Fresh Deciduous Fruit Semi-annual

An Expert's View about Agriculture and Animal Husbandry in New Zealand

Posted on: 27 May 2012

Area planted to apple and pear trees in marketing year (MY) 2011/12 (October/September) is estimated at 8,765ha, 2% lower than the previous year.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 5/15/2012 GAIN Report Number: NZ1206 New Zealand Fresh Deciduous Fruit Semi-annual Fresh Apple and Pear Production and Trade May 2012 Approved By: Joseph Carroll Prepared By: David Lee-Jones Report Highlights: Both Production and Exports of Apples are forecast to be down in MY2011/2012. However recently implemented SPS protocols with Australia, China, & Japan may stimulate exports to these destinations and lessen the reliance on Europe. Grower returns continue to be poor and have been adversely affected by currency exchange rates. Executive Summary Area planted to apple and pear trees in marketing year (MY) 2011/12 (October/September) is estimated at 8,765ha, 2% lower than the previous year. The year-on-year reduction in apple/pear production is expected to be down even slightly further (2.6%) due to the anticipated biennial bearing down yielding season. Additionally, cool and cloudy weather in January and February 2012 prevented fruit sizing from reaching previously expected count sizes. Consequently, total production of apples and pears in MY 2011/12 is estimated at 474,300 metric tons (MT), 4.5% lower than Post’s previous estimate. Total production of deciduous fruit for the 2010/2011 year is estimated at 496,359MT. Once again the high currency exchange rate has negatively affected returns to growers, which for 2010/2011 saw returns dip by approximately 8% compared to the previous year to NZ$20.47/TCE. Operating costs were estimated at NZ$20.01/TCE, so for many growers there was just the slimmest of profit margins, not really enough to sustain their businesses. Unless the NZ depreciates significantly in the near-term, returns to the grower are not expected to be significantly different for the 2011/2012 season. Apple exports in MY 2011/2012 are forecast at 270,000MT, 6% lower than Post’s previous forecast. The volume of apples expected to go into processing is estimated at 130,000MT, up 2.4% from the initial forecast. Apple exports in 2010/2011 are estimated at 298,317MT just 0.8% ahead of Post’s earlier estimate. Imports of apples are forecast at 1,300 MT in 2011/2012, compared to an estimated 1,257MT imported the previous year. Pear exports in MY 2011/2012 are forecast at 4,300MT, 17% less than originally forecast, but only 87 MT less than the 4,387MT exported in 2010/2011. Processing volumes are forecast at 3,000MT, largely consistent with the estimated 3,113 tons processed in MY 2010/2011. Domestic consumption is forecast to be stable at 10,400MT in both years. Pear imports are expected to ease slightly in MY 2011/12 and are forecast at 3,500MT, compared to an estimated 3,601 MT imported in MY2010/12. Recently introduced import protocols for apples into Japan, China, and Australia are considered by the industry to be beneficial to NZ’s trade interests. The trade is cautiously optimistic that exports to Japan will increase from 143MT last year to perhaps 4,000 to 5,000MT this year. The China project may be longer term but initial volumes this season are sneaking ahead of the previous year albeit off very low levels. It is unlikely that big volumes of fruit will find their way to Australia this season; perhaps a few thousand tons will be shipped later in the year. Despite Australia’s opening of the market to NZ apples last year, import conditions are stringent and it will take time to get widespread market acceptance of New Zealand fruit. Apple exports to the United States totaled 33,210MT in MY2010/2011, which was 21% less than in the previous year. With smaller fruit size counts this year it is likely even less fruit will be shipped to the US this year. Despite a 50% import duty on apples, India will likely be the big mover in the market this year. Apple exports to India totaled an estimated 12,000MT in MY2010/2011; double the previous year’s level. Shipments this season are already running 150% ahead of last year for the similar time period. While the trade has sought to reduce its dependence on the European market, sales to Europe still accounted for just over 50% of total fruit exports in MY2010/2011. Good returns out of Europe will mean a good year for the growers. However, with overall production down in MY2011/12 and exports to Asia and the Middle East already matching or exceeding volumes shipped last year, New Zealand exporters are set to significantly reduce shipments to Europe. Of note only 15,790MT has been shipped to the EU so far in this export campaign compared to just over 28,000MT in the same period in the MY2010/11 year. In a significant development, Turners & Growers Ltd, whose subsidiary ENZA is the largest post harvest, processor and exporter in the sector, was taken over by Bay Wa (70% stake) and Scales Corp (10% stake). Bay Wa is a large German fruit trading and industrial conglomerate and Scales Corp owns Mr. Apple the largest NZ grower and supplier of apples to ENZA. It is hoped this change will help rationalize the industry to achieve better profitability right through the sector. Commodities: Apples, Fresh Pears, Fresh Note: Marketing Year 2011 is from Oct 1, 2011 to Sep 30, 2012 and will be referred to as 2011/2012 in the text. Similarly MY 2010 is shown as 2010/2011. Note2: A TCE stands for Tray Carton Equivalent and is 18.0 kilograms of fruit Production, Supply and Demand Data Statistics Apples, 2009 2010 2011 Fresh 2009/2010 2010/2011 2011/2012 New Z Market Year Begin: Market Year Begin: Market Year Begin: ealand Oct 2009 Oct 2010 Oct 2011 USD Old USD Old USD Old A Post New A Post New A Post New Offici Post Offici Post Offici Post (HA)/(MT) al al al Area Planted 8,897 8,897 8,632 9,061 8,470 8,470 0 8,400 8,324 Area Harvested 8,630 8,630 8,334 8,850 8,316 8,316 0 8,320 8,200 Bearing Trees 0 0 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 0 0 Total Trees 0 0 0 0 0 0 0 0 0 Commercial Production 406,6 406,6 423,0 464,7 464,7 467,0 460,0 460,0 447,6 33 33 00 40 40 60 00 00 00 Non-Comm. Production 16,00 16,00 16,00 15,00 15,00 15,00 15,00 12,40 12,50 0 0 0 0 0 0 0 0 0 Production 422,6 422,6 439,0 479,7 479,7 482,0 475,0 472,4 460,1 33 33 00 40 40 60 00 00 00 Imports 1,355 1,349 1,349 1,400 1,260 1,257 1,500 1,600 1,300 Total Supply 423,9 423,9 440,3 481,1 481,0 483,3 476,5 474,0 461,4 88 82 49 40 00 17 00 00 00 Fresh Dom. Consumption 61,98 60,00 60,00 56,14 60,00 60,00 56,50 60,00 61,40 8 0 0 0 0 0 0 0 0 Exports 257,0 258,9 258,9 300,0 296,0 298,3 300,0 287,0 270,0 00 82 82 00 00 17 00 00 00 For Processing 105,0 105,0 121,3 125,0 125,0 125,0 120,0 127,0 130,0 00 00 67 00 00 00 00 00 00 Withdrawal From Market 0 0 0 0 0 0 Total Distribution 423,9 423,9 440,3 481,1 481,0 483,3 476,5 474,0 461,4 88 82 49 40 00 17 00 00 00 TS=TD 0 0 0 0 0 0 0 Pears, Fresh 2009 2010 2011 New 2009/2010 2010/2011 2011/2012 Zealand Market Year Begin: Market Year Begin: Market Year Begin: Oct 2009 Oct 2010 Oct 2011 Offici Post New Offici Post New Offici Post New al Estima Post al Estima Post al Estima Post (Ha/MT) Data te Data Data te Data Data te Data Area Planted 431 412 431 431 473 473 0 480 441 Area Harvested 431 412 431 431 473 473 0 480 441 Bearing Trees 0 0 0 0 0 0 Non-Bearing Trees 0 0 0 0 0 0 Total Trees 0 0 0 0 0 0 0 0 0 Commercial Production 14,00 14,054 14,05 14,10 14,100 14,09 15,00 15,000 14,00 0 4 0 9 0 0 Non-Comm. Production 200 200 200 200 200 200 0 200 200 Production 14,20 14,254 14,25 14,30 14,300 14,29 15,00 15,200 14,20 0 4 0 9 0 0 Imports 3,710 3,523 3,523 3,500 3,600 3,601 4,000 3,000 3,500 Total Supply 17,91 17,777 17,77 17,80 17,900 17,90 19,00 18,200 17,70 0 7 0 0 0 0 Fresh Dom. Consumption 10,33 10,300 10,30 10,30 10,400 10,40 11,20 10,400 10,40 4 0 0 0 0 0 Exports 5,076 5,027 5,027 5,000 4,400 4,387 5,200 5,200 4,300 For Processing 2,500 2,450 2,450 2,500 3,100 3,113 2,600 2,600 3,000 Withdrawal From Market 0 0 0 0 0 Total Distribution 17,91 17,777 17,77 17,80 17,900 17,90 19,00 18,200 17,70 0 7 0 0 0 0 TS=TD 0 0 0 0 0 0 Note: Data included in this report is not official USDA data. Official data can be found at http://www.fas.usda.gov/psd Production Planted Area 2011/2012 Area planted to apple and pear trees in marketing year (MY) 2011/12 (October/September) is estimated at 8,765ha, 2% lower than the previous year. This is a 2% reduction from the previous growing season. Over the longer term there is likely to be increased pressure for the removal of apple trees, unless grower returns improve, and/or the sector continues to restructure and coalesce around the integrated fruit companies who may lease or purchase orchards to maintain fruit supply to their packing and exporting arms. Table of Deciduous Fruit Plantings in New Zealand by Variety ( in Hectares) Market Year for FAS MY2004 MY2005 MY2006 MY2007 MY2008 MY2009 MY2010 MY2011 Calendar Yr of Harvest 2005 2006 2007 2008 2009 2010 2011 2012 Braeburn 3,159 2,464 2,484 2246 2034 1,869 1740 1589 Royal Gala & sports 3,393 2,872 2,893 2669 2538 2,417 2423 2369 Cox 401 354 314 295 281 248 236 203 Fuji 1,018 875 836 829 899 931 970 934 Granny Smith 374 322 294 286 282 267 256 256 Cripps Pink/Pink Lady 349 287 248 285 353 397 434 446 Jazz 289 440 576 768 917 977 983 943 Pacific series 1,521 1,198 929 828 793 814 817 867 Other Varieties/Unidentified 257 184 192 333 388 712 611 717 Total Apple Area 10,761 8,996 8,766 8,539 8,485 8,632 8,470 8,324 Pears 936 722 735 412 412 431 473 441 Total 11,697 9,718 9,501 8,951 8,897 9,063 8,943 8,765 Braeburn as % of Apple Area 29.4% 27.4% 28.3% 26.3% 24.0% 21.7% 20.5% 19.1% Royal Gala as a % of Apple A 31.5% 31.9% 33.0% 31.3% 29.9% 28.0% 28.6% 28.5% rea Source: PipfruitNZ Organic Area Total area in organics in 2011/2012 is estimated at 630 ha, about 33% lower than in the previous year, and representing about 7% of total area. Currently, only about 7 ha are in the transition phase for achieving full organic certification. The organic area peaked in 2008/09 at 1,004 ha. In contrast to the decline in certified organic area, the area planted in the “Apple Futures” program (which aims to achieve nil detectable chemical residues by using both conventional and/or organic growing methods which ever are most applicable), now comprises 66% of the total planted area, up from 1% in 2006/2007. Apple Production 2011/2012 Total apple production in 2011/12 is estimated at 460,100 metric tons (MT), 2.6% lower than Post’s previous estimate, and 4.6% less than the previous year. Initially industry estimates anticipated a year-on-year decline in production based on a lower planted area and a biennial bearing down year. However cloudy weather and cooler than normal temperatures during January and February 2012 led to significantly reduced fruit size, thus production dropped even further than previously expected. The Royal Gala, Fuji, and Pink Lady crops are estimated to be down about 10% sue to smaller fruit size. These varieties now comprise about half of the export crop. Over the past year, growers in the Nelson region also had to deal with European Canker. An unusually wet Autumn and Winter in 2011 predisposed trees to contracting the disease. It is likely to cost growers in Nelson approximately NZ$0.50/TCE in control costs, not taking into account any yield losses which in some cases have been severe. However some growers especially those with nursery propagation experience were able to control the disease with 4 sprays over winter even if it meant applying them with helicopters if ground conditions were too wet for ground sprayers. 2010/2011 The estimate for apple production for 2010/2011 has been revised upward slightly to 482,060MT. This would put the 2010/2011 crop up 10% from the previous year which suffered from hail damage and a biennial bearing down year. Pear Production 2011/12 Total production is now forecast to reach 14,200 metric tons, 6.6% less than Post’s original forecast, and about 1% down from last year’s estimated level of production. It had been assumed the planted and harvested area would increase as new plantings matured and came into harvest; however the actual area has decreased by just fewer than 7%. While new plantings have come into harvest, this has been more than offset by the removal of older plantings in response to non sustainable financial margins. Grower Returns Apple Prices in NZ$ per Tray Carton Equivalent(18kg) on a Free Alongside Ship Basis Marketing Year 2003 2004 2005 2006 2007 2008 2009 2010 (FAS/PSD) Harvest Year 2004 2005 2006 2007 2008 2009 2010 2011 Variety/Growing Method Braeburn- Integrated 15.11 9.81 19.42 16.29 25.09 16.13 18.25 18.04 Fruit Program Royal Gala- IFP 16.73 13.87 19.26 19.13 22.16 21.11 22.90 20.37 Jazz- IFP 37.39 31.81 34.24 29.57 30.98 19.46 21.59 18.97 Granny Smith -IFP 16.69 11.46 19.85 16.48 21.64 19.20 21.68 19.48 Cripps Pink/Pink 27.17 22.72 26.56 25.8 32.12 26.71 21.60 22.79 Lady- IFP Fuji- IFP 19.98 18.13 27.06 24.01 26.10 25.53 25.71 20.95 Pacific Beauty 17.86 17.80 17.02 21.95 23.05 32.47 27.59 23.85 Pacific Queen 16.03 17.36 22.26 23.63 26.20 35.19 33.47 29.59 Pacific Rose 12.66 16.51 19.42 20.9 25.37 27.29 30.72 28.01 Organically grown 48.17 30.75 35.14 17.43 25.69 23.13 Braeburn All Organic Apples 32.45 36.03 21.15 27.35 24.21 Average All IFP 15.55 12.88 20.02 19.06 24.44 20.52 22.22 20.47 Apples Breakeven 23.00 20.35 22.57 20.01 Costs(estimated) Total Export 358,026 315,191 264,818 292,096 261,154 303,030 258,982 298,317 Production(T) Source: PipfruitNZ/MAF Note: The Breakeven costs includes all on orchard costs, and grading, packing, coolstorage, and freight plus depreciation and overhead costs but do not include rent, interest costs, tax, capital expenditure, nor wages of management. 2011/2012 ENZA/T&G the largest exporter (now with a majority shareholding owned by Bay Wa a German fruit and produce trading company) has announced it will target grower returns of NZ$20/TCE for Jazz and NZ$28/TCE for Envy. However Gala returns are likely to be below NZ$20/TCE this year on account of the small fruit size. The high exchange rate has eroded grower returns over the last three years. At this stage, overall returns to growers are not likely to be significantly different to from last year. One good news story was the strong Asian demand for the Pacific series of cultivars, which supported returns in the NZ$24-30/TCE range. The drawback for these varieties is they are more difficult to grow and generally don’t yield as well. Many Nelson growers who have the bulk of the Jazz and Braeburn plantings have three to four years of losses behind them and if returns don’t improve soon, they will be looking at serious rationalization of their businesses such as complete sale of their operations; to selling plots of land for house sites; changing enterprises (though lack of capital is often a constraint); entering joint ventures or becoming part of an integrated fruit supply business. 2010/2011 Average returns to apple growers in 2010/2011 have been estimated by PipfruitNZ at NZ$20.47/TCE. Operating Costs estimated by the Ministry of Primary Industries are reported at NZ$20.01. The average grower is just surviving, with no substantial profits being generated and any re-investment in the business for transformation needing to be sourced externally. The banks will not be increasing their exposure and equity capital will be very difficult to source so transformation of the sector will be prolonged and painful for some. Source: Reserve Bank of NZ It is important to note, though, the savviest of Braeburn growers can get their costs down to around NZ$14-15/TCE, and so they would still be making a profit at grower returns of NZ$18/TCE for Braeburn. Braeburn is a high yielding variety and these growers would make the most of this achieving very high crop volumes while at the same time keeping costs under tight control. Consumption Industry sources indicate that it is likely that there will be a small increase in the domestic consumption of apples up to 61,400MT in 2011/2012 which equates to a 2.3% increase on both previous estimates for this year and the previous year. Post estimates that pear consumption will hold steady at 10,400MT. Trade & Processing Apple Exports & Processing 2011/2012 The present growing season has delivered an idiosyncratic result combining lower fruit numbers on the trees (as was expected) with smaller fruit sizes (which wasn’t expected). As a result the MY 2011/12 export forecast was reduced to 270,000MT. This represents a 6% reduction from the previous forecast for the year and a 9.5% fall from the previous year. Commentators are reporting with the small fruit and the uncertainty around export returns many growers are opting for only one or two export pickings then leaving the rest of the crop for processing. Interestingly even though total production is forecast to be down the significant reduction in export volumes means the tonnage going to processing is forecast to increase to 130,000MT which is 2.4% up on the previous forecast 2010/2011 Actual exports for the 2010/2011 year came to 298,317MT which was just 0.8% greater than Post’s previous estimate. New Zealand Apple Export Statistics Year 2010 Ending Series: September 30, 2001 - 2011 to Quantity(metric tons) 2011 2011 % % Partner 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Shar chan Country e ge World 2628 3190 3224 3580 3188 2655 2920 2611 3030 2589 2983 100. 15.2 Total 04 05 18 62 55 41 20 54 16 82 17 0% % Total EU excl 9569 1244 1305 1632 1608 1122 1134 9913 1164 9461 1043 35.0 10.3 UK 9 44 98 19 86 40 94 4 52 9 57 % % United Kingdo 6704 7272 7359 7845 6605 5918 6307 4352 5028 3629 4617 15.5 27.2 m 7 8 1 3 9 1 6 6 6 7 1 % % - United 4974 5834 4915 5637 3245 3757 4766 3295 4567 4210 3321 11.1 21.1 States 4 8 8 6 5 8 9 8 8 8 0 % % 1381 1455 1927 2576 1520 1828 2059 1645 1563 1815 16.1 Taiwan 5660 8 7 9 2 4 3 9 0 4 2 6.1% % Hong 1256 1112 1345 1093 1623 48.5 Kong 3 7677 1 6806 4769 5583 6341 8160 4 5 4 5.4% % 1286 1424 10.8 Thailand 2614 2142 3387 1082 840 2219 3160 7435 9085 0 9 4.8% % 1196 97.5 India 1757 2477 2705 2477 2522 3861 3675 4966 5331 6058 6 4.0% % United Arab Emirate 12.8 s 1961 3595 1981 2033 2577 2727 4591 6166 8962 7148 8061 2.7% % Malaysi 1058 88.0 a 7183 4 8315 6034 3625 4514 5398 6947 6957 3434 6457 2.2% % Singapo 34.1 re 6319 9121 7867 5252 3637 4680 4824 5736 5894 4517 6059 2.0% % Total Other Destinat 1225 1406 1914 1704 1572 1775 2150 2552 2446 2537 3340 11.2 31.7 ions 4 9 0 7 2 6 8 4 6 0 4 % % Source: Global Trade Atlas Source: GTA Source: GTA The trade data portrayed in the charts and tables above reinforces the longstanding story that the future of the deciduous fruit sector in NZ will be determined by how well the industry adapts to exporting to the Pacific Rim, Asia and the Middle East regions. The advantages and difficulties have been well publicized in previous GAIN reports. In short the varieties with the highest grower returns are exported predominantly to Asia. In addition it is much cheaper to ship to destinations in the Pacific Rim or SEA. Royal Gala In contrast to the Braeburn variety, Royal Gala has been managed to rejuvenate the cultivar by taking advantage of its color and sweeter taste to appeal to Asian tastes. In the Hawkes Bay region the fruit ripens earlier and generally can take advantage of a shipment window into Asian markets earlier than other southern hemisphere exporters. In addition growers have replanted or grafted over to new Gala sports such as Galaxy which are even better suited to the Pacific Rim market. New Zealand Exports for Royal Gala & Gala Apples by Destination Region Proportion of Total shipped Year Exported 2001 2011 Total Metric Tons Shipped 91176 106459 Asia 13.5% 26.1% China & Hong Kong 8.9% 5.7% Total EU excl UK 31.8% 32.7% Middle East 2.4% 8.2% North America 17.1% 12.4% All other countries 1.2% 4.0% Pacific Region 0.0% 0.2% United Kingdom 25.0% 7.7% Source: GTA United States For the 2010/11 year exports to the U.S. totaled 33,210MT, down 21%, compared to the previous year. For 2011/12 with the smaller average fruit size and smaller crop it is likely that the total tonnage shipped to the US will be down again. In the three months to March 2012, exports totaled only 234MT versus 999 MT and 1,699MT in the same periods in 2010/11 and 2009/10 respectively. Australia Even though NZ now has an importing protocol into Australia, following the resolution of the WTO case regarding fireblight, the conditions are stringent. Only 15MT were shipped in MY 2010/11 year, and to date, only 3MT has been shipped in MY 2011/12. Reportedly, in-market prices are not very good so it is unlikely there will be a huge volume of fruit shipped this year. It is likely that New Zealand exporters will target later in the season to ship fruit once the bulk of the domestic fruit has made its way through the system. Asia During the last few seasons the Hawkes Bay region has done well shipping early-ripening fruit into a fairly tight market window into S.E.Asian countries. This season however, the fruit didn’t ripen on time and the early window into Asia was partially lost to Chilean fruit. It is thought there is another lucrative window of opportunity into Asian markets later in the season however some commentators say the shortage of controlled atmosphere cool storage is limiting the sector’s ability to really exploit this opportunity. India Despite a tariff of close to 50%, apple exports from NZ to India have grown at a rate of 20% per year over the last 10 years. Exports for the 2010/11 year totaled an estimated 11,966MT close to a 100% increase over the previous year. For the 3 month period Jan-March 2012 7,302MT have been shipped to India putting volumes close to 150% ahead of the same period last year, so it is likely that well in excess of 12,000MT will be shipped in this campaign. NZ is currently negotiating a Free Trade Agreement with India which could be concluded next year. If a satisfactory tariff reduction schedule for apples from NZ is obtained this will further stimulate the trade and help move the focus of the sector more fully onto Asia. Japan Now that the Ministry of Primary Industries has a signed protocol for apple exports that allays Japanese import fears of associated with fireblight, the industry is optimistic about shipping significant quantities of apples to Japan this year, perhaps as much as 4,500MT. Nothing has been shipped for the three months to March 2012, and only 143 tons were shipped in the 12 months to September 2011. European Union The European Union is still the predominant export destination for NZ apples and success in this market place determines the overall average returns to the growers. Gala growers have been reasonably successful in reducing their dependence on this market and this has likely contributed to their ability to realize better returns for Gala compared with Braeburn. Braeburn - a tart, bicolor apple is difficult to sell anywhere else but Europe. Of the 72,693MT of Braeburn exported in 2010/11, 90% went to Europe or the UK. It is likely that with the planted area of Braeburn down close to 200ha, exports of Braeburn will be down approximately 10,000MT. This should be good news for the industry in its quest to diversify away from Europe, however the relatively new variety, Jazz, is also a bi-color, tart apple and has largely off-set the reduction in shipments of Braeburn. Of the 32,077MT of Jazz shipped in 2010/11, 70% of the volume went to Europe and the UK. So far for the 2012 campaign in the three months to March 2012 only 15,790MT have been shipped to Europe and the UK down 45% on the same period in 2011. While it is too early to tell whether this is a trend for the whole season or just the result of the late harvest, exports to SEA and the Middle East are at similar levels to last year. China Following considerable effort, in 2011 New Zealand was able to negotiate a more suitable export protocol with the Chinese mainland for apples. Following the successful conclusion of New Zealand’s WTO case with Australia, a new protocol for fireblight risk was agreed to with China along with a change in stance in terms of China’s response if one of the pests on the quarantine list is found in a shipment. Agreement was reached on the protocol in February 2011 and signed on September 28, 2011. This was too late to effect shipments in the 2010/11 year which totaled just 272MT, up slightly from the previous year’s total of 211MT. However in the three months to March 2012 170MT have already been shipped. Apple Imports New Zealand Import Statistics Commodity: 080810, Apples, Fresh Year Ending Series: September, 2006 - 2011 Quantity Partner Country Unit 2006 2007 2008 2009 2010 2011 World T 1235 1102 1572 1658 1349 1257 United States T 1169 1082 1572 1618 1213 1240 New Zealand T 64 0 0 41 125 17 Australia T 1 0 0 0 0 0 Canada T 0 20 0 0 0 0 China T 0 0 0 0 11 0 India T 1 0 0 0 0 0 United Kingdom T 0 0 0 0 0 0 Source: Global Trade Atlas Pear Exports Pear exports in 2011/12 are forecast at 4,300 MT, 17% lower than Post’s previous estimate, and 2% lower than last year’s estimated export level. Pear Imports New Zealand Import Statistics Commodity: 080820, Pears And Quinces, Fresh Year Ending Series: September, 2006 - 2011 Quantity Partner Country Unit 2006 2007 2008 2009 2010 2011 World T 3937 2980 3314 3442 3523 3601 United States T 1230 1388 1084 1223 1340 1712 Australia T 1532 950 1452 1458 1564 1271 China T 993 551 629 593 425 507 Korea South T 161 92 149 168 167 111 Canada T 21 0 0 0 0 0 New Zealand T 0 0 0 0 4 0 South Africa T 0 0 0 0 22 0 Source: Global Trade Atlas Policy Free Trade Agreements The following agreements are in force: New Zealand-Hong Kong, China Closer Economic Partnership (NZ-HK CEP entered into force on 1 January 2011) New Zealand-Malaysia Free Trade Agreement (MNZFTA entered into force on 1 August 2010) ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) - 2010 New Zealand-China Free Trade Agreement (NZ-China FTA) - 2008 Trans-Pacific Strategic Economic Partnership (P4) - 2005 New Zealand-Thailand Closer Economic Partnership (NZTCEP) - 2005 New Zealand-Singapore Closer Economic Partnership (NZSCEP) - 2001 Australia-New Zealand Closer Economic Relationship (CER) - 1983 In addition, the New Zealand Government is currently negotiating the following FTAs: New Zealand-Gulf Cooperation Council Free Trade Agreement (NZ-GCC FTA negotiations have been concluded but not yet signed) Expansion of the Trans-Pacific Strategic Economic Partnership (TPP) New Zealand-Korea Free Trade Agreement (NZ-Korea FTA) New Zealand-India Free Trade Agreement (NZ-India FTA) New Zealand-Russia-Belarus-Kazakhstan Free Trade Agreement (NZ-RBK) While exporters report that FTAs do not drive business decisions, they do provide a framework to work out trade-related issues, especially SPS and non-tariff barriers, and, in some cases, significant market access advantages. Also announced negotiations are beginning with Taiwan Industry Developments Industry News The majority stake in the largest fruit post harvest operator, processor and exporter (outside of the Kiwifruit sector) Turners and Growers (T&G) previously owned by Guinness Peat Group was sold in 2011 to the German industrial conglomerate, BayWa Aktiengesellschaft who built its stake in T & G up to 70%. Scales Corporation who own Mr Apple the largest apple grower in NZ and an integrated growing, packing, and fruit logistics business has taken up a 10% shareholding in T & G. A large part of Bay Wa’s business is trading and distributing fruit in Europe, and a stated goal with the purchase of T & G is to allow Bay Wa to expand its business into Asia. Mr Apple is the biggest apple supplier to ENZA the apple handling subsidiary of T & G. ENZA exports approximately 20% of the apple crop. ENZA owns the Jazz and Envy varieties and is the largest juicing processor. It is hoped that this link up between Bay Wa and Scales will bring some rationalization to the sector and a positive forward momentum.
Posted: 27 May 2012

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