New Zealand tomato growers have regained access to Australia after exports were suspended in 2021, but an industry expert says the economics might not stack up for full fledged exports to resume.
The Ministry for Primary Industry’s manager for plant exports, Shane Olsen, said the Australian market has been closed to the importation of fresh New Zealand tomatoes since May 2021, following pepino mosaic virus detections in a small number of commercial tomato greenhouses in New Zealand.
Exports to Australia have been able to proceed since June this year.
The main tomato export season to Australia is usually between November and March each year, he said.
The majority of fresh tomato production is consumed domestically, but Australia is one of the biggest export markets for New Zealand’s fresh tomatoes.
Prior to 2021, fresh tomato exports to Australia averaged around 1000 tonnes per year and were valued at $2 million, Olsen said.
The industry updated an existing code of practice to manage the risks of pepino mosaic virus during production and harvesting.
The MPI also maintains an export assurance programme to facilitate the safe trade of tomatoes to meet Australia’s biosecurity requirements.
TomatoesNZ board chair Barry O’Neil said the board is cautiously optimistic about the reopening of the market, but testing for pepino mosaic virus comes at a cost.
If additional costs are not offset by returns, there may not be significant exports and the industry will have to work towards better export protocols, he said.
Exporters will likely spend $10,000+ on testing costs every year, O’Neil said.
Exports are especially welcome as they take pressure off an oversupply on the domestic market and help maintain higher returns for growers.
Current prices offered by supermarkets hardly cover the cost of production, he said.
Growers typically receive about $2/kg, with supermarkets often asking $4/kg, he said.
There are normally three or four large greenhouse growers who export to Australia.
These tend to be “bigger” growers, he said.
TomatoesNZ represents only greenhouse growers, with field-grown tomatoes going to companies such as Wattie’s for processing, O’Neil said.
Exporters are currently preparing crops for export, he said.