On-orchard and post harvest costs for organic and conventional orchards are virtually identical. The main differences are in yields, in terms of volumes and size profile, and tray financial returns. Typically an organic orchard produces less trays of smaller-sized fruit. Organic tray returns, however, are far higher, generating a superior orchard return.
During the three year conversion period, orchardists typically experience a drop in production, which will not be offset by higher prices until the orchard produces its first certified crop of organic kiwifruit. While organic orchards financially outperform conventional orchards, the three-year conversion period is proving an effective entry barrier to organic production.
Based even on the current period of low returns, orchardists able to cross the barrier enjoy a rewarding rate of return on their organic orchard that rapidly pays back the period of lower returns. Once converted, the barrier then works in the orchardists favour, stopping others from taking advantage of organic returns.
To help orchardists cross the barrier, WaimapuOrganics has been carefully managing spray and fertiliser programmes to reduce the period of low-yields, low-returns to two years. Moreover, WaimapuOrganics is able to arrange attractive funding options that help orchardists minimise the financial impact of the conversion period.
By effectively removing the financial barrier to organic conversion for selected orchardists, WaimapuOrganics is managing the growth of the organic category so New Zealand will be able to continually service the growing global demand for organic kiwifruit.
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