Briefing from New Zealand Kiwifruit Growers

Transcription

1 Briefing from New Zealand Kiwifruit Growers Report of the Primary Production Committee Contents Recommendation 2 Introduction 2 Economic value of kiwifruit 2 Biosecurity 2 Kiwifruit Industry Strategy Project 3 Employment opportunities for New Zealanders 3 Conclusion 4 Appendix 5

2 Briefing from New Zealand Kiwifruit Growers Recommendation The Primary Production Committee recommends that the House take note of its report. Introduction On 30 April 2015, the Primary Production Committee received a briefing from New Zealand Kiwifruit Growers Incorporated (NZKGI). NZKGI was established in 1993 as part of the kiwifruit industry s restructuring. NZKGI represents New Zealand s 2,536 kiwifruit growers, providing a collective voice in industry and government decision making. NZKGI s representative body is its grower forum, which is currently made up of 25 regional and district representatives and 12 industry group representatives. Economic value of kiwifruit The kiwifruit industry makes up around 0.2 percent of total world food production. We heard that free trade agreements were very important to the kiwifruit industry, and that the Korean Free Trade Agreement alone is worth over $3million annually. We asked whether value-added product such as kiwifruit-infused vodka was something the industry was considering. We heard that NZKGI had established a department to investigate this prospect, but it was disbanded once the department found that fresh-fruit product attract the highest returns. Biosecurity We heard that NZKGI s main priority was biosecurity. In 2009 the Ministry for Primary Industries established Government Industry Agreements, creating a partnership between industry and government to manage biosecurity readiness and response in New Zealand. Under these agreements, industries identify their greatest biosecurity risks, and jointly invest with government to better manage those risks. In May 2014 the kiwifruit industry became the first primary industry to sign the Government Industry Agreement Deed. The deed was signed for the industry by Kiwifruit Vine Health Incorporated. Kiwifruit Vine Health s aim is to minimise the impact of Pseudomonas syringae pv. actinidiae (Psa) on the industry, as well as to monitor other potential biosecurity threats on behalf of the industry. The kiwifruit industry is also monitoring the Queensland fruit fly, which poses a significant biosecurity risk for the industry. The industry contributed staff to the recent fruit fly response in Auckland. 2

3 Psa BRIEFING FROM NEW ZEALAND KIWIFRUIT GROWERS Psa is a bacterial disease that infects kiwifruit vines and can result in leaf spotting, tissue wilting and, in extreme cases, vine death. Psa has no effect on humans and animals, or any plants other than the kiwifruit vine; it is thought to be spread by wind, rain, footwear, vehicles, and orchard tools. Psa was first found in New Zealand in late It is still unknown how the Psa bacteria arrived in New Zealand. During the height of the Psa disease outbreak in New Zealand, there were a number of people in the industry who experienced depression and mental health issues. We heard that as a result of the presence of the Psa bacteria, annual growing costs have increased 10 percent per annum. NZKGI put structures in place to support growers, and we were pleased to hear that there were no reported suicides attributed to the hardships resulting from Psa. We are impressed with the success of the new golden variety kiwifruit, which we heard is less susceptible to Psa and about 30 percent more productive than standard green kiwifruit. We were also pleased to hear that orchard prices are steadily increasing, with orchard value going from the bare land price in 2011, to greater than pre-psa values today. Kiwifruit Industry Strategy Project We heard about NZKGI s Kiwifruit Industry Strategy Project. This looked at gaining grower affirmation for the current structure of the industry, and preparing the industry for the next 10 to 15 years. During the sector s recovery from Psa, NZKGI observed that the industry was going through a growth phase, and concluded that pre-psa industry structures were not sufficient going forward. In early 2015, 65 percent of kiwifruit growers took part in the Kiwifruit Industry Strategy referendum. The referendum sought to gage support for a number of new initiatives for the industry. The strategy sought to gain grower ownership and control where it is not currently present. One proposition made by the referendum was for grower ownership and control of Zespri, which 92 percent of growers voted to support. Zespri is the world s largest marketer of kiwifruit, with kiwifruit growers owning shares in the company. We heard that kiwifruit growers can only sell their shares to other growers, and that grower shareholding size was not linked to the amount of kiwifruit grown. Employment opportunities for New Zealanders As the kiwifruit industry grows, the demand for skilled labour has increased at all levels. We were pleased to hear that the majority of the industry labour force is made up of New Zealanders. We heard that NZKGI is working with the Ministry of Social Development (MSD) to attract unemployed persons to work in the industry. We heard the Recognised Seasonal Employees (RSE) scheme was set up by Immigration NZ, now part of the Ministry of Business, Innovation and Employment, to employ workers from the Pacific Islands, and unemployed persons referred by local iwi and MSD, to work in orchards during the harvesting season. Recognised seasonal employees make up 15 to 20 percent of the seasonal workforce in the Bay of Plenty. We asked whether MSD 3

4 or the employers were responsible for the housing of recognised seasonal employees, as some of us were concerned about the state of some of the housing used for these workers throughout the horticulture industry. We heard that under the RSE scheme, there were regular inspections of the accommodation provided for employees. We heard that since October 2014, in the kiwifruit industry, 70 New Zealanders have been employed permanently through MSD and 45 employed under the RSE scheme. However, we were concerned to hear that despite the RSE scheme and efforts with MSD and local iwi, labour shortages will start affecting the industry from NZKGI estimates that there is a need for 2,000 more permanent and 4,000 more seasonal workers. We asked what the target numbers were for employees provided through MSD. We heard that although there are no official numbers, the industry is on to the sixth intake with MSD, with each intake taking in 20 to 30 employees. The industry hopes to continue regular intakes of this nature. We asked what role polytechnics played in attracting qualified employees to the industry. We heard that when the industry was damaged by Psa, the number of students in applicable courses dropped significantly, with some polytechnics considering stopping kiwifruit-related courses all together. We were pleased to hear that current student numbers had risen significantly, with up to a 100 percent increase in some courses. Conclusion We commend the efforts of NZKGI for their work with MSD and getting unemployed New Zealanders into jobs. We acknowledge that there are concerns in the industry regarding biosecurity, and are pleased that NZKGI is being proactive when it comes to biosecurity risks. We will take a continued interest in the kiwifruit industry, and hope to see the number of employees, that are required by the industry for growth, increasing in the near future. 4

5 Appendix Committee procedure The committee met between 2 April and 23 July 2015 to consider this briefing. Committee members Ian McKelvie (Chairperson) Todd Barclay Hon Chester Borrows Steffan Browning Barbara Kuriger Hon Damien O Connor Richard Prosser Stuart Smith Meka Whaitiri 5