Kiwifruit growers rely on banks’ support – report
For heavily indebted kiwifruit growers crippled by the spread of the Psa-v disease, the cost of the industry recovery will hinge on whether banks continue to open their loan books.
Industry organisation Kiwifruit Vine Health (KVH) yesterday released a longawaited report from Lincoln University that quantifies the damage done by the Psa bacterium.
Without assistance, the industry’s recovery would cost it $885 million over 15 years and more than 100 jobs a year, the report said.
But if growers could keep their heads above water by refinancing debt, that figure would be pared back to $740m, it said.
The report also showed that damage to the former $1.3 billion export sector would spread into the community, with jobs lost in areas as diverse as beekeeping, real estate and seasonal work.
The total number of jobs lost nationwide is expected to be almost 4000 between 2012 and 2016, but support from key stakeholders such as banks would save 115 of those jobs each year, or a total of 460 positions.
Psa first appeared in the kiwifruit production hub of Te Puke, and it is there that the virulent disease has struck hardest.
Early statements from ANZ National and agribusiness specialist Rabobank, which have donated to KVH previously, reaffirmed their support. ‘‘Rabobank is fully committed to, and supportive of, the kiwifruit sector in New Zealand’’, New Zealand chief executive Ben Russell said. ‘‘We are working closely with growers impacted by Psa as they work out the best path forward for their individual operations.’’
ANZ NZ managing director commercial and agri, Graham Turley, said it was vital that stakeholders maintained their commitment.
KVH financial recovery co-ordinator John Burke said the ‘‘tremendous levels of co-operation’’ from the parties involved would need to continue if the industry was to get back on its feet.
That was echoed by Kiwifruit Growers president Neil Trebilco, who was glad the industry would now be able to approach banks and the Government with some certainty.
The conclusion of the Lincoln report offered more bad news, suggesting the worst was still to come. ‘‘Like the kiwifruit industry itself, the wider Bay of Plenty community has yet to experience the full impacts of Psa-v and there is considerable uncertainty about what those impacts will be.’’