That total includes $5.5b of export earnings and puts the sector close on the heels of the $6.7b red-meat export sector.
Latest data in Plant and Food Research’s Fresh Facts highlights the strong growth experienced almost across the board in the horticultural sector, with some surprising, quiet performers in the ranks.
Unsurprisingly, kiwifruit claims the top spot, making $1.86b in export earnings, up 40% on the five year average. It is also greater than the value of the horticultural sector’s total exports only 20 years ago.
Wine is the second export success, delivering exports worth $1.69b while apples are next at $732m.
The numbers show the vegetable seed sector surging ahead.
Total vegetable seed earnings were up 43% at a record $94m, well ahead of the sector’s five-year average.
Returns were driven largely by a more than doubling of carrot seed sales and a 50% increase in other seeds including brassicas.
The vegetable seed sector is on a near-equal footing with avocado exports of $104m and ahead of cherries at $84m.
Grain and Seed Trade Association general manager Thomas Chin said the lift in vegetable seed sales has come as northern hemisphere seed companies ramp up vegetable seed production.
“They have been looking to take advantage of NZ’s high biosecurity standards and our off-season production cycle to multiply their seed volumes quickly.”
They also want to reduce their exposure to a single hemisphere production source as climatic and land use risks grow.
“We also offer a level of quality and pest resistance that makes us a good source for seed that is grown specifically. The northern hemisphere seed companies own the intellectual property and have specific markets for it. It is not a commodity product.”
NZ now accounts for 55% of the globe’s carrot seed production and a third of the radish production. Onion and other vegetable seeds are also growing with Asian style greens contributing significantly.
“Ten years ago you would not have found much bok choy seed grown, for example. Now there is demand here and abroad for it from Asian markets.”
Chin hopes a Primary Industries Ministry delegation visiting China this month will help open the door for greater brassica seed sales there, a product not exported since 2013 and awaiting new export protocols to recommence.
But he acknowledges the irony of vegetable’s double bite at the export earning opportunity.
Seed is often sold back to NZ growers who grow it to a final crop, in turn destined for export.
Onions, for example, earned $93m in export earnings for the 2018 year and about $5m in seed exports.
It is hard to pick what the next big seed crop might be but prospects look good for hemp as its applications open up thanks to changes in legislation around consumption. Hemp seed has been imported from Europe and Canada.
“But if we get enough growers here there is potential, having a customer for it is the main thing.”
Even the humble potato has exhibited strong growth in export sales to hit $115m as processed product, up 23% from $94m the year before as sales move from fresh to processed products.
Potatoes NZ chairman Stuart Wright said growth prospects are positive with good, steady gains coming for processed potatoes in South Korea, Australia and Japan, aided in part by a difficult northern hemisphere harvest.
NZ horticultural produce is now exported to 128 countries with Europe, Australia, the United States, Japan and China the main markets accounting for 72% of earnings.
Asian exports have had the biggest increase, leaping $912m to $2b in a single year.
