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New Zealand transport disruptions threaten horticulture supply chains

Transport infrastructure constraints are affecting the horticulture sector in New Zealand, particularly in export-focused production regions.

A report commissioned by industry groups identifies Bay of Plenty and Hawke's Bay as the main production regions, both dependent on export logistics. Infrastructure disruptions in these areas could affect produce movement and economic returns.

Gisborne and Northland are also key producing regions, with most output transported to other parts of the country or for export. According to HortNZ chief executive Kate Scott, only 18 per cent of produce packed in Gisborne and 4 per cent in Northland is distributed locally, increasing reliance on inter-regional transport.

Scott noted that transport routes in these regions are exposed to disruption. "The most recent example of this was the closure in February, due to slips, of Waiokea Gorge, SH2 between Gisborne and Bay of Plenty, which supports up to US$66.8 million of produce movement out of the Gisborne region. Closures like this have significant impacts on growers."

Fresh produce may pass through multiple stages between production and retail, including packhouses, wholesalers, and distribution centres. Disruptions at any stage can affect product quality and timing.

The report also highlights the role of Auckland as the main domestic distribution hub, with limited alternative routes available during disruptions such as extreme weather events.

Scott said maintaining transport reliability is necessary for supply chain performance. "Safeguarding critical transport routes and reducing the risk of cascading delays are central to protecting shelf life, meeting market requirements, and ensuring the best possible returns for growers and the New Zealand economy."

Source: Rural News

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