World Conference on Horticultural Research - 17-20 June 1998 in Rome, Italy
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KIWIFRUIT: A NEW ZEALAND CASE STUDY

Nicky Seager
The New Zealand Society for Horticultural ScieThe New Zealand Society for Horticultural Science
PO Box 19 560
Christchurch
New Zealand


Abstract

The needs and expectations of the horticultural industry are discussed using one crop, kiwifruit as an example from New Zealand. A brief history of the development of the cultivar 'Hayward' is given and the changes that have occurred. Examination of the future needs and expectations of the kiwifruit industry in New Zealand uses a selection of A. chinensis. The themes discussed in this section include the role of research in the areas of plant breeding, prediction, pests and people and some key influencing factors.


1. The past

1.1 The rise of the kiwifruit industry

The kiwifruit (Actinidia deliciosa (A. Chev.) C.F. Liang et A. R. Ferguson var. deliciosa cv. 'Hayward') must be one of the most remarkable new crops of the 20th century. The fruit has risen from being virtually unknown outside of China at the beginning of this century to being a commonly available fruit in supermarkets throughout the world less than 100 years later.

To set the scene, I will give a brief history of kiwifruit in New Zealand (NZ). The first kiwifruit seeds were brought from China to New Zealand in 1904 and given to an enthusiastic plantsperson (Ferguson and Bollard, 1990). These seed gave rise to all theantsperson (Ferguson and Bollard, 1990). These seed gave rise to all the important kiwifruit cultivars developed in New Zealand and grown both here and elsewhere in the world. There may have been several other introductions of plant material, but these were of no importance in the development of the crop. The first commercial orchard was producing good crops of fruit in the early 1930s which were sold on the domestic market. In 1952 the first export shipment of fruit went to the United Kingdom and by 1976 the exported crop exceeded local consumption for the first time. The development of markets in Europe, Japan and the USA was encouraged by successful marketing strategies of NZ exporters. In turn, this success encouraged orchardists to plant more and more kiwifruit. What part did research play?

While it is difficult to determine the benefits of research in financial terms, there would be few people who could deny that research has assisted the development of the kiwifruit industry from its humble beginnings to the successful worldwide industry it is today. The early kiwifruit growers recognised the value of research and provided a close and valuable partnership with scientists. Research has taken place on, for example, orchard and vine management, flower and fruit physiology, pests and diseases, postharvest storage, transport of fruit, sensory evaluation and fruit processing.


1.2 Changes in the kiwifruit industry

FoP> 1.2 Changes in the kiwifruit industry

For some years, kiwifruit were the pacesetter in the development of horticulture in NZ (Bollard, 1996). From 1965 the area planted in kiwifruit grew rapidly and the value of exports continued to rise until 1992 when returns to growers were reduced owing to the oversupply of fruit in the international markets. The reason for the reduced export returns was largely connected with the increasing level of world production and from severe competition for NZ from Chile, Italy and California. In addition, there has been a changing in attitude to kiwifruit in many countries. Kiwifruit was once regarded as a rare exotic seasonal crop (meriting high prices) but has now become a year-round mainstream fruit. In NZ, this resulted in a crisis in 1992 and a decision by the Kiwifruit Marketing Board to tighten grade standards and fund a small vine removal scheme. The vines removed were mainly from poor areas of low production, however production subsequently continued to rise as average yields per canopy hectare increased. The changes in the New Zealand kiwifruit industry are clearly shown in Table 1.

Table 1. The extent of kiwifruit plantings, number of growers and number of trays of fruit submitted (Bollard, 1996).

1985
1991
1995
1995
Area planted (ha)
14,891
15,744
10,161
No. of growers
4,126
2,335
No. of trays fruit submitted (millions)
23.3
71.1
55.8

The kiwifruit industry is now stable and profitable and it should be remembered that kiwifruit is still a significant crop for NZ. The production value of kiwifruit (fresh export, FOB), in the year to 30 June 1996, was 406.9 NZ$M, this was 41% of the production value (fresh export, FOB) of all horticultural crops produced, second only to pipfruit (54%) (Anon., 1997).


2. The future

Kiwifruit accounts for less than 1% of the world's fresh fruit consumption and it is widely felt that this level will increase steadily as familiarity with the fruit increases (Bollard, 1996). What are the opportunities for the kiwifruit industry in the future (Anon., 1997)? One option is to sell more fruit of the existing cultivar, by: extending the selling season, communicating the nutritional benefits, developing processing methodology, reducing pal benefits, developing processing methodology, reducing postharvest losses and developing new niche markets and product options such as organic fruit. An alternative option, but not mutually exclusive, is to develop new cultivars.

However, it is development of new commercial cultivars that is probably the key to the successful future of the kiwifruit industry in NZ. There is a great diversity in the Actinidia species and a wide range of germplasm has been collected and is now grown in NZ. A cultivar soon to be released on the world market is a yellow-fleshed, sweeter fruit, a selection of A. chinensis. These fruit are a slightly different shape from the current cultivar 'Hayward', but have the characteristic green/brown skin although it is hairless. The remainder of this report will focus on the needs and expectations of the horticultural industry for research on a selection of A. chinensis. It should be remembered that the issues faced within the kiwifruit industry are just as applicable to other horticultural crops.


2.1 The 4 P's

I have decided to examine the needs and expectations of the horticultural industry for research by looking at four areas - the 4 P's.

How does the kiwifruit industry in NZ (Zespri International Ltd., a 100% owned marketing subsidiary of Kiwifr International Ltd., a 100% owned marketing subsidiary of Kiwifruit New Zealand) packhouses, growers roll out a new cultivar? What are the issues involved? What part does research play?


2.1.1 Plant breeding

Breeding of a woody species is not a quick and easy task and neither is bringing such a product into commercial production. There will always be a lag period between marketer acceptance of a new selection and full production within the industry, perhaps about 10 years. It has taken many years to develop a selection of A. chinensis to the point of commercial release. However, at what point is a selection ready for commercial release? There may well be conflict between the marketer who has at least partially funded the work, growers who expect greater financial returns from a new crop and researchers who are hesitant at releasing a new selection until they are satisfied there has been enough testing. What are the consequences to the industry in releasing a selection that is a flop? In essence, this is management of risk, but probably one that growers are prepared to gamble on as the rewards for things going well far exceed returns from the conventional crop.

There needs to be good communication between the producer board, which has the marketing portfolio for kiwifruit, and the researchers. The marketing requirements of a new kiwifruit should be incorporated into thements of a new kiwifruit should be incorporated into the research, for example, the Japanese like sweeter fruit than Europeans. There are other aspects that may come from consumer surveys that will help to quantify the type of fruit that will be suitable, such as: fruit size, shape, colour, taste. The consumer is becoming increasingly powerful in making demands on the type of fruit, and other produce, that they prefer. In this type of environment the consumer's concerns over genetically modified fruit (by molecular biology) become a reality when they choose not to buy the product. Currently there is molecular research on kiwifruit, but it has not yet reached the advanced stage of other crops like tomatoes, where genetically modified fruit is available to the consumer. Will molecular biology remain as a valuable research tool or be incorporated into food crops? Time will tell! Consumer education must play a vital role.

The combination of plant breeding and marketing also brings into play the nutritional value of kiwifruit as a food source. In NZ, as in many other countries, the health department is pushing a '5+ a day' motto to encourage people to eat at least five servings of fruit or vegetables a day. Not only is 'Hayward' rich in fibre, antioxidants and other nutrients, but it is exceptionally high in Vitamin C (higher than oranges) and some Actinidia are higher in Vitamin C than 'Hayward'. While a popular trend encourages peoplard'. While a popular trend encourages people to take vitamin supplements in the form of pills, will they shortly be encouraged to eat a healthy fruit instead? Again, consumer education is critical. What other nutritional 'goodies' are lurking as a currently untapped resource in the other species? Are there nutritional 'baddies' there too? Is there a potential niche market?


2.1.2 Prediction

In order to be able to plan and manage industry needs, sufficient knowledge about the crop is necessary to predict how it is likely to behave in different situations. Prediction models are another example of liaison between the horticultural industry and researchers. What type of models do the industry require and what can researchers offer? Prediction models can be tailored to almost any industry problem such as predicting the time of harvest, rate of fruit softening, incidence of disease, by encompassing a multitude of scientific disciplines, for example, plant physiology, postharvest, soil science, statistics, mathematics and environmental effects.

Let us use an example: 'development of a model to predict time of harvest in a selection of A. chinensis'. While this sounds like a simple phrase, just think of all the research that fits in behind! A. chinensis is a different species to the currently grown 'Hayward', and although the two are likely to behave simiHayward', and although the two are likely to behave similarly (compared to apples or oranges) there are also some relatively big differences. First of all, we need to define fruit maturity, this requires examination of the complex changes occurring in fruit while they are on the vine and during subsequent postharvest storage. What is a representative sample of fruit to take for maturity assessments? Therein lies further research and another potential predictive model. What are the effects of growing region, pruning and management strategies on fruit maturation. Further research! At what stage can the development of the predictive model for fruit maturity commence? In what form does the industry want the model? How long are the industry prepared to wait?

The kiwifruit marketer (Zespri International Ltd) like many others, is under continuous pressure to perform. The pressure comes from growers wanting good returns from their fruit by the marketer being successful in selling the fruit in the international market place. Currently, the marketer is a 'single desk seller' so there is always a potential threat from unhappy growers to undermine the selling monopoly. How does this affect research?

I believe there has been a change within the marketer as to what they now require from research. It is expected to take about 10 years for a selection of A. chinensis to come into full production from time of planting, so the industry wiuction from time of planting, so the industry will need answers to their many questions before then. Hence, the research required now needs to be more focused and the expectation is that the written reports will contain usable information that is of direct and immediate benefit to the industry. Scientists are renowned for wanting to dot every 'i' and cross every 't', perhaps that is not what the industry wants. Maybe it is the researchers who need to change their attitude. There is now pressure on researchers to produce the required results in a shorter time frame than they have been used to. Will this attitude result in poorer quality work? Does it matter? If the kiwifruit industry is taking a risk in launching a new cultivar then maybe the researchers have to take a risk in making their recommendations.


2.1.3 Pests

Pests and diseases can affect the kiwifruit crop in three ways. Firstly, by directly damaging or infesting the crop and rendering it unsaleable, secondly by passenger pests contravening quarantine regulations and thirdly due to consumer perceptions of the possible adverse side-effects of the pesticides and fungicides used to protect the crop on consumer health and the environment.

Kiwifruit growers used to rely on a calendar schedule of broad spectrum insecticides for pest control. In 1991/92 the kiwifruit industry began to adopt an Integrated Pest Manaifruit industry began to adopt an Integrated Pest Management system called KiwiGreen which enabled a substantial reduction in pesticide use and the production of residue free crops. This was achieved by the use of monitoring to target spray applications and the introduction of soft pesticides. Growers welcomed this change to such an extent that by 1996/97 season, the whole kiwifruit crop was grown under the KiwiGreen system. Why the change? The change has come about mainly as a result of consumer pressure on overseas supermarkets to deliver 'safe' food and in turn the supermarkets put increasing pressure on horticultural industries to deliver these 'safe' foods. Supermarket chains in Europe, Japan and USA have enormous buying power and coupled with that is the strength to demand the type of product they want from the relevant industry. If the NZ kiwifruit industry cannot deliver the specified product to the supermarket buyer then the sale is lost. That is big money lost to the NZ industry.

However, is the current KiwiGreen scheme the final version or will the requirements change still further? What is the potential for producing a large proportion of the national crop organically? The KiwiGreen system required a lot of research and this will continue as the system is improved still further and pest control becomes more integrated. As the consumers become more aware and perhaps more emotive on issues of sustainably produced food then e on issues of sustainably produced food then it is highly likely that the kiwifruit grown under the present KiwiGreen system may not be acceptable in a few years time and I think the kiwifruit industry is aware of the moving target. Again, there needs to be good communication between the researchers, kiwifruit industry and the end markets. This may be an opportunity for researchers to take the lead and show the industry what could be achievable.

A continuation of this theme leads onto the environmental registration of companies. In NZ the environmental standards are the ISO 14,000 series (International Standards Organisation). Environmental registration of a company involves every aspect of the company and not only the environmental impacts of, in our example, growing fruit. In the future, it is quite possible that supermarket buyers may choose an environmentally registered company in preference to a non-registered company. The New Zealand kiwifruit industry has already begun initiatives to develop an Environmental Management System. However, research institutions, as partners with industry, also need to practise what they preach. Speaking from my experience with HortResearch and involvement with their Sustainability Policy Team, we felt that in order to contract research with companies over issues of sustainability, then we should be an environmentally registered company. In order to investigate and facilitate environmental re investigate and facilitate environmental registration, HortResearch employed an Environmental Manager in mid 1997.


2.1.4 People

People are the most valuable resource in the horticultural industry. People are involved at many different levels in the industry and so the needs and requirements for each sector will obviously be different.

New Zealand is probably unusual among developed nations as there has been a tradition of growers having very little formal academic training and university courses were not perceived as necessarily being appropriate for growers. However, this has been changing over the last 10 years or so as growers children have attended university and then returned to work on the property. Most growers are now computer literate and this allows for the development of computer based management software as available in other horticultural enterprises. As packhouses become more sophisticated and technologically advanced there needs to be a greater understanding of the competencies required. Packhouse operators will also require competent trained staff for picking and packing and the training requirements will change with the introduction of new kiwifruit selections. The horticultural industry will also require high competency standards from researchers, who are generally highly trained people. Researcher training has often been in related disciplinesearcher training has often been in related disciplines such as botany or biochemistry and not horticulture. Are the courses relevant to research? I think there has been a beneficial change in the last few years which will take time to flow through into the research institutions.

Does the horticultural industry have a high enough profile to attract the top students? Certainly in NZ, professions such as accountancy, medicine, law and engineering have the 'prestige' image and the pay packets to go alongside where horticulture does not appear to stand a chance. The reasons for the poor public perception of horticulture as a profession are varied and complex, although some would argue that there is a good perception of science and uptake of technology in New Zealand. In this country, education at the tertiary level is becoming more expensive and many students are in debt by the end of their degree, as the funding is largely 'user pays' not 'taxpayer pays', after recent economic reforms. What are the incentives to train further at the postgraduate level in horticulture only to incur further debt, be uncertain about future employment and to know that the salary levels are lower than in other industries.

So, is it possible to increase the profile of the horticultural industry and to encourage and educate the best people at every level? I would hope so, without this the industry would eventually die. Increasing profit is a key fact eventually die. Increasing profit is a key factor in solving some of the people issues. There probably needs to be a push to increase the profile at all levels, from growers, packhouses, marketers, researchers and the media who tend to accentuate the negative. Implementation of a nationally recognised professional development programme tailored for horticultural professionals may well help, as will positive reports in newspapers and general education of the public.


3. Conclusion

The key to the success of horticultural research in the future will be flexibility and communication. If the kiwifruit industry is to remain competitive in the world market and the marketer makes good returns for growers, then they too need to be adaptable and to communicate within all facets of the industry. For researchers to effectively assist the horticultural industry to achieve its objectives then there needs to be regular two way dialogue with Zespri coupled with an understanding of the concerns of the industry. Researchers in the future need to be flexible and dynamic, to move quickly with changes within the industry and to tailor their research to industry requirements.

Within kiwifruit research in NZ, I believe that effective relationships have been developed between researchers and Kiwifruit New Zealand, and that the researchers are beginning to understand the philosophy of the new research culture widerstand the philosophy of the new research culture with the research demands of a new species. This should bode well for a good future for the horticultural industry and research on kiwifruit in NZ with quick uptake and application of research findings.


Acknowledgements

Peter Berry, Industry Liaison Officer, Kiwifruit New Zealand.

Roger Buchanan, Business Manager, HortResearch.

Malcolm Cartwright, Board Member, Kiwifruit New Zealand and Chairperson, New Zealand Kiwifruit Growers Incorporated.

Ross Ferguson, Scientist, Plant Breeding Group, HortResearch.

Alistair Hall, Scientist, Environment and Risk Management Group, HortResearch.

Craig Jensen, Personnel Manager, HortResearch.

Bob Martin, Market Access Manager, Zespri International Ltd.

Andrew Tomkins, Scientist, Plant Protection Group, HortResearch.

Ian Warrington, Chief Executive Officer, HortResearch.


References

Anon. 1997. Fruit research in New Zealand 1996. New Zealand Fruitgrowers Federation. pp. 48.

Bollard, E.G. 1996. Further prospects for horticulture: The continuing importance of research. New Zealand Fruitgrowers Charitable Trust. pp. 94.

Ferguson, A.R. and Bollard, E.G. 1990. Domestication of the kiwifruit. p165-246. In: Kiwifruit: Science and Management. Warrington, I.J. and Weston, G.C. (Eds), New Zealand Society for Horticunagement. Warrington, I.J. and Weston, G.C. (Eds), New Zealand Society for Horticultural Science, Wellington.


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