JP Exports supplies a wide range of fresh produce with avocados and cherries its main commodities, and says there is a growing interest across the country from new growers coming on board. But its General Manager believes that as a result of the anticipated forecast growth in the global consumption of avocados the export demand will still remain strong, despite the increased competition from other countries like South Africa and the South America nations who are also increasing their avocado production.
"We are finding that there are a lot of new growers entering the industry " General Manager Lesley Shield said. "Some have no experience, however, they see the purchase of avocado orchards as a sound investment. In addition there has been some substantial investments in the industry coming from large overseas and local companies and investors. So there is such a buzz about avocados. Even when these big orchards come on line the demand will remain strong due to global consumption. As with all horticultural products, the weather plays a large role in the annual production and this will also be a factor on world production and demand.
Lesley Shield and Darren Hughes
At the moment, though, the fruit is in short supply, with New Zealand volumes down significantly this year. But the company's Exports Trader, Darren Hughes, says it needs to keep building its partnerships, especially in its fastest growing Asian markets - Thailand, Malaysia and Korea.
"The Australian market will probably be very very strong later on, after the Australian season has finished," he said, "but we cannot afford to cut Asia out because Australia might be giving better prices this year, otherwise someone will fill our place. Asia, year on year, gives our growers a good steady return."
Lesley adds that if, in the short term, the low volumes continue, there may have to be a consolidation of supply. "If we are down 50 per cent next season, then we may have to alter our supply strategy by reducing the early volumes for Australia in order to service the requirement of our Asian markets. This should enable us to manage the demand versus the supply process especially in early markets such as Australia and additionally we will be in a position to maintain a more consistent level of price management which should result in stronger return to the growers."
She admits they are often restricted by trade and phytosanitary regulations, and are currently unable to access the Chinese market however the General Manager warns it may not be as lucrative as many people think, due to the competition and cost surrounding logistics.
"We are not legally allowed into China at the moment, when other major high production, low cost countries such as Chile and Peru have access” she said. "I think many of the growers here are pinning their hopes on China, however the New Zealand industry will have to work hard as a collective unit to penetrate the market.
JP Exports is a key exporter of NZ cherries which it markets across a number of Asian markets.
"Last year our New Zealand cherries were in good demand because Tasmania did not have a lot," Lesley said. "Cherries are being sold more and more, and we are more involved. We have our own packing shed, so we are from go to woe with the growers, packing and selling. That will grow even more next year."
Strawberries and Blueberries are other products JP Exports exports. Blueberries are facing rapid growth with new varieties of blueberries being worked on to help capitalise on international seasonal demand. Lesley says retail prices are coming down to levels that consumers can afford, which is helping drive demand.
On strawberries, Mr Hughes says the company's biggest challenge in the near future is maintaining supply.
"Without supply, you don’t have a business," he said. "If you look at the amount of strawberry growers there used to be, half of them have gone now because their land has become so valuable, and they have sold to developers for housing. So the rural and semi-rural land is disappearing. It's becoming an issue, and there's an (industry-wide) cost to that."
For more information:
Leslie Sheild
JP Exports Ltd
Tel: +61 7 3279 6265
lshield@jpexports.co.nz
www.jpexports.co.nz