Category: Business

Source: Radio New Zealand

New Zealanders are likely to continue to spend more but get less fuel for the near term at least – and the pressure on prices could mean the official cash rate has to rise as soon as May, one economist says.

Brad Olsen, chief executive at Infometrics, said data released on Friday by Stats NZ showed total fuel spending in March was just over $580 million, about 10 percent higher than a year earlier.

“We estimate that prices were about 14 percent higher in March compared to a year ago, and that’s sort of a weighted average across all fuel types, which means that actual volumes of fuel purchased probably declined about 4 percent compared to March last year, which again is in keeping with that expectation that probably for the first two weeks households were going and trying to fill up before things got even more expensive, and then they were trying to park their car up a bit more and not use the very expensive fuel that they just got because no one wants to refill with even more expensive fuel out the other side.”

He said fuel spending was up 19 percent month-on-month.

It was a pattern that was likely to continue.

“Spending activity on fuel will remain high but over time the actual volumes being delivered are likely to remain a bit more subdued.”

He said that would be more the case with petrol than diesel.

“In terms of volumes, just simply it’s still required in so many parts of the economy that you just can’t move away from.”

Higher fuel spending by households would limit other activity.

“We’ve also looked at card spending on core industries, so excluding fuel and vehicles. That figure declined 0.1 percent in the month of March compared to February on a seasonally adjusted basis.

“Not an immediate sign of demand destruction. I think because everyone, again, was just getting their heads around what was going on throughout the month.

“But we would expect going forward that households, because of how big of a drop confidence had in March and clearly is still going to have in April, plus potential interest rate hikes coming through, that does make for a pretty challenging position where a lot of households are going to go, ‘I’m probably not going to spend all that much. I’m going to try and limit my overall consumption because I’m just so worried about what’s coming next’.”

He said inflation was starting to look “pretty ugly”.

“Our estimates are probably higher than the Reserve Bank and some of the other forecasters out there have it for the data that comes out on Tuesday next week. The worry for the Reserve Bank there is that, yes, clearly there’s higher fuel prices and similar that have come through. But even pricing pressures in parts of January and February are probably more intense than the Reserve Bank would be comfortable with.

“If you’ve already got a position before the fuel crisis where pricing pressures were higher than anticipated, despite a still fledgling economic recovery, that sort of says to the Reserve Bank that businesses were already primed around prices going up. There was already more underlying inflationary pressure. You then add on the pressures that you’ve got now and everyone’s saying, well, I might have to raise my prices to try and cover the increases that I’m having to pay for.

“That does set you into that pretty worrying position where, for the Reserve Bank, they might well be facing higher starting inflation and clearly higher ongoing inflation. It could be a pretty potent mix for inflation expectations, which is why we’ve opened the door… to amore lively conversation for a May hike, potentially, than I think a lot of people are sort of counting on.”

ANZ senior economist Miles Workman said the cost in New Zealand dollars of refined fuels in Singapore had dropped a little recently.

“Part of that is owing to the rise in the NZD. However, that’s not a guarantee that prices at the pump will fall one for one, given high shipping costs and very tight global markets.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Move over satsumas and kiwifruit, a smaller and sweeter version of the exotic looking dragon fruit could be the next big thing in school lunchboxes.

While it may be smaller than the fruit grown in tropical climes, researchers in Northland have been surprised at how well dragon fruit has grown under cover on a trial orchard in Kerikeri.

With its pink-red scaly skin, bulbous shape and delicate flavour, imported dragon fruit is mainly on shelves reserved for the more niche fruit in New Zealand supermarkets, but researchers say three new cultivars hold much potential.

In 2013 New Zealand started working with Vietnam, the world’s biggest dragon fruit grower alongside China, to develop more flavoursome, canker-resistant varieties with a better shelf life.

That research led to the local trial, the Bioeconomy Science Institute’s Satish Kumar told Country Life.

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“About 10 years later, we thought that, hey, why can’t we try and test whether we can grow them here in New Zealand as well

“Because [the] climate is changing, and especially in Northland.

“Who knows, maybe in another 10, 15 years, we might be looking at a completely different situation, so we are, in a way, being proactive and trying to introduce and maybe try new crops.”

Dr Kumar took Country Life on a tour of the orchard where rows and rows of prickly fronds – the dragon fruit is a member of the cactus family – tumbled over a system of posts and wires, developed alongside the new cultivars.

Part of the orchard was under a plastic tunnel system, protecting the crop from the winter cold and the region’s increasingly intense rain.

He said in a tropical climate, dragon fruit come into full production in about three years, with five harvests a year, whereas in New Zealand they took a year longer, with just two harvests a year.

Under cover, they hoped to increase the yield and squeeze in one more harvest.

“My gut feeling is that the yield is going to be significantly higher in the tunnel system compared to the open orchard system.

“We know that the visual quality of the fruit is a lot better compared to outdoor so that means the rejection rate will be lower.”

The plants were also less prickly, which workers were pleased about, he said.

While cost benefit analyses were yet to be done, Dr Kumar said the varieties had local potential, especially as New Zealand’s Asian population grew.

“Most of those people, they know what it tastes like, what it looks like, they are more than likely to try anything new that we offer them, and they do appreciate the taste of these new varieties.”

Dragon fruit was just one of several unusual crops the region’s economic development agency Northland Inc had looked at for the region.

It had provided analyses of emerging and high-value crops like papaya, pineapple, turmeric and ginger and a 2025 report it commissioned suggested there were real opportunities for growers and farmers if they used protection like tunnel houses and shade covers.

Luke Beehre, programme lead for the Tuputupu Grow Northland initiative, said change was coming and strategic decision-making rather than knee-jerk reactions was vital.

“Protected cropping opens the door for Northland growers to do things we simply couldn’t do before.

“Growers who contributed to the research talked about improved crop quality, the ability to reach markets earlier, and better working conditions for staff – all of which strengthen the case for further investment.”

Data was still being collected for the dragon fruit trial but work was in its early stages to bring the new varieties to market.

The trial’s commercial partner VentureFruit said a brand name and marketing collateral had been developed but were still under wraps.

MG Marketing was the head licensee and would handle interest from growers.

“The concept globally is to form a network of licensees who grow, sell and market fruit of the varieties under the brand,” a statement from VentureFruit said.

Kumar was happy the home-grown fruit had passed his own taste test.

“When I started the programme in 2013, honest, I didn’t like the taste at all, but now I love eating them, especially the new varieties.”

They were sweet, with a kiwifruit-like texture, good shelf life and appealing to the eye without the “inconvenience” factor of juice dribbling down the chin, he said.

“The new varieties that we have developed, we want them like a premium cultivar, to change the profile of how people view dragon fruit.

“They all are producing here quite happily.”

Learn more:

• Find out more about the dragon fruit trial here

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

This year’s carrot seed crop should have been David and Jayne Clark’s money-maker.

“Establishment was very good,” David said.

“Our weed control through the winter was exceptional … our plant height is very even, and then our umbel (flower cluster) numbers going into the pollination season [were] also very good.

“The bit that we were missing out on was typical hot, dry Canterbury weather.”

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A wet summer costs a lot for an arable farmer in the plains.

It prevented bees from pollinating crops, which meant fewer seeds, and less product to sell.

And if the rain turned to hail, a year’s work could turn to compost overnight, a reality many Canterbury farmers had experienced over the past three years.

“There’re some farmers here in mid-Canterbury who had no crops to put through their combine harvesters after the hail.

“That’s years to recover from.”

The weather is one of several reasons why the Clarks will leave the arable industry, and farm something else.

“We’re all on a no-exit road in arable at the moment,” David said.

“The return on capital is less than the cost of capital.”

They haven’t decided yet what they’ll farm next, but dairy cows were a major contender.

“The faster all of us can exit the arable industry and move to cows, the better.”

Greendale farmer Rod May has already made that move – and he’s excited about it.

“We’ve always looked across the fence at the dairy industry, and been a wee bit envious of their farm succession plans,” he said.

He began converting his farm two years ago, when Environment Canterbury (ECan) enabled a consent process to change farmland use.

In the past two years, 43 dairy effluent discharge consents had been approved – that meant 43 new properties have been permitted to send their cow runoff onto neighbouring land and waterways.

Twenty consents were for farms in central and north Canterbury; 23 were for farms south of the Rakaia river.

A further 17 consents were in progress.

ECan said the approved 43 consents would allow a maximum of 37,367 cows to be introduced to the Canterbury plains.

“We were the second consent to come out, and the second shed to be built in this area,” May said.

“There’s a wave of them; there’s a belt running from Greendale to the [Waimakariri] river.”

With dairy conversions making headlines throughout last year, May said some people thought arable farmers were jumping from one cash cow to the next.

“But it’s not like that, that’s not the reality,” he said.

Like the Clarks, succession was on May’s mind – to keep the land for his children, it had to be profitable.

“We just want a small, reliable business for the family.”

Federated Farmers arable group chairperson David Birkett said it was understandable why so many Canterbury croppers were leaving the game.

Machinery was expensive to fix and replace, and hikes in fuel prices following the conflict in Iran had added more strain, he said.

“We were just filling up the tractor this morning; before the war, it was probably costing us $450-odd. Today, that’s probably going to cost us $1100 to fill up for the day.

“You don’t see that same issue in dairying.”

Birkett is one of several growers who would be impacted by the Heinz Wattie’s processing plant closure, although he said there were other plants to turn to in the south.

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Consumers have tightened their belts amid the global fuel crisis, and it’s hitting some retailers hard, according to Retail New Zealand.

The latest data released on Friday from Stats NZ, which records spending by electronic card, showed consumers had cut back on fuel consumption in March.

It followed soaring prices and fears of shortages as the Strait of Hormuz – a key oil route – remained blocked by war in the Middle East.

Infometrics principal economist Brad Olsen told Checkpoint electricity and petrol were up 13 percent while diesel was up 37 percent.

Retail New Zealand chief executive Carolyn Young said the impact on discretionary spending became clear throughout March.

“As consumers became more concerned and confidence dropped, certainly a sector like apparel which is really about discretionary spending, it really nose-dived and for the month it was down 4.2 percent.

“That’s really taken a hit early on in the Middle East crisis.”

Young said apparel was always the first sector to feel the crunch when the economy turned, with shoppers needing to spend their money on essentials such as fuel and groceries.

Increased supplier costs such as freight were also driving up retail prices, Young said.

“Just like shoppers, retailers are having to bear the impacts of increased fuel prices, not just in freight but in a range of other retail services like rubbish and recycling collection.

“Additionally, we are hearing from our members that the caution being seen at the pump is now flowing through to an overall drop in discretionary spending in retail in April.”

Young said she didn’t want indefinite price hikes to accommodate high fuel costs.

“What we don’t want to see is suppliers just increasing the bottom line.

“We’d rather see that there would be a temporary increase in price which was related directly to the fuel in that it would be reviewable in a month or two just to make sure that we’re not going to raise the bottom line price and keep it there going forward.”

She said Retail New Zealand would be looking to advise retailers and suppliers next week on price transparency.

Meanwhile, the Stats NZ figures showed the overall card spend on total retail for March was up 2.7 per cent compared to March last year, with fuel up 10.2 percent to $583 million.

“New Zealanders spent $583 million on fuel last month, which on its face looks like a sizeable jump from the $460 million spent in February,” Young said.

“However, March is always the country’s biggest month for fuel usage.

“So, if you compare last month’s fuel spend to the amount spent in March 2024 ($591 million), for example, we see a decline, despite the cost of petrol and diesel being much, much higher.”

The average cost of diesel in March 2024 was $2.17 per litre, while the March 2026 average was $2.61 per litre.

For 91 unleaded, the average cost in March 2024 was $2.80 per litre, while last month it was $2.98 per litre.

April averages were expected to higher again.

“In reality, we would have expected to see the amount spent on fuel last month to have increased beyond $600 million if New Zealanders did not change their fuel using habits,” Young said.

“These numbers show us that people are cutting back on their discretionary travel, which is now impacting retailers.”

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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Channel Infrastructure is refusing to be drawn into speculation on the company buying ExxonMobil’s New Zealand bulk fuel terminals.

The Australian newspaper reports Channel is emerging as a potential buyer for ExxonMobil’s terminals across the North and South Islands in a deal potentially worth up to $500m.

Channel declined to comment on the report, which it referred to as “market speculation”.

On Friday morning, the company – which on Friday morning had a market value of about $1.2 billion – operating the country’s biggest fuel import terminal at Marsden Point, after running the former refinery there, when the company was known as Refining NZ.

Greg Smith, investment specialist at KiwiSaver provider Generate, said buying ExxonMobil’s terminals would make sense for Channel.

“Channel has regularly sighted the intention or the aim to expand beyond Marsden Point, and this would certainly do that,” he said. “I think the other point is that it would be a good fit and it’s already integrated with some of Exxon’s assets, when you look at those in South Auckland.”

Smith said, if Channel were to make a move, the company would likely have to raise capital to fund the purchase, which he believed would be well received by the market.

“You’ve seen pretty good appetite for defensive infrastructure assets in the current environment.”

While the Commerce Commission would likely have a look if any deal eventuated, Smith said it would probably not stand in the way, if it was just for the bulk terminals.

“I think it would be a different situation, if they were buying the petrol stations as well.”

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Source: Radio New Zealand

A new $29 million marine maintenance facility has opened at Port Nelson, with hopes that larger international vessels can now be serviced at the top of the South Island.

The Calwell Marine Maintenance facility officially opened at the port on Friday, featuring a new 550-tonne boat hoist and hardstand maintenance area, along with haulout and launch facilities for vessels between 50-2400 tonnes.

Government stumped up $9.8 million for the project, alongside funding from Port Nelson, Nelson City Council and Tasman District Council.

Regional Development Minister Shane Jones said this key piece of infrastructure strengthened Nelson’s position as a hub for marine servicing, and critical vessel refit and repair.

“This investment by the government backs the Nelson-Tasman region’s thriving marine industries,” he said. “The region has lost a number of businesses in recent years, but this infrastructure will help keep jobs, skills and economic value in the region.”

Port Nelson is the largest fishing port in Australasia and hosts some of New Zealand’s largest fisheries companies.

Port Nelson chief executive Matt McDonald said the facility would build resilience in the regional marine engineering sector, and create opportunities for growth across both commercial and recreational marine industries.

It was expected to add about $3.8m to Nelson-Tasman’s GDP each year.

In January, Jones announced [https://www.rnz.co.nz/news/political/585366/nelson-marina-upgrade-secures-13m-from-government a $12.89m loan from the Regional Infrastructure Fund to upgrade the neighbouring Nelson Marina].

That upgrade includes a 110-tonne vessel hoist and will see the capacity for marine maintenance expanded from 14 to 54 bays.

Larger vessels will be serviced at the Calwell facility at Port Nelson, while Nelson Marina will focus on smaller commercial and recreational craft.

A purpose-built marine service centre, with office, retail and workshop spaces, will also be built as part of the Nelson Marina upgrade, with work due to begin in May.

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Source: Radio New Zealand

The current fuel crisis doesn’t seem to be diminishing Kiwis love affair with utes, but it is changing the nature of the relationship.

Figures released this week show sales of new light commercial vehicles in March were up 48 percent compared to the same month last year, with many purchasers looking at greener ute options.

Warren Willmot is New Zealand brand manager for BYD, a chinese manufacturer who specialise in EVs. He said BYD New Zealand normally sell 300 to 400 vehicles a month. In March they sold 866 vehicles, their entire New Zealand stock. “That wiped out our supply” he said “Every car we’ve got arriving in April and May is currently spoken for”.

Those sales included BYD’s plug in hybrid ute, the Shark 6.

BYD isn’t the only company experiencing a rush on EV utes. The Geely Riddara RD6 is the only fully electric ute currently on offer in New Zealand. They normally sell 10 a month, in March they sold 46 and had 25 pre-orders. Nordeast group GM Dane Fisher, who distribute the Geely Riddara, says the volume of sales took them by surprise.

But of the EV utes sold in March, the top seller wasn’t fully electric, or even a plug in. It was the hybrid variant of the Toyota Hilux. According to Brad Olsen of Infometrics the Hilux hybrid usually sells around 200 units per month. In March it was close to a thousand.

The US attack on Iran started right at the end of February, spiking fuel prices, so it’s not hard to explain the March surge in EV ute sales. Olsen believes some businesses are taking a long term view with their vehicle purchases, hoping the “bigger upfront investment” will pay itself off over time.

And while times are tight, Olsen said there has been a recent strengthening in light commercial registrations.

“The primary sector is still doing well. There’s clearly good payout for dairy and meat and horticulture, as well as that, you’ve got the Fonterra Capital divestment payment that’s emerging too. So there’s still a lot of money coming through for the primary sector”.

According to Fisher demand for Electric vehicles was already returning before the Middle East hostilites. He believes the fuel price increase created a tipping point for people considering buying an EV.

“The barriers to entry were at the lowest it’s been for years. That’s predominantly around range anxiety, charging infrastructure and affordability, and the likelihood to have an EV next was at the highest point. So that was just below the surface.”

Willmott believed it isn’t just the price of fuel driving new car purchases, it’s anxiety around supply.

“Most of the retail customers, when I’m talking to them, it’s not about the cost of the gas” he said. “It’s about the potential for there to be no gas or for the government to say, hey, you can’t drive your car on these certain days.”

With Ford, Toyota, GMW, Geely and BYD now all offering some variation of EV ute in the New Zealand market there are now plenty of options aside from standard internal combustion offerings.

“If you want to get a cheaper option but still get some decent running costs advantages there are ones on the market for you” said Olsen. “If you’re looking for something a bit more expensive but it’s got a lot more pull, a lot more torque, a lot more whatever else you need, you’ve got that as well, and particularly at a slightly higher price point, but it’s available.

“You can do more of a like-for-like placement these days compared to say five years ago when the options weren’t around quite as much.”

But with prices ranging from around 55 to 95 thousand dollars you’ll still need relatively deep pockets.

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Source: Radio New Zealand

• Fuel prices surge in March on Middle East conflict
• Food prices ease 0.6 in March on month before
• Annual food inflation lowest in a year
• Consumer spending inflated by fuel costs
• Other partial inflation indicators show modest rises in power/gas, accommodation
• Full inflation numbers for March quarter due April 21

The immediate impact of the Middle East conflict has been measured in a sharp surge in fuel prices, while consumer spending has been softer.

Stats NZ data shows fuel prices rising nearly 19 percent for petrol and 43 percent for diesel last month on February, distorting consumer spending as households trimmed discretionary spending to cover higher fuel bills.

“The increases in petrol and diesel prices this month were the largest for both fuel types since Stats NZ started publishing monthly price movements for vehicle fuels in July 2011,” the department said in a statement.

Giving some relief was an easing in food inflation, which was down 0.6 percent for the month taking the annual rate to 3.4 percent from 4.5 percent in February.

High meat prices remained the driver of annual food inflation, along with bread, and takeaway coffees, while the monthly fall was due to cheaper fruit and vegetables, some dairy and chocolate products.

The selected prices were contained in a monthly tally of consumer costs covering fuel, food, rents, commercial accommodation, utility prices, alcohol and tobacco.

The goods and services surveyed make up close to half of the official inflation measure, the consumer price index which is due out on April 21 for the first three months of the year, with economists picking the annual rate is headed towards 5 percent .

Airfares were a mixed bag, with domestic airfares falling more than 14 percent on the month before but international fares rising 3.5 percent.

“Travellers typically book and pay for airfares in advance, so price changes reflect fares that were set up to 12 months ago,” prices and deflators spokesperson Nicola Growden said.

Fuel spending surges, discretionary lower

Stats NZ also released electronic card retail spending for March, showing a 0.7 percent increase on February, which reflected the surge in fuel prices.

Excluding fuel spending, which rose 17 percent for the month, overall card spending was 0.1 percent lower.

Spending on consumables such as food and durables such as appliances and electronics were higher, but were offset by reduced spending on hospitality and apparel.

Westpac senior economist Darren Gibbs said the spending numbers for the first three months of the year were up about 1 percent backing the view that the economy had been gathering pace at the start of the year.

“Looking ahead, at least in the near term, high fuel prices will continue to siphon money out of households’ pockets.”

“At the same time, higher transport costs will add to costs of production for a variety of other goods and services and will continue to significantly undermine consumer confidence,” Gibbs said.

– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand

Source: Radio New Zealand

Fish farming company NZ King Salmon has announced a significant upgrade to its full‑year 2026 earnings outlook after better‑than‑expected summer farming results.

Pro‑forma underlying earnings (EBITDA) are now forecast at $19 million to $27 million, up from previous guidance of $9 million to $15 million.

Chief executive Carl Carrington said the revised guidance follows the completion of the summer farming period, traditionally the most challenging time for forecasting fish performance.

“Mortality levels over summer have been lower than forecast and feed‑out rates have remained strong which has resulted in the company having more fish to sell, and an overall improvement in fish size and quality,” he said.

NZ King Salmon now expects full‑year processed harvest volumes of 5800 to 6100 metric tonnes, up from earlier guidance of 5500 to 5900 tonnes.

Performance gains have been driven by a new summer feed diet, strong operational execution at sea farms, and resulting efficiency benefits, including lower unit costs and a greater mix of higher‑value products.

The board has widened the guidance range to reflect external risks linked to Middle East tensions, including potential disruptions to air freight, rising production costs, and oil price volatility.

NZ King Salmon will release its half‑year results in late May, alongside a detailed performance update.

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Source: Radio New Zealand

Mainfreight’s chief executive says he is “frustrated” at KiwiRail and Auckland Transport, and that the agencies could be doing more as the Middle East conflict sends fuel prices up.

The country’s fuel stocks have dropped in the past two updates, but officials say there is no need for alarm.

Don Braid told Morning Report moving freight via rail was more efficient than by truck, “yet we haven’t seen KiwiRail stand up to offer additional services”.

“They’re missing in action at the moment, and we would like to see them stand up to help the industry.”

The fuel crisis had brought to the forefront the importance of fuel, particularly diesel, which needed to be used more efficiently, he said.

“It’s not just what’s in our trucks, but it’s what fuels our fishing vessels. It’s what goes into the tractors to harvest the crops. It’s how the farmer gets out to feed his animals. It has a big role to play in our everyday lives.”

Mainfreight had been speaking to KiwiRail but was failing to get action, he said.

“We are trying, but [we’re] frustrated to be perfectly honest.”

Other organisations, like Auckland Transport, also needed to make adjustments to make diesel usage more efficient, he said.

It should reconsider its position on the idea of allowing freight vehicles to use bus lanes, Braid said.

“Think about the amount of diesel idling that goes on because we can’t use a bus lane.”

Fewer customers at rural garage

Meanwhile, the operator of a north Wairarapa garage and petrol station says he believes people have become much more discerning about where they buy their fuel.

Kevin Laskey of Pahiatua told Morning Report he although his rural fuel station had similar pricing to the nearest city, Palmerston North, he was seeing fewer customers.

But the financial pinch created by the high price of fuel was also affecting the garage side of the business, he said.

“Definitely going to be less maintenance on cars, housing, anything like that … everything they have left over has to go to food and and just living really.”

One customer had come in with a Warrant of Fitness that was three month’s expired, and metal wires exposed on the tyres, Laskey said.

“He’d been driving. He had no choice. And and we managed to get some second-hand tyres on the vehicle for him so he could get a warrant.

“That’s what we live with.”

Laskey said he thought the government should reduce GST on fuel to lower the burden on households.

“The petrol is a dollar dearer, so they’re making that extra 15 cents on the dollar. Maybe that’s where they could reduce?”

“Or people have to start walking.”

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