The government will provide $2 million to fund a groundbreaking new pipfruit project spanning Hawkes Bay, Nelson and Otago and aimed at growing export fruit that has no detectable pesticide residues, Economic Development Minister Trevor Mallard announced today.

"Consumers around the world are increasingly demanding that fruit have no detectable chemical residues and New Zealand’s pipfruit industry can be a leader on this important issue of sustainability. The industry has previously pioneered the production of fruit with low environmental impacts and this project builds on that work," Trevor Mallard said.

The Apple Futures project is a partnership between the Hawkes Bay, Nelson and Otago regions, Pipfruit New Zealand Inc and government economic development agency New Zealand Trade and Enterprise. The government funding of $2 million over three years will be supplemented by $667,000 from the pipfruit industry. At the end of the project, Apple Futures will become the dominant part of Pipfruit New Zealand’s integrated fruit production programme.

The funding will be used to employ a national project manager and three technical staff to roll out a programme of refined orchard management techniques in Hawkes Bay, Nelson and Otago. These include more intensive plantings to make it easier to grow fruit that complies with international pest and disease regulations, wider use of biological controls and education about how to reduce pesticide use.

The project is expected to stop a decline in the industry’s exports and instead lead to a $152 million increase in the value of exports nationally after five years to $391 million.

"Apple Futures reflects the industry’s strategy to become a leading niche player by being smarter, faster and better than its competitors. It gives it a chance to enhance its premium position in world markets. Improved export performance is critical to the future prosperity of New Zealanders so it’s good to see the pipfruit industry striving to become more globally competitive during Export Year 2007.

"I hope this project will also show how collaboration between regions can benefit New Zealand as a whole - something the Labour-led government is encouraging regions to consider as part of an enhanced approach to regional economic development.

"Apple Future’s development has resulted in strong links between the industry and horticultural research and development. The techniques developed for pipfruit may one day be transferable to other horticultural crops also."

Apple Futures background information
Apple Futures will enhance collaboration within the pipfruit industry and halt the decline in export values for New Zealand apples. The project will create seasonal employment opportunities. The development of the programme has ensured the pipfruit industry’s links to horticultural research and development have strengthened. The techniques developed for pipfruit may also be transferable to other horticultural crops.

The pipfruit industry is economically important to the Hawkes Bay, Nelson and Otago. It generated about $367 million in exports in 2006, accounts for about one-fifth of gross domestic product from the country’s horticultural sector and almost a quarter of horticultural commodity exports by value.

However, the industry has been in decline in recent years and needs to transform its practices if it is to regain a sustainable, premium-based position in export markets.
Government support for the industry will help it stem declines in its exports returns and give it the impetus required to remain a viable export earner for New Zealand.

Hawkes Bay Incorporated is the regional economic development agency for Hawkes Bay and holds the contract to deliver this project.

It will achieve this by working in partnership with its equivalent agencies in the two other regions, Nelson Economic Development Agency, and Otago Forward.

Pipfruit New Zealand Incorporated is the representative organisation for the New Zealand pipfruit industry, providing technical, economic and marketing information resources to growers and representing them nationally and internationally to ensure they have a competitive advantage in the market.

Pipfruit New Zealand’s integrated fruit production programme began in 1996. It is a production-based programme that ensures New Zealand’s pipfruit production practices are sustainable and as safe as possible for the environment and human health.

New Zealand Trade and Enterprise (NZTE) is the government’s national economic development agency. It works to stimulate economic growth by helping to boost export earnings, strengthen regional economies, and deliver economic development assistance to industries and individual businesses.

The Apple Futures project is one of the last projects to receive Major Regional Initiative funding through the Regional Partnership Programme. Under a new regional economic development policy, the MRI component has been replaced by a contestable Enterprising Partnerships Fund. It is a large scale contestable funding tool, aimed at creating or exploiting regionally based collaborative partnerships and networks. There will be up to two funding rounds a year, delivered by the Ministry of Economic Development. NZTE now operates a Regional Strategy Fund to help regions develop and implement economic development strategies.