U.S. Fruit Exports Find Sweet Market in New Zealand - Statistical Data Included

Fruit exporters, the moment is opportune. Recently, effective marketing activities, growing year-round demand and phytosanitary agreements have conspired to increase U.S. exports of many fruits to New Zealand.

New Zealand import statistics suggest a trend of success: imports of key U.S. fresh fruits, excluding oranges, totaled $9.2 million in 1999, up from $6.8 million in 1998.

It's notable that U.S. exports remained strong despite a weak New Zealand dollar. Gains in stone fruit and grapes contributed most to the increase; imports of U.S. oranges were sliced in half, due to a short crop.

U.S. exports of nectarines and peaches to New Zealand reached record levels in 1999, while U.S. grape exports were strong, thanks in part to innovative promotions by the California Tree Fruit Agreement (CTFA) and the California Table Grape Commission (CTGC), which boosted sales.

The United States shipped its first pears to New Zealand in November 1999, after a phytosanitary agreement opened the market. The United States also exported kiwifruit in 1999 to New Zealand for the second year in a row, keeping this fruit on grocery shelves basically year round.

The outlook for U.S. shipments of most fruits in 2000 remains promising, assuming harvests of good-quality fruit and good volumes. Imports of U.S. oranges this year are expected to rebound.

Scoring a Record in Stone Fruit Sales

New Zealand imports of U.S. fresh nectarines in 1999 tripled from 1998 to a record of over 1,000 metric tons valued at $1.4 million; imports of U.S. fresh peaches jumped fourfold to more than 250 tons valued at nearly $400,000.

Then, too, plum imports from the United States rose slightly in both volume and value, reaching 390 tons, worth nearly $600,000. High-quality fruit, improved product handling and effective marketing techniques have boosted imports and consumption.

New Zealand produces stone fruit from November through April so the United States supplies it during a window from June to September.

The United States holds 100 percent of the market for nectarines and peaches and holds nearly 90 percent of the plum market, with Chile supplying the rest.

Effective trade education and market promotion work by the CTFA, backed by Market Access Program (MAP) funds, has helped boost sales.

CTFA promotions do three things:

* educate the trade how to handle summer fruits properly in a winter climate;

* make consumers aware that they can purchase "summer" fruit in winter; and

* motivate purchasers.

Trade education has been critical to the program's success in the market. Although consumers are currently delighted with the quality of fruit from the United States, there were plenty of initial problems to overcome, back in 1996, when the program got underway. Improper storage temperatures were damaging the first shipments of imported fruit.

The solution lay in educating importers, wholesalers and retailers. CTFA spent all of 1996 and most of 1997 focusing on trade education to ensure the fruit was handled properly.

The strategy paid off. By 1998, CTFA was able to branch out into other programs: consumer education and awareness programs that would create demand for summer fruits in winter.

Over the past two years, national advertising, in-store demonstrations, recipe leaflets and public relations efforts have proven key to informing consumers that their favorite summer fruits are now available in winter.

Grape Exports Strong

New Zealand's purchases of U.S. grapes in 1999 increased by 25 percent to 3,370 tons, valued at $5.7 million. A good U.S. harvest and strong promotional activities have boosted sales and consumption.

The table grape market is ripe for picking; New Zealand does not produce significant quantities. The United States took a 52-percent share of table grape imports in 1999, followed by Australia at 36 percent, Chile at 10 percent and Mexico at 2 percent.

In 1998, CTGC programs worked to change consumer perception of grapes from a luxury, special-occasion fruit to a good-value-for-the-money, everyday snack.

Market research shows their efforts are being rewarded. Fewer consumers buy grapes only as a special treat, while more buy simply because they enjoy them. National advertising and in-store consumer promotions are just two of the ways CTGC has worked to achieve this objective.

U.S. Pears Make First Arrival

An agreement concluded in October between APHIS and New Zealand's Ministry of Agriculture and Forestry opened the market to pears from Washington state; access to pears from California, Oregon and Idaho was similarly secured the following month.

These agreements cleared the way for the import of 34 tons of U.S. pears, valued at $46,000, into New Zealand in 1999. Much larger U.S. pear exports are expected this year.

New Zealand imported about $1.2 million worth of pears from all countries in 1999, with Australia supplying about 90 percent.

A Legend in the Annals of Kiwifruit

In a reprise of 1998's market-busting coup, U.S. kiwifruit once again sold like gangbusters in New Zealand--the home of the kiwifruit. Sales tripled in 1999, to 400 tons valued at more than $600,000.

It was a lapse in domestic supply that engendered the Great California Kiwi Caper of 1998 [see AgExporter, June 99, p. 4). Domestic supply had temporarily been stripped by New Zealand's own strong exports that year, and customers searched New Zealand's grocery bins in vain for the fuzzy green orbs.

Enter California producers with succulent green kiwis aplenty, late in 1998/1999. It was their first season ever in what seemed an improbable, but suddenly profitable, new market.

Flush with success, the Californians exported again in late 1999, but by then, competing local supply was still available in cold stores.

Will the trick work once again in 2000? Not quite as well, insiders predict; the seasonal opportunity for U.S. kiwifruit is likely to narrow to a couple of months.

Citrus Imports Fluctuate

New Zealand imports of U.S oranges in 1999 fell 62 percent in volume to about 3,100 tons and dropped 50 percent in value to $3.3 million. The freeze in California which resulted in a short crop, was the main factor behind the decline.

Competition also contributed; New Zealand also bought from Mexico (although overall quality was not good) and brought in new imports from Spain.

In 2000, the island nation's orange purchases from the United States are expected to rebound due to a high-quality California crop, but imports probably won't attain 1998 levels. The market is considered mature, with growth expected to take place slowly, mainly due to population gains.

Meanwhile, U.S. grapefruit producer maintained their sales in 1999, with volume and value stable at nearly $350,000.

Young is the agricultural attache in the U.S. Embassy, Wellington, New Zealand.

Cork represents the California Table Grape Commission and the California Tree Fruit Agreement from Auckland, NZ.

APEC Meets Up With High-Profile Fruit

Last September in Auckland, California stone fruit and grapes basked in the glow of an international spotlight during the Asian Pacific Economic Cooperation (APEC) leaders' meeting. The U.S. products were highlighted at a reception for importers organized by FAS, the CTFA, and the CTGC.

COPYRIGHT 2000 U.S. Department of Agriculture
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