New Zealand tomato growers are facing a challenge like never before over the rising cost of energy and the uncertainty of supply. Tomato growers rely on various forms of power to heat their glasshouses and Dr Barry O'Neil, the chair of Tomatoes NZ which represents growers, says energy costs make up a third of their total cost of production. He says as well as paying for the actual power, being a producer, they have a pay ETS costs associated with the energy they use.
"We've been on a journey to decarbonise out of coal and moves to renewables, but it takes time and capital and it's very difficult for some of our growers to pivit into renewables," O'Neil told Hort News.
"We have got the immediate urgency of the gas prices as a result of the gas fields starting to fail, so gas prices with some growers may have a contract of say $10 per gigajoule, but this would be going to $30 dollars a gigajoule - three times increase in gas prices," he says.
Changing to different energy sources requires a change in boiler type, says O'Neil. He says the capital cost of doing this is out of the reach of many small growers. He says in terms of options, the industry is at a bit of a crossroads as to what the options are for the future.
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