Declining land values in New Zealand could lead more growers to plant a more diverse spread of crops than just grapes in the South Island, local news site stuff.co.nz reported.

According to local grower Richard Harvey of Paeony, most growers have focused on grapes because they have been the only crop to offer returns on par with the high prices of land. However as prices fall in growing areas, especially in Marlborough, more growers will switch to crops such as apples, cherries, apricots and hazelnuts.

The grape industry has flourished, but the production, mostly destined for wine, has now outpaced demand, thus lowering returns for the industry as a whole. A diversification of planting would be positive for the grape and wine industry as well, New Zealand Winegrowers Chairman Stuart Smith was quoted as saying.

Moreover, the cost of diversification is lower due to existing irritation systems installed for grape production.

According to the report, the sale of a 23-hectare vineyard at a liquidation price of NZD 2 million (US$ 1.49 million) is emblematic of the industry shift. The property was valued at NZD 3.6 million in 2008.

Source: www.freshfruitportal.com