Hawke’s Bay Fruitgrowers’ Association
Centennial 1899-1999
Orchard ‘lifestyle occupation’ now more complex
With a lifetime in the fruit and produce industry behind him. KEN HARVEY believes the industry still has many challenges. Mr Harvey, orchardist, retailer and now manager of Fruitpackers (Hawke’s Bay), looks at the past, compares it with the present and looks at what might happen in the future.
Orcharding has always been regarded as a lifestyle and enjoyable employment.
Working in the country, out in the sun, the birds, the bees, the trees and the green grass. What could be better?
Work four days a week, golf on Fridays, nothing to do in the winter when the harvest is over. Get an orchard and enjoy life.
That is how it appeared to the outsider and to some extent 30 years ago it was like that.
New Zealand apples were sought after, there was a shortage on world markets and there were no controlled atmosphere coolstores. The markets were actually waiting for our apples to arrive.
The varieties were cox orange pippin, golden delicious, red delicious, granny smith and dougherty. Pack them up, send them out and play golf.
The total crop was three million cartons and everything that could be produced, picked and packed could be sold.
The Apple and Pear Board was “mother” to the growers. They could get up in the morning and think “what will I do today? Pick for export, local market or processing.” All for the APB and all at good prices.
Even processing fruit had gone as high as 20 cents a kilogram. Now it is hard to get that for local market fruit.
Everything was going well. What should everyone do? Easy, expand, buy more land and plant more trees.
The Apple and Pear Board was obliged to, and took everything, so orcharding was a licence to print money. There was a steady rate of expansion, good orchard land became sought after, blocks needed to be 20 acres not 10, new varieties became available and the old disappeared.
The crop started going up from three million to four, five, eight 10, then to 12 and 14 with projections that it would hit 20. The industry was big, important and blooming.
During these years the industry had many long-serving and well-known families who had worked hard to develop the Apple and Pear Board. By their efforts and levies they had built up a lot of the assets. Their children were to become the next generation of growers.
The corporates were quick to catch on to the new licence to print money. Apples grew on trees and the board had to take them.
The APB was obliged to take everything so orcharding was a licence for money
Ken Harvey
FRUITPACKERS’ MANAGER
They were not interested in lifestyle, golf, trees or birds, just the money.
They came into the industry as old varieties were going out. They planted new varieties and were against cross-subsidisation of grower returns for varieties with less returns but they wanted to use all the assets that had been provided by the older long-term growers. There was a period of levies and challenges as the money people entered the industry.
This industry is very long term. As most of the corporate orchards reached a profitable stage changes were taking place – world markets were being supplied by other countries and today, if they sold their orchards, they would be lucky to get back bare land price. Profits, if any, were very thin.
The industry has been full of characters and colourful people as well as stooges and dour personalities. To get unity with such different points of view is an enormous task but some people have persisted and stayed involved for many years, giving great service.
Where are we now? Today it is hard-nosed commercial reality. No “mother” looking after everyone, local market opportunities not always available and returns can be poor.
Process grade fruit brings between two and six cents a kilogram. An orchard with 50 percent debt can require $14 a carton export just to break even.
Last year’s returns were under $15 a carton. This has meant financial hardship for many growers.
The industry is now very complex. Fruit is packed in three colour bands – low, Enza grade and high – and three ESPs (Enza Submission Profiles), which means fruit is submitted on the basis of maturity and four markets.
Fruit can only be packed according to market, grade or colour. If you consider the combination of these with 10 count sizes (only one size per pallet), a packhouse can have up to 70 segregation types on any one day.
The grower is now faced with low returns, the value of his property has reduced by nearly 30 percent in most cases and some growers are struggling for equity, So ask any grower today if they have a lifestyle occupation and play golf on Fridays and the answer will be sharp and vocal.
This industry revolves around hard work. Crooks do not like working hard so the benefits are that the people you associate and work with are good people.
Photo caption – Ken Harvey, orchardist, retailer and now manager of Fruitpackers (Hawke’s Bay) has seen a change in the fruit industry from a relaxed lifestyle occupation to a complex industry.
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100 H.B.F.A. YEARS
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Congratulate the Hawke’s Bay Fruitgrowers Association on their centenary.
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