Export prices set to remain elevated
Horticultural prices are set to remain elevated this year, reflecting the balance between demand in key export markets and an increase in supply.
"Returns are expected to be up 50% on last year," chief executive Michael Ahern says.
"This means an increase from $81 million to $125 million FoB. This forecasted result will re-assert onions position as the third largest fresh horticulture export item after kiwifruit and pipfruit."
For many years the onion industry has been New Zealand's largest fresh vegetable export earner but has held a lower profile compared to its high-flying fresh fruit export cousins.
"With these types of returns the onion industry is lifting its profile when it comes to capturing government agency attention and assisting policy decisions."
"NZ started exporting onions over 50 years ago and now has 45 markets worldwide. Approximately 85% of total production is exported and all of the major industry operators are 100% NZ owned. In the horticultural sector very few can match these statistics," Ahern says.
NZ is the number one supplier from the Southern Hemisphere to continental Europe. This region accounts for 48% of total NZ exports and sold through major retail chains. In recent years the industry has balanced this trade with Asia. In 2008 Asian markets accounted for 12% of total exports. In 2016 it's forecasted to reach 41%.
"The onion industry developed a strategic plan in 2013 which focussed on four key pillars of Productivity, Export Market Development, Quality Onions and Innovation," Ahern says.
"It's very pleasing to see strong signs that our strategic planning is starting to pay off. We are also a readily scalable industry provided we have appropriate access to markets."
