Whangarei growers rip out kiwifruit vines

Press, 8 March 1988, Page 22

Whangarei growers rip out kiwifruit vines

PA Whangarei The first signs of retreat from the depressed kiwifruit industry have shown through with two Whangarei growers ripping out more than 5500 vines. The two orchardists have written off more than $250,000 in investment, convinced that the financial outlay necessary for the production of kiwifruit is not being returned and that the situation is not likely to improve. . Five years ago the kiwifruit industry was booming, with high returns for export produce boosted by the low value of the New Zealand dollar.

Now, high interest rates are crippling growers, many of whom became highly mortgaged to buy into the industry. Added to this, the value of the New Zealand dollar has risen/ supply of kiwi-

fruit internationally has increased and demand has dropped.

Much criticism has been leveled at the Kiwifruit Authority marketing system and efforts overseas.

. This year, the relief of news that returns for export trays are up slightly on last year has been negated by a poor crop yield in the north because of climatic conditions. Northland is not as major a production area for kiwifruit as is the Bay of Plenty, but there are a number of growers in Kerikeri and a smaller pocket in the Whangarei district.

Although the first signs of withdrawal have been by Whangarei growers, concern has been expressed by a Ministry of Agriculture and Fisheries horticultural consultant, Bob Parker, who said

the situation in Kerikeri was far worse than in Whangarei area. One of the growers, a Dargaville t man, has ripped out 3500 vines, wiping out an investment of up to $200,000.

The man, who did not want to be named, has lost four years work in the process and will now look at short-term cash crops to fill 4.5 ha which once housed the plants he had hoped, would supplement his kumera growing. At the same time, a Ruatangata businessman has walked off his 4ha kiwifriilt block losing more than $60,000. He has pulled out the pergola supportj system and left his vines dying in the ground.! He now lives in Brisbane. The kiwifruit investments were not the primary income of either f 8^ wer - | i