NZ apple and pear revenue hits $2 billion

NZ Apples and Pears Inc says the sector made a $2 billion revenue impact on the local economy over the last 12 months.

Productivity gains and an increase in high-value varieties saw New Zealand’s apple and pear industry contribute almost $2 billion to the national economy in 2023, according to new research from consultants MartinJenkins.

The report, compiled for industry body NZ Apple and Pears Inc (NZAPI), said the sector employed more than 12,000 permanent and seasonal workers.

The industry increased its export value – largely due to productivity increases and value gains – from $347 million in 2012 to more than $892m in 2023.

The report found the industry contributes $918m to New Zealand’s gross domestic product (GDP), comprising $348m in direct sector contribution and $570m in industry linkages and spending.

Regionally, the industry is more significant again, particularly in Nelson Tasman and Hawke’s Bay, where it is the second and third-largest contributor to regional GDP respectively, it said.

In Hawke’s Bay, home to 65% of apple and pear plantings, the industry contributes $424m to the region’s GDP.

In Tasman, where 23% of pipfruit plantings can be found, the industry contributes $166m to the local GDP.

In Tairāwhiti, the third-largest region by apple and pear-planted area, the industry injected $25.5m into the local GDP figures – a figure expected to grow even further, with plenty of new apple varieties in the ground.

Apples and pears contributed $28m to Central Otago’s regional GDP.

The study also said recent industry investments in research and development had resulted in innovation in growing systems and post-harvest processes.

New Zealand Apples and Pears Inc chief executive Karen Morrish. Photo / Supplied

NZAPI chief executive Karen Morrish said the report provided a valuable snapshot.

She said since 2020, conditions have not been ideal, with growers struggling to access labour due to Covid border closures, and then Cyclone Gabrielle.

“There is positivity at the moment in those cyclone-hit regions with a quality spring and bud burst, however recovery is not complete and many in the Hawke’s Bay and Tairawhiti regions are still trying to get back on their feet,” Morrish said.

“As an industry, apples and pears have the potential to record considerable growth and vastly contribute to New Zealand’s economic prosperity,” she said.

“The growth in our export value has come from increased productivity, investment in high-value varieties, as well as the diversification of international markets, which means our sector is well-placed to further align with the Government’s desire to double export value in 10 years,” she said.

She said future growth was dependent on supportive economic and regulatory conditions.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.