Quake may aid apple growers

BY TIM CRONSHAW
Last updated 10:13 19/03/2010

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New Zealand pipfruit growers stand to gain from the major earthquake striking Chile, which shook apples off trees.

Growers did not want to be seen capitalising on the natural disaster, but Chile is a major apple producer in the southern hemisphere and the earthquake is sure to have an effect on fruit volumes.

Pipfruit New Zealand chairman Ian Palmer said less fruit from the earthquake should ease supply pressure in Europe.

"I think the Chilean earthquake will have an issue unfortunately for our fellow growers in Chile who have been hit hard. It's sad to see and unfortunately one person's demise is another's opportunity. The European market was a little over-supplied and this should allow it to correct."

Europe is coming out of the recession slowly, with the main exception of Germany, a strong market for New Zealand braeburn apples.

Britain has posted a record apple crop and a big promotion campaign is hoped to clear its produce, while the United States market is looking good as long as currencies hold. Growers remain concerned by the strong dollar against the British sterling.

Chile's main market is Europe and the Middle East and a reduced crop will mean it is unlikely to push into Asia as planned.

Palmer said it would be difficult for Chilean growers to have staff focusing on work when their homes had been flattened in the worst areas.

"There is a lot of fruit on the ground, shaken off the trees and there is a reasonable infrastructure problem and access to ports will be a critical problem. No one wants to see our fellow growers in other countries affected by natural disasters and it reminds us that Nelson and Hawkes Bay are on major fault lines."

Other fruit hanging on the trees was bruised by the shaking. Chilean reports on earthquake damage vary with some New Zealand-owned fruit business getting off lightly.

New Zealand has joint ventures in the South American nation for apples and kiwifruit and ENZA-owned varieties are grown there including jazz in southern orchards.

The epicentre of the earthquake was towards the bottom of the apple growing region, however there is a lot of fruit grown from this area to the Chilean capital of Santiago.

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- © Fairfax NZ News

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