The promise of Spring?

Spring hasn’t been kind to many parts of our industry. Some kiwifruit growers estimate that they have lost up to 75 percent of their crop and it is estimated that the total volume of kiwifruit will be down by 10-15 percent in the coming season.

Waikato asparagus growers were also hit by the unseasonal weather, having to mow in crops because it was too expensive to try and save the little that wasn’t damaged by frost.

Looking to other parts of the industry, the impact of rising costs – estimated to be between 20 and 30 percent – on process vegetable production will soon become apparent as that season gets underway.

Last week again saw the media highlight the role of vegetables in the Consumer Price Index. What was pleasing however was how the media also balanced the headline stories a day later with stories about how many vegetables and fruit you can still buy for $40.00 and the factors behind increased prices. 

And while we are applauding the media – which yes, is not often – thanks goes to Seven Sharp for their great piece on this year’s Young Grower of the Year winner, Meryn Whitehead. 

Media coverage of what the Government and opposition parties are up to has increased in the past few weeks, even though the General Election is about a year away. This increase has been prompted by increased Government activity – for example, its response to He Waka Eke Noa – and also in-party resignations.

Unnecessary cost and complication

There are more Government announcements to come before the end of the year. One of the main ones will be the passing of Fair Pay Agreement legislation. HortNZ and product groups are engaged with Government Ministers and officials about what this will mean for industries like ours. Please look out for updates and advice over the coming weeks. 

Fair Pay Agreements will add unnecessary cost and complication at a time when this country’s economy can ill afford further pressure. That is what we pointed out in our submission and that has certainly been the message from groups such as Business New Zealand.

A far better approach would have been to encourage industry and business to step up investment and help the country grow out of the economic downturn, given the money that the Government spends has to come from the economy.

Other news last week was the fact that Government spending on contractors and consultants has increased by $300 million, while at the same time the size of the public service has increased. For everyone HortNZ or product group staff member, there are about 100 public servants working in areas that affect horticulture.

While most of the Government officials we interact with really do want to help our industry, the sheer volume of change, requests for information and consultations are unsustainable. Growers just want to grow, deal with factors like the weather that they can’t control, be responsible citizens and contribute to the economy.

Our hope is that as we move into an election year, the pace of change will slow so growers can just get on with growing – fresh, healthy fruit and vegetables, as well as the New Zealand economy. 

Carrot versus stick

I have been banging on lately that the Government needs to take the time to understand that a grower grows to sell to a market/set of consumers. These market forces drive a grower’s behaviour, no matter what else happens.

If the Government understood this dynamic, it would realise there is the option to use a carrot rather than a stick with regulation. Consumers are pushing for brands that reflect sustainable production and make a priority of people’s wellbeing. 

By taking the time to understand these factors, the Government could achieve the outcome they want through behaviour changes rather than regulate for these outcomes. This would save us all a lot of work and achieve a far more harmonious situation, where growers sang from the rooftops about the Government being awesome, instead of driving tractors across the country in protest.