Seven fresh produce crops have been assessed in a market opportunity study for Northland Inc., the regional development agency. The crops include banana, pineapple, moringa, ginger, and turmeric.
Analytical firm Scarlatti completed the study, which identified 15 consumption forms of the crops and applied a qualitative framework with growers, processors, and marketers. Combined, the new crops would require between 480 and 790 hectares and could generate an aggregated gross profit between US$1.8 million and US$2.8 million annually.
"While modest at a regional scale, this does not preclude niche operators from succeeding commercially under favourable conditions," the report stated. The study highlighted that a segment of consumers places value on provenance, traceability, freshness, and quality, and that prospective growers would need to know where they can charge premiums over imported products produced in lower-cost countries.
Northland growers may need to access the larger Auckland, Waikato, and Bay of Plenty regions, where half of New Zealand's population resides. The report noted that diversification requires sufficient value throughout the supply chain, value-added processing at scale, and risk management for issues such as yield variability, labour, weather, and regulation.
The three perennial crops, banana, pineapple, and moringa, were assessed to require capital expenditure of US$24,000 to US$145,000 per hectare. Of these, only pineapple was projected to achieve the required gross profit and a 6% rate of return. Bananas and moringa were considered to have higher opportunity costs.
The two annual crops, ginger and turmeric, carried low opportunity costs, with ginger particularly low as it grows readily throughout Northland. Both crops are suited to small-scale production.
Accounting firm BDO noted that "it can take several years for new crop systems to build in maturity to achieve target yields and quality." With limited local expertise, prospective growers were advised to plan for several years of learning before reaching the steady commercial performance modelled in the study.
Bananas are already grown in Northland on about 100 hectares, with around 10 hectares of pineapples also under production.
The study was commissioned by the Tuputupu Grow Northland Initiative, launched in 2023. The full report, including detailed analysis and feasibility calculators, is available online from Northland Inc.
Source: Farmers Weekly