Land Use Fact Sheet
Strawberries — covered cropping
In New Zealand, the strawberry covered cropping industry is in its infancy. It has great growth opportunities with tunnel house and advancements in new technology. This is enabling work to continue regardless of the weather.
Strawberries are usually grown outside. With the use of tunnels and other covered structures, raised tabletops or gutters, the labouring work has become easier.
Overview
Regions
Strawberries can be grown under cover all over New Zealand. The current focus of operations is in Auckland and Waikato.
Growing conditions
Covered strawberries are usually planted in a substrate. This allows control over water and nutrients.
Climate
Covered crops can be grown in any climate. Strawberries need minimal heat but would produce better with added heating.
Commercial scale
1 hectare of flat land – under cover. Plus space for infrastructure like driveways, pumps and additional buildings.
Getting started
Building the infrastructure for covered crops is expensive. It allows you to achieve excellent returns from a small area.
Skills / employment
Covered cropping provides a steady amount of work year-round. This makes it easier to secure and keep workers.
Regions
Approximately 80% of strawberry plantings are in the Auckland and Waikato regions. The introduction of covered cropping systems has seen this extended to other regions.
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Commercial scale
Covered strawberry crops require at least 1 hectare of flat land that can support tunnel houses in a low-tech production setup. This includes space for infrastructure such as driveways and outbuildings.
Modern high-tech structures require an area as small as 2,000 sq m. You will also need room for infrastructure to stay profitable.
Getting into the industry
There are a wide range of options when it comes to the design of your operation. It's important to get advice from an experienced consultant before making any decisions. Grower 2 Grower have an information sharing website and offer quick, practical advice which can be used to aid growing operations.
Design and build
The cost of building the infrastructure for a covered crop may seem daunting. As an intensive growing method, you can reach commercial scale with small blocks and achieve excellent returns. Check out our covered cropping fact sheet.
Seek out advice about details like:
- row width
- plant spacing
- substrate
- irrigation
- heating systems
- computer controls systems, and
- hygiene.
Selling your crop
Currently growers sell direct to a wholesaler, who then on-sell to retailers. Other options for smaller operations are:
- farm gate sales
- pick you own
- farmers markets.
Skills and employment
Covered cropping provides a steady amount of work year-round. This makes it easier to secure and keep workers and reduces the need for seasonal labour.
During peak season – November and December, additional crop workers may be required. This will vary depending on any efficiencies and how modern the operation is.
Most growers need 2 to 2.5 employees per ha, including a manager.
Manager
A manager oversees the daily operations of a covered crop system and/or nursery. They'll manage:
- the care of the plants
- the hiring and coordination workers, and
- observe environmental standards for agricultural and horticultural production.
They'll need:
- an understanding of plant physiology
- a high level of technical ability
- horticultural experience, and
- people management skills, including the ability to manage changing seasonal labour demands.
Team leader
Depending on the size of the operation you may need 1 or more team leaders to direct and instruct the crop workers. Team leaders spend much of their time on inspection and monitoring tasks. This includes detecting diseases and pests.
Crop workers
Typical day-to-day tasks when working in a covered crop include:
- planting
- harvesting, including picking, cleaning and packaging
- mixing fertiliser
- pest and disease monitoring, identification and management, and
- spray handling and application.
Depending on your operation, you may also need forklift and truck drivers or maintenance workers.
Consultants
Work with consultants with the specialised skills and experience you need. Make sure your consultants have either:
- relevant experience as head growers or operation owners, or
- specialist qualifications and knowledge – like a plant nutritionist for example.
Compliance
With all businesses, there are compliance regulations. These are things like
- health, safety and wellbeing
- employment law
- tax obligations.
Levies
The Commodity Levies (Strawberries) Order 2020 came into force on 1 April 2020. Levies will apply for plant sales made for the upcoming season. The levy has been set at $26 per 1,000 plants for 2020.
This levy will support the industry, with activities including:
- biosecurity
- research and development
- food safety
- export market access and intelligence
- strawberry plant evaluation
- industry representation
- management and administration of SGNZ.
Food safety
All growers must meet the requirements of National Programme 1 under the Food Act 2014. This ensures produce supplied to the market is safe to eat. The requirements include rules about:
- how growers handle their crops
- managing spray residue, and
- withholding periods.
New Zealand Good Agricultural Practice (NZGAP)
NZGAP is a system that helps growers to keep up with compliance requirements. Becoming NZGAP certified:
- gives you confidence that you're meeting compliance requirements
- makes it easy to find out when regulations have changed, and
- makes your product more attractive to buyers.
Process heat
Covered cropping requires heating and is usually generated by burning fuel. The Ministry for Business, Innovation and Employment (MBIE) defines this type of heating as 'process heat'.
In New Zealand, process heat is used in the commercial and industrial sectors. Fact sheets about process heat and its use can be found here on the MBIE website.
Licensing or royalty costs
Licencing agreements protect some commercial varieties. This means that you must pay royalties or a licence cost for each plant that you grow. These costs are usually included in the price when you buy the plant. Check with the nursery selling you your plants.
Local council regulations
Each council has their own rules. You may need:
- permits for your tunnel house or greenhouse structure
- consent to access or take water
- to comply with regional environmental obligations.
Getting access to irrigation water can be hard in some areas and you may need to get help from a hydrologist to put your application together. Make sure you can get a water consent before you commit to developing your whenua.
Talk to your local council before you start any work.
Meeting council compliance obligations
National policy statement for freshwater management (NPSFM)
The National Policy Statement for Freshwater 2020 gives local authorities direction on how they should manage freshwater under the Resource Management Act 1991. As such, some local authorities require growers and farmers to create a Farm Environment Plan (FEP). Make sure you're familiar with the FEP expectations in your region. Check with your local council about the requirements for your whenua or planned development.
Even if your region doesn't yet require an FEP, it's good practice to put one in place for your whenua as part of your business plan. The Foundation for Arable Research (FAR) provides templates you can use to create an FEP.
Growing conditions
Covered strawberries are usually planted in a substrate. This allows the grower better control over water and nutrients.
This industry is seasonal in New Zealand. Generally starting in mid-September to April, with an intense peak mid-November to early December.
With indoor growing facilities increasing in popularity the supply season is lengthening.
Varieties
There a short-day and day-neutral varieties grown in New Zealand.
Short-day varieties produce flowers buds when the days have less than 12 hours of daylight. They are best planted in mid-winter.
Day-neutral varieties flower throughout spring and summer. These varieties are usually planted later than short-day varieties.
The main varieties grown in New Zealand are:
- Camerosa and Ventana – short-day varieties
- Monterey – day-neutral.
New varieties of strawberries are being developed. SGNZ has a list of new varieties with information and updates.
New strawberry variety development
Time to harvest
Strawberries need to be harvested by hand as they ripen at different times. Fruit is ready for harvesting 4 to 6 weeks after blossoming.
Most covered cropping operations will have their own replanting schedules based on market requirements. Covered crops will generate income for the grower faster than outdoor/uncovered crops.
Climate
Strawberries need to be:
- planted from May onwards
- in overnight temperature is over 12 to 16 degrees to perform
- exposed to sufficient light.
Speak to a commercial nursery to get a better understanding of the best cultivars and heating requirements.
Water
Strawberries are sensitive to sodium and chloride. It's recommended to have low or no sodium/chloride in your water source. Have your water source analysed before you consider growing strawberries.
Understanding water usage per ha for your crop requirements is critical. Considerations for water are:
- the variety being grown
- the substrate the plant is growing in
- the amount of light the plant gets
- annual need of your crop
- the amount of water storage required
- your irrigation equipment.
A hydroponic greenhouse operation will use less water than an outdoor crop. Drippers deliver water into the growing substrate for each plant. Hydroponic computer control systems connected to light meters can be used to manage water delivery.
Market
The strawberry market is stable for growers with between 15-20 hectares of protected cropping structures.
The bulk of production is close to three major cities in New Zealand. They have good access to auction and distribution centers. Growers who produce large volumes can deal with supermarkets and distribution centers directly.
Future industry
Strawberries is a growth industry for the covered cropping sector. At present many outdoor growers are erecting low-tech plastic tunnel houses. Growers are also using grow-gutters to lift the plants up higher. This is allowing for multi level production, increased crops and easier processing.
New varieties will have a positive change in total production per square meter. In the future, building more medium-tech structures will help production during winter.
Operational costs
Operational costs for a covered growing system are higher than for outdoor cultivation. You need to allow for:
- consumables including fertiliser and other hydroponic inputs
- equipment maintenance and overheads, like electricity and fuel
- the cost of buying, cultivating and harvesting the crop.
Get qualified, experienced advice on:
- the set up and administration of your operation, and
- preparing your annual budget.
Grower returns
Your operating costs will depend on:
- your business model, including employees and administration systems
- market conditions
- the efficiency of your operation.
Growers can increase their return by:
- improving technical systems
- having efficient business processes
- careful selection of high-return strawberry varieties.
Seek advice
Seek advice early, before you invest in any design or development.
Talk to your local Te Puni Kōkiri office to see how they can support you through the decision-making process. They will be able to provide advice and find out if your project qualifies for funding.
Talk to Strawberry Growers New Zealand to see what support and resources they can offer if you're thinking about strawberry production.
If possible, seek out advice from:
- wholesalers
- people who grow covered crops in your area, and
- knowledgeable suppliers.
Talk to qualified consultants in your area with experience in covered cropping and sales. They'll be able to provide detailed, impartial advice on what will (and won't) work on your whenua.
About this fact sheet
This fact sheet provides general information to help start and inform conversations. It's not comprehensive or detailed enough to support detailed decision-making.
The information in this fact sheet was provided by Grower2Grower and Te Puni Kōkiri kaimahi.
Additional data has been sourced from StatsNZ or provided by the contributors.
You can provide feedback on the content on this or any fact sheet by emailing us at TPKinfo@tpk.govt.nz
