New Zealand is grappling with economic challenges, notably a persistent current account deficit exacerbated by the imbalance between imports and exports. Primary industries, particularly food and fibre, constitute 80% of the nation's exports. However, this has not sufficed to offset the deficits incurred from international services and goods. The country's reliance on foreign capital to balance these deficits raises concerns about future ownership of productive capacities. The situation is further complicated by the post-Covid increase in current account deficits relative to GDP, positioning New Zealand unfavorably within the OECD.
The kiwifruit sector might emerge as a potential mitigator of these economic woes, given its capacity for scale-up. Zespri, holding a global monopoly for exporting New Zealand kiwifruit (excluding Australia), forecasts a 50% production increase by 2028. China and Japan are key markets, with SunGold variety driving growth. However, challenges persist, including managing SunGold licenses internationally to ensure year-round supply and navigating legal complexities with unlicensed SunGold cultivation in China. Despite these efforts, kiwifruit's contribution alone is insufficient to resolve New Zealand's broader economic challenges, necessitating a broader focus on enhancing export sectors.
Source: farmersweekly.co.nz