The success of the Fruit growing industry is highly dependent on favourable weather conditions. In early 2023, extreme weather events affected several of the North Island’s growing regions resulting in reduced crop volumes and revenue for growers. Growers in cyclone hit regions will have significant re-establishment and repair costs as well as lost output in addition to the higher input costs faced by all growers, impacting on profitability.
Export Revenue
Export data for Fruit is calculated as part of the Horticulture industry. The Horticulture industry as a whole contributed 12% ($7.1 billion)3 to the total export revenue in the food and fibre sector for the year ending March 2023.
The export revenue from Fruit4 was estimated at $3.7 billion in the year ending June 2023, a substantial decrease from the previous year ($4.2 billion). The European Union (excluding UK) was the largest export market for kiwifruit (25%), while China was the largest export market for apples and pears (22%).
Kiwifruit had contributed the most (69%) to the total export revenue of the Fruit industry in 2022, followed by apples and pears (20%) and other horticulture products (11%). The export revenue of kiwifruit is forecast to decline in year ending June 2023, but is expected to recover in 2024 and continue to grow thereafter.
GDP Trend
The Fruit industry contributed a total of about $1.5 billion to GDP in the financial year ending 2023. Individually, the Kiwifruit and Berry Growing industry contributed $1.2 billion, while Apple, Citrus and Other Fruit and Nut Growing industry contributed $312 million to GDP. The GDP of the Kiwifruit and Berry Growing industry has seen considerable growth over the last decade, but a substantial decline is expected for the financial year ending 2024 due to lower volumes. The contribution of the Apple, Citrus and Other Fruit and Nut Growing industries to GDP peaked in the financial year ending 2021 and after falling over the last two years is forecast to have a moderate increase over the next six years.
2. IBISWorld, “Kiwifruit and Berry Growing in New Zealand,” Industry Report (New Zealand: IBISWorld (access is by subscription only), August 2022), https://www.ibisworld.com/
3. Ministry for Primary Industries, “Situation and Outlook for Primary Industries.”
4. Fruit is made up of combining ‘Kiwifruit’, ‘Apples and Pears’ and the ‘Other Horticulture’ category which includes other fresh fruits (e.g. avocados, cherries, blueberries), frozen and processed fruits, fruit juices, nuts and ornamentals.