Episode Transcript
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Speaker 1 (00:00):
Flight.
Speaker 2 (00:00):
It is time to talk all things so hort A
culture now in Z's CEO, Kate Scott joins us on
the country.
Speaker 1 (00:08):
God, Kate, how's your summer going. You're back into things.
Speaker 3 (00:11):
I am back into things, thank you. Look eating my
way back in after a cold start to the to
the break period in Central Ottaga, I've come back to
Wellington for some sunshine, which is a remarkable thing to say.
Most people don't say they come to Wellington for the sunshine.
Speaker 2 (00:26):
No, that's that's that's you know, that's something about face,
isn't it if you if you think of that and
weather terms, isn't it?
Speaker 3 (00:31):
I mean exactly right.
Speaker 1 (00:33):
Yeah, So you're what homes down Central?
Speaker 2 (00:36):
I mean I guess I got what I suppose that
cold and wet weather the old cherries might have taken
a bit of a bashing too down there.
Speaker 3 (00:43):
Look, certainly the brain over the Christmas New Year period
was not helpful for some of our cherry growers. But
a slip side is that is that the season itself
seems to be running a couple of weeks late this
year because we had a cooler start to the spring,
and so we have a number of exported to our
gearing up for Chinese New Year, which is a little
bit later this year, starting around the seventeenth to Febory.
(01:06):
So there's a lot of expectation that the late season
actually could be to our grower's advantage because we're now
starting to heat up a little bit that that should
help things.
Speaker 2 (01:16):
It's a discovery of a male Queensland fruit fly in
Auckland last week.
Speaker 1 (01:21):
You know, it shows I guess that.
Speaker 2 (01:23):
We are vulnerable or are we onto it with the
early detection.
Speaker 3 (01:27):
Well, look, I think you know, there's a little bit
of truth to both of those things. Certainly New Zealand
is vulnerable, and I think that's in part because you know,
we're a small, isolated nation that doesn't have too many pists,
so every time something finds its way here we should
be concerned about that. But the flip side of that
is we do have a robust surveillance and monitoring program
and this fly was found in one of those routine
(01:50):
monitoring traps, so that shows that the system is working
from a detection perspective. And look, you know, we have
a high degree of confidence in the process that Empire
running around trying to eradicate this fruit fly but at
the same time, you know, if it were to take hold,
that could have you know, a substantial impact on the
quata culture sector generally.
Speaker 2 (02:11):
Okay, So let's look now the the India FDA announcement
before Christmas. Apples among the winners there, you know, take
us through the sort of the winds there.
Speaker 3 (02:25):
Yeah, a lot. The FDA with India does some really long,
good long term opportunities for the quarter culture sector. And
I think if you start with apples, as you alluded to,
you know, apples are going to receive a fifty percent
tariff production within a relatively large quota window, which is
positive for the apple sector. Kiwi fruit they too also
(02:46):
had a good outcome from those negotiations, which would indicate
that Kiwi fruit was able to gain duty free access
for a substantive, substantive quota more than four times the
average export volumes, and outside of that quota, k We
for it would get about a fifty percent reduction in tariff.
So for our two largest horticultural crops, that signals great
(03:08):
news for them and for the sector moving forward. And
I think one of the other exciting things is a
number of our much smaller crops though cherries, avocados, persmons,
blueberries would also all be looking to move to druty
free access over a ten year period, which for those
smaller Tier two crops thinking and signals a huge opportunity
(03:29):
for continued growth for them as well.
Speaker 2 (03:31):
Now, how are we looking in terms of the season
in general and bearing in mine. We've got this sort
of ten year road map and aiming at doubling horticultural
farm gate returns by twenty thirty five. What are the
sort of how we going and what are the varieties
for twenty twenty six.
Speaker 3 (03:47):
Yeah, Look, the season has started pretty well for a
number of our crops if we start with you know, vegetables.
Vegetable varieties are continuing to have pretty good supply throughout
the country, which in most part is is thanks to
a good growing and harvest conditions over the last month
or two. We're currently just starting to move into what
has peak onion seasons, especially in Pokikoe and warm grow
(04:11):
weather is pretty good for them at this time in
the year. Our Canterbury based vegetable growers have had a
pretty good run over the last two weeks, although there
are a small number who were quite significantly impacted by
that recent hail event as well, and so a bit
of a mixed bag for some of them. But look, domestically,
we've had a really solid start to the season for
(04:33):
put fruit, that hot sunny weather, particularly in Hawks Bays
contributing to good growth there. And they were also pretty
excited about that steady rain between Christmas and New Year's
because in Hawks Bay that finished most of the cherries
and we're looking for the rain for their apples and
so the next few weeks will be pretty important for them.
But look, I think if you look to the what
(04:54):
does next look like for this year? In late December,
we had MPI release their Sophi Report, What's projected or
projects QUT culture export revenue to rise to roughly nine
point two billion for the year ending thirty June. You know,
we continue to see strong positive outlook in the export space,
(05:14):
but are also wanting to make sure that that continues
to float through to the profitability behind the farm gate
for our rowism and that's where that RTRO of Horter
Culture Action Plan plays a really big part of that.
How do we make sure that all those settings are
right for that yep.
Speaker 2 (05:32):
Kate Scott hoot en Z's CEO Crystal Ball time now,
I guess, and a little carveat on this. I ban
the words green and shoots, which might be quite difficult
given the sector that you're in.
Speaker 1 (05:44):
But your predictions for twenty twenty six, oh look, I.
Speaker 3 (05:48):
Think it's going to be a fruitful twenty to twenty six.
There you go. So I think we're going to We're
going to see, you know, a bit of a strong
focus on a bunch of the reformats underway present. Obviously
Arima reform drops this pre Christmas. That will continue to
have a significant bearing on what what our growers can
(06:09):
and can't do within their land. But also, you know,
looking beyond that, how do we continue to make sure
that there is strong prices for our growers seeking to
sell their crops off shore, but how do we also
maintain a really robust domestic market Because what our growers do,
particularly our vegetable growers but also our domestically focused fruit
(06:31):
growers dealers, they help us to actually feed these islanders,
and that too is incredibly important.
Speaker 1 (06:36):
Absolutely it is. Tay Scott, thank you very much for
joining us. Much appreciate it.
Speaker 3 (06:40):
Well, I think having lost