Mike Chapman NZKGI Chief Executive

Four issues are keeping the US growers awake at night: lack of reliable and skilled labour; trade barriers, particularly access to China; imported pests; and drought.

A recent American Farm Bureau survey found an inadequate supply of what they term ‘field labour' could result in US food prices increasing by six per cent and a reduction in US production by US$60 billion annually.

The American Farm Bureau study estimates US fruit production could fall between 15 and 31 per cent. The problem facing the US growers is the measures to allow overseas workers to come into the US and work in their orchards are bogged down in the political system.

The American Farm Bureau survey is designed to get some political movement.

We face similar problems in New Zealand. However, I'm pleased to say there is political support for ensuring there are sufficient overseas workers to supplement the New Zealand workforce.

But like the US grower, the Kiwi grower has great difficulty in attracting and retaining New Zealand workers. In the kiwifruit industry, we have a number of initiatives running with the Government to address this, and reduce our reliance on overseas workers.

China
Access to China is a particular US problem. Apple imports to China have been banned for two years and last year China banned Californian citrus imports. The ban has been instituted by China for alleged post-harvest decay.

China is an important market for the US and bans such as these place enormous financial pressure on growers. China is similarly important to New Zealand exports. To date, due to the strenuous efforts of Zespri and the kiwifruit industry, kiwifruit exports to China have not been affected. But as can be seen from the US example, exports to China are not to be taken for granted.

During the last decade, the US citrus industry has had a series of diseases (citrus greening and canker) and pests dramatically affect the productivity of the industry – not unlike the affect Psa-V has had on the New Zealand kiwifruit industry.

It would seem these diseases and pests have arrived with tourists and Americans returning from holiday abroad. For example, the United States Department of Agriculture reports citrus greening affecting the Florida grapefruit production – and likely introduced via the Asian citrus psyllid – is responsible for the elimination of 6600 jobs and US$1.3 billion in lost revenue to Florida's growers and US$3.6b in lost economic activity. In New Zealand, Psa is costing the NZ grower NZ$50 million each year in control; and during the last few seasons has caused a 25 per cent loss in productivity.

Drought
Since 2011 there has been little rain in California and its catchments. The 2012/2013 winter recorded the lowest rainfall since 1850. Now, 91 per cent of California is experiencing severe to exceptional drought conditions. This is of particular concern, as two-thirds of the US fresh produce exports come from California. There are predictions there will be a 20 per cent increase in wholesale prices for some produce categories; and a drop in exporting as the domestic US market is supplied before export markets.

With the exception of severe drought, NZ growers are facing the same challenges as their US counterparts. By observing the US responses to each of these crises, we can better prepare to face similar crises in New Zealand.

For example, the expansion of Kiwifruit Vine Health's role from a focus on Psa to all biosecurity threats from overseas countries. We need to be prepared to face increasing pressure to find reliable and skilled labour, face trade barriers, deal with more diseases and pests invading our orchards, and drought. These are the roles of NZ kiwifruit growers and Kiwifruit Vine Health.

The views expressed in this article are those of the author. Data was drawn with thanks from the April 2014 edition of Asia Fruit.