They came out on top in a Ministry for Primary Industries report that took stock of the country’s top 65 crops by value to the economy.
The report compiled by the Institute for Economic Research was the first time an attempt had been made to quantify the entire range of grasses and horticultural and tree crops cultivated for commercial purposes.
The authors noted previous efforts had viewed the value of crops individually and had examined only the exported value of specific crops.
But that failed to cover the value of domestic consumption, which the GDP approach used in the new report did. That gave a more exact value of crop contribution, particularly for crops like maize and most grains, which were not exported.
Interestingly, for a country so focused on primary production no work had been done before in this manner and even international work had largely looked harder at the non-market value of species involved in biodiversity or pharmaceutical contribution rather than general productive value.
Plant Breeding and Research Association general manager Thomas Chin said it would probably come as no surprise that ryegrass claimed the top spot.
It was ranked at number one based on an estimated $14.5 billion contribution to the economy, with clover coming in third place, well back on $2.3b.
At number two was Pinus Radiata, valued at $4.4b.
Chin said the report was a good first attempt to quantify the country’s most economically significant crops.
“It is easy to think grass is grass until you see the value it contributes to our economy.
“There are also of course the downstream benefits, for example, the value of the honey industry that comes from clover’s significance as a species too.”
Having an inventory of crops’ value also played a valuable role in determining biosecurity responses to incursions that threaten them.
“The Wairarapa pea weevil incursion is a working example.
“We now have figures to show the pea sector is a $111-million industry and that provides more reason for a comprehensive biosecurity response to the outbreak.”
With grasses still the mainstay of the economy the report went as far to single out grass varieties.
Ranked by their contribution after ryegrass and clover there was a significant gap in value until chicory came in at $45m, just ahead of lucerne and plantain at $44m each.
In the arable cropping sector, maize, valued at $722m, dominated with brassicas kicking in $532m and wheat at $468m.
Chin said it was notable the combined arable sector was now estimated to be worth $2b, more than many might have expected.
With kiwifruit being the poster child for a booming horticultural sector there was possibly little surprise in that fruit claiming top spot of $812m despite the data being collected in the wake of the Psa disease outbreak and all but devastating the Gold crop the following year. The industry was now rapidly approaching the $2b a year mark.
Grapes were close behind at $722m with the wine industry now valued at $2b for revenue in 2015.
But while the headlining crops were relatively obvious there were some quiet achievers in horticulture’s ranks continuing their upward growth trajectory since the 2012 data was collected.
Avocados were valued at almost $51m then, including $29m of exports. Last year the sector reported a record $134m in domestic, processing and export sales.
But the lower ranks of vegetable and fruit crops also threw out some surprises.
Green beans were rated as contributing $40m a year to the economy with half of that earned as export dollars while carrots added $47m.
NZ’s status as the main source of carrot seed in the world was substantiated by seed sales valued at $6m, exceeding domestic sales of raw carrots.
Similarly, onions contributed $60m with half going to export. Potatoes were valued at $200m and a quarter of that was earned from exports.
High earners
- Ryegrass $14,557,293,164
- Red and white clover $2,334,223,352
- Pinus radiate $4,454,100,000
- Kiwifruit $807,161,622
- Grapes $755,789,961
Source: NZIER-MPI
