The country produces food the world needs and wants so keeping trade access open is crucial, something the Government has recognised by granting $216 million in this year’s Budget to extend NZ Trade and Enterprise support for exporters.
But trade policy needs to be about more than just opening market access for exporters.
Disrupted global supply chains are collapsing demand and prices for potatoes, which it is feared will be dumped on world markets, swamping domestic production.
The closure of food service outlets has seen the European Union reportedly develop a 2.6 million tonne stockpile of frozen fries and United States stocks are also growing.
Potatoes NZ wants the Government to impose short-term measures to limit imports of heavily discounted frozen potato chips to protect the local industry, which is worth more than $1 billion.
Chapman also wants a rethink of infrastructure investment, especially water storage for irrigation and urban use.
“If we are to feed our people and many of the world’s consumers we need to expand our growing of healthy food and that requires water.”
The Resource Management Act stifles innovation and expansion and he welcomes a Government commitment to accelerate reforms.
“The key, however, is for the Government to truly partner with industry, to listen and give industry appropriate leeway to make the progress that is so urgently needed.”
Availability of labour and suitable land further limit the sector’s performance and Chapman says growers cannot rely on offshore labour so must attract and train New Zealanders or the Recognised Seasonal Employer scheme must be expanded.
A benefit from the lockdown was that the heads of the various specialist grower groups worked as a collective, meeting regularly and contributing to industry-wide discussions.
NZ kiwifruit Growers chief executive Nikki Johnson is confident the industry can continue to grow but the two biggest hurdles it faces are labour and water infrastructure.
Johnson says backpackers and visitors on working holiday visas supply about 25% of the sector’s seasonal workforce but replacing them with locals is not straightforward.
The seasonal nature of kiwifruit makes it difficult to create permanent jobs and even with the unemployment rate forecast to reach double figures those seeking work will want full-time rather than part-time employment.
The sector is trying to create a year-round work structure between pruning, thinning and harvesting though some of those tasks require training, Johnson says.
NZ Winegrowers chief executive Philip Gregan says the impact from the demise of tourism will be felt on domestic and cellar-door sales, which represent 15% by volume but a greater percentage by value.
He wants to see regulatory obstacles removed to make cellar-door sales more viable but also trade assistance to grow export markets.
The industry needs confidence, especially for wineries that have focused on supplying food-service markets, which have dried up.
Avocado is an industry on the rise with the area under trees increasing 25% in recent years, from 4100ha to more than 5000ha.
NZ Avocado chief executive Jen Scoular says global demand for the fruit is growing at 10% a year but production is growing by only 3%.
NZ produces 28 to 40 tonnes of fruit a year worth about $100m in export receipts and another $50m to $60m from domestic sales.
But at just 1.5% of global production there is opportunity for NZ to grow exports, particularly to China and India.
To grasp that opportunity investment is needed into researching the best way to grow the fruit under NZ conditions, how to achieve consistent crop yields, how to measure crops, develop packhouse technology and for NZ to develop its own fruit varieties.
