21 Sep 2011

Orchardists producing more process-grade apples

1:57 pm on 21 September 2011

A New Zealand apple processer says more growers are sending apples for processing instead of exporting them, as global demand for apple juice concentrate increases.

Enzafoods general manager Jon Marks says process-grade apples are generally seen as by-products but some varieties which are making losses in the export market are returning profits in the processing market.

Mr Marks says the company has set up a new processing line in Hastings, and grow-to-process contracts range from $8,000 - $10,000 per hectare.

Pipfruit New Zealand chairman Ian Palmer says the industry is still export-focused, with two thirds shipped overseas each year.

However, he says, as long as the demand for apple juice concentrate remains, orchardists are likely to grow some of their crop for process.

"It takes the risk of exchange rate variability from the international market out of the equation, and you know what your income is going to be."

Mr Palmer says a block of Braeburn apples he grew for processing last year proved economic.