Record sprouts for horticulture

Record horticultural export sales are more evidence that land-based industries are not on the wane, HortResearch says.

The Crown research institute said yesterday that exports jumped about 4.5 per cent or $100 million in the year to June 2005, despite a stronger kiwi dollar and high freight costs.

The rise meant New Zealand recorded sales of $2.3 billion from fruit, vegetables, flowers, wine and related exports. That was the best figure ever and up from $2.2 billion the previous year.

Horticulture's share of total merchandise exports remained about the same.

HortResearch chief executive Paul McGilvary said the figures were more evidence horticulture should not be written off as a "sunset industry".

"We continue to add value to these things ... and really these are the biological industries of the future."

HortResearch said innovations in products and marketing, as well as efforts to open new markets, were behind much of the growth.

McGilvary noted the higher returns being achieved with new products, such as the HortResearch-developed gold kiwifruit and jazz apples.

In the five years to 2005, kiwifruit lifted exports from $460 million to $720 million, with gold kiwifruit estimated to comprise 24 per cent of those sales.

"New Zealand can make a first world living off these sorts of technologically advanced products in these kinds of sectors."

McGilvary said clever marketing campaigns, such as those linking kiwifruit and good health, played a significant part in the export success.

"Our marketing generally in the products now is much more sophisticated than it was before."

The falling currency meant the prospect of strong growth in the New Zealand dollar value of sales this year, depending on international prices. HortResearch said total investment in horticulture now exceeded $24 billion.

On-farm investment in farms, orchards and greenhouses totalled more than $10 billion, while off-farm capital investment exceeded $14 billion.