Room for Asia cherry exports to grow despite Lunar New Year boost

Asia has solidified its position as the primary destination for New Zealand's cherry exports this summer, according to the latest trade data from Summerfruit New Zealand.

As of 19 January, Taiwan emerged as the largest importer of New Zealand cherries, receiving 1523 tonnes. China followed with 515 tonnes, while Vietnam imported 328 tonnes and Hong Kong 145 tonnes.

With harvests continuing and demand soaring ahead of Lunar New Year, the volume of cherry exports to Asia is expected to climb further before the season ends.

Dean Smith, chief executive of Summerfruit New Zealand, said the volume of summer fruit exports this year was 20 percent lower compared to the same time last year due to a delayed harvest season.

However, Smith expressed optimism about the overall export performance this season.

"We expect a significant increase in demand ahead of Lunar New Year," Smith said.

Mark Pay, global sales and marketing general manager of New Zealand Cherry Corp, said Taiwan, China, Vietnam, Hong Kong and Thailand had long been key markets for New Zealand cherries in Asia.

He said demand had surged this season, not just from Asia but also from the United States as consumers prepare for Lunar New Year celebrations.

"It has been absolutely crazy," he said. "The demand has been really strong."

Pay said the timing of New Zealand's cherry harvest aligned with Lunar New Year festivities, fueling strong demand.

"Lunar New Year generally falls in January, February or early March, and it really does hit the timing for New Zealand cherries quite perfectly," he said.

"New Zealand cherries are certainly seen as a luxurious gift, and gifting is a really important part of Lunar New Year. The two just fit so well together."

Pay was optimistic about this year's cherry export volume to Asia, despite a slight lag compared to the previous season.

"By this time last year, the whole industry had exported around 1900 tonnes," he said. "This year, we're sitting at about 1800 tonnes. We're a little behind in volume, but that's just a seasonal variation."

Pay said Taiwan had traditionally been a key market for New Zealand cherries but predicted that China would surpass Taiwan in terms of volume in the coming years.

"The potential (in China) is absolutely enormous," he said. "For companies like Rockit Apples and Zespri Kiwifruit, the Chinese market has overtaken traditional markets like Taiwan or Japan in terms of volume."

Smith agreed there were export opportunities in China.

However, Smith warned that the market in China was also highly competitive, with Chilean cherries typically dominating due to lower prices and large volumes.

He said New Zealand's small-scale cherry producers faced significant challenges in scaling up to meet the demands of the Chinese market while maintaining their hallmark high quality.

"The Chileans are very prominent at the lower end of the market," Smith said. "Quality New Zealand cherries obviously occupy the more premium end of the market."

Pay was confident New Zealand cherry growers could carve out a niche in the highly competitive Chinese market.

"The Chilean cherries produce a lot of bulk cherries," Pay said. "They put them in sea freight containers and ship them [to China]."

"They are appealing to the mass market of middle- and lower-class category of consumers."

Pay said quality was key to winning customers in the Chinese market.

"We can grow cherries with such a quality of flavor," he said. "We can harvest them and then they can be consumed in 72 hours with air freight.

"There is huge potential in China to attract upper-class consumers who are prepared to pay for quality."

Clare Wilson, general manager of International at New Zealand Trade and Enterprise, said China continued to be New Zealand's largest fruit export market, followed by the United States.

Major exports included kiwifruit, apples, cherries and avocados.

Wilson said New Zealand exported approximately $19.7 million worth of premium cherries to China in 2024, contributing to a total fruit export value of $1.2 billion.

She said building a strong reputation was crucial for New Zealand to establish its niche in the competitive Chinese market.

"We're not in the volume game like some of our competitors," Wilson said. "Our real competitive advantage is our reputation for premium, high-quality cherries."

When asked how New Zealand's small-scale cherry growers could meet the demands of the Chinese market, Wilson said exporters must establish a unique point of difference.

"Given the size of New Zealand in total, we can't necessarily dominate any part of the sector in China," she said. "What we need to do is make sure we have a really compelling point of difference."

"A quarter of our total fruit exports go to China," she said.

"We have a very diversified portfolio into China, it is a large growing market with high net-worth individuals and a growing middle class. New Zealand is well respected in that market."

According to the latest data from Stats NZ, New Zealand exported goods and services worth $20.25 billion to China in the year ending 30 September 2024.

This placed China well ahead of the United States ($15.76 billion) and Australia ($15.51 billion) as New Zealand's top trading partner.