Tasman orchardists welcomed the chance to discuss opportunities and challenges facing the sector during a recent visit from National Party candidates.
The visit was due to include Trade and Investment Minister Todd McClay following the New Zealand–India Free Trade Agreement (FTA) passing its first reading in Parliament in late June. However, poor weather cancelled flights in and out of Wellington for much of the day.
Nelson candidate Blair Cameron and West Coast-Tasman candidate Katie Milne, continued with the visit, bringing together orchardists from across the Tasman region.
Following the first reading of the legislation, Todd said India represented a significant opportunity for New Zealand exporters.
“India is one of the world’s largest economies and is the fastest-growing economy in the G20. With a GDP equivalent to seven trillion New Zealand dollars and an average growth of 8.25% since 2021, India represents a major opportunity for New Zealand businesses,” he says.
“Many New Zealand products are effectively locked out of the India market because of high tariffs and restrictive quotas. This FTA will level the playing field for Kiwi businesses in the India market because it will reduce or eliminate tariffs on 95% of New Zealand’s exports to India, when fully implemented.
“From day one, 57% of our exports will be tariff-free. This will unlock new opportunities to grow our goods and services exports into a market of 1.4 billion people and contribute to achieving the Government’s goal of doubling the value of exports by 2034.”
Just two weeks after the agreement was signed and began its parliamentary process, Todd says demand for New Zealand products in India had already increased.
“The New Zealand–India FTA has been signed and is now before Parliament. We expect it to enter into force later this year, but we’re already seeing a strong halo effect. Export volumes are up because businesses and customers can see the quality of what New Zealand has to offer.”
Apples have been a standout performer. Since negotiations began, export volumes have risen 63% compared with the 2024 season, increasing from 27,000 tonnes to 45,000 tonnes so far this year. India has moved from New Zealand’s seventh-largest apple market to its fourth-largest in just two years.
“Once the FTA takes effect, apple tariffs halve to 25% from day one on an initial quota of 32,500 tonnes, rising to 45,000 tonnes by year six. That’s a real financial boost for growers,” Todd says.
Kiwifruit growers also stand to benefit. The agreement provides tariff-free access within a new quota starting at 6,250 tonnes and rising to 15,000 tonnes by year six. Tariffs outside the quota will be halved from the outset. The industry estimates tariff savings of about $125 million over five years.
Wai West Horticulture managing director James Patterson says the business employs 40 permanent staff and a further 148 workers through the Recognised Seasonal Employer (RSE) scheme.
He says the FTA will open up new opportunities for the business. “It opens up another market for us and allows us to maximise more of what’s in the bin, and increase the value of apples in the bin, which is really beneficial for us.
Moutere Hills orchardist Simon Easton, who runs a 65-hectare apple operation, employs 70 RSE workers and says the business would be “done without them”.
He told Blair and Katie compliance and administration requirements have continued to increase and are “over the top”.
“When I came on the farm, you’d go to the office one day a week and now we’ve got two people fulltime.”
Both Blair and Katie said India’s rapidly growing middle class presents major opportunities for New Zealand exporters.
“It’s a massive opportunity that we’ve just unlocked,” Katie said.
Fourth-generation orchardist Hamish Rush owns and operates Aporo Orchard, which grows 30 hectares of pip fruit and another eight hectares of blackcurrants.
He agrees that the FTA will add value to New Zealand fruit exports.
“It’s adding value for what we’re already doing and maintaining viability. It’s about increasing value out of something that wasn’t ordinarily there.”
Hamish says the agreement could create markets for lower-grade fruit that would not usually meet export standards because of things such as minor blemishes. Blair and Katie explained to the group the ways that their government was trying to reduce compliance and make it easier to do business, like the Resource Management reform.
“Businesses do best when government just gets out of the way and lets you guys do your job,” Blair said.
