John Murphy, Chairman of Fresh Vegetables New Zealand, described the impacts of government policy, market trends, and initiatives on New Zealand's fresh vegetable industry. He mentioned challenges and potential developments for growers, particularly in greenhouse cultivation, amidst rising costs and regulatory changes.
Government policy pressures
According to John, a major concern for vegetable growers has been a recent government decision to reduce industrial allocations—a move that directly affects energy costs for greenhouse producers. This includes that the government will provide fewer free emission units (NZUs) to industries that are considered emissions-intensive and trade-exposed (EITE). "We repeatedly told Cabinet, other Members of Parliament, and government officials that the advice suggesting a reduction in industrial allocation would have no impact on greenhouse tomato, capsicum, and cucumber growers was simply wrong," John explained. "Growers' calculations showed that the reduction would add costs of up to $30,000 per hectare, a burden with no benefit to growers, consumers, or the environment."
This significant increase in operating costs has caused frustration among growers, particularly given the government's emphasis on reducing carbon emissions. John argued that the added expenses will likely inhibit industry sustainability rather than support it, impacting greenhouse efficiency and the availability of locally grown vegetables for New Zealanders.
Market conditions
Despite these regulatory challenges, New Zealand's fresh vegetable sector has been experiencing favorable growing conditions for several months. "Generally speaking, fresh vegetable growers have had great conditions lately, resulting in a steady supply and prices that offer exceptional value to consumers," said John. While issues like pests and diseases are always a concern, favorable weather has helped mitigate these risks. However, energy costs remain a significant concern, especially with the changes to industrial allocation putting further financial strain on growers.
Looking toward the holiday season, John expressed optimism for continued steady supply. "If current growing conditions continue, there will be plenty of great-value vegetables available leading up to Christmas," he noted.
Greenhouse and sector expansion
Greenhouse production has a lot of potential for the fresh vegetable industry in New Zealand, given its efficient use of resources like land, water, energy, and labor. However, as John pointed out, "rapidly rising energy costs, coupled with the expenses associated with transitioning to alternative energy sources, have led to some doubt among our growers." For greenhouses to be productive, growers will need supportive policies and financial assistance to offset these rising costs and enable the transition to sustainable energy.
John added that greenhouses play a critical role in supporting food security and reducing the environmental footprint of vegetable production. "Greenhouses allow for controlled environments that can enhance productivity and reduce resource use, making them important for sustainable agriculture in New Zealand," he said. But to realize this potential, John believes a shift in policy or additional support will be essential.
Innovation and research supported by growers' levies
Fresh vegetable growers in New Zealand are also actively funding research to advance the industry. According to John, "Vegetables NZ funds several research projects, including energy audits and transition plans for greenhouse growers." The organization has been working closely with producers to identify ways to reduce energy consumption and implement sustainable practices.
John mentioned another initiative: the demonstration farm in Pukekohe, which showcases new and sustainable practices in vegetable farming. This site allows growers to test new techniques and assess their impact on productivity and efficiency.
Domestic market focus and demand
John noted that around 80-90% of the vegetables grown in New Zealand are produced for the domestic market, pointing to the industry's important role in local food security. To encourage greater vegetable consumption, Fresh Vegetables New Zealand has partnered with 5+ A Day on a campaign called "Add One More Vegetable," which promotes healthier diets among New Zealanders. "Increasing domestic demand is important to supporting our growers and ensuring that New Zealand remains a self-sufficient producer of fresh vegetables," John said.
For more information:
Fresh Vegetables NZ
www.freshvegetables.co.nz