Many New Zealander’s took up the chance of employment in the horticulture sector during Covid-19, and whilst harvest has finished, the focus for all three sectors has shifted to winter pruning, and securing enough labour to support this booming industry.
A round-up of what’s been happening in Hawke’s Bay over the past month.
Kiwifruit
Richard Pentreath
Harvest in Hawkes Bay was all wrapped up by late May when the last of the green orchards were picked. Overall, both the green and the gold crop in Hawkes Bay is expected to be down in volume from last year.
At the national level, the green crop is also expected to be smaller than last season, largely due to smaller fruit size and poor class1 packout in some regions where the drought had significant impact on fruit quality. The impact of drought conditions on gold fruit was much less severe generally speaking, and Zespri are now marketing their biggest ever volume of SunGold, as was expected with more gold orchards coming into production.
Gold3 (SunGold) sales remain strong in key markets but are a little slow in smaller, developing markets. Early green fruit is now in the markets and is also selling well although the smaller size profile is expected to create some challenges for Zespri later in the season.
Growers who bid for Gold3 licence in May will now know if their bid successful with results released on the 4th June. The median price for successful Gold3 bids this year was just over $400,000 per hectare compared to $290,000 last season. Licence for organic Gold3 increased from $153,000 last year to just over $219,000, whilst the median value of successful Zespri Red bids was just $62,500 per hectare. The lower value of the Zespri Red licence reflects the uncertainty regarding how well this variety will perform relative to Gold3 which performs so well, both in the orchard and through the supply chain.
Growers impacted by the drastic reduction in Kiwistart payments this season (especially those who harvested fruit in weeks 11 & 12) are encouraged to make contact if they wish to participate in discussions between Zespri and affected growers later this month.
Summerfruit
Gareth Hope
The good weather conditions continue in Hawke’s Bay and Summerfruit growers are progressing well with their pruning, now ahead of this time last year. Like other sectors, the challenge for growers is to help RSE teams reunite with their families. Industry organisations and government departments are presently working together and channelling a lot of energy into making this happen.
The Summerfruit NZ AGM will be held on 15 July 2020 via Zoom. If you have an item of concern to discuss at the AGM, please submit this by close of business today.
Towards the end of 2019 Summerfruit NZ announced they would conduct an independent industry review. The aim was to gather information from mainly Summerfruit levy payers to enable the organisation to design/redefine that it will remain fit for purpose going forward. Following a delay over the Covid-19 lockdown period, the review is nearly complete and the report will be released to the industry in due course.
We hope to see lots of winter chill units over the next couple of months of dormancy to ensure that our trees have enough to wake up happy in the spring.
Pipfruit
Lisa-Marie Edgarton
Harvest is now a distance memory and winter pruning is now under way.
With the country moving through the COVID 19 levels, daily life is starting to move back into more of a normal rhythm. This is making things easier for businesses to return and offer services again around the district.
There has been a bit of rain falling lately and a slight hint of green returning to the surrounding Hawke’s Bay landscape. Some tree removal has been happening over the district with growers looking forward and redeveloping land. Post-Harvest spraying is also on the agenda to combat any disease pressure going into winter.
Lisa-Marie Edgarton
Harvest for 2020 is now at an end, with crops all been picked and in the process of being packed.
This season would have to go down in the history books, as one of the most interesting and challenging with COVID-19 thrown in the mix.
It was good to see, as an industry, we acted quickly and implemented the requirements set by Government in our respective workplaces, to keep everyone safe in their working bubbles to comply with the “new normal”. As we slowly climb out over the other side of COVID-19, Mother Nature is still testing our stress levels with no real rain in sight and drought levels at an all time, high.
Growers will be monitoring soil moistures and trying to give the trees enough water to get them through. Post-Harvest clean ups will be on the agenda on orchard and turning our attention to the next task ahead, pruning.
Richard Pentreath
Kiwifruit harvest in the Hawkes Bay is nearing completion with just a few Green blocks still to be picked. Overall, Gold3 crops in the Hawkes Bay have been under estimate, partly due to the drought and partly due to lower flower numbers in spring last year. Gold3 fruit quality has been good and Zespri are looking forward to a ‘vintage taste year’.
Many Green kiwifruit blocks have produced lower yields than last season due to poor pollination and/or challenging conditions in spring including hail (on some blocks) and Psa infection during flowering. Fruit size on many blocks was impacted by poor pollination and the dry summer conditions. Feedback from the markets still suggests that Gold3 crop will sell well and shipping has continued to run to schedule. It is too early to report on how well the Green crop will be received by markets.
Thanks to the dry conditions in Hawkes Bay and most other growing regions, fruit dry matter has been very good this season which typically results in strong sales. However, due to the failure of a third party company to deliver essential fruit testing services, Zespri has had to remove all Taste payments (which are based on fruit dry matter content) this season. As a consequence, Taste payments (known as TZG) will be averaged across all fruit pools and Kiwistart premiums (paid for early season fruit) may be significantly reduced. This is a challenging issue and Zespri have said that further review will be undertaken once Zespri understand how the markets are performing and what grower returns might look like.
Gareth Hope
As for all New Zealand, it has been a very difficult and trying time for the summerfruit industry over the past two months.
Although harvest was largely completed prior to the Level 4 lockdown, restrictions on essential services and what work could be undertaken presented many challenges for this sector. As advised by the Summerfruit NZ Board, pruning was deemed to be non-essential under Level 4 and subsequently could not be carried out.
By now, most summerfruit orchards have already applied their pre-winter coppers and hopefully catching up on a delayed winter pruning start!
There appears to be a number of summerfruit orchards being pulled out this year which may affect prices in the coming season. Happy pruning everyone and stay safe.
Moving from alert level 4 to alert level 3
The Prime Minister today announced the principles that will apply for a move from Covid-19 alert level 4 to alert level 3. She will announce when this may happen on Monday 20 April, but has made it clear that a number of criteria will need to be met before the move happens:
• Community transmission is under control with a very low transmission rate
• Robust border measures in place
• Tracing and testing capacity in place
• Health system remains well supplied.
For our industry, we are unlikely to see much change – continue with social distancing, live/travel/work bubbles; and hygiene requirements. Please continue to follow the guidance on our website. It is likely that some activities that you have not been able to do under level 4 (orchard development for example) may be allowed under level 3 – we will clarify this as information comes to hand.
If you have any questions please contact NZAPI.
New support for small to medium-sized businesses
The Government has announced a set of new relief measures for small and medium-sized enterprises (SME’s) during the COVID-19 pandemic.
The new measures include:
• Greater flexibility for taxpayers in respect of statutory tax deadlines
• Changes to the tax loss continuity rules
• A tax loss carry-back scheme
• Measures to support commercial tenants and landlords
• Further business consultancy support.
The Government has already introduced a wide range of measures to assist businesses through the crisis. This includes the wage subsidy scheme, the Business Finance Guarantee scheme, and a package of business tax changes. While these measures apply to businesses beyond just SME’s, they provide substantial benefits to the SME sector.
More changes were needed however, to boost confidence and help SME’s get through the crisis. Without further support from the Government, these otherwise-viable SME’s may be forced to close down permanently.
Refer the following links for further information:
• Government backs businesses through Covid-19
• IRD Tax Changes to Support Businesses
Coronavirus and GLOBALG.A.P. Certification – What You Need to Know
FAQ for Producers with GLOBALG.A.P. Certificate and Certification Bodies: COVID-19 and Food Safety
We are currently working on the option of remote inspections and audits for certification bodies and producers: IFA Remote. An initial draft of the IFA Remote solution will soon be published, along with an invitation to join a public consultation on the topic. If you already have initial thoughts or suggestions, please send them to us at remote@globalgap.org.
In the meantime, this list of FAQ regarding COVID-19 can help answer your queries regarding GLOBALG.A.P. certificates and mitigation activities.
This document was updated at 10:30pm, 16.4.2020.
The Government has announced that a new COVID-19 leave payment scheme will be available to essential businesses for essential workers from 6 April 2020.
The new payment will support essential workers who have to stay at home to comply with public health guidance (who can’t work from home) and whose employers are unable to keep paying them.
Essential employers who can financially support their workers with leave requirements or any special paid leave entitlements – without the use of the subsidy – should continue to do so.
Please refer to the HortNZ website for further information including eligibility, the application process, and FAQs.
This document was updated at 9:30pm, 6.4.2020.
MPI visits
We are fielding a number of calls from members with questions or concerns arising from the MPI educational visits. These have been put to MPI today.
Once we have answers available, we will include them in our daily email and post them to the FAQ document on our website.
Thanks for your patience as we work through these with MPI.
MPI Registration
A reminder that if you haven’t done so yet, please complete your MPI registration asap. The site is still open and accepting registrations so please get this done asap. For registration, please refer to the guidance document.
Click here to access registration
Remember, if you have 6 or more people at your site at any one time, whether they are the owner, employees or contract staff, you must register. You must be able to demonstrate that you have social distance and hygiene practices to protect everyone on your site; not just your staff. If you are unsure please contact us.
Reassurance and safety of workers
Now, more than ever, it is vital to provide leadership and reassurance to staff and other workers in your businesses. Many are questioning their safety and wondering why they continue to work.
As businesses are scrambling to put safety measures in place it is important to talk to all of your staff, to understand their concerns, and to find solutions together to make sure that everyone feels safe being in the workplace. Click to read more
MBIE Accommodation Guidelines
Accommodation providers for essential services have to ensure isolation of workers at their accommodation site for each employer their guests travel to each day. Below is a link to the MBIE guidelines for those accommodation providers.
As part of essential industry registration with MPI, employers have to have systems in place to ensure that their accommodation providers are actively maintaining isolation of their workers.
For both accommodation providers and employers to meet each other’s Government requirements, accommodation providers should be able to provide employers with a documented system on how they are keeping workers isolated. Employers also need to provide accommodation providers a documented system on how they are keeping those workers isolated at work.
Travel to and from work and accommodation may be the responsibility of either the employer, accommodation provider, the worker, or a combination.
NZAPI is expecting to provide more advice on this in the coming days. Click for a copy of the MBIE Accommodation Guidelines.
NZ PPE Supply of Masks and Sanitiser
Horticulture NZ has been approached by a supplier of masks and sanitiser. They have limited quantities available as follows:
1. Sanitiser – 1 x carton = 12 litres @ $219.00 + GST per carton. Courier $17-$30 depending on area.
2. Surgical masks – 50 units per pack, @ $78 + GST per pack. Courier $15-$20. (Carton size = 2,000 units)
Until supply increases masks will be sold in packs; not cartons. Sanitiser can be sold in carton volumes.
All ex Auckland.
Please contact Antony Heywood at Horticulture NZ antony.heywood@hortnz.co.nz
As there is limited supply, Antony will work with the supplier to ensure masks get to where they need to go in an equitable manner.
D-19 anti-transmission measures must be in place (such as the 2m distancing rule), and all deliveries must be done without any individual contact.
Door-to-door, local fruit and vegetable box deliveries
MBIE has advised that door-to-door, local fruit and vegetable box deliveries are allowed to go ahead, but all safe food handling and COVIOrders must be made by telephone or online, and must be paid for online so that there is no handling of cash. Deliveries must be left at the door so that there is no physical contact.
Independent fruit and vegetable outlets must remain closed to the public, as they do not meet MBIE’s essential service criteria as set out on MBIE’s website.
This document was updated at 8:30pm, 28.3.2020.
We have just received notice that the Ministry for Primary Industries (MPI) will be visiting packhouses and other horticultural operations across the country from tomorrow, Friday 27 March 2020.
For apple and/or pear growers, you can access industry specific information here.
For kiwifruit growers, you can access industry specific information here.
For all other vegetable and fruit growers, please see the latest HortNZ COVID-19 update: MPI Visits Starting Friday
This document was updated at 10:00pm, 26.3.2020.
As outlined in our update earlier today, as part of operating under enhanced restrictions during Covid-19 Level 4, MPI is requiring essential businesses to register with them and to provide information on the systems they have in place to ensure that they protect their workers and help prevent the spread of the virus.
NZKGI and Zespri have been in discussions with MPI to determine if they will accept existing Zespri registration and compliance systems as an alternative to direct registration with MPI. Unfortunately, this is not possible as MPI requires information that Zespri systems do not currently hold.
This means that kiwifruit essential businesses will need to register directly with MPI by 5 pm on Friday 27 March: Essential Primary Sector Service Registration
Growers who have five or less people on the orchard (including the owner) and can maintain social distancing at all times are exempt from the requirement to register. However, growers must ensure that any contractors, including picking contractors or orchard managers, have sufficient protocols in place to manage the risk to their own staff when on they are on site. These protocols must meet Government guidelines.
It is important to note that Government has made it clear that it would revoke our right to operate if we can’t adequately protect workers. It is a privilege to be able to continue to operate and we must meet the Governments requirements in order to continue to do so. Everyone has a responsibility to ensure that you, your contractors and any other service providers are doing what is required. MPI will be undertaking compliance activities and will revoke the right to operate if businesses are operating when not registered or are not meeting the requirements of registration.
The registration process requires submission of information on how the business is managing the risk of Covid-19 transmission. NZKGI and Zespri have worked together to establish a Kiwifruit Orchard Guideline for Minimising Spread of COVID-19. We believe this is a strong starting point for any grower considering how they can meet Government requirements. You can access the Guideline here.
We suggest that for each of the questions asked in the registration process, you may wish to provide reference to the Guideline, and if required alter the guideline based on your own specific situation.
Registration
All businesses wishing to operate during Covid-19 Level 4 as an essential businesses must register with MPI by 5 pm on Friday 27 March.
You can continue operating in the interim provided you are meeting all of the safe practices required. Registration is free at:
https://www.mpi.govt.nz/covid-19-essential-primary-sector-service-registration/
If you need assistance to complete the registration form, please contact Zespri 0800 155 355 or NZKGI 0800 232 505 or contact your packhouse.
This document was updated at 10:30pm, 25.3.2020
Below is an update from New Zealand Apple and Pear CEO, Alan Pollard:
I am conscious that, like us, you will all be being overloaded with emails about Covid 19. I am trying to work with other industry groups to better coordinate communications – the current situation is unsatisfactory. The most important message I can give you regarding communications is that the single point of truth for the apple, pear and nashi industry is NZ Apples and Pears; no one else. You should keep abreast of what NZAPI is communicating to you and visit our website regularly for updates. Both the MPI and Covid19.govt.nz websites will also provide valuable information for you. We continue to work with government to clarify and refine requirements, help them to better understand our supply chains, and influence decisions.
To be approved as an essential business, you will have to register with MPI.
Businesses can register with MPI here Essential primary sector service registration by end of business FRIDAY 27th MARCH 2020.
NZAPI have developed a Guidance Document to assist with your registration. You will need to choose what you are able to implement and be prepared to be checked by MPI.
Note that the registration process, and the guidelines document, refer to social distancing of 2m. We appreciate that this does conflict with MoH and WHO guidelines. While we will continue to discuss this with MPI, at this time 2m is the rule and unless you hear otherwise from us, this is the basis upon which you should be preparing.
This is a living document that will be updated as new information is provided. Check the version number with what is available on our website for the most recent update.
For registration you will need to provide your NZBN number which you can find on our registration database under your company details, or this link: www.nzbn.govt.nz.
You will also be asked for your Food Act FCP/NP ID. This can be found on the MPI Food Act portal MPI Public Register .
For queries contact sandra@applesandpears.nz or gary@applesandpears.nz.
This document was updated at 9pm, 24.3.2020
