Hort's FTA windfall
NZ onion growers are getting an extra $3 million this season for exports to the European Union, thanks to the early ratification of a free trade agreement (FTA).
“Amongst all the turmoil created by Covid and the weather, it’s great to be able to report that exports of New Zealand onions to Indonesia are underway, two months earlier than last year,” says Onions New Zealand chief executive James Kuperus.
“This is thanks to New Zealand government trade officials’ efforts to keep trade open and a decision by Indonesian officials to release quota early.”
He says that 78 tonnes of onions harvested earlier in January left for Indonesia last week.
“While this is small, it signals the season is underway early, and prices reflect the additional costs of growing and exporting during a pandemic.”
Kuperus says the growing season has been favourable for growers.
“There’s been adequate rainfall and the quality is very good. The drought in Auckland did not materialize. While water was short, there was frequent rain during the growing season.”
However, New Zealand growers planted approximately 6% fewer onions than in 2020.
Kuperus says this was due to the uncertainty created by Covid.
“However, yield is up so perhaps the season will be only about 3% down on last.”
Total onion exports are expected to be between 170,000 and 175,000 tonnes in 2021. New Zealand onions are exported to 45 countries. Last year, the industry was worth $145 million.
