6.8 Buttercup squash
6.8.1 Industry profile
Buttercup squash is one of New Zealand's major fresh vegetable export crops. In New Zealand, the main growing areas for buttercup squash are Gisborne and Hawke's Bay.
In the 2023/24 season there were 18 growers, who produced a total of 62,368 tonnes on a planted area of 4,000 hectares. Six packhouses and nine exporters are also involved in the buttercup squash industry. Production was impacted by difficult climatic conditions during the planting season, and the remnants of Cyclone Gabrielle’s effects in 2023. Again, exporters faced major difficulties with unstable shipping schedules.
Buttercup squash is a prescribed product under the New Zealand Horticulture Export Authority. The New Zealand Buttercup Squash Council (NZBSC) represents the interests of buttercup squash growers, packhouses, and exporters. The NZBSC facilitates industry programmes to maximise value for stakeholders and has a role to identify and work with business partners and importers to develop exports. NZBSC identifies and seeks to build long-term relationships with in-market organisations that have a focus on the consumer, product quality and service and a desire to expand the New Zealand buttercup squash component of their business.
To achieve its goals the NZBSC implements four main programmes in quality management, research and development, market development initiatives, and industry development, coordination, and communication.
The NZBSC is a product group affiliated to Horticulture New Zealand and operates from an office in Gisborne.
6.8.2 Exports
Total buttercup squash exports have remained stable during this period, increasing by 4% to $55.1 million in 2024. Japan remains the most valuable market for buttercup squash representing 68% by value, with exports increasing 14% to $37.2 million in 2024. South Korea is the second largest market representing 30%, experiencing a 51% increase to $16.8 million. Japan and South Korea account for 98% of export value and 99% volume. Exports to China have continued to decline to be worth $0.9 million in 2024, with no exports in 2023. The average value for buttercup squash across all markets increased 10% from $755/tonne in 2022 to $832/tonne in 2024.
New Zealand grown buttercup squash has several competitors, with Mexico, New Caledonia, Tonga, the USA, and Australia all exporting to Japan at various times during the New Zealand export window from late December to May. Mexico is the most significant competitor in the Japanese market. The New Zealand industry is currently exploring market development opportunities to broaden its options. While squash is exported to a number of other markets, these are relatively minor in terms of value and volume and tend to fluctuate year on year. In 2022, buttercup squash was sent to 11 different markets, and in 2024, product was exported to seven markets.
Table 6.9.1: Buttercup squash (0709.93.00.10) export markets 2022-2024 (year ending June, tonnes, $NZ FOB)
|
Market |
2022 |
2023 |
2024 |
|||
|
Volume |
Value |
Volume |
Value |
Volume |
Value |
|
|
Japan |
48,340 |
34,552,565 |
22,894 |
25,733,027 |
42,273 |
37,216,140 |
|
South Korea |
19,468 |
15,931,181 |
12,575 |
16,611,182 |
23,179 |
16,803,466 |
|
China |
1,887 |
2,022,052 |
0 |
0 |
643 |
890,800 |
|
Hong Kong |
130 |
143,638 |
0 |
0 |
104 |
123,327 |
|
Malaysia |
54 |
60,976 |
0 |
0 |
54 |
61,568 |
|
Fiji |
3 |
15,031 |
4 |
22,504 |
2 |
10,120 |
|
Pacific Islands |
0 |
495 |
0 |
138 |
0 |
1,517 |
|
New Caledonia |
0 |
284 |
0.13 |
451 |
0 |
0 |
|
European Union |
104 |
116,086 |
0 |
0 |
0 |
0 |
|
Taiwan |
52 |
50,695 |
0 |
0 |
0 |
0 |
|
Russia |
26 |
25,102 |
0 |
0 |
0 |
0 |
|
Total |
70,065 |
$52,918,105 |
35,473 |
$42,367,302 |
66,255 |
$55,106,938 |
|
% change (yr/yr) |
-34% |
-26% |
-49% |
-20% |
87% |
30% |
6.8.3 Barriers to export
Cost of tariffs
Tariffs on buttercup squash cost the industry $3,238 on $55.1 million in 2024, down from $22,193 in 2022. The tariff into South Korea during the months of December to May has reduced to zero under the New Zealand-Korea FTA, while any product supplied outside this seasonal window incurs a 27% tariff. The CPTPP entering into force has removed the tariff into Japan and has neutralised a previous advantage on Mexican squash which enjoyed a reduced tariff in a FTA between Mexico and Japan. With the New Zealand-EU FTA entering into force the 12.8% tariff imposed on buttercup squash has been eliminated.
The estimated cost of tariffs in 2024 equates to an average of $180 for each of the 18 buttercup squash growers. This represents a significant reduction from an average $84,095 per grower in 2018, and $4,485 in 2020, due to the complete phase out of tariffs in New Zealand’s main buttercup squash markets.
Table 6.9.2: Cost of buttercup squash tariffs (based on 2024 FOB value)
|
Country |
Tariff rate |
Value |
Estimated cost of tariff ($) |
|
Japan |
0% |
37,216,140 |
0 |
|
South Korea |
0% |
16,803,466 |
0 |
|
China |
0% |
890,800 |
0 |
|
Hong Kong |
0% |
123,327 |
0 |
|
Malaysia |
0% |
61,568 |
0 |
|
Fiji |
32% |
10,120 |
3,238 |
|
Total |
0.01% |
$55,105,421 |
$3,238 |
SPS market access barriers
Japan. Periodically there are interceptions of burnt pine longhorn beetle (BPLB) on squash consignments exported to Japan. BPLB is a contaminant on squash bins, but a quarantine pest for Japan. NZBSC has implemented a code of best practice to manage the risks associated with the prevalence of BPLB during the packing period. This is an issue which the industry keeps under constant review.
Thailand. In 2018 the NZBSC asked MPI to request access to Thailand. Buttercup squash was prioritised by MPI, but as there are other New Zealand access requests being processed by Thailand, this still has not been progressed.
Viet Nam. NZBSC has been seeking access to Viet Nam since 2017. Access conditions were agreed between Viet Nam and MPI in 2023, and an Official Assurance Programme is in the final stages of implementation, with the first exports expected in the 2024-25 season.