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New Zealand study highlights transport risks for produce supply chains

A study commissioned for the Aotearoa Horticulture Action Plan (AHAP) has examined the role of transport infrastructure in moving fresh produce across New Zealand.

The research indicates that many horticultural regions depend on key transport routes or packaging hubs, creating exposure for perishable crops that must reach domestic and export markets quickly.

Kate Scott, chief executive of Horticulture New Zealand (HortNZ), said reliable and resilient transport links are necessary for the sector's target of doubling the farmgate value of horticultural production by 2035.

"This study provides an important body of evidence about regional supply chain infrastructure and the value of horticulture that infrastructure supports.

© Horticulture New Zealand

"It also highlights supply chain vulnerabilities. For instance, the largest regions for horticultural production are the Bay of Plenty and Hawke's Bay, where the produce generated in each region exceeds US$3.13 billion in value. Both are heavily export-focused, and infrastructure disruption in either would put export earnings for New Zealand in jeopardy."

Scott said fresh produce can move four or more times between paddock and consumer through packhouses, wholesalers, distribution centres, and retailers. Disruption at any stage can affect product quality.

"Horticulture production, packing, and distribution are concentrated in the 'golden triangle' of Auckland, Waikato, and the Bay of Plenty. About 50 per cent of New Zealand's inter-regional horticulture produce movements transit over Waikato region roads.

"In Gisborne, only eighteen per cent, and in Northland, four per cent of produce packed in the regions is also distributed in the regions. That means inter-regional transport links are particularly critical, but both have primary transport routes that are vulnerable to disruption."

Scott referred to the February closure of Waiokea Gorge on State Highway 2 between Gisborne and the Bay of Plenty following slips. The route supports produce movements from the Gisborne region valued at up to US$70.1 million.

"Closures like this have significant impacts on growers.

"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."

The study also found that Auckland functions as the main distribution point for fruit and vegetables in the domestic market, while alternative transport routes through the city are limited during disruptions such as extreme weather.

Domestic-bound produce also passes through chilled distribution centres in Auckland, Palmerston North, Wellington, and Christchurch, concentrating supply flows in a limited number of locations.

The report will be used as an evidence base in discussions on infrastructure investment. The research was conducted by Infometrics and EC Consult using data from the Statistics New Zealand Agricultural Production Census and a survey covering 14 horticultural product groups. Funding support was provided by the New Zealand Fruitgrowers Charitable Trust and Horticulture New Zealand.

© Horticulture New ZealandFor more information:
Horticulture New Zealand
Tel: +64 4 472 3795
Email: [email protected]
www.hortnz.co.nz

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