Apple sector confidence lifts after two strong seasons and India deal
Friday, 24 July 2026
Apple growers turned out in force this week, with hundreds gathering in Queenstown for the annual New Zealand Apples & Pears Expo.
The mood was broadly upbeat, with many optimistic about the industry’s outlook and hopeful the incoming Free Trade Agreement (FTA) with India will give export volumes a lift.
Nelson-based orchardist Rob Holtham, the manager of Willisbrook Orchards, said the country’s apple industry was “starting to see the fruits” of its labour after years of hard graft.
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He told The Post the industry had enjoyed “two or three years in a row” of relatively positive conditions.
North Island growers along the east coast had taken “a real smack on the schnoz” from Cyclone Gabrielle, which had been tough for those affected, but he believed the sector was heading in the right direction.
That sentiment was echoed by other growers The Post spoke to across the two-day conference held at the QT Hotel on Lake Wakatipu, drawing in 300 attendees from across the horticulture industry.
Steven Hartley of Hartley’s Orchard, a 12-hectare independent orchard based in Hawke's Bay, said growers like him felt a little more confident after having a couple of good seasons that had helped get them back on track.
“Developing countries are growing in wealth, and we produce premium apples with the best quality and flavour. If that market is expanding then our opportunities will expand.”
He said New Zealand’s growth potential was “exponential”, given the country’s land area and the volume of apples it produced.
Asked about the FTA with India, which comes into effect later this year, Hartley said it had the potential to supercharge growth.
But he was not looking to India to grow his business as he was happy selling the majority of his annual 840 tonnes of apples to China, where he received d“the best price possible”.
“If I was a T&G or a Mr Apple with a lot of volume, and I wanted another marketplace to accept that quickly and for a good price, I'd be really excited about India.”
Holtham believes gains from the agreement would be a “long burn”.
“Over the last 20 years, we've gone through European-American-based markets to Asian-based and through the Middle East, and we've learned to market our fruit better.”
He said the India agreement would act as “another release valve” and another opportunity, but the market was still under‑developed and growers would be cautious. It would need to be built up slowly because India’s infrastructure was not yet set up to handle premium fruit - and buyers there might prefer second‑grade fruit depending on demand.
New Zealand growers produce 400,000 tonnes of apples in 25 different varieties across 11,000 hectares of orchards.
Of that, about 75% are exported, with most going to China - the industry’s largest market, alongside Vietnam, Taiwan, India, the US and Europe.
India is New Zealand’s third largest export market for apples, even ahead of the FTA.
New Zealand Apples & Pears (NZAPI) chief executive Danielle Adsett said the outlook was bright and the industry was in a good place.
“We've come off the back of quite a few tough years post Covid, post cyclone, post hail events. We've had two really good seasons and, as a result, we're seeing quite a lot of green shoots around the place.
“Orchards are being planted this winter, you've got growers that are excited, and we've got new varieties coming on. We're well poised for the future, but that's obviously not without a few hiccups in terms of individual businesses.”
One of those she was referring to was the collapse of New Zealand’s second-largest apple grower and exporter, Kiwi Crunch, which was placed into liquidation earlier this month owing $19 million in unpaid taxes to the Inland Revenue Department, and leaving hundreds of Hawke's Bay employees out of pocket.
New Zealand currently sends approximately 45,000 tonnes of apples to India, and will export under new concessions within the FTA from next season. That market likes a sweet apple, such as the likes of Royal Gala
Adsett said one constraint within their concession was the quota they had been given - starting at 32,500 tonnes. Because exporters had shipped 45,000 tonnes this year, there would not be enough quota to start with, making it a competitive space.
“Prior to the last two years, we'd only ever done 30,000 tonnes. We're seeing movement in the market, in terms of more demand for New Zealand apples in India, and we're seeing excitement that's building off the back of the FTA.
“The tariff concessions will allow some exploration of some of our IP (intellectual property) varieties in that market. The tariff currently is 50%, so it's too expensive to get our high-end premium IP into the market, but with our concessions coming down to 25% there should be more opportunity for [other] IP.”
Adsett says the industry expected about $25 million of value would be added back to growers from the agreement.
“We didn't think we were going to get apples in the FTA, so for us to be at the table with a deal is a good thing … We've got a quota that will grow to 45,000 tonnes over time, but we've also got the opportunity at later dates to renegotiate concessions.”
Growers were largely excited by the opportunity, she said ,which would allow for better diversification. “Having more options for their fruit gives them more confidence to invest. This is another feather in the bow.”
Aimee Shaw travelled to Queenstown courtesy of New Zealand Apples & Pears.