Hawke’s Bay Fruit Growers Association update
Explore, Grow & Thrive – The month is almost over!
A strong finish, it’s all about timing!
As we move further into March, the changing weather patterns have brought a mix of challenges and opportunities for the horticulture industry. Across orchards, growers have had a good run with exceptional fruit quality, a testament to the favourable growing conditions that have supported healthy crop development. A combination of somewhat normal rainfall, optimal temperatures, and well-timed sunshine has contributed to enhanced fruit size, flavour, and overall yield. These conditions have not only benefited current harvests but also reinforced New Zealand’s reputation as a global leader in premium horticultural production. With international markets increasingly demanding high-quality produce, the industry’s ability to maintain excellence despite economic environmental shifts highlights the dedication and expertise of local growers. As the season progresses, continued monitoring and adaptability will be key to sustaining this success and maximizing market opportunities.
With that in mind, New Zealand’s economy showed slight growth in the final quarter of 2024, with a 0.7% increase in GDP, technically lifting the country out of recession. However, the economy contracted by 0.5% for the full year, weighed down by struggling sectors such as construction (-7.3%) and mining (-10.3%). In contrast, agriculture, forestry, and fishing grew by 4.4%, alongside gains in education, tourism, and healthcare. For Hawke’s Bay fruit growers, this resilience in primary industries is encouraging, though rising costs, compliance pressures, and market fluctuations remain key concerns. A positive sign was the first increase in GDP per capita (+0.4%) in two years, indicating improving productivity, even though annual figures remained down. Banks also seem to be playing catchup and, in some cases, interest rates decreasing five times from this year alone.
Despite economic challenges, New Zealand’s 0.7% quarterly growth outperformed key trading partners such as Australia, Canada, Japan, and Europe, sitting above the OECD average of 0.5%. While China led with a 1.6% increase, New Zealand’s positioning suggests relative strength in global markets. As the economy stabilizes, Hawke’s Bay growers must remain adaptable to shifting market conditions. HBFA continues to support members through advocacy, industry updates, and events, ensuring they remain informed and prepared for the evolving economic landscape.
A recent report from Boston Consulting Group which I’m really excited about called, “Future of NZ Inc: What Will New Zealand Be Known for in 2050?”, identifies sustainable food production as one of five key opportunities for New Zealand’s economy. The report emphasizes that New Zealand’s agriculture sector, which contributes approximately NZD 40 billion in annual exports, can enhance its global leadership by adopting sustainable farming practices.
To achieve this, the report suggests capitalizing on the growing demand for premium, environmentally friendly food products by improving sustainability and transparency in supply chains. Additionally, it recommends investing in research and development to reduce agricultural emissions, thereby maintaining competitiveness amid the rise of alternative proteins. By focusing on these strategies, New Zealand’s horticulture sector can strengthen its position in the global market and contribute significantly to the country’s sustainable economic future.
This report is the first stage of BCG’s investigation into the future of NZ Inc. Drawing on the robust expertise of BCG’s New Zealand team and the wealth of resources and access enabled by its global network, the study identifies five ecosystems for further exploration and many in our back yard here in Hawkes Bay:
• Agriculture 4.0
• Space and satellites
• Green tech
• Future of medicine
• Creative industries
See more here
Supporting horticulture:
The Aotearoa Horticulture Action Plan (AHAP) – a vehicle for collective progress
The AHAP was launched in 2023 to provide a framework for sector transformation. It acts as a guiding compass to achieve the ambitious goal of doubling the farmgate value of horticultural production by 2035 in a way that improves prosperity for our people and protects our environment. The plan was developed collectively, with input from industry, government, Māori and research providers. It belongs to everyone involved in the New Zealand horticulture sector. The plan enables organizations and individuals associated with the industry to align their efforts and investment towards a series of united actions to grow the horticulture sector sustainably.
Benefits from the framework are being seen already – many partners and stakeholders are actively aligning their strategic plans and work programes to deliver on the collective aspirations of the AHAP.
Launch of the AHAP progress update
The first progress update was launched at the Horticulture conference last month, and can be found here. The progress update contains a range of information including:
• the AHAP journey so far and next steps
• achievements to date
• insights from the stocktake and gap analysis
• the evaluation framework
• case studies
Further information on the AHAP (including the plan itself, FAQs, and projects completed) can be found here.
Looking ahead: FDS & TANK
Advocacy updates
• Napier-Hastings Future Development Strategy (FDS)
o The hearings on the Future Development Strategy are being held next week (Monday 24 March until Wednesday 26 March) in the Hastings District Council Chamber.
o Submitters who have asked to be heard will already know the time that they are going to appear, but if anyone else wishes to attend to listen, you are welcome too, as the hearings are public. Submissions from HortNZ, HB Vege Growers and HB Winegrowers are being heard around midday on Tuesday 25 March.
o Further information re the timetable and the Council’s reports is available here: Hastings and Napier Future Development Strategy | Hastings District Council
• Update from HortNZ re TANK water permit application process
HortNZ meet with HBRC earlier this week regarding the TANK water permit application process and can provide the following updates:
o The regional council confirmed they are not intending to push the date that you have to provide information by again, so if you don’t agree with you’re A& R volume (and you haven’t already provided information), you will need to do that by 31 May 2025.
o We are working with HBRC to organise an information session for growers to get clearer direction about what information you do need to provide. It is likely to be a webinar. The date has not been confirmed yet, but will be in the first half of April. Please watch your emails for details of this which we will share once confirmed. As always, if anyone has any resource management type questions please do not hesitate to reach out to either Charlotte Drury 027 3225595, Charlotte.Drury@hortnz.co.nz or Leanne Roberts, 027 546 1655, leanne.roberts@hortnz.co.nz
Again, a heartfelt thank you to our members, partners, and sponsors for your continued support. As you know contributions enable HBFA to champion growers’ interests, host meaningful events, and drive initiatives that strengthen our industry.
Wishing you a prosperous season,
Warm regards,
Callum Ross
Chief Executive Officer HBFA
