HEA - Summerfruit

Contact HEA

HEA Forms & Fees

Media Articles

HEA Frequently Asked Questions

HEA Members Area

6.8      Summerfruit (cherries, apricots, peaches, nectarines, plums)

6.8.1 Industry profile

Summerfruit is the term used in New Zealand to collectively describe cherries, apricots, peaches, nectarines and plums.

Funded by grower levies under the Commodity Levies Act, Summerfruit New Zealand is also the recognised product group for summerfruit under the New Zealand Horticulture Export Authority Act. Summerfruit has been subject to export licensing since November 1987. The industry representative body is Summerfruit New Zealand. Summerfruit New Zealand represents grower interests, managing a research programme, providing strategic direction, growing relationships between growers, marketers, retailers and exporters, and promotional activities.

Summerfruit New Zealand has a strong focus on export, with a market access portfolio overseen by a Summerfruit New Zealand director and implemented by a contracted market access manager. Several official assurance programmes (especially negotiated export programmes or negotiated export protocols) have been developed, and the industry operates one industry management programme and a residue assurance programme to minimise risks of non-compliance in export markets.

The main priorities fall into three categories:

 

 

Focus

Current activity

New markets

Opening up markets that we don’t currently have access to

  • Application for apricots to China
  • Access to Myanmar

Maintaining access to existing markets

Fighting to maintain or regain access to a market where the import or phytosanitary conditions have changed, affecting the ability to export

  • Restoring access for peaches, nectarines and plums to Thailand
  • Managing the transition to Australia's Compliance-Based Intervention Scheme

Improving access to existing markets

Challenging unjustified aspects of importing countries

  • Reduction of the frequency of audits byJapanese inspectors
  • Change the phytosanitary inspectionrequirement bySouthKoreafrom2%tothestandard600 inspections.

 

The industry comprises around 250 growers with a total of 2,350 hectares of orchards. The main growing areas are Central Otago where two-thirds of the planted area is established, and Hawke’s Bay which accounts for most of the remaining one-third. Summerfruit production is expanding, with large plantings of cherries now starting to drive up export volumes, while there are increased plantings of apricots in Central Otago and Hawke’s Bay as new New Zealand-bred varieties are released.

Figures from the last season show that cherries are still by far the most important summerfruit crop by value (Table 6.8.1). Central Otago produces most of the cherries grown in New Zealand, of which the majority is exported. Small volumes of pre-Christmas cherries are exported from Marlborough. Apricot exports are also very important to Central Otago.

Production in Hawke’s Bay focuses on the local market, with very little summerfruit being exported. Traditionally not considered a cherry producing area, Hawke’s Bay has seen a rapid expansion of pre-Christmas cherry production. Cherry varieties grown in Hawke’s Bay are more suited to the warmer climate and fewer winter chill days, and do not attract the premium returns achieved for Central Otago-grown cherries. While this fruit is consumed within New Zealand, there is potential for early season exports to develop. This will provide early access to key Asian markets.

Table 6.8.1: Value of domestic and export summerfruit sales 2021-2022 season

 

Cherries

Apricots

Nectarines

Peaches

Plums

Total

New Zealand market 1

$22,488,497

$7,548,534

$18,876,756

$10,366,379

$8,113,449

$67,393,615

Export

$83,220,482

$1,031,870

$8,089

$248,191

$28,460

$84,537,092

Total value New Zealand market and export 2

$105,708,979

$8,580,404

$18,884,845

$10,614,570

$8,141,909

$151,930,707

% Value NZ market

21%

88%

100%

98%

100%

44%

% Value export

79%

12%

0%

2%

0%

56%

1 Source: Summerfruit New Zealand, 2 Does not include processed summerfruit

 

6.8.2 Exports

Total summerfruit exports are worth $79.3 million in 2022, increasing by 43% compared to 2020. This increase was mainly due to a 52% increase in the value of cherries which are the most valuable summerfruit export, representing 98% of total export value.

 

Cherries. Following steady growth of cherry exports to 2018, export values declined in 2020 due to weather related production issues, but have bounced back with a 52% increase to be worth $77.8 million in 2022. Taiwan remains the largest market for New Zealand cherry exports, taking 47% of the exports by value. Exports to this market have increased by 72% to $37.0 million in 2022.

Exports to other key markets have also experienced growth from 2020 to 2022 including China - up 34% to $15.2 million, and Viet Nam – up 41% to $10.5 million. Exports to the USA and Malaysia also increased, 119% and 134% respectively, while there was a 4% decrease in exports to Thailand.

Collectively the top three markets, Taiwan, China and Viet Nam account for 81% by value of all cherry exports. The average value for cherries in 2022 was $20,805/tonne.

Table 6.8.2: Cherry (0809.29.00.00) export markets 2020-2022 (year ending June, tonnes, $NZ FOB)

Market

2020

2021

2022

Volume

Value

Volume

Value

Volume

Value

Taiwan

965

21,484,994

1,215

25,212,424

1,612

36,963,774

China

514

11,396,049

643

12,834,310

685

15,218,150

Viet Nam

402

7,473,539

505

8,047,939

559

10,528,979

Thailand

219

4,096,713

196

3,313,577

236

3,944,893

United States of America

78

1,078,248

112

1,263,653

174

2,362,626

Malaysia

44

935,426

75

1,350,277

104

2,193,320

Singapore

51

858,365

46

933,867

85

1,462,498

Japan

70

1,061,627

54

801,716

100

1,458,165

Philippines

31

512,468

15

191,509

74

1,374,249

Hong Kong

39

957,806

19

391,742

51

1,180,843

South Korea

51

703,642

51

686,387

28

510,131

Cambodia

12

212,274

18

277,212

16

293,401

Canada

16

174,637

0

0

8

149,522

United Arab Emirates

0

0

0

0

4

97,306

New Caledonia

5

87,366

4

81,189

2

46,323

Indonesia

2

40,958

2

38,631

1

26,665

Pacific Islands

1

11,764

1

17,789

1

16,344

India

6

118,214

0

0

1

14,282

French Polynesia

0

8,188

1

23,482

1

11,598

Fiji

0

3,969

0

0

0

1,165

Myanmar

3

48,023

0

0

0

0

Australia

4

34,330

0

0

0

0

European Union

1

22,370

0

0

0

0

Kuwait

1

12,532

0

0

0

0

Total

2,515

$51,333,502

2,956

$55,465,704

3,742

$77,854,234

% change (yr/yr)

-24%

-26%

18%

8%

27%

40%

 

Apricots. Apricot exports decreased by 70% to $1.1 million in 2022. Much of this decline is a result of an 81% decrease in exports to Australia, the primary market for New Zealand grown apricots. The value of apricots exported to other markets has also declined over this reporting period. The average value for apricots in 2022 was $5,179/tonne, a 5% decrease from $5,459/tonne in 2020.

Table 6.8.3: Apricot (0809.10.00.00) export markets 2020-2022 (year ending June, tonnes, $NZ FOB)

Market

2020

2021

2022

Volume

Value

Volume

Value

Volume

Value

Australia

539

2,794,452

115

626,777

179

896,022

United Arab Emirates

31

173,833

5

27,605

12

111,415

United States of America

62

331,929

24

117,188

19

64,605

Viet Nam

3

60,171

11

137,854

2

13,867

Kuwait

4

37,270

0

0

1

12,057

French Polynesia

0

0

1

9,670

1

7,800

Pacific Islands

0

874

0

134

0

1,475

New Caledonia

0

2,076

0

0

0

866

Fiji

0

1,612

0

0

0

295

Hong Kong

0

0

1

2,330

0

0

European Union

17

124,388

0

0

0

0

Saudi Arabia

14

98,883

0

0

0

0

Taiwan

3

44,588

0

0

0

0

Qatar

3

20,388

0

0

0

0

India

1

4,996

0

0

0

0

Total

677

$3,695,460

157

$921,558

214

$1,108,402

% change (yr/yr)

97%

80%

-77%

-75%

36%

20%

 

Peaches, nectarines, and plums. In comparison to cherries and to a lesser extent apricots; peaches, nectarines and plums are minor export crops with the domestic market representing over 90% of fruit sales. From 2016 to 2018 peach exports were stable at around $600,000, dropping to $325,617 from 2018 to 2020 and there has been a further decline of 14% to $279,624 in 2022. The value of exports of nectarines and plums has also declined over this period, by 71% and 65% respectively. Peaches, nectarines and plums each have one or two major markets: Singapore for peaches, New Caledonia and Pacific Island countries for nectarines; and the USA for plums.

Table 6.8.4: Peach (0809.30.00.09) export markets 2020-2022 (year ending June, tonnes, $NZ FOB)

Market

2020

2021

2022

Volume

Value

Volume

Value

Volume

Value

Singapore

24

150,457

22

163,753

25

188,918

Kuwait

0

0

0

0

9

65,564

Pacific Islands

2

13,018

2

11,468

2

7,971

United States of America

3

11,812

6

13,188

2

6,545

Australia

11

42,245

10

51,146

2

4,292

New Caledonia

4

19,411

2

8,917

1

3,115

French Polynesia

2

9,450

1

2,739

0

1,632

Fiji

2

8,786

0

507

0

1,587

Taiwan

14

64,257

31

189,641

0

0

Hong Kong

1

6,181

8

49,951

0

0

Papua New Guinea

0

0

0

625

0

0

Total

62

$325,617

82

$491,935

40

$279,624

% change (yr/yr)

-12%

-23%

32%

51%

-51%

-43%

 

Table 6.8.5: Nectarine (0809.30.00.01) export markets 2020-2022 (year ending June, tonnes, $NZ FOB)

Market

2020

2021

2022

Volume

Value

Volume

Value

Volume

Value

Pacific Islands

3

13,222

2

9,331

1

8,112

New Caledonia

4

18,413

2

10,302

1

5,835

Fiji

1

6,604

1

1,994

0

373

French Polynesia

2

9,519

0

1,686

0

325

Hong Kong

0

0

0

115

0

69

United States of America

0

0

1

1,784

0

0

Papua New Guinea

0

183

0

819

0

0

Taiwan

0

2,162

0

0

0

0

Australia

0

1,187

0

0

0

0

Total

10

$51,290

6

$26,031

3

$14,714

% change (yr/yr)

-19%

-18%

-46%

-49%

-55%

-43%

 

Table 6.8.6: Plum (0809.40.00.01) export markets 2020-2022 (year ending June, tonnes, $NZ FOB)

Market

2020

2021

2022

Volume

Value

Volume

Value

Volume

Value

United States of America

29

81,826

7

18,840

10

26,016

Fiji

3

13,352

0

234

2

9,435

Pacific Islands

1

6,463

0

3,029

3

4,534

Singapore

0

0

3

15,073

0

0

New Caledonia

2

10,509

1

5,925

0

0

Hong Kong

0

0

2

3,950

0

0

French Polynesia

0

432

1

3,172

0

0

Papua New Guinea

0

306

0

242

0

0

Australia

0

42

0

0

0

0

Total

35

$112,930

14

$50,465

13

$39,985

% change (yr/yr)

-26%

-46%

-60%

-55%

-6%

-21%

 

6.8.3 Barriers to export

Cost of Tariffs

Cherry exports represent 71% of tariffs on summerfruit, largely due to a 0.8% tariff into Japan which will phase down to zero in 2023 under CPTPP, and a 30% tariff into India. Exports into India represent only 0.02% of FOB value but contributes 25% of the tariff costs for cherries. There are no tariffs on cherries into the major markets of Taiwan and China.

EU tariffs on New Zealand summerfruit are high compared to those imposed on other Southern Hemisphere exporting countries. For example, New Zealand apricots are subject to a 20% tariff while apricots from Chile and South Africa are not subject to any tariff. Tariffs on exports to the EU will be eliminated when the New Zealand-EU FTA enters into force, which is expected in 2024. The cost of tariffs across all crops equates to an average of $95 for each of the 250 growers.

Table 6.8.7: Cost of summerfruit tariffs (based on 2022 FOB value)

Tariff item

Country

Tariff rate

Value

Estimated cost of tariff ($)

Cherries

Taiwan

0%

36,963,774

0

China

0%

15,218,150

0

Viet Nam

0%

10,528,979

0

Thailand

0%

3,944,893

0

United States of America

0%

2,362,626

0

Malaysia

0%

2,193,320

0

Singapore

0%

1,462,498

0

Japan

0.8%

1,458,165

11,665

Philippines

0%

1,374,249

0

Hong Kong

0%

1,180,843

0

South Korea

0%

510,131

0

Canada

0%

149,522

0

United Arab Emirates

0%

97,306

0

New Caledonia

0%

46,323

0

Indonesia

0%

26,665

0

India

30%

14,282

4,285

French Polynesia

8%

11,598

928

Fiji

5%

1,165

58

Total Cherries

0.02%

$77,544,489

$16,936

Apricots

Australia

0%

896,022

0

United Arab Emirates

0%

111,415

0

United States of America

0.2c/kg

64,605

5,580

Viet Nam

0%

13,867

0

French Polynesia

8%

7,800

624

New Caledonia

5%

866

43

Fiji

0%

295

0

Total Apricots

1%

$1,094,870

$6,247

Peaches

Singapore

0%

188,918

0

United States of America

0%

6,545

0

Australia

0%

4,292

0

New Caledonia

5%

3,115

156

French Polynesia

8%

1,632

131

Fiji

0%

1,587

0

Total Peaches

0.14%

$206,089

$286

Nectarines

New Caledonia

5%

5,835

292

Fiji

0%

373

0

French Polynesia

8%

325

26

Hong Kong

0%

69

0

Total Nectarines

5%

$6,602

$318

Plums

United States of America

0%

26,016

0

 

Fiji

0%

9,435

0

Total Plums

0.5%

$35,451

$0

 

Total Summerfruit

0.03%

$78,887,501

$23,787

 

SPS market access barriers

The industry has an active market access programme, gaining new or improved access to Japan, South Korea and Western Australia in earlier years, but there has been little progress in recent times.

Australia. Apricots are the main summerfruit export to Australia, and Australia is also the most important export market for New Zealand apricots. The removal of OPI was considered a trade risk for apricot exports, and the decline in exports since the removal of OPI bears this out. Apricots have a relatively short shelf life so any delays at the border can significantly impact fruit quality. In addition, if pests are detected on arrival in Australia the only options are fumigation, reshipment or destruction. Methyl bromide fumigation severely damages fruit quality and further reduces shelf life.

As with many other sectors, the key issues with Australian border clearance is unidentifiable organisms being detected on apricots on arrival in Australia and treated as quarantine pests by default. Discussions are continuing between industry, MPI, and Australian officials about improving pest identification at the border.

China. Summerfruit NZ has been seeking access for apricots, peaches and nectarines into China since 2016, and the access request has been prioritised by MPI. As yet, however, the request for apricots has not been submitted to China and is in a queue awaiting completion of other import risk assessments by China.

Indonesia. Indonesia’s Country Recognition Agreement (CRA) allows listed fresh food of plant origin to be exported to Indonesia with reduced testing/inspection, and preferential port access. Cherries and peaches are included in Indonesia’s list, but Summerfruit NZ is now seeking to add apricots, nectarines and plums to the CRA list as part of the process for the next CRA revision in 2024.

Japan. Summerfruit NZ gained cherry access to Japan in 2005, but Japan still requires that an inspector visits New Zealand annually to review the programme at the cost of the New Zealand industry. In 2020-21 and 2021-22, due to Covid-19 travel restrictions, Japan suspended the inspection visit in lieu of an enhanced inspection of fruit on arrival in Japan. The alternative checks worked well. However, Japan intends to reinstate the annual inspection visits.

The official assurance programme has been very successful, and Summerfruit NZ would like to see an end to the annual inspection visits, as after 15 years of inspection visits procedures in the exporting country have been validated (ISPM No. 20 (5.1.5.2) - “These types of audit procedure should not be applied as a permanent measure and should be considered satisfied as soon as the procedures in the exporting country have been validated.”).

South Korea. South Korea also requires inspection visits to verify the cherry export programme but, soon after implementation, reduced the frequency to once every three years. In 2019/20, South Korea recommended the removal of the ongoing visits. Summerfruit NZ is seeking confirmation from MPI that this policy has been implemented.

Taiwan. Taiwan is the biggest export market for New Zealand cherries, and also imports other summerfruit from time to time. In the 2021-22 season exporters were unable to send apricots to Taiwan, as importers were advised that New Zealand apricots are not on the list of permitted imports. The industry believed that all summerfruit could be exported to Taiwan, and the MPI ICPR also stated that apricots were permitted. An access request will be required to reinstate apricot access to Taiwan.

Thailand. Cherries and apricots are exported to Thailand. Summerfruit NZ is seeking to add peaches, plums and nectarines to the range of crops that may enter Thailand. A pest list and technical information package was provided in 2017. Thailand has asked New Zealand to prioritise one of these crops, as a pest risk analysis will only be carried out for one summerfruit type at a time. Thailand has now begun work on the peach PRA, following confirmation this is New Zealand’s priority.