By-Product turns Gold for Apple Industry

Media statement September 20, 2011

By-Product turns Gold for Apple Industry

Once a by-product, process-grade apples are becoming liquid gold for hard hit New Zealand growers creating new jobs and investment in the industry.

ENZAFOODS will this week commission its new $4 million processing line at its Hastings site to produce premium added-value fruit products adding another 14 jobs to its team.

ENZAFOODS general manager Jon Marks said by pureeing and dicing apples, ENZAFOODS has created huge demand for premium value-added fruit products under the Freshfields brand that is delivering profitable returns to growers.

“Rather than ripping out trees, growers are signing “Grow for Process” deals that on a per hectare basis are returning profits for varieties that are returning losses in the export market.

“Not only is Grow for Process providing many orchardists with an attractive low, risk return, it is also a guaranteed income with payments made the week following fruit delivery in to the factory.” he said.

Grow for Process has growers achieving returns ranging from $8000 to $10,000 per hectare compared to export returns delivering losses, which is a major turnaround.

“By combining a “Grow for Process” contract with an export programme these apple growers are finally set to have money in their pockets and are finding a new level of confidence in the long-term future of their industry,” Mr Marks said.

Hastings grower Dave Jansen says this will be his second year where he has added “Grow for Process” apples to his cropping programme and kept trees in the ground.

“I’m still focused on exporting, but Grow for Process is giving me a guaranteed return, and more time to plan ahead.

“I’ve decided to wait, rather than pulling out the trees and having to outlay capital to re-plant another variety that will take years before it’s harvesting for export, or putting in an alternative vegetable crop like peas or maize.”

This year he has dedicated a full Braeburn block to process to help with his cashflow, and reduce the risk from exporting.

“Times have changed, you can’t just put apples in a box these days and hope for the best, to survive in this industry you need to get smarter and have options.

“Whether Grow for Process is a short or long-term solution, only time will tell.

“Just as farmers didn’t breed sheep for dags, orchardists never grew apples for processing, let alone having apples as part of an annual cropping programme, but I’m doing it and my trees are living longer,” Mr Jansen said.

Grow for Process benefits for Growers

• Lower input costs
• Reduced cash flow requirements during the season
• Fixed contracted price
• Prompt payment within seven days of fruit arriving at ENZAFOODS
• Less risk • Less stress
• No exchange rate exposure
• 100% “pack out” of sound fruit

ENZAFOODS will commission its new line with process apples from the coolstore through September and October.

The line will produce organic and conventional apple puree for baby food, apple sauce and other food ingredient uses.

Ahead of next season’s production it will be expanded to include a diced apple pouch pack line, which is used in the bakery, food service and industrial markets in Australasia and Asia.

The $4million investment will create 14 jobs this season which is likely to grow as more production comes on stream.

ENDS

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