Apple-growers promised $200,000 for sector strategy

The Government has promised $200,000 to pipfruit growers to help them develop a new industry strategy.

Economic Development Minister Trevor Mallard and Agriculture Minister Jim Anderton said the money would be given to Pipfruit New Zealand.

It is to be used to on a project to examine the long-term future of the industry. The project will be partially funded by a $25,000 direct contribution from growers.

"The New Zealand pipfruit industry is an important part of our food and beverage sector, accounting for 25 per cent of the horticulture industry," Mr Mallard said.

"However it is currently facing significant challenges that need to be addressed."

Pipfruit NZ welcomed the Government funding for the project, expected to be completed before the end of 2006.

"Government officials have been working with Pipfruit NZ on a project looking at how to establish long-term sustainable profitability," said Pipfruit NZ chairman, Ian Palmer.

The strategy project will analyse international markets, investigate the ability of the local industry to compete under current cost structures and assess the changes necessary to secure the long-term future of the industry.

"The key part is an industry agreed implementation plan," Mr Palmer said.

"If we have this, we have a green light for the future."

- NZPA