Rockit chief executive Mark O’Donnell says the apple firm was heading for a bumper year.
The Hawke’s Bay firm, which sells its tiny apples in about 30 countries, was expecting to be packing about 40,000 bins this season, O’Donnell said.
New trees were coming on. This was meant to be Rockit’s largest crop yet.
But damage wrought by Cyclone Gabrielle O’Donnell estimates at between 10,000 and 20,000 bins of apples. It will still be a larger crop than last year, but not what had been hoped for, he said.
This small-than-expected crop means the company will pull back on capital projects. Less fruit means less need for investment in the packhouse, for example.
O’Donnell was out surveying orchards on Thursday. He said the scale of the damage in Hawke’s Bay wasn’t really understood outside of the region.
The Rockit harvest started the Friday before Cyclone Gabrielle, and it will continue through until April.
O’Donnell said the packhouse was back operating, and Rockit has fruit to pick and ship.
It has a lot of fruit around Havelock North and Hastings, as well as operations in the US, Europe and Asia.
O’Donnell said its 200 full time staff were currently part of a booming operation, with about 200 temporary workers doing two shifts in the packhouse, and another 500 in the orchard when picking was at its peak.
A boost in seasonal worker numbers has helped to fill its roles, and backpackers are back, he said.
But while Rockit has fruit and work to do, O’Donnell is worried about other growers who have been wiped out.
He said there is a need for another wage subsidy for horticulture workers, and struggling firms need financial support and practical support, such as to clear silt from their land.
The Government has announced $25 million in grants for farmers and growers, including grants of $2,000 per hectare up to a maximum of $40,000 to remove silt from trees and vines.
Prime Minister Chris Hipkins has said he won't rule out a wage subsidy.
Rockit is one of many counting the cost of Gabrielle.
Listed firms were totalling the damage on the NZX on Thursday morning; Comvita said it would likely write-off its Hawke's Bay facility. Kiwifruit firm Seeka said it was assessing its Hawke's Bay crops.
Horticulture is a large contributor to the region, accounting for about 10% of Hawke’s Bay’s gross domestic product.
Westpac Bank agri economist Nathan Penny said the impact on horticulture from Cyclone Gabrielle "is big".
He said Hawke’s Bay is responsible for about 2.8% of New Zealand's gross domestic product, but roughly two-thirds of New Zealand’s apple production. The timing of the storm comes bang in apple season, which means the apple crop has been hit particularly hard.
“We don’t have a number but we expect a massive fall in the crop. We have heard from growers who are close to writing off the whole lot. One whole season’s worth may be gone for some growers.”
He said nectarines and peaches would be less affected as they were a summer, earlier crop fruit.
Kiwifruit, grapes and avocados would also be hit too.
Penny said the livestock industry will be hampered by damaged infrastructure and problems with supplying water to stock because of the flooding. Milestones could also be missed in raising animals which might mean additional spending on drenches and animal treatments.
In positive news for the region, the Affco freezing works at Wairoa will be open next week, he said.
And O’Donnell said despite the setbacks, Rockit is charging ahead.
It has three of its biggest customers coming from Asia next week.
“We’ve got our global sales team coming from the US, Europe, China, Vietnam and the Middle East to be here as well. It’s important to get the message out that there is so much good quality still to come out of Hawke’s Bay, and what an amazing fruit bowl this region is."
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