New research reveals that pip fruit is the second largest contributor to Tasman’s economy, but local growers are grappling with significant challenges due to rising costs in recent years which have overshadowed the benefits of increased sales.
However, there are signs of recovery and hope on the horizon.
Latest research from the New Zealand apple and pear industry shows Tasman’s apple and pear sector contributes $356 million to the region’s economy, making it the second most valuable industry in the area.
The data also revealed Tasman accounts for 23 per cent of the country’s apple and pear plantings, employs over 3,000 people, and contributes 54 per cent of the region’s horticulture GDP. The industry’s export value has surged from $347 million in 2012 to over $892 million, driven by higher productivity, investment in premium varieties, and a growing international market base.
New Zealand Apples and Pears chief executive, Karen Morrish, notes the significance of the industry’s growth.
“Our industry is a tier one horticulture sector that makes up 20 per cent of the national GDP contribution from horticulture, and what’s more, we have room to grow. The growth in our export value has come from increased productivity, investment in high-value varieties as well as the diversification of international markets, which means our sector is well placed to further align with the Government’s desire to double export value in 10 years.”
However, despite these positive trends, Brightwater’s Willisbrook Orchards managing director Richard Palmer, points out that the rising labour and freight costs, plus inflationary effect on all inputs, have significantly impacted profit margins.
“While we’ve seen an increase in volume and changes to the market with closer-to-home exports over the past 15 years, the sharp rise in input costs has overshadowed these gains,” says the second-generation orchardist and fifth-generation farmer.
Richard remains optimistic but acknowledges the road ahead is challenging.
“We’re still working hard to realise the full value of our product and the investments we’ve made,” he adds. “Costs are up across the board, and while we understand the reasons behind these increases, it’s tough for both growers and consumers. Inflation-driven domestic price increases make it more difficult for people to afford everyday goods.”
Despite these challenges, Richard is encouraged by the global demand for Tasman-grown pip fruit.
“During a recent trip to Italy, France and UK, I found that our apples stood out as some of the best. We have a fantastic product—one that is in demand worldwide. Asian markets, in particular, are willing to pay a premium for it, which is very encouraging for the future.”
As Tasman’s pip fruit sector continues to navigate the complexities of rising costs and a competitive global market, growers remain focused on innovation, sustainability, and diversifying export opportunities and considering niche markets to ensure long-term success.
