A New Zealand report has found vine disease Psa-V will cost the industry NZD$310-410 million (US$243-321 million) over the next five years, with a long term estimate of NZD$740-885 million (US$581-694 million) in lost development.

New Zealand Kiwifruit Growers Incorporated president Neil Trebilco, welcomed the Lincoln University’s Agribusiness and Economics Research Unit study for quantifying the disease's cost.

"Having these baseline figures allows us to talk with the Government and banks with some certainty over what the industry needs in terms of support to get back to full speed again," he said.

He said growers who cannot harvest a crop this year due to the disease will face serious financial hurdles in raising the required NZD$60,000 (US$47,092) per hectare to establish new orchards.

Kiwifruit Vine Health (KVH) financial recovery coordinator John Burke, said the report considered an unassisted and assisted recovery strategy to see how growers worst hit by the disease could be best supported to return to the industry.

"It is clear from the report that the bright future the kiwfruit industry had prior to Psa-V being confirmed in New Zealand remains, once it recovers from Psa.

"To ensure this happens will require tremendous levels of cooperation, both from within the industry and between the industry and stakeholders, such as central and local government and banks, in the future."

It forecasts 470 jobs will be lost over the next three years flowing beyond the industry to businesses and households largely relying on the kiwifruit sector for revenue.

The report, released by KVH, concluded the industry and wider Bay of Plenty has yet to experience the full impact of Psa.

Related stories: NZ: Zespri to license Gold3 kiwifruit after positive test results

Photos: Nathan Balasingham

www.freshfruitportal.com