The largest crop in nearly ten years has seen the New Zealand Apple and Pear industry surpass $500 million worth of exports for the first time. “Our industry is on track to reach its target of a billion dollars by 2022,” says Pipfruit New Zealand Incorporated (PNZI) CEO Alan Pollard.

“When you look at the positive economic impact this industry is having on its regions it is really quite extraordinary,” says Mr Pollard. “North Island centres such as Hawkes Bay received $350 million in export receipts, up $100 million on 2012; and South Island centres such as Nelson have received $150 million, $50 million more than 2012. When you factor in the economic multiplier of these extra receipts, that represents a huge economic boost for provincial New Zealand”

Asked what was causing this transformation Mr Pollard pointed to a number of factors. “The New Zealand apple industry is the best in the world,” he said. “Our growers have the highest productivity with our orchards over 40% more productive than our competition.”

New Zealand apple orchards produce on average over 60 tonnes of fruit per hectare compared to the next highest national average of just over 41 tonnes from Chile.

“We export fresh Apples and Pears to the Northern Hemisphere and we have much better access to the high growth Asian markets than our other Southern Hemisphere competitors.” Says Mr Pollard. 

“New Zealand produces high quality fruit using the worlds safest and most sustainable Integrated and Organic production systems.” says Mr Pollard, “Our customers are willing to pay premiums for those attributes and our fruit commands the highest prices.”

The Apple and Pear industry points to a key programme that has supported this latest evolution. Helen Clarks Labour Government introduced the Recognised Seasonal Employer  (RSE) scheme for the 2008 harvest season. “The RSE scheme transformed the Apple industry almost immediately lifting our quality and our productivity way beyond our competitors,” says Mr Pollard. Through the Global Financial Crisis and despite high exchange rates Apple and Pear RSE employers have increased production by 32% and their orchard area by 20%.

The RSE scheme has provided the entire industry with almost enough workers to carry out critical tasks and to plan and invest in the future. Without ongoing certainty of the continuation of RSE and guaranteed supply of labour at peak seasonal times, widespread future investment will be limited.
Nationally only around 25% of the Apple workforce is provided by RSE; the rest are Kiwis. The RSE workers mainly work in the heavy physical jobs such as thinning and picking. Once the fruit is thinned and then harvested at the optimum time it then goes into coolstore and is packed over the following months by mainly New Zealand workers.

RSE has been a great success for New Zealand workers as well. Employers are employing 19% more permanent New Zealand workers to manage their higher production and 16% more seasonal New Zealand workers to pick and pack it.

While there will always be jobs for people who want to pick apples the aim of the industry is to continue to grow secure and enduring employment for New Zealanders in skilled permanent jobs. “We cannot grow further without these workers” says Gary Jones, Business Development Manager at PNZI. “The growth potential of the industry out to 2022 will require another 1,400 highly skilled permanent workers.”

Already the Apple industry is working to attract more people. The industry is made up of mainly integrated businesses that handle the fruit right through from orchard to market. “So there are many different careers available from Orchard Management to International Marketing “ says Mr Jones. “Some of these businesses are partnering up with schools to teach students how sophisticated the industry is and how rewarding a career in the Apple industry can be.”

“Our industry has been very quiet about its success for too long.” says Mr Pollard.  “Most New Zealanders do not know that our apples have an iconic reputation in global markets. Most New Zealanders and even our own Government do not understand how well our industry is doing and how important it is for New Zealand’s future economic growth aspirations. This is going to change!”

So in Nelson, Hawkes Bay and other provincial towns where Apples and Pears are grown there is a lot more money in peoples pockets these past few years due in no small part to the success of New Zealand’s world class Apple and Pear industry. 

Recognised Seasonal Employer (RSE) Policy
The horticulture and viticulture industries are important to New Zealand and they often suffer from a shortage of local workers. The Recognised Seasonal Employer (RSE) Work Policy is a policy that facilitates the temporary entry of additional workers from overseas to plant, maintain, harvest and pack crops in the horticulture and viticulture industries to meet these labour shortages in order to remain competitive with the rest of the world.

Statement ends
For more information contact
Alan Pollard, Chief Executive, Pipfruit NZ
+64 6 873 7080
+64 021 576 109