Motueka hail storm damage expected to top $100 million

Thursday, 14 January 2021

As Motueka orchardists continue to count the cost of the freak Boxing Day hail storm, local leaders are warning the economic ripple-effects will be significant and long-lasting.

Motueka Fruit Growers Association president Richard Clarkson said while there was still more work needed to fully assess the situation, there was likely a cost of more than $100 million through loss of income and damage.

Apples damaged in the Boxing Day hail storm in the Motueka area were hit so many times they resembled golf balls.

Clarkson said there was huge variation from orchard to orchard, with some farmers losing 100 per cent of their crop, where others survived relatively unscathed.

He said the length, intensity and geographic spread of the hail – lasting more than half an hour in areas such as Motueka, Riwaka, Tasman and Lower Moutere – was unprecedented.

The Boxing Day hail storm was so heavy that hail remained on the ground in Motueka more than 24 hours later.

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“It’s not like all our apples have two or three dents in them – some of them look like golf balls or have open wounds.”

The loss of fruit meant some orchardists would not open their pack houses or run their cool stores this year.

MP for West Coast-Tasman Damien O’Connor said growers were preparing for a long slow recovery.

“Those hit 100 per cent will be without income until March next year at the earliest.”

MP for West Coast-Tasman and Minister of Agriculture Damien O’Connor said while it was still hard to put a dollar figure on the economic cost, there were some estimates regarding the amount of crops affected.

O'Connor said at present it was predicted that 300ha of the region's 800ha apple crop would suffer a complete loss – with the other 500ha taking an average loss of about 30 per cent.

For kiwifruit the loss was estimated at 2 million trays of gold kiwifruit and 300,000 trays of green kiwifruit, for hops there would be 100-150ha with around 50 percent loss, and for grapes 40ha with a 40-50 per cent loss.

Motueka Community Board chariman Brent Maru said the effect of the hail storm would probably be worse than the Covid-19 lockdown in 2020.

On Wednesday, the Motueka Community Board gathered for an unofficial meeting to hear from people affected and discuss how they would respond to the situation.

Board chairman Brent Maru said while individuals and businesses were still assessing the damage, it was clear there would be a major economic flow-on effect for Motueka and the rest of the region.

“As a board we have no doubt the hailstorm will have severe impacts on Motueka going forward.

“On the back of a horrible year, we were enjoying a big bounce back from Covid, so to get smashed by the hail storm on Boxing Day is probably worse than the lockdown.”

Maru said while the effect on horticulture was the most obvious one for the town, other sectors both directly and indirectly connected to the horticulture sector would soon be feeling the pinch.

[The cost of the damage] is still not quantifiable across most of the sectors. All we know – whatever the million-dollar figure is – those are not just the losses for farmers, that’s the loss of money going around the Motueka community.

“For some of our community, it's already a distant memory … but when our tourist peak disappears, there wil be a significant drop-off of income which will hurt.”

Maru said the board were hopeful Government would be able to provide a support package to both help keep businesses above water, and help keep people employed.

Tasman District Mayor Tim King said the effects of the hailstorm would also flow through to Port Nelson, and with it both the Tasman District Council and Nelson City Council.

“For both councils who rely on profit from dividends – the horticulture industry has a big impact.”

With regard to Government support, King said council needed to talk with the growers and would support what the industry said they needed.

“I would anticipate Government support would be specific – I’m sure they are well aware of the situation and will be working in that space.”

O’Connor said there was already some support available for those affected.

He said growers could make use of the Rural Support Trust-administered Farm Business Advise Support Fund, which the Government allocated $200,000 of funding to in 2020. For qualifying growers the fund would provide up to $6,000 to pay for financial or business advice from an independent consultant.

MSD also had assistance available for those whose income has been severely affected, including an emergency benefit and special needs grants – available to both growers and staff, while Inland Revenue could provide tax flexibility and income assistance options that may be made available in hardship or after an event.

“There is help available now and I encourage people to make use of it.

“MPI has worked closely with the Rural Support Trust and industry and I’ve kept in touch with growers on-the-ground and will continue to keep a close watch on things.”