Study highlights vulnerability of horticulture sector to major road closures

New research has highlighted the vital role of reliable and resilient transport networks in delivering fresh produce to market in New Zealand.

The study, commissioned for the Aotearoa Horticulture Action Plan (AHAP), reveals that many growing regions depend on a key routes or packaging hubs, creating vulnerabilities for perishable crops that must reach domestic and international consumers quickly and efficiently.

Kate Scott, chief executive of Horticulture New Zealand (HortNZ), said reliable and resilient transport linkages were important to the sector achieving its goal of doubling farmgate value of New Zealand’s horticultural production by 2035.

“This study provides an important body of evidence about regional supply chain infrastructure and the value of horticulture that infrastructure supports.

“It also highlights supply chain vulnerabilities. For instance, the largest regions for horticultural production are Bay of Plenty and Hawke’s Bay - the produce generated in each region exceeds $5 billion (total) in value. Both are heavily export- focused and infrastructure disruption in either would put significant export earnings for New Zealand in jeopardy.”

Scott said fresh produce can move four or more times between paddock and consumer, including packhouse, wholesaler, distribution centre, and retailer, and transport disruption at any point can compromise quality.

“Horticulture production, packing and distribution is concentrated in the ‘golden triangle’ of Auckland, Waikato and the Bay of Plenty. About 50 per cent of New Zealand’s inter-regional horticulture produce movements transit over Waikato region roads.

“In Gisborne, only eighteen per cent and Northland, four per cent of produce packed in the regions is also distributed in the regions. That means inter-regional transport links are particularly critical but both have primary transport routes that are vulnerable to disruption.”

Scott said the most recent example of this was the closure in February, due to slips, of Waiokea Gorge, SH2 between Gisborne and Bay of Plenty, which supports up to $112m of produce movement out of the Gisborne region.

“Closures like this have significant impacts on growers.

“Safeguarding critical transport routes and reducing the risk of cascading delays are central to protecting shelf life, meeting market requirements, and ensuring the best possible returns for growers and the New Zealand economy.”

Other vulnerabilities highlighted in the study include that Auckland is the main distribution point for fruit and vegetables for the domestic market but there are limited alternative routes to move produce through the city during disruptions, such as extreme weather events.

A large proportion of domestic-bound fresh produce also passes through chilled distribution centres located in Auckland, Palmerston North, Wellington and Christchurch. This concentrates domestic supply in just a few locations, particularly for the South Island.

The report will be widely distributed to provide an evidence base during consideration of local, regional and national infrastructure projects.

“It ensures that infrastructure critical to the movement of food can be recognised as a vital lifeline,” says Scott.

“The analysis provides evidence for regional and national infrastructure investment, including both public and private funding approaches, and will help the sector to advocate for resilience improvements for the infrastructure that is most vulnerable and rapid repair when critical infrastructure does fail.”

AHAP is a strategy that provides a framework for collaboration across industry, Māori, government and research to ensure sustainable growth for the sector, improve prosperity, and protect the environment.

The research was undertaken by Infometrics and EC Consult using data from the Statistics New Zealand Agricultural Production Census together with a survey across 14 horticultural product groups. It was supported by funding from New Zealand Fruitgrowers Charitable Trust and Horticulture New Zealand.

Click here to read the summary.

Click here to read the report.