Apples ideal for cropping diversification

Press, 4 April 1985, Page 27

Apples ideal for cropping diversification

Canterbury could be exporting apples within the next five years, instead of growing only for the local market and importing from the North Island and the United States, according to a Lincoln College horticulture management consultant, Mr Keith Mclntosh. Apple and Pear Marketing Board projections have suggested that by 1989 Canterbury could be growing about 36 million kilograms of apples a year and many of these would be exported. Mr Mclntosh said New Zealand’s apple industry began in Canterbury with the first commercial crops in the 1850’s. Canterbury was a major pipfruit growing region by 1880, and in 1888 New Zealand’s first apple exports went from Papanui — now a northern suburb of Christchurch — to Chile. However, apple growing became less important in Canterbury and growers became content to sell only to the local market. Other regions, first Nelson, then Hawkes Bay and Auckland forged ahead growing apples for export. Canterbury now grows only about 5 per cent of total apple production. Mr Mclntosh said there was now a resurgence of interest in horticulture, particularly pipfruit, in Canterbury. Cropping farmers were probably in the best position to turn to growing apples because they already had irrigation and much of the equipment needed. “Cropping farmers are looking to intensifying land use, and apples are a good option,” he said. “They could also choose to grow stonefruit, other pipfruit, such as Asian pears, berryfruit or flowers, but there are some advantages in growing apples. New production methods, good back-up services, and advantages of climate give the potential for high returns from growing apples in Canterbury.” Mr Mclntosh said there was a good market structure provided by the Apple and Pear Marketing Board. It had a good marketing profile and acceptable varieties of fruit, and was the envy of producers in many other countries. The board took all the apples offered, had a pricestabilisation scheme and crop insurance, he said.

The board was wholly owned and run by growers, and last season distributed a profit representing about 20 per cent of the base price. Mr Mclntosh said that Eotential growers in Canterury would not need sophisticated harvesting, chilling or sorting facilities. By planting trees closer together, and pruning to modern free-running techniques, pay-back time was much quicker and overall management simpler. Principles of good weed and pest control of a cereal crop also applied to an orchard crop. The board, the Ministry of Agriculture and Fisheries, Lincoln College and commercial firms all offered excellent back-up services, he said. The Canterbury climate offered high light intensities, median temperatures and low humidity; all these gave long-term advantages. Gross yields might not be as high as in other regions, but colour, conformity and size were important in exporting. The potential for high returns was seen in this year’s profit payout of more than $3OOO a hectare for many growers. Mr Mclntosh said that because the cropping farmer had the land, irrigation and machinery, developing a relatively small pilot was possible. “He can become familiar with the crop, cause the least disruption to the farm, and be in a good position later to expand with some borrowed capital,” he said.

“There are tax advantages in developing horticulture: the speed and scale of development can be used to minimise overall tax, as is done with buying plant and equipment. Mr Mclntosh said horticulture usually required more capital a hectare than other crops, so should be assessed more as investment of capital than a gross margin. Some land could be sold to fund horticulture, as some farmers have done to fund irrigation. Other aspects, such as the family situation, labour, and estate planning, would best be discussed with advisers. Mr Mclntosh added that the Apple and Pear Board was relatively optimistic about the future, so long as the varieties were right and the quality good.