Kiwifruit land values may drop

The outbreak of Psa in New Zealand could devalue Bay of Plenty kiwifruit orchards, according to New Zealand Kiwifruit Growers Incorporated president Peter Ombler.


Peter Ombler at his orchard in Papamoa.

Latest figures from Zespri show there are now a total of 67 orchards across New Zealand confirmed with Psa, up from 61 the previous day.

Peter says the infection will force some growers out of the industry, creating a temporary drop in land values.

'I think there will be a knee-jerk response. In these things there always is. I think it will have a short term spike on land values because there will be a sudden caution and that will have the effect of someone who was about to get out will be in more of a rush to do that and someone who might want to come in will think 'I don't think the risk is too great.”

He says if there is a drop in land values, it will only continue for short period.

About 20 of the infected orchards are Green, roughly 30 per cent of the total.

The majority of the infected orchards are still limited to a 23 kilometre area near Te Puke.

Peter says it is too early to say how the Psa outbreak compares to other kiwifruit crisis from the past, such as the industry crash in the early 1990s.

'We can live with it in the future as long as we monitor it and act very quickly.”

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