Growing up: The rise and rise of horticulture

Gold kiwi, wine, apples fuel agriculture’s ‘fourth engine’

Horticulture is fast becoming agriculture’s “fourth engine” and will soon rival the meat industry in export receipts, ASB rural economist Nathan Penny says.

The Ministry for Primary Industries, in its latest update, said horticulture’s strong growth is forecast to continue, with exports expected to reach $5.4 billion for the year ending June before rising to $5.6b in the next year.

Meat and wool export revenue is forecast to increase 4.2 per cent to $8.7b in the year, supported by strong red meat prices and increasing exports of value-added products, then to $8.8b the following year.

Strong overseas demand for gold kiwifruit, wine and new apple varieties is expected to continue supporting strong prices across the sector.

Expanded planted areas for kiwifruit and apples are forecast to contribute to higher export volumes and revenue.

Penny says horticulture is looming large on investors’ radar screens.

“For so long it was all about meat, dairy, and forestry — the three engines of primary production,” Penny told the Herald.

“But now it’s about fruit and vegetables, horticulture and viticulture — the fourth engine.”

Penny said the rise and rise of horticulture was adding muchneeded diversity to a primary sector, which has for years been

The [kiwifruit] recovery has blown even the most optimistic of scenarios right out of the water. Nathan Penny

dominated by dairy.

“That’s a really good thing for primary production in New Zealand and for the New Zealand economy generally,” he said.

“There is a lot of potential growth that is untapped and that can kick on over the next 10 years — comfortably,” he said.

Dairy is butting up against constraints — particularly from an environmental perspective — but horticulture is not.

Penny said kiwifruit’s recovery after the destruction caused by the outbreak of Psa in 2010 had been “phenomenal”— aided in no small part by the advent of the new cultivar, Gold3, which is marketed by Zespri as Sungold.

“The recovery has blown even the most optimistic of scenarios right out of the water,” he said.

Horticulture’s success has also played a part in a regional growth spurt for the Bay of Plenty, Northland, Nelson and Central Otago, areas that are benefiting from the tourism boom as well.

Penny said by 2030, horticulture — which already level pegs separately with sheepmeat and beef — may rival the meat trade in total.

Horticulture New Zealand chief executive Mike Chapman agreed with Penny’s “fourth engine” description.

“He’s not wrong,” Chapman said. “The question now is how long will it be before it really starts to bite,” he said.

Chapman said the achievements of kiwifruit, through Gold3, and the apple sector with its new, high-value varieties, were well

Year to June 30