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FARMERS WEEKLY – farmersweekly.co.nz – May 10, 2021
Golden glow after Zespri licence round Richard Rennie richard.rennie@globalhq.co.nz INTENDING Zespri SunGold kiwifruit growers have proven they are prepared to stump up over half a million dollars a hectare to secure a licence to grow the highvalue fruit. This year’s plant licencing tender round has brought record shattering prices across the SunGold and new red fruit portfolio, with the average tender price for SunGold making $550,000 a hectare. This is streaks ahead of last year’s record setting $400,000/ ha value, with the 750ha of SunGold licence offered also oversubscribed by 2:1 on average across the organic and conventional areas on offer. Zespri’s chief innovation and sustainability officer Carol Ward says growers were demonstrating a high level of confidence in the fruit, with tenders including about 200ha of vines to be grafted from Green to SunGold, and 400ha of new orchard plantings. The nature of about 100ha of plantings is yet to be determined. The 750ha of SunGold put up for tender included 50ha of SunGold Organic variety, and this was oversubscribed by almost three to one. Even the red variety, still in its early stages of crop and market development has experienced a significant lift from last year’s $62,000 a hectare value. It tendered at an average of $75,000 a hectare for the 350ha on offer, up from 150ha last year.
Again, this offer was oversubscribed 2:1. Zespri has acknowledged the challenges in developing red, with shelf life and size being an issue. But Ward says early consumer feedback indicates the berry-like flavour is popular, and the taste profile is retained even as the fruit softens. Zespri launched Red in China in late April with 20,000 cartons expected to be marketed there this year. Ward says Zespri was not overly concerned about the loss of about 200ha of green crop grafting over to SunGold affecting the portfolio mix. “We are continuing to see strong consumer demand for SunGold. We are well aware SunGold is attractive for Green growers to change to. But a lot of green growers are also happy growing green fruit,” she said. Areas tendered for include both smaller (less than 2ha) and larger new conversion areas, greater than 10ha. Last estimates for orchard gate returns for this season are similar to last year’s with green guidance range of $6-$7.30 a tray and orchard gate returns of $75,000 a hectare. SunGold are estimated to be worth $10-$12.60 a tray and generate an average of about $170,000/ha. The licence tender process has proved to be a windfall for Zespri’s bottom line and shareholders. This year’s licence income is estimated to be between $430 million and $435 million, compared to last year’s $305 million.
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EXPAND: Locals are angry NZ Carbon Farming has bought land adjacent to its existing Fairview carbon farm in North Otago to be planted as a carbon farm.
Carbon farm sale upsets Otago locals Neal Wallace neal.wallace@globalhq.co.nz LOCAL authorities say they cannot prevent the conversion of a 2600ha livestock farm in the headwaters of North Otago’s Kakanui River into a carbon farm. Local farmers, environmentalists and political leaders are opposed to the proposal by New Zealand Carbon Farming (NZCF), with 120 attending a meeting in Oamaru last week, to air their concerns about the conversion of the property known as Hazeldean. NZCF already own and operate Fairview, a property adjacent to Hazeldean, as a carbon farm, but locals say the new forest’s proximity at the head of the Kakanui River threatens its water yield and flow. In addition to the economic and social impacts, the North Otago community also fears conversion to a carbon forest will destroy tussock grasslands and biodiversity. Waitaki District Council Mayor Gary Kircher says the conversion is a permitted activity and his council is powerless to influence the project other than earth moving or clearing of indigenous vegetation that exceeds a certain area. He says rural and provincial communities are paying the environmental and social cost of greenhouse gas emitters offsetting their emissions. “The irony is that something being planted on the basis that it is for the environment is going to potentially be quite detrimental to the environment and the social health of our community,” Gircher said. Otago Regional Council manager of strategy, policy and science Gwyneth Elsum says the council’s regional plan does
not require consent for land-use change to carbon farming, but that could change. “Our Regional Plan: Water was amended in 2018 to ensure alignment with the National Environment Standards for Plantation Forestry (NES-PF), however, carbon farms where there is no commercial activity and harvesting, would not be expected to meet the definition of land-use that is governed by the NES-PF.” She says the council’s partially operative regional policy statement, due to be notified in June, will restrict the extension of forestry in water short catchments. Planting at Hazeldean starts this month and new controls will be too late. Local farmer Jane Smith says the Government’s billion trees policy provides a free pass for carbon farmers at a time when new rules restrict what other landowners can do. Smith says a fire broke out in the Fairview block last year and she says local district and regional council politicians were shocked at the unkept state of forest when they visited recently. There were no fire breaks and no apparent weed and pest control, she says. Retired North Otago farmer Bruce McNab disputes claims by NZCF that it actively manages its exotic forests to encourage the regeneration of native forests. McNab, a former farm forester, says that is not possible given the land is sprayed with a strong herbicide before planting and the densely planted pinus radiata crowds out any regrowth. Department of Conservation senior ranger of community Craig Wilson says the Kakanui River and its riparian areas provide habitat to several threatened or at risk fish species, including the lowland long jaw galaxias, which is classified
as ‘Threatened – Nationally Critical’. Wilson says exotic forestry can reduce water yields, which will impact the river habitat, and the planting of radiata pine or Douglas fir may also introduce wilding pines into the catchment. Despite the potential adverse effects, Wilson says NZCF has a constructive relationship with the Waitaki District Council which provides legislative controls. Farmers Weekly sought an interview with NZCF and supplied a series of questions based on the concerns raised by locals. NZCF replied with a statement which did not answer those questions. The company states that it is a significant contributor to NZ’s climate goals and over the past decade its trees have sequestered more than 20 million tonnes of carbon dioxide. “Our trees are never harvested,” they said. “Instead, they are actively managed to return, over time, to a 100% indigenous and biodiverse conservation estate – providing a rich habitat for Aotearoa’s unique native flora and fauna.” This is done using a “sciencebacked approach of using appropriate exotic species to create a protective nurse crop for native trees,” while also capturing carbon. More than 95% of the company’s 66.7 million trees under management are planted on marginal land, grade 6 and above, “often in steep and erosion prone areas.” “We also carefully manage all of our forests, employing local people to work year-round on tree and estate management, pest control and enhanced native tree growth.”
