DISCUSSION PAPER FOR N.Z.T.C.A.EXECUTVE
NOTE: Commercialisation of Tree Crops as part of the Horticulture Industry - not commercialisation
of the New Zealand Tree Crops Association.
How many N.Z.T.C.A.members are intending to become commercial growers?
What is a commercial grower? At one end of the scale we have someone producing more than he can utilize for himself and sells any surplus. Then we have some-one with an acre or two grown as a hobby with the intention of producing a side-line or retirement supplementary income. Then we have the small orchardist, often at a subsistence level, but prepared to accept this, for, whet to him, are the benefits of an alternative life style living on the land. This category of grower grows and sells to survive. Finally, we have the large-scale grower, often on a syndicated basis, and looking primarily to export markets.
Is there a common denominator in all these groups sufficient to form a commercial organisation?
New Zealand has a small population and a rather low, by international standards, consumption of nuts. It is probable that existing plantings of Macadamia, Chestnuts, Hazels and Walnuts by the end of 1981, in production, will be sufficient in quantity to numerically replace our existing imports of those nuts. Future plantings, to ensure successful sale of the crop will have to rely on promotion to extend New Zealand consumption, and development and exploitation of overseas markets. Horticultural experience in New Zealand has shown (e.g. Feijoas, some citrus, and some berryfruit) that some growers will suffer if they are not growing for a planned market, either as fresh or processed products. Simply growing a crop and just hoping for a market to come can be a quick route to bankruptcy. Government through H.E.D.C., has stressed the need for co-ordination in the Horticulture Industry. Government has made it quite clear that it will not support a proliferation of small self-interest grower groups. For Tree Croppers there would thus appear, in the long term, to be three alternatives.
1. A Tree Croppers Federation of Tree Crop Grower Groups covering nuts. There is a possibility that Tree Croppers Federation could also cover new Fruits although this could well be in competition to Fruit Growers Federation.
2. Fruit Growers Federation to cover Tree Crop Growers Groups.
3. Plan nothing - and end up with chaos.
I would envisage the formation of such groups as Waikato Chestnut Growers Group, Gisborne Chestnut Growers Group, Northland Macadamia Growers Group, Nelson Almond Growers Group, Canterbury Walnut Growers Group, Auckland Pepino Growers Group, Bay of Plenty Feijoas Group etc.etc.
Why is Federation for such groups necessary?
To plan and organise on a National level. To investigate and develop markets in New Zealand and overseas. Marketing Co-ordination - planning for the right quantities of the right quality of the right product ending up in the right place at the right time.
Quality standards and phyto-sanitary standards are of particular importance when dealing with the Japanese Market, which could be the major customer for a number of our products.
Arranging liason and co-ordination between growers, grower groups, nurserymen, advisory cervices, researchers, cool-store and packers, processors, transporters, promoters, marketers and exporters.
Organisation costs money - who's going to pay for it? My personal impression from our discussions with Westbrook Haines was that Government would not foot the bill at all unless for an organisation that could and would successfully act on behalf of the entire Horticulture Industry - this appears beyond the aspirations and resources of Tree Croppers.
Realistically then, the grower must pay. How, when and to whom? Growers or intending growers will have to decide for themselves within the next 3 years what system they need, want, and are likely to get if they don't get off their back-sides pretty quickly. What they actually get will depend largely on their thinking, planning, courage and initiative.
We have the opportunity now to get ourselves organised before we start commercial production - we can plan from the very beginning.
Grower groups will inevitably form over the next year or so. Their future association with N.Z.T.C.A. depends to a considerable degree on whether N.Z.T.C.A. assists and encourages their formation now or expects them to develop quite independently and without any guidance.
What is left of N.Z.T.C.A. if all intending commercial growers leave?
I think we should try and envisage the relationship between N.Z.T.C.A. and future grower organisations. I would hope that there will always be close liason; particularly in matters of information, education, local promotion, research and trials. I cannot see marketing as a role of N.Z.T.C.A.
Will our Journal be big enough, even if published, say, monthly, to cover all the interests (except marketing?) of tree crop grower groups? Why not? There is no existing alternative publication at present as a competitor. I believe dialogue via the Journal between commercial growers and other tree croppers will be to the benefit of both groups. The hobbyist will be more inclined to experiment and the commercial growers will have information to assist the home orchardist.
I would note that existing databank linkup of N.Z.T.C.A. Treasury could now also cover the Treasury side of any Tree Crop Grower Groups that are established. N.Z.T.C.A. National Secretary also acting as Secretariat for grower groups could mean a full-time Tree Crops Secretariat to benefit of both N.Z.T.C.A. and grower groups, none of whom could afford, in the early stages, a full time paid secretary, and will probably have difficulties in obtaining a suitable secretary on a voluntary basis.
How do we start?
If there is a strong commercial grower interest within an N.Z.T.C.A. branch or regional area; call a meeting of growers interested in forming a growers group. Depending on numbers, an informal Tree Crop Growers Group could be formed, or individual Crop grower groups, e.g. Canterbury Walnut Growers Group. These Groups would probably meet periodically, probably at each other's orchards, as informal discussion groups - meetings could be advertised in N.Z.T.C.A. Branch newsletters. As crops start in production these groups would probably develop into formal groups looking at co-operative efforts. In time these groups could develop into registered co-operatives or form a joint marketing company. Once these groups are established as commercial identities,consideration should be given to Federation.
I consider that the above will be the natural progression from an N.Z.T.C.A Branch interest group into a growers group, commercially independent of N.Z.T.C.A.
Can we plan such development now? It appears to me that we have two choices:
1. Just grow - like "Topsy" or
2. Planned Development. The first alternative may appear to allow greater freedom to the grower but probably not to his long-term benefit. The second alternative will always be looking ahead, starting with market research, identifying cultivars suited to market requirements etc.etc.
I.Howat
Vice-President
N.Z.T.C.A.
TREE CROPS CO-ORDINATOR
DISCUSSION PAPER FOR N.Z.T.C.A. EXECUTIVE
I can add little to our President's comprehensive remarks. Following discussion with Government Officers I was left with the opinion that Government looked upon the promised Tree Crop Co-Ordinator Grant as an investment towards export markets for Tree Crops. The grant would not be used to provide a National Secretary or National Tree Registrar for N.Z.T.C.A. The Grant is for Tree Crops as an export industry - not for the New Zealand Tree Crops Association as an Association of people interested in trees.
As suggested by M.A.F. Officers; I can only recommend that N.Z.T.C.A. reframe its request to the Minister of Agriculture and Fisheries for a Tree Crops Co-ordinator in the following terms:
An annual grant to be used initially to assist on Market Audit for Chestnut and Macadamia and subsequently on processing research for those crops.
Such Audit and research to be extended to such other crops as N.Z.T.C.A. may from time to time recommend as having export potential.
I. Howat
Vice-President
N.Z.T.C.A.