Iran war: Rising shipping costs weigh on NZ agri-produce exporters
Friday, 3 April 2026
Shipping produce costs have climbed due to the war in the Middle East, and that’s weighing heavily on agricultural exporters like Craigmore Sustainables.
Petrol and diesel costs have continued to escalate while fuel supply worries have intensified, and last Friday the Government revealed what will trigger restrictions on fuel under the national fuel plan.
For Craigmore Sustainables, a New Zealand-based agricultural investment management company which operates farms, orchards, and forestry businesses, that’s a concern.
It manages more than 40,000 hectares of dairy, grazing, forestry and horticulture properties around the country, and had $1.4 billion in assets under management as of January.
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But Che Charteris, the company’s chief executive, says it operates in a low‑margin environment, so while fuel and fertiliser are a small part of overall costs they have an impact on profitability.
There are currently 93 diverse properties in Craigmore’s holdings, so it’s a widespread situation, he says.
“At this stage, we are not seeing a single, consistent fuel adjustment factor applied across the business. Impacts vary by location, supplier and service type, and are added into our updated forecasts.
“The greater challenge is shipping, where fuel costs and container availability directly affect our exports, and we’d hope to see the Government prioritise the supply of diesel for harvest and export transport.”
Oil is a key component of the plastic packaging often used in packaging. But Craigmore makes relatively limited use of plastic packaging, so price increases in that space are of limited impact, he says.
“This disruption also reinforces why we’re investigating on‑farm energy solutions like solar and trialling electric equipment.”
Craigmore has a focus on sustainability and environmental stewardship, and is working to better align its practices with its principles, while delivering value to its investors, according to its latest impact report.
Despite the uncertainty caused by the Middle East conflict, the company recently marked a milestone with its first commercial apple harvest from its northern‑most orchard, Sunpark in Tairāwhiti.
Sunpark in Te Karaka, an 84‑hectare property purchased in 2022, has been converted from beef farming into premium apple production, and the start of harvest represents an important step in its development.
Ben James, Craigmore’s apples business manager, says it reflects years of commitment to building a high‑quality, sustainable orchard that will deliver value for export markets and the local community.
Once fully established, the orchard is expected to reach full production by 2032, producing approximately 13,200 bins (5280 tonnes) annually.
James says the apple export market is showing encouraging signs, supported by strong global demand, improving orchard performance and a continued shift toward premium fruit.
“The strength we’re seeing in export markets reinforces our long‑term approach to horticulture.
“By investing in sustainable systems, high‑quality orchards and our people, we’re well positioned to respond to global demand while building resilience for the future.”
The development of Sunpark will create significant job opportunities in the region, he says.
Craigmore will be adding permanent and seasonal roles, and the orchard will support additional work across transport, packing and other regional service industries.