Andrew Fenton: Sow seeds now for horticulture success

Andrew Fenton. Photo / Alan Gibson

Opinion

In the face of an increasing and fiercely competitive global market, New Zealand's horticulture industry faces a major dilemma - continue as is and rapidly lose market share or make changes that will achieve an industry value of $10 billion by 2020.

This is the growth target set by Horticulture New Zealand in our Growing a New Future strategy. It takes us from where we are right now, with an industry valued at just over $5 billion, to a 10/2020 position - effectively doubling the current size of the industry over a decade.

Are we dreaming? Absolutely not. Our commercial fruit and vegetable industry has all it needs to make it happen by working smarter and collaborating to gain scale on the world stage.

Based on industry consultation and research, we are very confident this target cannot only be met, but establish New Zealand's reputation as a leader in sophisticated and sustainably grown produce.

We've set ourselves this goal based on how we have performed in the past, and where we estimate we need to be, for two reasons. Firstly, we need to survive in an ever increasingly aggressive competitive global market. Secondly, we can't just survive; we have to make sure this industry continues to support our families, our businesses, our staff, our communities and our country.

The world horticulture market has grown an average of 9 per cent a year for the past 15 years. By comparison, New Zealand's total horticulture industry has grown five fold in less than 25 years. That's from less than $1 billion in value in 1985 to more than $5 billion last year. But is this sustainable? Why can't we keep doing what we are doing?

Quite simply, our competitors are getting stronger, especially in developing countries in Africa, South America and Asia. Competition is fierce and if we continue the way we are, the New Zealand industry will reduce in size and face rapid deterioration of its international market share.

This is the challenge addressed in Growing a New Future. The plan of action has been developed in conjunction with New Zealand Trade & Enterprise and consultancy group Deloitte.

Growing a New Future challenges us to build on our strengths, to toughen our attitude and focus in the size of the prize - $10 billion. To get results, we have to change the way we work.

The most successful horticulture businesses in this country are the ones that bring growers together, with collaborative sharing of either knowledge, costs, marketing and research, or all four.

Kiwi growers like to do their own thing, be their own bosses and run their business as they want. The prospect of sharing ideas, resources and in particular sharing our markets, may not appeal to all.

But, this strategy tells us, quite clearly and without apology, that we will get nowhere if we don't get scale. It's not just about getting bigger. It is about creating the ability to invest in research, capturing intellectual property, market development and branding. Find a model for growing together that suits you, suits your product, suits your business and your sector - and make it work.

All growers are called on to set high sustainability standards - because that is what the consumer wants. We can do this, as well as, if not better, than any other nation of growers in the world. Our standard must be universal and beyond reproach. If we continue to raise the bar, then we must own the perception that we ARE the standard.

This is a strategy that tells us some things we already know, some things we don't ... and most of all it challenges us to think harder, work smarter and do better for ourselves, our industry and our country.

The main thrust of this strategy is overwhelmingly positive. It reminds me why I encourage young New Zealanders to make horticulture their career choice.

* Andrew Fenton is president of Horticulture New Zealand and a kiwifruit and avocado grower from Te Puke.