Danielle Adsett: New Zealand Apples and Pears CEO on the export potential of the Free Trade Agreement with India
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What positive developments are emerging from the India trade deal?
Good news already out of the India trade deal. We got new data that shows Apple exports are up 63% on 2024. 63% is a lot. It's gone from 27,000 to 45,000 tonnes. So India's gone from our seventh to our fourth largest market. Danielle Adset is the CEO of New Zealand Apple and Pears and is with us. Danielle, good morning.
Morning, Mike. How's it going?
It's going extremely well.
How has India's market position for New Zealand apples changed?
Is it all apples? Some apples? Is there regionality to it? Do they take everything we can sell? What's going on?
No, they definitely don't take everything we can sell. They're quite specific. We find that Indians love oil gala, which is a nice red sweet apple.
All right. And so what's the potential, do we think?
Oh, the potential is untold. And I'm sure you would have heard this a lot, you know, around it being 1.4 billion people and a growing economy. But for us, it's around, you know, we've been given a bit of quota. and this is around getting a little bit more money back in the growers' pockets after the sale.
So is this directly with the FTA, given it isn't even signed yet, or will the FTA turbocharge this?
This is with the FTA. When the FTA was announced early last year, we saw exports increase off of the back of that in anticipation, and we've seen that again this year. So We're really excited to be heading into 26, 27, where hopefully we can be allocating some quota and getting some money back in the pockets of New Zealand growers.
And what about prices versus volume?
What is the significance of the Free Trade Agreement for apple exports?
Are we selling more for more or not?
Yeah, India pays a lot of money for an apple, right? They pay a 50 cent tariff to get that apple. So this is not a cheap market. This is a premium market and Of course, New Zealand doesn't really grow cheap apples. We can't grow cheap apples. It costs too much to grow an apple in New Zealand. So, you know, this is about getting, like I say, more money back in the pockets of growers.
We don't want to grow a cheap apple, Danielle. We want to grow high-end, high-quality stuff, don't we? So you're arguing that this growing middle-class thing, the whole tie-up with FTAs, it's real and it will get bigger and better.
Absolutely. It is real and we will see more growth. We won't have enough quota. So we want to get in there. We want to do a good job with our cooperation plan. And we want our negotiators to build on this agreement in the year ahead.
A lot of texts this morning, obviously, on Kiwi Crunch, which for people who haven't followed, it's one of the bigger Apple growers. They've fallen over. Is that their individual story? Is there something in the Apple market that's a problem? I ask that around the broader question. Are we able to supply the world with what they want?
Yeah, so obviously I can't comment on specific company issues, but we are seeing a lot of positivity broadly in Hawke's Bay and the wider New Zealand growing region. So this is specific to that company, and for other companies we are seeing
So when the government over the weekend, as they did, or at least the National Party over the weekend, say another billion customers, we're going for everywhere from Liechtenstein to Switzerland to South Africa and everywhere in between. Do you as an Apple industry go, cool, we'll supply that, we've got growth and we can expand, or are we going to get to the point where we simply don't have enough stuff to sell the world?
We don't have enough stuff now, Mike. So this is around managing supply and demand.
How do pricing and volume dynamics affect apple exports to India?
And at the end of the day, finding the consumer who's willing to pay the most for the apple and having options to do that helps us manage that. And we're seeing that as well with the volumes that are going into India in the last two years has created greater demand in other markets.
Great stuff, Daniel. Good to talk to you. Appreciate it very much. Daniel Adsett, who's the boss of New Zealand Apple and Pairs, that answers our question succinctly, and I thought that was interesting. So we don't have enough stuff. So not having enough stuff is kind of a good problem, can be a good problem. Happens in things like gold markets, diamond markets, Bordeaux wine markets.
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Chapters
4 chapters
1
What positive developments are emerging from the India trade deal?
0:00–0:23
2
How has India's market position for New Zealand apples changed?
0:23–1:27
3
What is the significance of the Free Trade Agreement for apple exports?
1:27–3:21
4
How do pricing and volume dynamics affect apple exports to India?
3:21–4:11
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