Saturday, April 20, 2024

Strong demand drives seed sales

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Strong global demand for New Zealand seed has driven exponential growth in export sales over the past five years. Latest trade data shows export sales at $239.4 million for 2019, up 38% on the $173m in 2015. While NZ exports more than 30 different seed types, internationally pasture seed and vegetable seed are the key export categories with ryegrass and clover sales at $109m.
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Carrot, radish and beet and other brassica seeds contributed $108m and cereal seeds $23m.

NZ Grain and Seed Trade Association general manager Thomas Chin said exports of speciality seed provide both diversification and increased value by being GM-free.

“The NZ seed trade is competitive on the world stage and can sell at a premium because we can provide reliable and high-quality supply,” Chin said. 

Strong customer relationships and trust are also at the heart of NZ’s export success.

“Also our counter-season production of seed arrives to fill the northern hemisphere spring and autumn sowing windows.”

More than 80% of NZ seed production is in Canterbury, around Ashburton District encompassing 38,000 hectares of certified crop.

Major export destinations include Europe, Australia, the United States, China and Japan, accounting for 75% of exports. 

The growth in the export turnover is a significant indicator NZ is producing high-quality seed and growth that corresponds with the increase in demand from overseas customers, Chin said.

Mid Canterbury farmer Rab McDowell spent 40 years growing crops on his 360 hectare dryland property at Mayfield but nine years ago irrigation changed his traditional sheep and cropping farm.

With new toys to play with – the development of irrigation and a new actual-flow combine capable of harvesting the specialist seed crops, McDowell has paved a new path in his farming operation.

“For 40 years I was dryland farming growing barley and wheat and I once had 5000 ewes. I don’t have one now.

“I decided with the opportunity to develop irrigation I needed something more interesting if I was going to farm into my 70s.

“So what I farm now is like a new hobby and it had to be higher-value cropping to pay for the irrigation.”

Driving across McDowell’s farm over summer is now like driving through a flower garden with new high-value export seed crops including chrysanthemums, mustard, hemp, hybrid radish, carrots and pak choy joyfully flowering in what once would have been paddocks of cereal crops.

With NZ industry commitment to 100% home-grown milling wheat it’s likely wheat will hold its place in McDowell’s farm system but feed grains are on the outer.    

McDowell has taken the plunge and included a crop of chrysanthemums in his switch to growing crops for the export seed market.

Reaping $6000 a hectare, all going to plan, it’s double the return of barley at $3000-$3500/ha but while the export seed market is high-value it’s also high-risk cropping, especially so for the chrysanthemums.

Germination and hygiene are critical factors with McDowell’s crop this year contracted at 70% germination. If it goes less it’s pretty much worthless.

“The biggest issue is germination of the seed as it goes to Asia to be grown and harvested as a fresh green leaf vegetable used in cooking including salads and stir-fry dishes.

“I did a trial crop last year and only just scraped through with the germination and hygiene is also critical as it mustn’t be contaminated by other crops.

“I spend more time than ever cleaning out the combine for my hobby crops.”

There’s also the added expense and critical timing in specialist seed cropping with bees for pollination.

“So it’s very high risk, way more so than traditional cropping but under irrigation now I have to get a real lift in returns and the soil, with water, seems right here for these crops.”

Another adaption for McDowell is the long, drawn-out harvest.

“I’m now harvesting over three to four months starting with grasses in January and going right through to mid April with the carrots last to be done.

“It used to be you would get the harvester out and the absolute sole focus was on the harvest, go as hard as you can and if the weather stayed on your side in four weeks or so you would be parking up for the season.

“Sometimes I wonder if I have done the right thing but if you keep farming in your 70s you have got to have something that spins your wheels,” McDowell said.

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