17 Jun 2013

Horticulture NZ sees smaller growers being squeezed out

6:33 am on 17 June 2013

Horticulture New Zealand expects the process of consolidation in the pipfruit and kiwifruit industries to continue as rising costs and the need for greater efficiency put the squeeze on smaller operators.

The increasing size of orchards and post harvest operations, along with a declining number of growers is one of the trends picked up in a new Coriolis Research report on the fresh fruit sector.

Horticulture NZ chief executive Peter Silcock sees the consolidation process as a positive development.

He said both consolidation and vertical integration are occurring in the industry with the emergence of grower, packer, coolstore, exporter operations.

"They're getting bigger as of necessity, again it's some of the big players who are investing in new plantings and new varieties, I think that's very positive, they know a lot about the industry, they know what they're doing, they've got good links to their customers."

Mr Silcock said bigger operators are also taking on some of the orchards left by small growers leaving the industry, adding to the process of consolidation and scaling up.