The Government has announced a $50 million plan to fight the kiwifruit vine bacteria PSA and expects total losses from infection of $75 million over the next two years.

Bill English says the long term outlook for the NZ economy is good, but the recovery will be flatter in the short term.

The PSA disease has spread to kiwifruit orchards in the South Island and eradication is looking unlikely, Biosecurity Minister David Carter says.

Biosecurity Minister David Carter says hopes of eradicating the Psa disease are fading, with the number of infected orchards climbing.

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The kiwifruit crisis in the Bay of Plenty is reaching new heights, with the number of stricken Te Puke orchards today doubling to eight. Another 82 are under investigation.

New Zealand has scored a major trade coup in talks with Russia.

It was just another day at Zespri, until the phone rang and the jaw-dropping news came through.

As suspicions grow that Psa has spread to kiwfruit orchards outside the BOP, MAF says it's unlikely it will be able to eradicate the disease.

The Govt could learn today whether diseased kiwifruit vines will need to be destroyed, as leaves begin to wilt on the first properties reported.

The Ministry of Agriculture and Forestry is preparing to copper-spray kiwifruit orchards affected by the vine-killing Psa bacteria, despite reservations it could do more harm than good.