BULLETINS
& ARTICLES
Hard Summer
for Tomato Growers
Article reproduced with permission
of Horticulture News
TOMATO GROWERS EXPECTING A REPEAT SEASON’S RETURNS
WERE DISAPPOINTED, AS LOW PRICES CONTINUED FOR MUCH OF THE 2004-2005 SUMMER.
Sector chairman Tony Ivicevich said returns were
low up to Christmas, and prices had only begun to improve in the last few
weeks of March.
“Compared with last season, it was pretty bad,”
he said. “When people have a good year they seem to respond by expecting
another good year, which, in this business, doesn’t seem to happen.”
He said though it was difficult to quote figures,
because thew quality of fruit varied, average prices for Auckland crops
destined for the New Zealand market ranged from 40-90c a crate. He
said that prices per kg on average for “the best produce and the best buyers”
gradually rose between $2.80-$3.00 towards the end of summer, up from $1.13
earlier in the season.
Mr Ivicevich said that previously, tomato and cucumber
growers switched between crops depending on which was attracting better
returns, but “always seemed to land on the wrong foot”. He said several
cucumber growers had switched to tomatoes this year on the strength of
the 2003-2004 season.
He also attributed the poor returns to an increase
in production area, despite a nationwide decrease in grower numbers, and
highlighted the contribution of poor weather in December to low demand.
He said commercial growers were also affected
during summer by “home” growers.
“The impact is often overlooked. Most people
who grow tomatoes as a hobby always have too many and give them away to
their neighbours. It doesn’t take too much of that to upset the balance.”
Status Produce exporter Piers Gascoigne said prices
in December, January and February were “awful”, and he estimated its returns
had halved when compared with last year.
“We have just come through a very depressed summer,
which kicked off in December with bad weather conditions, “ he said.
“The demand wasn’t created and we dropped to a very low price. In
that situation, you can only do so much.”
Mr Gascoigne said poor domestic prices forced greater
exports to Australia, where returns were “not brilliant”, but Status had
entered a consolidation phase, and with higher energy and Kyoto Protocol
costs looming, companies would be “very game” to expand.
By contrast, New Zealand Hothouse managing director
Brett Wharfe said he was pleased by high production levels, ad the summer
season was predictable.
“I think production has been very good.
Prices have been down, caused by a slight glut, but we are in a supply
and demand business, after all.”
He said his company had not budgeted based on last
year’s returns.
“The season has been about where we expected it
would be, which we see being repeated next year.”
