Biggest trends

Confidence is slowly bouncing back

Together with the largest export on record occurring this past season and a bounce back in the Orchard Gate Returns (OGR), confidence in the kiwifruit sector has improved.

Increasing environmental considerations

Buyers are more considered in relation to environmental factors with a primary focus on any CapEx required. Orchard layout to future proof climatic events such as hail, frost, and wet feet (flooding of roots) remain key considerations. Recent certainty provided around utilisation of sprays will assist confidence.

Water (access) remains the winner

Those with long term water access are the winners. Managing expiring consents and the “use it or lose it” approach by regional councils is often critical to preserving production and value of orchard land.

Outlook for the next 12 months

Flight to quality

Sector growth in recent years has seen orchard development of land in locations that would have traditionally been less desirable. Buyers are expected to place a greater emphasis on the quality of the development, infrastructure, and orchard location – opting for orchards that have greater resilience or ability to mitigate climatic events.

Capacity to be tested

Capacity through the supply chain will continue to be tested as national production matures. Pressure on access to labour, packhouse throughput & capacity, chilled storage and logistics are expected to drive automation and innovation. Accommodating the growth will be an important factor in maintaining sector confidence.

Wage pressure to ease in short term

Recent labour pool growth from the Regional Season Employer (RSE) scheme has balanced labour supply with the demand assisting the control of labour costs. The labour pool will need to continue to grow to support the national crop expanding.

View the full report here.