Kiwi apple growers have maintained their profitable north European markets by greatly reducing fruit spray residues.
An Apple Futures growing programme which linked scientists and growers figuring out how to reduce sprays and residues while maintaining fruit quality has been an outstanding success, says a study by New Zealand Institute of Economic Research principal economist Bill Kaye-Blake.
Even under the most relaxed of economic assumptions, the benefit-cost ratio (BCR) was 4.68, or a total $15 million benefit to the industry. The highest BCR was 35.39, based on still being able to supply apples to northern Europe instead of being totally excluded from the market.
Totalled over four years from 2008 to 2011, the economic benefit of Apple Futures has been calculated at $113 million, the NZIER study says.
Britain and Germany in particular have been demanding reduced chemical use on fruit, with individual supermarket chains being even stricter than the maximums set by the European Union. Some supermarkets require residues to be less than 10 per cent of that allowed by the EU.