Kiwi Drives New Zealand Export Growth while Reaching New Records

Fresh Kiwifruit

New Zealand

Published Nov 22, 2021

New Zealand’s fresh fruit and vegetable exports have been in an increasing spiral year on year for the past six years, and 2021 seems to be a record volume year. Exports of fresh produce are estimated to surge to USD 3B and reach a record of 1.54 MMT in volume by the end of the year. The constant growth is entirely driven by the surge of kiwifruit exports, which have lifted New Zealand fruit export growth. Kiwi exports are estimated to close the year at 718 KMT and generate an export value of USD 1.92 B. If so, kiwi exports will represent 64% of the country’s total fresh fruit and vegetable export value and reach record export numbers.

More Kiwis Less Apples

While New Zealand has moderated its apple exports, kiwi has become the fresh produce export star of the country. According to a Fruit and Vegetables Facts report, New Zealand will increase its export value of fruits and vegetables by 11% this year to USD 3 B and reach 1.54 MMT in volume. While apple exports will close the year at 404 KMT, down from the previous 443 KMT in 2020, representing a three-year consecutive decrease.

The decrease in apple exports is mainly driven by a substantial fall in apple exports to Europe, which this year is estimated to be 70 KMT, 20% less from 2020. In addition, New Zealand’s apple industry is going through a market shift on its main destinations. Markets in South and East Asia have become relevant this year by taking 54% of New Zealand's total apple exports, while two years ago, it was less than 40%. China, Vietnam, Taiwan, and India are now major destinations in that region, while the UK, the US, and European countries used to be the main apple buyers.

Source: ITC Trade Map, Tridge

On the other hand, Kiwi saw a 16% growth in value in 2020 from the previous year and an 8.3% growth in volume despite Covid-related restrictions. New Zealand accounts for 41% of the global kiwi export share leading the kiwifruit export supply globally. In 2020, exports reached historic record figures with USD 1.7 B in value and 650 KMT volume. With this year’s estimates, kiwi not only will drive New Zealand’s fresh fruit and vegetable exports to the top but will also beat its previous export record.

More Yellow Kiwis to Europe

While apple exports have grown in volume in Asian markets while decreasing in Europe, kiwi exports have grown in both. In 2020, kiwi exports to the EU increased by 23% from the previous year and accounted for 26% of the total exports, while more than half of New Zealand's kiwi exports are directed to countries in South and East Asia. According to the report, exports to the EU will now represent 36% of the total sales by the end of the year, which means exports volume to this destination has substantially increased.

The growth in both markets is mainly due to the success of the yellow kiwi variety in Europe, which was traditionally destined for Asia markets, such as China and Japan. As a result, yellow kiwi now makes up almost 60% of the total kiwi exported, while in 2017 represented 45% of them. According to the report, yellow kiwi exports will amount to 420 KMT with 110 KMT of those going to Europe, a 22.5% increase from the 90 KMT sent last year. However, despite the yellow kiwi export rise, the EU still buys more green kiwi varieties, which are also expected to increase from the 140 KMT sent last year.

Source: ITC Trade Map, Tridge

Additionally, from increasing the volume to Europe, New Zealand kiwis have also strengthened their Asian markets. From 2007 to 2020, the significant growth was in the Chinese market, while exports to other countries have accelerated growth over the last five years. In 2020, exports to the US increased by 42%, while exports to Korea increased by 24%. China, Japan, and the EU will remain the top destinations by the end of the year, accounting for more than 80% of total sales.

Positive Outlook for Upcoming Years

The record volume trend could be a continuous yearly event that New Zealand kiwis could experience in the coming years due to the constant rising production. With most of their markets growing, exports could also benefit from the new UK-New Zealand trade deal agreement that has been announced for signing. The FTA will remove tariffs on goods going to the UK, including wine, honey, and kiwi fruits. Today, the UK imports USD 61 M on kiwis, mainly from European countries such as Italy and Belgium, which are for the most part re-exports from Chile or New Zealand. With the FTA in place, New Zealand will supply the UK market directly with Chile as the only competing producing country.

Sources: