Who will benefit from New Zealand’s investment in pip fruit research now?

There are interesting implications of the potential takeover of Turners and Growers by the Munich based BayWa Aktiengesellschaft for New Zealand horticultural research investment. Implications for research in general and for the Crown Research Institute Plant and Food in particular.

Interestingly (on a personal basis), I can’t tell from Plant and Food’s Statement of Corporate Intent how much they invest on research into pip fruit. Nor can I tell how much of that research is intended to be commercialised through Turners and Growers, which is much less surprising. However, given the success of the JAZZ and ENVY apples, as well as increasing work with blueberries, Turners and Growers must be a significant commercialisation partner. Will this now all be lost to the German company?

The government expects Plant and Food to “increase the value of [the horticulture sector] to the New Zealand economy through the development of high-value products and processes that meet current and future global market needs,” as laid out in their Statement of Core Purpose. The relationship with Turners and Growers around pip fruit seems to have done this very effectively so now the concern is that all this work will go to the benefit of the German economy instead.

But it isn’t that simple. BayWa have said they will continue to seek to maximise value to the New Zealand grower. Their scale and marketing reach will be a huge advantage in New Zealand research meeting the needs of “the future global market.” Their deep pockets will give them scope to further invest in the development of new varieties to serve their markets and benefit New Zealand growers. I hope that part of their interest in Turners and Growers comes from the potential to access Plant and Food Research future intellectual property, not just the past. Given the broad interests of BayWa, success could spread to other areas of the economy.

And the relationship between Turners and Growers and Plant and Food has not been uncomplicated. Let’s hope the new owners can resolve, or at least get over, the difficulties around kiwifruit varieties – although I will miss the posters.

New Zealand government funded IP on fruit varieties has already been successfully internationalised by the PREVAR consortium, with its joint shareholding of Pipfruit New Zealand, Apple and Pear Australia and Plant and Food. This has to be a good thing. New Zealand cannot afford to sit at the far end of the universe hoping people in the rest of the world will happen to want what we produce. On this basis the involvement of BayWa, bringing first hand global market knowledge to add to what New Zealand has already developed, looks like an advantage.

How will this be worked out? If Pipfruit New Zealand and Plant and Food can develop a strong relationship with BayWa then the acquisition will increase the contribution of the pip fruit sector to the New Zealand economy. And if it doesn’t work out, there are new varieties being developed and other growers to take them to market. The decision-making and the funding now sit firmly in the hands of the people with the most information on what the sector needs and what research can achieve, PREVAR and Plant and Food. I think the end result will be more research that contributes to economic growth if they are left to get on with the job.

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