Northland Inc

Market Opportunity Study in Northland for Bananas and Pineapples

Climate change and advancements in agricultural technology have opened up new possibilities for tropical fruit cultivation in Northland, New Zealand. The region is projected to become warmer, with temperatures increasing by up to 1.1°C by 2040 and 3.1°C by 2090. This climate shift presents opportunities for growing subtropical plants with greater success, potentially as alternatives to crops that may no longer thrive in the changing conditions.
In recent years, Northland has seen emerging interest in the commercial production of tropical fruits. A grower has established New Zealand's first commercial pineapple plantation over the past decade. They have successfully transformed a plot of marginal land into a productive fruit-growing operation, primarily cultivating the Queen variety of pineapples.

Similarly, banana cultivation has gained traction in Northland. with growers experimenting with over 17 different varieties of bananas to determine which thrive best in Northland's warm climate. The success of these initiatives has sparked interest in developing a local tropical fruit industry, with potential for both pineapples and bananas to become commercially viable crops in the region.

These developments come at a time when New Zealand imports significant quantities of tropical fruits. In the 2023-2024 year, the country consumed 9,254.82 tonnes of fresh pineapples, with a Value for Duty of $12.27 million. Additionally, New Zealand leads global banana consumption at 18kg per capita annually, representing about $140 million in value. This existing market demand provides a potential opportunity for locally grown tropical fruits to capture a share of the market.

The Opportunity
The opportunity to develop a banana and pineapple industry in Northland represents a significant potential for economic diversification and growth in the region, aligning closely with Northland Inc's Tuputupu Grow Northland strategy.

For Northland, if bananas and pineapples were to be successfully commercialised, this would provide existing landowners with the ability to improve productivity and diversify their farming systems. On a broader scale, this opportunity has the potential to positively diversify the horticultural sector in Northland, create opportunities for investment in processing facilities, and generate greater employment both directly and in associated service sectors.