Productivity gains and an increase in high-value varieties has seen New Zealand’s apple and pear industry contribute almost $2 billion of total revenue impact to the national economy in the last 12 months, according to new research from MartinJenkins.
While also recording a reduction in land use, innovation within orchard and packhouse infrastructure and investment into new, high-value plantings saw the industry record $1.96 billion total revenue impact in 2023.
The Economic contribution of the New Zealand Apple and Pear Industry 2024 was conducted by MartinJenkins to reveal the value of the industry to the national and key regional economies.
Employing more than 12,000 permanent and seasonal employees, the apple and pear industry recorded a value growth rate that outstripped New Zealand’s total export value growth rate. In the 10 years to 2023, the sector increased its export value from $347 million to more than $892 million.
What’s more, the sector did this while also achieving significant sustainability gains, including a recorded 70 per cent decrease in chemical usage in the 10 years to 2023.
Increased productivity and pack-out rates has also contributed to a 19 per cent reduction in the carbon footprint of packhouse and coolstores, and an overall 13 per cent reduction of the full export apple value chain.
New Zealand Apple and Pears Chief Executive Karen Morrish says the economic report provides a valuable snapshot as the industry continues to target value growth.
“We know New Zealand grows the best apples in the world. Apples that are safe, sustainable, full of flavour and loved by our customers.
“We’re pleased to see that the growth in our export value has come from increased productivity and investment as well as the diversification of international markets. As an industry, we believe these efficiencies will make room for further growth in value and returns.
“With the right settings, our industry’s contribution to national and regional economies can be secured, remain safe and sustainable and we can continue to produce the world’s best quality fruit right here in New Zealand.”
As New Zealand works to double the value of its exports over the next ten years, T&G Global’s Chief Operating Officer Apples, Shane Kingston, says the apple and pear sector has a vital role to play in helping achieve this goal.
“New Zealand has a world-leading position in intellectual property, innovative growing and post-harvest systems and world class food safety, quality and sustainability standards. This, alongside our geographical position in the Pacific Rim, positions our sector well to capture increased value,” says Shane.
“At T&G, we’ve invested significantly in developing and planting unique premium varieties, redeveloping orchards to ensure they’re automation-ready and investing in a $90 million world-leading automated packhouse in Hawke’s Bay. Combined with our commitment to building strong in-market sales and marketing performance through our own people and partnerships, this helps us build global brands, lift productivity and deliver strong returns to growers and regional communities.”