New mango and papaya plantings could deliver the Northland regional economy more than US$3 million annually, according to an economic study by accounting firm BDO for Northland Inc. A parallel report on seven other crops was prepared by the analytical firm Scarlatti for the Tuputupu Grow Northland Project.
BDO noted that nearly all mangoes consumed in New Zealand are imported from Australia, Mexico, and Peru, with import values reaching US$11.5 million in 2024. Papayas are imported from the Philippines and Fiji, worth US$2 million last year. While small numbers of local growers are supplying dried mango, papaya powders, and supplements, the establishment of a larger local industry faces challenges. These include high costs of new plants, protective orchard shelter, yield variability, and inconsistent fruit quality. Fruit losses of up to 20% are common, and B-grade fruit has limited sales outlets.
Domestic produce is more expensive than imports, reducing competitiveness in supermarkets and confining sales to premium or niche segments. BDO's modelling assumed a 20-hectare mango orchard with a yield of 7 tonnes per hectare, generating revenue of about US$390,000. For papaya, a similar 20-hectare planting was projected to produce 800 tonnes, with revenue of US$2.5 million and 13 new jobs.
"The higher yields, stronger processing opportunities, and consumer demand for papaya-based products all point toward papaya as the more viable commercial prospect," the report said. "While there may be a small niche consumer market willing to pay a premium for locally grown mangoes, the overall outlook for growers and processors is unlikely to be feasible at a broader consumer market level."
Tuputupu Grow Northland project lead Luke Beehre said papayas and bananas currently show the most promise due to orchard development of up to 250 hectares in the province, along with crop management and established market outlets. "These two already have momentum and some of the agronomy has been done," he said. For the other crops, Beehre noted that it remains too early for cluster development among new growers.
Tuputupu is developing a business case for a food manufacturing facility in Northland, likely at the Ngawha Business Hub, and has asked Plant and Food Research at the Bioeconomy Science Institute to study options, costs, and benefits of crop cover structures.
"The BDO and Scarlatti reports come from our vision to support landowners through their due diligence in new crop and market diversification," Beehre added. "These reports have a wealth of details and are independent views that intending growers can accept or reject."
Source: FarmersWeekly