| | HortNews |
| Single-desk Seller Essential Says Researcher |
PALMERSTON NORTH 8/2/2001 - Single-desk selling is the only option for the New Zealand apple industry attempting to get a premium product into an over-supplied market, says Massey University researcher Megan McKenna."New Zealand apples are still desired on international markets. They still have a premium value, but this is in an over-supplied commodity market", she said.
"My research suggests that, faced with the huge trend towards retail consolidation, the static demand for apples and the current over-supply, a co-ordinated, one brand, single-desk-seller policy is essential.
"And that's what Enza is." Dr McKenna has recently received international recognition for her research of New Zealand's competitive position in the global pipfruit industry. Her work is a combination of geography and economics, and she is assessing the strengths and weaknesses of this country's southern hemisphere competitors for the lucrative northern hemisphere apple markets.
The British-based Royal Geographical Society gave her one of just five Young Research Workers' Awards which, combined with her Foundation for Research, Science and Technology (FRST) funding, will allow here to produce a book this year on the southern hemisphere pipfruit industries.
Dr McKenna said New Zealand's "number one bargaining tool for anything from apples and oranges to honey and squash is our clean, green image".
"We have to consolidate behind that Brand New Zealand and have the controlled channelled marketing which Enza represents. And though it has made some questionable management decisions in the past and has some historic baggage, a single seller is the only logical option.". She questions why so many apple growers are against the "Auckland corporate raiders" investment in Enza.
"It's obvious they can only benefit from maximum returns going to growers and are supportive of the single-desk-selling concept." Dr McKenna said any study of an industry had to take into account involvement of people in decision-making and how that affected markets.
"There are regional tensions in the New Zealand industry between Hawke's Bay and Nelson for instance. That's not because of the air pressure; it's because of the people." And, as New Zealand has found to its cost, politics are also part of the deal, with the Australian situation demonstrating the power of national issues against upholding valid trade agreements. "The Australian situation is part of the politics of trade," Dr McKenna said.
"The Australian apple industry isn't as competitive or as well structured as New Zealand's and the Government has found it difficult to work under trade agreements; in this case CER.
"Their solution is to bring in non-tariff trade barriers, in this case fireblight." A possible answer to New Zealand's problems could be bringing the southern hemisphere nations together to sell into northern markets.
Dr McKenna said the area does have its own identity - the Southern Hemisphere Association of Fresh Fruit Exporters (SHAFFE).
"But every country wants its own foreign exchange earnings, its own vibrant national economy. And New Zealand has worked for a quality standard, excellence in research and ability to produce new varieties. Why should we pool that with other countries and let them get all the money?"