outstripping supply. adopters of science and technology to enable good decisions about Such growth doesn’t come without to match changes in consumer New Zealand’s domestic food supply some growing pains. While there has demands. There has been going forward. been a strong focus on more exports, considerable investment in all aspects Security of supply is essential. We with primary production still being of production and some of our need to look at the full picture of New Zealand’s big economic driver, packhouses are driving efficiencies what is grown where and when; what is happening to our domestic and improving quality with cutting- where it goes and who it feeds; what food supply? edge technology and innovative the future ‘disruptors’ to the supply working practices. Trends indicate a strong desire chain will be – beyond the standard by consumers to buy fruit and We have the ideal climate and soils, variables growers have managed vegetables that are locally grown, and efficient people and systems, and for decades; the importance of to understand what has gone into ideal location with proximity to balancing housing and water producing their food. While some will key markets. supply with food supply; what role always buy on price, a section of the vegetables play in a healthy nation; So what is missing? population seek more information what our import needs might be before they buy. Domestic supply is not being viewed should we lose domestic supply; as a national system, with identified and how we might feed a A Consumer New Zealand survey in strengths and weaknesses, to give growing population. early 2017 showed that 71 percent of New Zealanders continued access to New Zealanders want to know where This report doesn’t answer all the all the fresh fruit and vegetables they their fruit and vegetables come from questions. It provides a snapshot of need in the future. Local, district and and 70 percent also want to buy domestic vegetable production to regional decision-making doesn’t New Zealand-grown. Consumers start the conversation about food look beyond its borders. While this want mandatory Country of Origin security in New Zealand. is appropriate in the context of their Labelling (CoOL) for fresh fruit and planning, no consideration is given vegetables, something New Zealand to national food supply when land lags behind other countries on – it is is zoned for housing, or water is only voluntary here and not law. allocated. A decision made in Hawke’s Off shore, our food commands a Bay for example, may impact on food premium because it is known to be supply to the whole South Island. safe, high-quality and healthy. There Assumptions are made without is a lot of talk about selling the New substance, about the footprint of Zealand story, yet we don’t even horticulture production. Growers have label our own fruit and vegetables in been busy working sustainably and our own country. Tourists who have improving environmental outcomes bought into the clean and green without telling the world about it. image and travelled all the way here, They need to better engage with struggle to get a New Zealand their communities so there can be food experience. broader understanding of seasonal food supply and greater trust in its provenance. HORTICULTURE NEW ZEALAND | 5
BROCCOLI & CAULIFLOWER 49,000 Tonnes produced in 2016 in New Zealand $6.36 / $4.02 Average retail price per kg of fresh (Broccoli / Cauliflower) in 2016 Broccoli contains vitamin C, vitamin A, vitamin K. Cauliflower contains vitamin C, folates, and pyridoxine. To give an example of the New KUMARA Zealand domestic food story, we have focused on key vegetables 22,000 Tonnes produced in 2016 in New Zealand that are staples of the Kiwi diet: $4.22 Broccoli & Cauliflower Average retail price per kg of fresh Kumara in 2016 Carrots & Parsnips Contains vitamin A (in the form of beta-carotene), pantothenic acid pyridoxine (Vitamin B6). Cabbage Kumara Lettuce Onions Potatoes ONIONS Tomatoes 211,510 Tonnes produced in 2016 in New Zealand $2.26 Average retail price per kg of fresh Onions in 2016 Contains vitamin C, pyridoxine and Sources: Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf magnesium. Statistics New Zealand Average Food Prices 2006-2017 www.vegetables.co.nz/health/vegetable-nutrition/ www.nutritionfoundation.org.nz/nutrition-facts/ www.hsph.harvard.edu/nutritionsource/what-should-you-eat/vegetables-and-fruits/ www.fruitsandveggiesmorematters.org/wp-content/uploads/UserFiles/Images/DiseasePreventionPotential.pdf www.medicalnewstoday.com – Health Media UK Ltd 6 | HORTICULTURE NEW ZEALAND
CARROTS & PARSNIPS CABBAGE 159,000 56,000 Tonnes produced Tonnes produced in 2016 in New Zealand in 2016 in New Zealand $2.26 / $5.43 $2.12 Average retail price per kg of fresh Average retail price per kg of fresh (Carrots / Parsnips) in 2016 Cabbage in 2016 Contains vitamin A, vitamin C, vitamin K. Contains vitamin C, vitamin K, folates. 10 LETTUCE 8,400 Tonnes produced in 2016 in New Zealand $4.98 Key vegetables Average retail price per kg of fresh Lettuce in 2016 that are staples Contains vitamin A, vitamin K, vitamin C. of the Kiwi diet POTATOES TOMATOES 525,000 102,900 Tonnes produced Tonnes produced in 2016 in New Zealand in 2016 in New Zealand $1.83 $5.97 Average retail price per kg of fresh Average retail price per kg of fresh Potatoes in 2016 Tomatoes in 2016 Contains vitamin B complex, vitamin C Contains vitamin A, vitamin C, vitamin K. and high in fibre.
New Zealanders eat most of the vegetables grown here. Some parts of our country grow and harvest all year-round. The value of the domestic vegetable supply is $1.26 billion, and exports currently sit at $615 million. While exports are growing, and new markets are being explored, most vegetables will continue to be grown for domestic supply. Kumara has increasingly gained popularity in the New Zealand diet. However, the unreliability of New Zealand’s weather has impacted on supply, particularly in 2017. Given that supply has not been able to keep up with demand, this has resulted in higher prices for locally grown kumara and has opened the door for kumara imports. New Zealand is a leading producer of onions. Excellent soil types and climate conditions are suited to growing quality onions. Of the nation’s fresh vegetable exports, onions are the star. New Zealand serves as a counter season to the Northern Hemisphere, which provides us with export market opportunities. Production New Zealanders love potatoes. Potatoes are New Zealand’s largest crop in terms of production hectares and volumes produced. They are a high-yielding crop. They require less water than comparable crops, and they adapt to growing in a range of conditions. They are one of the few crops grown outside that can be produced in most regions of New Zealand and harvested all year round. They contribute significantly to the New Zealand diet; by combining nutritional value with low cost due to high production, ensuring accessibility to the population. 8 | HORTICULTURE NEW ZEALAND
In 2016... 1,133,800 TONNES PRODUCED IN NZ (OF THE 10 KEY VEGETABLES) Tomatoes Potatoes* What we do with our 96% 94% New Zealand NZ consumed NZ consumed or processed or processed production (Estimated figures) 4% 6% Exported Exported Cabbage Onions Carrots 97% 10% 91% NZ consumed NZ consumed NZ consumed or processed or processed or processed 3% 90% 9% Exported Exported Exported Kumara Lettuce Broccoli & Cauliflower 99% 99% 99% NZ consumed NZ consumed NZ consumed or processed or processed or processed 1% 1% 1% Exported Exported Exported *42% of total sales revenue for potatoes is from processed potato exports Sources: Statistics New Zealand Household Economic Survey 2016 Expenditure tables | Statistics New Zealand Overseas Trade Exports - Merchandise Trade 2016 Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf | Consumer NZ and Horticulture NZ Consumer Survey, February 2017 | Potatoes New Zealand HORTICULTURE NEW ZEALAND | 9
Regions The location of where vegetables Broccoli and cauliflower production Depending on their climate, New are grown in New Zealand has is mostly in New Zealand’s northern Zealand’s vegetable-growing regions changed significantly over the years. and mid-regions, with warmer supply markets at different times This is due to a variety of factors, climate conditions allowing year- of the year. For instance, Pukekohe round production. Production is also supplies the market with Christmas including the increasing ability to impacted by extreme weather events, new potatoes, while Oamaru is chill and transport food, as well as which can create large peaks in pricing. famous for Jersey Benne potatoes developments in packaging and that are harvested around November. Similarly, cabbage can be planted and processing to suit market demand. harvested anytime during the year, During winter, there are times when leading to relatively stable pricing year- Southland is the only region supplying While the majority of vegetables round (subject to weather conditions). the domestic market with carrots. were grown near main centres 40- 50 years ago, there is now more of Almost all (93 percent) of tomato Understanding domestic food supply a reliance on large food production supply originates from the North Island, - and potential risks to this supply in where tomatoes are mostly grown the long-term - is one of the purposes hubs - such as Pukekohe, the indoors. Accordingly, prices increase of this document. Extreme weather Horowhenua and Canterbury - events can be mitigated against if to feed New Zealand’s various during the winter due to increased cost there is supply coming from other population bases. of heating glass houses. New Zealand regions that have not Lettuce is both an indoor and outdoor been affected. One example of this is Below is an outline of where some crop in New Zealand. It is not an export the rural suburb of Outram, in Otago. of the main staple vegetables crop due to its short shelf life. Like Formerly a large market garden and (for New Zealand consumption) tomatoes, lettuce is more expensive orchard area supplying the city of are grown. during winter months due to heating Dunedin, there are now only a few costs for indoor production and smaller market gardens remaining. the length of time it takes to grow Most of the produce for Dunedin now Potatoes are grown throughout comes from outside the immediate outdoors. the country; with the main growing area. Market gardening in this area has regions being Auckland, Waikato, Production of onions is fairly evenly now made way for lifestyle blocks and Manawatu/Wanganui and Canterbury. split between the growing regions of pasture. Crops are grown all year around, and New Zealand, with the predominant potatoes keep well in cool storage onion-growing regions being Auckland, Growing vegetables for commercial which contributes to the low and Waikato, Canterbury and Hawke’s supply requires the right soils and stable price throughout the year. It is Bay. Onions have the largest export microclimates. While technology and worth noting that two-thirds of New production of New Zealand vegetables. centralised distribution have made it Zealand’s potato production goes into easier to transport vegetables from A to Approximately half of the carrot and B, it is important that we don’t ‘put all processing. parsnip production is in Canterbury, our veges in one basket’. The aim is to Due to Northland’s warm climate, followed by Manawatu/Wanganui have a sustainable, year-round supply 97 percent of kumara is grown in and Southland. Southland’s unique of produce for New Zealand. This will the region. Kumara production is growing conditions and winter only be possible if the different growing highly impacted by extreme weather chill temperatures produces sweet regions work in conjunction to ensure events, so any severe weather events in parsnips and carrots. Another famed that seasonality and other variables, Northland will have an impact on the carrot-growing region, Ohakune, also such as diseases and weather, do not country’s supply. experiences winter chilling. drastically interrupt that supply. 10 | HORTICULTURE NEW ZEALAND
Main growing regions by volume for the 10 key vegetables (2014) NORTHLAND, P: 171,400 (4%) 97% of Kumara WAIKATO, P: 449,200 (10%) 2% of Lettuce 32% of Onions 28% of Tomatoes 19% of Potatoes AUCKLAND, P: 1,614,400 (35%) 39% of Tomatoes BAY OF PLENTY, P: 293,500 (6%) 33% of Cabbage 14% of Lettuce 32% of Lettuce 1% of Cabbage 25% of Broccoli & cauliflower 19% of Potatoes HAWKES BAY, P: 161,500 (3%) MANAWATU-WANGANUI, P: 236,900 (5%) 16% of Onions 22% of Broccoli & cauliflower 4% of Carrots & parsnips 20% of Cabbage 3% of Potatoes 15% of Carrots & parsnips TASMAN, P: 50,200 (1%) WELLINGTON, P: 504,800 (11%) 6% of Lettuce 1% of Broccoli & cauliflower 2% of Broccoli & cauliflower 1% of Lettuce 1% of Onions CANTERBURY, P: 599,900 (13%) 47% of Carrots & parsnips 46% of Potatoes 16% of Lettuce OTAGO, P: 219,200 (5%) P = Population in 2016 6% of Broccoli & cauliflower 6% of Cabbage Over 1,000,000 SOUTHLAND*, P: 98,000 (2%) 2% of Lettuce 500,000 - 1,000,000 15% of Carrots 200,000 - 500,000 2% of Potatoes 100,000 - 200,000 Under 100,000 Note, only showing main growing areas. *Percentages of Southland figures represents planted hectares for these vegetables Sources: Statistics New Zealand Agricultural Production Survey 2014 Indoor Outdoor Vegetables by Region | Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf | www.podgardening.co.nz www.handymanmagazine.co.nz/how-grow-onions | www.gardengrow.co.nz | Statistics New Zealand Estimated Resident Population for Regional Council Areas 2016
From the grower Kylie Faulkner Terry Olsen Allen Lim Sutherland Produce Ltd - Olsen Partnership - Manawatu Jade Garden Produce – Pukekohe “The vegetable industry in New Canterbury “For our business, access to irrigation Zealand is taken for granted. All “Growing vegetables on a large isn’t a nice-to-have, it’s essential. For the things we are used to such scale all year round, like we do in leafy vegetable crops, especially as a continuous supply of safe, Canterbury, can be challenging. in summer, it really is a case of no affordable, wholesome vegetables The produce is delicate and water, no crop. Water is critical to are under increasing threat. susceptible to weather events. Parts maintaining the consistent volumes It is everyone’s responsibility to of Canterbury have top quality soils and quality of our crops needed to ensure that the industry can and mild climatic conditions that supply our supermarket customers continue to flourish.” are vital, but increasingly hard to almost every single day of the year. come by. Access to this type of land Some of our products are eaten needs to be protected to uncooked so microbiological quality ensure fresh affordable food.” of the water applied to them is also very important.” 12 | HORTICULTURE NEW ZEALAND
Brent Wilcox Brent Lamb Bharat Jivan A.S.Wilcox and Sons Ltd – Pypers Produce Ltd - Southland Jivan Produce Limited - Pukekohe “Southland is a wonderful place but Pukekohe “Customers today want year-round is a very hard place to grow produce “Urban encroachment on valuable continuity of supply, so this is a in as we can get four seasons in one food growing soils is threatening business necessity for us. To keep day. Due to the climate we have the sustainability of growers in the up this supply, we must have access to organise our planting and staff Pukekohe region. Pukekohe’s frost to land to grow on a regional and around the weather. Sometimes this free slopes which for years grew the seasonal spread, so if one region is can mean a very small margin to country’s first new season potatoes impacted for some reason we can plant to have produce ready in time are now covered in bricks and supply from another region.” for the new season.” mortar. A lot has been lost but it’s not too late to protect this valuable resource for future generations.” HORTICULTURE NEW ZEALAND | 13
Average 2016 - 2017 Average weather conditions across New Zealand Climate Weather is one of the variables To some degree, the spread of of food production. While some crops across New Zealand can Average retail price events may be considered mitigate extreme weather impacts August 2016 - on vegetable supply. With localised August 2017 “business as usual”, growers have faced extreme weather in the weather events, if one area is hit by past couple of years. These more bad weather, another region can meet extreme floods and droughts affect supply. However there can be years supply – and consequently, pricing – where all production areas are hit by of some of the staple vegetables. extreme weather at the same time. Broccoli has been significantly affected by weather events. The Research around climate change suggests extreme weather events Broccoli $7.62 per kg March/April 2017 North Island may become more frequent, and flooding had a direct effect on crop more extreme. To mitigate this, supply. With about 50 percent promoting greater land utilisation for of supply grown in the North horticulture and protecting existing Island, this reduced supply for the high-production areas will ensure food entire country and raised prices significantly from March 2017 security and sustainability. . Carrots $2.58 per kg to May 2017. Potatoes and carrots are seemingly less sensitive to weather extremities. Large production volumes, spread across the country, reduces the $1.93 risk that supply of these crops will be impacted by extreme weather per kg conditions. However, long periods of Potatoes wet weather can prevent harvesting. 14 | HORTICULTURE NEW ZEALAND
The following weather events had a strong impact on the growth and supply of vegetables (predominantly broccoli) causing a price difference shortly after each event. August January March April May 2016 2017 2017 2017 2017 North NZ, North Middle NZ, Middle / South Middle / South Cyclone Debbie, Tasman Tempest, Cyclone Donna, of NZ, heavy of NZ, torrential a month of rain Auckland’s torrential down- snow fall with downpours in 24 hours, wettest March pours with slips rain warnings with strong winds extreme floods in 58 years and flooding Price one month Price one month Price one month Price one month Price one month after the weather after the weather after the weather after the weather after the weather event: event: event: event: event: ABOVE AVERAGE ABOVE AVERAGE ABOVE AVERAGE $7.60 per kg $5.67 per kg $9.41 per kg $10.56 per kg $9.25 per kg ABOVE AVERAGE $2.01 per kg $3.53 per kg $2.53 per kg $2.29 per kg $2.30 per kg ABOVE AVERAGE ABOVE AVERAGE ABOVE AVERAGE $1.69 per kg $2.07 per kg $1.86 per kg $2.03 per kg $1.96 per kg Sources: Statistics New Zealand Average Food Prices 2006-2017 | www.nzherald.co.nz/weather-home | www.stuff.co.nz/national/weather HORTICULTURE NEW ZEALAND | 15
Water Water is a vital resource to help Water is used throughout the Irrigation schemes such as the New Zealand secure its place as horticultural supply chain; from Waimea Community Dam, which is a world-leading food producer, growing the plants, to frost fighting proposed in the Tasman region, will as well as maintain a year-round (e.g. some fruits), and washing provide growers with a continuous production base for domestic and processing for market. To and reliable water source year- consumption (including the service these activities, the industry round. By securing reliability of staple vegetables we have looked requires sufficient quantity of water water supply, such schemes provide at in this report). The reliability of supply, particularly in summer. the potential – and confidence water supply for vegetable crops For crops that are grown above – to grow New Zealand’s wider during growth periods is very ground – such as lettuce, broccoli, horticultural production. important to ensure quality as cauliflower and cabbage – the Diversification of land offers a buffer well as yield. During dry periods, quality of water is also critical in against unpredictable markets, access to water is essential to terms of food safety. in other sectors such as dairy or sustaining crops and maintaining The key constraints to growth livestock production, which in turn quality and quantity of supply in horticultural production are benefits the rural community and required by the market. access to land and water. Of the the economy. 5.5 percent of land appropriate As increasing pressure is placed At the other end of the scale, for vegetable production in New on water resources in New some regions are facing a future of Zealand, roughly 1/10th has been Zealand, the question of ensuring potential water scarcity. Pukekohe subdivided for lifestyle blocks reliability of supply becomes more is a key region for vegetable in the past 15 years. Access to pronounced. We face the twin production, which sources its water and land is becoming a demands of ensuring that we irrigation needs from ground water key constraint to growth, due to a can feed our growing population and from the Waikato River. There number of factors. These include domestically, while maintaining our is competition for water from the competition for versatile land for valuable exports. river from municipal and industrial housing, the availability of highly- reliable water sources, and water quality constraints. 16 | HORTICULTURE NEW ZEALAND
users, and with increasing pressure on the water resource, the ability for growers to maintain a reliable supply of water for irrigation and processing can be compromised. This, along with pressure from urbanisation, means that the ability for the region to grow its horticultural area is severely limited. At this stage, under the Resource Management Act, water is allocated on a first-in-first-served basis. This means that water for food production is competing with all other uses of water; and is not elevated in status to ensure that domestic food supply is maintained. Future allocation of water in fully allocated catchments may have to assess water use on a value-based framework, to ensure that New Zealanders can be sustainably ‘fed and watered’ as a priority above other uses. Sources: The Water Footprint of Agriculture Products in New Zealand, The Impact of Primary Production on Water Resources, Massey University, 2013 | Ministry for the Environment, Stats NZ, and data providers, licensed by the Ministry for the Environment and Stats NZ for re-use under the Creative Commons Attribution 3.0 New Zealand licence Resource Management Act, Ministry for the Environment, 1991 HORTICULTURE NEW ZEALAND | 17
Distribution When it comes to New Zealand’s Consumer behaviour and domestic market, distribution preferences are also influencing Estimated percentage of channels have evolved over time. Due new, dynamic distribution channels. distribution based on annual to innovations in technology, these My Food Bag is an example of household expenditure of channels have become more efficient meeting consumer preferences for fresh produce: and streamlined. instant access to convenient food, delivered to the doorstep. With While the ability to transport chilled ingredients measured to fit exactly fruit and vegetables has reduced to a desired recipe, food wastage is reliance on locally-grown produce, virtually eliminated. The ingredients it also creates risk if distribution provided are also locally grown channels are unexpectedly altered. and fresh. For example, a blocked highway following an earthquake could restrict In 2016, an estimated $330 million access between fruit and vegetable was spent on processed vegetables hubs and their markets. in New Zealand households. Another emerging concern in our This diagram (to the far right) is food system is tracking the country of a macro-level view of the food 43% Ready-to-eat food origin. New Zealand has started down ecosystem. Other channels not the path of implementing Country considered include the likes of food of Original Labelling; a move which for hospitals, schools, prisons, family is viewed as adding value to our food home and farm composting, and system. The country’s reputation farmers markets. While we recognise 29% Restaurant meals for high-quality produce, coupled the future’s evolving supply chain with the consumer preference to (with the likes of My Food Bag), for the ‘eat locally’, supports the strategy to purpose of this report, we are focusing origin-label our food. on the typical consumer journey for whole fruits and vegetables. 28% Retail 18 | HORTICULTURE NEW ZEALAND
Below is an example of what a potential fruit and vegetable supply chain in New Zealand can look like covering multiple channels: OUR PEOPLE RETAIL FOOD SERVICE ONLINE (Supermarkets) (Restaurants) (Home & Family) IMPORTS WASTE Waste is contributed from every point of the value chain Fresh Processed EXPORTS WHOLESALE PROCESSORS GROWERS Sources: Statistics New Zealand Agricultural Production Survey 2014 Indoor Outdoor Vegetables by Region | Fresh Facts 2016 Report - www.freshfacts. co.nz/files/freshfacts-2016.pdf | Statistics New Zealand Household Economic Survey 2016 Expenditure tables | Euromonitor International November 2016 Report – Processed Fruit and Vegetables in New Zealand HORTICULTURE NEW ZEALAND | 19
Consumption Consistency of price and quality In order for New Zealanders to are key influencers for New New Zealand meet their recommended dietary Zealanders to purchase and requirements, and promote good eats 1,800 consume specific vegetables. health, it is important to protect and strengthen our local supply From the 10 vegetables analysed, tonnes of fruit to ensure seasonal vegetables are potatoes are by far the most highly- affordable for all. consumed vegetable, at nearly 23 kgs per year per person. Kumara is viewed as a similar product, however we only and vegetables consume approximately 3.66 kgs per year per person. The significant per day difference in consumption between these two very similar vegetables (Based on recommended is predominantly due to difference servings of fruit and vegetables in price – driven by potatoes year- per day and 2016 volumes) round availability and the spread of growing regions. Compared to kumara, potatoes are a lower cost option. This is reflected in the wider picture, with New Zealand’s vegetable consumption being largely governed by price and availability. 20 | HORTICULTURE NEW ZEALAND
In 2016, each New Zealander consumed approximately the following portions of these fresh vegetables: Tomatoes Broccoli & Cauliflower Cabbage Carrots & Parsnips 7.56kgs 4.43kgs 4.37kgs 7.88kgs 11% 3% 6% 7% 12% 38% 5% 7% 12% Potatoes Onions Lettuce Kumara 22.90kgs 7.44kgs 5.06kgs 3.66kgs Sources: Statistics New Zealand Household Economic Survey 2016 Expenditure tables | Ministry of Primary Industries | Horticulture New Zealand Annual Report 2017 | Statistics New Zealand 2013 Census Statistics New Zealand Average Food Prices 2006-2017 | Statistics New Zealand NZIER population quarterly predictions – June 2017 HORTICULTURE NEW ZEALAND | 21
There has been a constant national increase in obesity in New Zealand over the last 10 years. Human health In New Zealand, almost one-third of 2017 showed that 70 percent of those Science continues to explore the adults are obese, with a further 35 surveyed wanted to buy New Zealand wellness and health-promoting percent being overweight. grown fresh fruit and vegetables. Our compounds within vegetables, and strong connection to our food creates identify the best way to consume them. One in nine children are obese, with a trust in our growers, and consumers further 21 percent being overweight. Education campaigns can help drive are more likely to eat food they know consumption choices. 5 + A Day is a Globally, eighty percent of deaths are the provenance of. charitable trust set up to encourage caused by chronic health conditions Due to high concentrations of vitamins New Zealanders to eat five or more that are largely preventable. Of the and minerals, diets high in fruits and servings of colourful, fresh fruit and 80 percent, six percent are diabetic, vegetables are recommended for vegetables every day. Its purpose is five percent have heart disease, and their health-promoting properties. not only to encourage consumption 31 percent are obese – all of which are The World Health Organisation (WHO) patterns; but also to help people conditions that can be addressed via has identified vegetables as playing understand the benefits of eating a diet good nutrition. a vital role in providing a nutritious rich in fruit and vegetables, and how Low fruit and vegetable intake is a risk diet, contributing to health outcomes this contributes to health. factor for global mortality. Globally, and lessening the burden of chronic disease in Western societies. A recent survey by the 5 + A Day approximately 1.7 million (2.8 percent) of deaths worldwide are attributed to low Charitable Trust found that New New Zealand has high consumption Zealanders are rated among the fruit and vegetable consumption. rates of broccoli, potatoes and carrots; highest consumers of fruit and As a nation, New Zealand has enviable all of which have high levels of vitamin vegetables globally, but that there was access to year-round fresh fruit and C. Vitamin C helps contribute to still room for improvement. vegetables. As our population grows, prevention of inflammatory diseases, increased supply will be required to fighting infections, and the growth of A 2015 joint study between Auckland, maintain this access to healthy food. If bones, tendons, ligaments and skin. It Otago and Oxford Universities we cannot supply fresh locally-grown also facilitates the absorption of iron investigated the potential impact of fruit and vegetables to an increasing from our foods. price subsidies on fruit and vegetables population, prices will inevitably increase. in New Zealand. It found that a A diet rich in fruits and vegetables 20 percent subsidy on fruit and This will both reduce or limit the also provides necessary vegetables, with the resulting impact population’s access to healthy food, and micronutrients that cannot be found on affordability, could prevent or open the door to increased imports. in staple grains, meat or dairy. postpone around 560 deaths a year. A Consumer survey released in March 22 | HORTICULTURE NEW ZEALAND
1.7m deaths 31% obese Globally, approximately 1.7 million Of those numbers, 6% are diabetic, 5% (2.8%) of deaths worldwide are have heart disease, 31% are obese; all of attributed by low fruit and vegetable which are conditions that nutrition, or consumption. lack of, have a heavy contribution. World Health Organisation (WHO) global statistics on obesity increase 40% 35% 30% 25% 20% 15% 10% 5% 0 2-4 5-9 10-14 15-24 25-34 35-44 45-54 55-64 65-74 75+ AGE 2006/2007 2013/2014 Sources: Environmental Health Indicators New Zealand, Massey University | Ministry of Health. 2013. New Zealand Health Survey: Annual update of key findings 2012/13. Wellington: Ministry of Health Statistics New Zealand. Disability Survey: 2013. Hot Off the Press. Wellington: Statistics New Zealand. | Obesity and Overweight fact sheet June 2016, World Health Organization Boeing, Heiner et al. “Critical Review: Vegetables and Fruit in the Prevention of Chronic Diseases.” European Journal of Nutrition 51.6 (2012): 637–663. PMC. Web. 5 Oct. 2017. Report on New Zealand Cost-of-Illness Studies on Long-Term Conditions, 2009, Ministry of Health New Zealand | New Zealand Nutrition Foundation, Vitamin Facts Effects of Health-Related Food Taxes and Subsidies on Mortality from Diet-Related Disease in New Zealand, 2015, University of Auckland, University of Otago and Oxford University
Prices Production and prices for broccoli, carrots and potatoes only. 2012 2014 2016 NZ domestic production: NZ domestic production: NZ domestic production: 687,000TN 609,000TN 632,000TN Average price per kg: Average price per kg: Average price per kg: $1.70 $1.93 $2.03 To gain a better understanding of price and production, we have taken three vegetables in focus and mapped domestic annual production against an annual average weighted retail price per kg. As the production tonnes of broccoli, carrots and potatoes has decreased, this has had a direct correlation to an increase to the average weighted retail price per kg. New Zealand’s diverse geography conditions, the ability to produce Protecting the supply of fruits and leaves the country susceptible to vegetables also changes. When vegetables against varying weather rapid weather changes. there is a drop in production, and conditions is challenging. This unpredictability can influence demand is unchanged or increased, There are specific areas across New local production, supply and prices start to rise. Demand for fresh Zealand which are naturally more ultimately pricing. produce has been driven by shifts conducive to fruit and vegetable in consumer preferences to whole Production of vegetables can be growth. Where there is neighbouring fresh foods as part of a healthy diet. affected by weather conditions, land accessible, this represents an available land, and natural resources. Stable production throughout the year opportunity to replicate production Inconsistent weather conditions results in more consistency of pricing. in similar conditions – and therefore (such as floods and droughts), Some vegetables are more prone to reduce the risk of unstable production. coupled with the effects of climate be impacted by weather changes. For In turn, this results in more stable change, have an impact on vegetable example, broccoli is more dependent prices and creates greater access to production. If natural resources are on weather than carrots and potatoes. fresh fruit and vegetables. altered significantly due to weather 24 | HORTICULTURE NEW ZEALAND
Broccoli snapshot Of our 10 vegetables studied in this report, broccoli has seen the most significant price increase over the past 24 months. Strong broccoli production is reliant on stable weather. This is reflected in events such as the North Island storms, early in 2017, when there was a spike in broccoli price shortly after the weather event. This suggests there is a high variation to price when there are weather events which cause a decrease in production, coupled with the inability to compensate in other areas and grow more to fill the gap. Prices reached their lowest point in the past 24 months during the period of November/December 2016. The majority of supply is split between the top and middle of the North Island; with the lowest price points coinciding with the peak harvesting period in the middle of the North Island. Average Retail Prices per kg over the 24 month period (July 2015 - June 2017) We looked at three key vegetables - broccoli, carrots and potatoes to understand their pricing trends. Using Statistics New Zealand data, we have taken the monthly retail price per kg for each vegetable from the 24 months from July 2015 through to June 2017. The average price across all three has increased steadily over the past two years. The prices of 9.25 carrots and BROCCOLI $ 6.46 $ 4.52 $ 6.26 $7.60 $ 6.23 $ potatoes have remained stable compared to broccoli which had a few fluctuations. CARROTS 1 $ .98 2 $ .54 2 $ .10 2 $ .01 3 $ .42 2 $ .30 Carrots and potatoes are grown across wider regional geographies, POTATOES 1 $ .70 2 $ .11 1 $ .83 1 $ .69 2 $ .25 1 $ .96 which could help explain their price stability. JULY NOV APR SEP JAN JUNE 2015 2015 2016 2016 2017 2017 Sources: Statistics New Zealand Average Food Prices 2006-2017 | Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf HORTICULTURE NEW ZEALAND | 25
Imports This data helps us to better in a fortunate position to have understand the effect of imports these agreements in place. To understand how and exports, and how we can look Our data shows that imports make to utilise our local production to imports and exports feed our population. Some fruit up a very small portion of New Zealand’s domestic food availability. will impact local and vegetables that do not grow in New Zealand will always be Any food that is imported is fruit and vegetable imported to meet demand. typically in order to fill any availability, we have New Zealand has successfully seasonal gaps in availability. measured the impact concluded Free Trade Agreements Our 10 key vegetables made up only (FTAs) with 16 World Trade 0.1 percent of total imports in 2016. of both imports and Organisation members. It is With a focus on fresh local food, exports on total important to understand that while New Zealanders have a preference domestic production is preferable to eat locally-grown over imported domestic production to New Zealanders, our vegetables fruit and vegetables. This contributes tonnes available. will be replaced by imports if significantly to our economy, and we cannot sustain local supply. clearly places our growers and For this reason, New Zealand is producers in a good position. 26 | HORTICULTURE NEW ZEALAND
In 2016... 1,200 TONNES IMPORTED IN TO NZ (OF THE 10 KEY VEGETABLES) Location breakdown of where our imported produce in 2016 came from: (Vegetables - fresh or chilled) Potatoes (processed)* Carrots Cabbage 70% 71% 73% Tonga United States United States 30% 29% 27% China China Australia Total Tonnes Imported: Total Tonnes Imported: Total Tonnes Imported: 18.5 37.7 11.8 Kumara Onions Lettuce 42% 100% 97% Tonga United States Australia 51% 3% Total Tonnes Imported: 555.6 United States China Total Tonnes Imported: 7% Tomatoes 122.5 100% Fiji, India and Vietnam Total Tonnes Imported: 321.8 Australia Total Tonnes Imported: 132.2 *Fresh potatoes cannot be imported into New Zealand so this only refers to processed potato products such as crisps/fries Sources: Statistics New Zealand Overseas Trade Imports – Merchandise Trade 2016 | Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf www.mfat.govt.nz/en/trade/free-trade-agreements/free-trade-agreements-in-force/ | Potatoes New Zealand HORTICULTURE NEW ZEALAND | 27
Exports Where do New Zealand vegetable 76% Around the world, New Zealand In 2016 exports* is regarded as a grower of top quality fruit and vegetables. end up? Fresh Facts recorded that 1,148,316 tonnes of vegetables were grown in (2016 top export New Zealand in 2016. According to Statistics New Zealand, 23 percent of this volume was exported. of total exported countries by percentage) The challenge New Zealand faces Potatoes is finding the balance between feeding our domestic population, while capitalising on the strong went to Fiji Kumara prices that international markets will pay for our fresh products. The main countries we export Fiji is a key vegetable export destination; where tropical weather 55% vegetables to are our closest to French Polynesia patterns limit stable supply and local neighbours, such as Pacific countries and Australia. consumption exceeds production. 20% Given fresh produce has a limited to New Caledonia shelf life, it is unsurprising that our key export countries for vegetables are in close proximity to New Zealand. 12% to Solomon Islands Total Tonnes Exported: 12 (Vegetables - fresh or chilled) 28 | HORTICULTURE NEW ZEALAND
In 2016... 242,400 TONNES EXPORTED FROM NZ (OF THE 10 KEY VEGETABLES) Broccoli Cabbage Cauliflower Carrots 32% 34% 41% 28% to Fiji to Fiji to Fiji to Fiji 22% 26% 35% 15% to French Polynesia to New Caledonia to New Caledonia to Japan 13% 15% 6% 12% to Samoa to French Polynesia to Samoa to Taiwan Total Tonnes Exported: Total Tonnes Exported: Total Tonnes Exported: Total Tonnes Exported: 28 1,396 50 14,614 Lettuce Onions Tomatoes Potatoes 47% 18% 37% 76% to Fiji to Indonesia to Japan to Fiji 17% 13% 20% 6% to Samoa to Belgium to Australia to French Polynesia 10% 11% 14% 6% to Hong Kong to Germany to Canada to New Caledonia Total Tonnes Exported: Total Tonnes Exported: Total Tonnes Exported: Total Tonnes Exported: 47 189,776 3,704 32,773 Sources: Statistics New Zealand Overseas Trade Exports – Merchandise Trade 2016 | Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf HORTICULTURE NEW ZEALAND | 29
New Zealand Horticulture is core to providing To maintain our premium position Additionally, the organic market our nation with locally grown fruit in the global marketplace, the New highlights the power of consumers and vegetables. New Zealand is in a Zealand horticulture industry aims wanting fresh fruit and vegetables, unique possition, in that we have the to increase total export revenue to in their most natural form. Organic ability to grow fruit and vegetables $10 billion by 2020, with a focus consumers have demonstrated a directly in our collective backyard. on innovation. As New Zealand’s willingness to pay a premium for population is predicted to grow to crops grown in a way that they Food systems around the world just over five million by 2020, we also believe benefits the environment. are rapidly changing. Innovation need to secure access to sufficient This premium provides an incentive is disrupting traditional methods resources to feed our nation. for growers to grow crops using of farming and distribution. New organic methods. A consumer survey released in Zealand has an opportunity to March 2017 proved the importance Labelling food and educated provide high quality food if we can to New Zealanders of buying local. purchasing decisions will support ensure we continue to have enough the New Zealand horticulture sector access to natural resources and land. Clearly labelled local produce creates to grow, flourish, and be first choice We are fortunate to have access to a compelling reason for consumers to when people pick their food. natural resources. As a nation, we are purchase home-grown products. at an advantage as we can add value Temperature and oxygen exposure to our products that other countries will affect fresh produce and can naturally do not have the ability to do. alter the nutritional composition, As demand for housing increases, making it less nutritious, supporting rural areas located close to urban the need for local food. For example, areas are coming under pressure for transporting fruit without refrigeration land use change. While housing may or adequate packaging may cause achieve the highest value for the land, over-ripeness and potentially damage it reduces New Zealand’s ability to the fruit. support horticulture and secure year-round supply of fresh fruit and vegetables. 30 | HORTICULTURE NEW ZEALAND
New Zealand would benefit from an authentic food story. The story we create behind our food captures added value for New Zealand. We need to identify our regional ‘superfoods’ and encourage chefs and foodservice distributors to promote these products so they can be experienced to their full capacity. Consumers have said they want Country of Origin Labelling. 71% of New Zealanders want to know where their fruit and vegetables come from. 70% consider New Zealand-grown fruit and vegetables as being important to them. Sources: Food Miles – the international debate and implications for New Zealand exporters, Business & Sustainability Series briefing paper 2006, Landcare Research ‘Food-miles’ danger for NZ exports, 2009, Otago Daily Times | Country of origin labelling, Consumer NZ and Horticulture NZ Consumer Survey 2017 Local Nutrition, Center for Health and the Global Environment, Harvard School of Public Health
Population Will New Zealand be able to feed its future population? Using Statistics NZ import and To forecast domestic consumption, Our current consumption levels export data, combined with we first estimated the weekly average of fresh produce in retail and food the Fresh Facts 2016 Report, we consumption per person in 2016. service shows that net production is have made projections around (We took the average household already below what is required for annual food volumes available for weekly spend on fresh vegetables domestic consumption, meaning consumption in New Zealand. and divided this by the average retail we can expect food shortages. price per kg of fresh vegetables). Given This is based on assumptions that This further highlights the that the average household consists every New Zealander will eat all 10 importance of food security, land of 2.7 people, we are able to calculate vegetables - at the same current production and future-proofing the the average weekly consumption per proportions and at the availability of resources to supply our person. Using Statistics New Zealand same rate - across retail, fresh and growing population. population growth forecasts, and food services. While we have plenty of land assuming consumption per person With New Zealand’s population available for fruit and vegetable does not change over the next five expected to reach 5,045,000 by 2020 growth, there is no strategy in place years, we can forecast the increase (based on annual growth between to protect this valuable land as a way in domestic consumption as our 1.5 - 2 percent), domestic food supply to future-proof our food supply. population grows. will not be able to sustain our future population consumption needs. 32 | HORTICULTURE NEW ZEALAND
New Zealand’s population growth forecast to 2020 New Zealand’s population is forecast to grow annually for the next three years, which highlights the need to increase our food production. 2.5% 5.045M 4.958M 2.0% 4.863M 4.762M 1.5% 4.662M 1.0% 0.5% 0% 2016 2017 2018 2019 2020 Annual Population Growth Rate (%) Total Population Domestic consumption vs net availability of the 10 key vegetables If we apply our 2016 food availability estimate, we won’t be able to feed our current and growing population. 996,600 TN 979,670 TN 960,730 TN 940,690 TN 921,660 TN 2016 2017 2018 2019 2020 Domestic food tonnage available Domestic consumption for consumption Sources: Statistics New Zealand Household Economic Survey 2016 Expenditure tables | Statistics New Zealand Agricultural Production Survey 2014 Indoor Outdoor Vegetables by Region Fresh Facts 2016 Report - www.freshfacts.co.nz/files/freshfacts-2016.pdf | Statistics New Zealand NZIER population quarterly predictions – June 2017 Statistics New Zealand Average Food Prices 2006-2017 | Statistics New Zealand 2013 Census
A self-sufficient New Zealand Horticultural exports are valued at Highlighting the natural connections $3.4 billion with vegetable exports between people and food can The horticulture valued at $615 million. Maintaining be a powerful way to get the sector not only and growing this level of economic contribution is heavily reliant on community involved and interested in horticulture. For example, urban provides our having a sufficient labour force. gardens and organic collectives population with The 5,500 fruit and vegetable create an emotional connection vital nutrition, it also growers. in New Zealand employ about 60,000 people. between the food we eat, the value of the land it comes from, and makes a significant the grower. Continued growth in the sector will contribution to the require greater numbers of skilled, Horticulture in New Zealand wider economy; educated workers available to work in also plays an important role in building a stronger, the sector. Not only does this include supporting our Pacific neighbours. those that work on-farm; but also the The Recognised Seasonal Employer more self-sufficient related professions of scientists, agri- (RSE) scheme allows companies in New Zealand. tech specialists, educators, and even the horticulture industry to recruit robotics designers. seasonal staff from other Pacific countries, when there is a limited Without planning to attract and amount of resource in New Zealand. keep younger generations interested This scheme sees more than $40 and passionate about a career in million invested back into Pacific horticulture, we will not have enough nations, and is used to fund housing workers in the industry. and education in local communities. 34 | HORTICULTURE NEW ZEALAND
Despite these good news stories, there are also some sobering statistics. The spread of new housing areas around our cities is resulting in prime growing areas for horticulture being lost. Between 1975 and 2012, nine percent of our growing land (or 10,399ha) was converted from horticulture to other land use. If this rate of conversion continues, it will have long-term consequences for New Zealand, and place at risk the country’s ability to feed its population. If we do not have enough land to produce the fruit and vegetables our population requires, prices will increase as demand increases, resulting in more imports to fill the gap. Sources: 2016 NZIER report ‘Horticulture and Viticulture Labour Market Forecasts -- Kiwifruit, Pipfruit, Summerfruit Fresh facts 2016 | Data: Plant & Food Research’s Fresh Facts annual accumulated statistics. Implications of Urban Form on Suburban Food Production Potential: The Case of Auckland City-New Zealand, June 2016, ResearchGate Horticulture New Zealand HORTICULTURE NEW ZEALAND | 35
Megatrends 1. Future world consumers People want to know where their 2. Growing populations food comes from and would More than ever before, consumers By 2050, it is projected that the like to connect with the grower are shaping and influencing global population will reach nine directly and understand their our food systems. Technology is billion. Growers and agricultural story. Companies such as My Food providing them with instant access companies will be required to Bag are changing our access to to the latest in food solutions via re-think how they can grow food. The provision of these food multiple digital platforms. more with less. As life expectancy solutions - delivered straight to increases, and health improves, it is As populations increase, and ethical our doorstep, with customised estimated that globally we will need standards for food production ingredients and instructions 60 percent more food by 2050. hit the spotlight, novel ways to on how to create chef-inspired create “clean” food will flood the meals - is changing the convenience Increasing resource constraints – food systems. Cellular agriculture of food and and shaping our coupled with the effects of climate and agri-food technologies will food systems. change and water scarcity - mean recreate food to get more out that growers are under pressure to of less resources. Foods that are find viable alternatives to traditional specifically tailored to meet unique farming practices. As a nation with requirements for each individual access to natural resources, New will recreate how we eat food, and Zealand can capitalise on this and reflect the move towards ‘food as add value to the wider food system fuel’ for maximum nutrition. with our natural products. 36 | HORTICULTURE NEW ZEALAND
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