Pipfruit

This report contains the key results from the Ministry of Agriculture and Forestry’s 2008 pipfruit monitoring programme. The full Horticulture and Arable Monitoring Report 2008 will be available in September 2008.

Key points

  • Favourable climatic conditions led to increased yields of pipfruit in the Hawkes Bay and Nelson regions in 2007. However, poor market returns for Braeburn and a strong New Zealand dollar constrained revenue, delivering a modest profit for the Hawkes Bay orchard and a return to a loss situation for the Nelson orchard.
  • The 2008 growing season was characterised by two severe frost events in Hawkes Bay, reducing gross yield in the model orchard by 15 percent. Export yield for Braeburn, the variety most affected, is down by 40 percent. The Nelson region escaped any significant frost damage with good export recovery rates.
  • A reduced export crop from New Zealand and other Southern Hemisphere countries in 2008 is prompting good market demand. Growers are confident of an improvement in market prices, forecasting an average return of $22.40 or above per export carton - higher than at any time in the past 6 years.
  • Orchard profitability continues to be challenged by rising input costs. Increased costs of fuel, electricity and labour are having a significant impact directly but also indirectly through post harvest charges.
  • The Nelson orchard forecasts a significant improvement in profitability for 2008, providing funds for ongoing development and debt reduction. Forecast profit levels for the Hawkes Bay orchard are similar to 2006, limiting the scale of redevelopment into new varieties and intensive plantings without incurring significant new debt.

Table 1: Key parameters, financial results and forecasts for the pipfruit models

Hawkes Bay pipfruit model budget and expenditure

Table 2: Hawkes Bay pipfruit model orchard budget

Table 3: Hawkes Bay pipfruit model orchard expenditure

Hawkes Bay pipfuit model production and income details

Table 4: Hawkes Bay pipfruit model production and income details for 2007

Table 5: Hawkes Bay pipfruit model forecast production and income details for 2008

Hawkes Bay pipfuit model profitability trends

Figure 1: Hawkes Bay pipfruit model profitability trends

Figure 1: Hawkes Bay pipfruit model profitability trends

Nelson pipfruit model budget and expenditure

Table 6: Nelson pipfruit model orchard budget

Table 7: Nelson pipfruit model orchard expenditure

Nelson pipfuit model production and income details

Table 8: Nelson pipfruit model production and income details for 2007

Table 9: Nelson pipfruit model forecast production and income details for 2008

Nelson pipfuit model profitability trends

Figure 2: Nelson pipfruit model profitability trends

Figure 2: Nelson pipfruit model profitability trends

Information about the models

The two pipfruit models represent the main pipfruit growing areas of New Zealand. Hawkes Bay is the largest pipfruit-producing district, exporting over half the national crop, with Nelson the second largest apple-growing region. The orchards are a mixture of old and new apple varieties, typically run by owner-operators. Although there is a trend towards corporate ownership, this has not been captured in the models, which are based on an owner-operator business structure.

The aim of each model is to typify an average orchard for the region. Budget figures are averaged from the contributing properties and adjusted to represent real orchards. Income figures include off-orchard income, new borrowing, and other cash income. Expenditure figures include costs of management, orchard production costs, debt, leasing, drawings, development, and capital purchases.

The pipfruit model budgets are prepared using a 31 December balance date to allow year to year financial comparisons.

Hawkes Bay pipfruit model

The Hawkes Bay model includes leased land that accounts for about one-third (7 hectares) of the orchard size (22 hectares). Royal Gala is the predominant apple variety in the model, accounting for 32 percent of the planted area. The model is based on data from 20 orchards located in the Heretaunga Plains.

Nelson pipfruit model

The Nelson model orchard is 27 hectares. Braeburn is the predominant apple variety in the model, accounting for 39 percent of the planted area. The model is based on data from 18 orchards.

For more information on the models contact Annette.Carey@maf.govt.nz

Published by:
MAF Policy
Ministry of Agriculture and Forestry
Pastoral House
25 The Terrace
PO Box 2526
Wellington 6140
New Zealand
Tel: 64 4 894 0100
Fax: 64 4 894 0720

Web: www.maf.govt.nz

ISSN 1178-2765 (Online)

© Crown copyright - Ministry of Agriculture and Forestry 2008

The information in this report by the Ministry of Agriculture and Forestry is based on the best information available to the Ministry at the time it was drawn up and all due care was exercised in its preparation. As it is not possible to foresee all uses of this information or to predict all future developments and trends, any subsequent action that relies on the accuracy of the information in this report is the sole commercial decision of the user and is taken at his/her own risk. Accordingly, the Ministry of Agriculture and Forestry disclaims any liability whatsoever for any losses or damages arising out of the use of this information, or in respect of any actions taken.

 

Contact for Enquiries

Manager
Monitoring and Evaluation
MAF Policy
PO Box 2526
Wellington
NEW ZEALAND
Phone: +64 4 894 0623
Fax: +64 4 894 0741
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