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This factsheet describes the key things you'll need to think about if you're considering growing citrus on your whenua. It includes:
- whenua requirements, like drainage, slope, fertility
- climate requirements, like temperature and rainfall
- management requirements, like when to plant and harvest, and how to treat pests
- economic information, like operational costs, workers required, potential profit
- compliance information, like legislation and levies to be paid.
You can use this information to help inform conversations with whānau or consultants. However, you will still need to do further due-dilgence from a qualified advisor before making land use decisions. They can help you understand:
- what works best given the natural characteristics of your whenua, along with your local climate
- how to work sustainably with your whenua, and
- what to do next.
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About this factsheet
The information in this factsheet is based on research conducted by the National Science Challenge, Our Land & Water funded programme Whitiwhiti Ora in 2022 and 2023, and includes land data from a range of sources. The economic data is based on data from a case study in Northland and is current to June 2023. If your whenua is in a different part of the country, your numbers might vary.
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You will need to consider the characteristics of your whenua if you're thinking about growing citrus. These include:
- soil drainage
- slope
- soil fertility
- soil depth
- temperature
- rainfall.
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Drainage
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Citrus can be successful on a wide range of soil types but grow best in deep, well-drained, fertile soils. The soil should not be prone to waterlogging and have good nutrient retention.
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Slope
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Growing citrus is suited to flat or gently rolling whenua with a north-facing aspect. This is to help with the access and operation of machinery and the optimisation of sunlight and temperature. Erosion risk increases with slope - an angle of less than 7 degrees is recommended.
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Depth
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As a general rule citrus need to be planted in a hole that is twice the size of their root ball (usually about 100cm minimum). This is because their root structure needs to be encouraged to spread out to anchor the tree well and optimise nutrient and water uptake.
Their shallow root system absorbs nutrients and water in the upper soil layers. They are highly susceptible to water stress.
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Fertility
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For good citrus growth and yields, various nutrients are required. This includes:
- Phosphorus - to stimulate root growth and improve fruit quality
- Potassium - to contribute to plant health and fruit quality
- Nitrogen - carefully managed to achieve high yields
Boron, iron, magnesium, zinc, copper, and molybdenum - in smaller quantities to support plant health and produce premium fruit.
It's important to test your soils before planting your crop. Many companies offer this service. This will help you understand the current fertility of your block and nutrient requirements. A soil pH of 5.5-6.5 is optimal.
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Climate
Citrus like to grow in warm, sub-tropical conditions with frost-free winters and shelter from winds.
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Temperature
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In Aotearoa, citrus produce fruit over the summer months for harvest in autumn and winter. They need warm summer temperatures to produce high sugar levels and good skin thickness. Cool temperatures are also required before harvest to colour the fruit. Mean minimum average temperature for bud bursting is greater than 5°C from 15 Aug to 15 Oct. Heat stress during growth needs to be less than 3 days in a week with maximum temperature greater than 35°C from 01 Dec to 28 Feb. The mean maximum temperature needs to be greater than 20°C from 1 Jan to 15 Feb.
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Rainfall
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Citrus has a critical need for adequate soil moisture at all times of the year. The annual rainfall required is more than 900mm without irrigation. This can be provided through regular rainfall or irrigation. Too much rain can lead to root rot and too little rain can affect the growth of plant shoots and the quality of the fruit.
At harvesting, citrus needs completely dry weather to prevent rot and damage to the fruit.
If you're thinking about growing citrus on your whenua, check the rainfall and rain intensity in your region. This is important while your citrus are growing and before harvesting.
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Citrus plants need to be managed throughout their lifecycle. You will need to consider the following if you are thinking about growing citrus on your whenua:
- planning - what species of citrus to plant and when
- planting and maintenance
- harvesting
- storage
- managing pests and diseases
- environmental risks and impacts.
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Planning
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Citrus are a perennial tree crop, meaning you will get one crop every 12 month period for the productive lifetime of the tree.
Growing Citrus in New Zealand-A practical guide
When planning to plant citrus, you will need to consider your geographic location and the types of citrus suited to this location. Different varieties of citrus will grow better in different parts of the North Island and top of the South Island due to the risk of frost.
For advice on what types of citrus suit your whenua, visit Citrus New Zealand.
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Planting and maintenance
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Your citrus plants will need to be ordered several months ahead of planting time. If you are planning on planting a newly released cultivar, you may need to place your order even earlier.
You may need machinery to prepare your whenua for planting citrus.
Plants supplied bare-rooted should be planted in autumn or early spring. Bagged plants can be planted at any time providing sufficient irrigation is available.
Suitable plant spacings vary depending on the variety of citrus being planted.
Citrus will grow for 2-3 years before they have established themselves and can be harvested from. During this period of time, it is recommended that any fruit that does set on the tree is removed.
When the fruit matures to the minimum Brix:acidity ratio, harvesting can begin.
To learn more about how to grow and care for citrus, visit Daltons.
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Harvesting
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Harvesting citrus is done by hand and should be done in dry weather. This is to preserve the quality of the fruit.
Citrus can be easily damaged in the harvesting process and much care should be taken to ensure your crop reaches market in excellent condition.
After harvesting the citrus from the tree, the fruit is gently transferred to a larger bin and transported to the packhouse.
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Storage
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After harvesting your citrus, the handling and storage of your crop is very important. This ensures your crop can get to international and domestic markets in the best possible quality.
Packhouses will assess, wash, apply a wax coat, grade and pack your citrus crop. The citrus can be stored at specific temperatures for up to 8 weeks to be sold later in the season.
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Managing pests and diseases
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Citrus can be affected by many viral and fungal diseases and pests like nematodes, scale and thrips. You will need consider using pest management methods, such as:
- counting the number and species of pests weekly
- monitoring crops to assess plant health
- making the environment attractive to insects that can eat pests
- targeted use of fungicides and pesticides.
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Turning a profit from growing commercial citrus can be affected by many factors. If you are considering growing citrus, you will need to think about:
- the industry - like Citrus New Zealand, domestic sales and the export market
- requirements - like scale, jobs, equipment, and infrastructure
- costs - like variable costs and production costs
- returns - like yield and operating profit.
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The industry
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Citrus NZ
Citrus New Zealand represents New Zealand’s citrus growers and is an incorporated society with over 330 members. They work with Horticulture NZ on issues that affect the citrus sector. Growers pay a compulsory levy to fund industry good activity.
Learn more about Citrus New Zealand
Export market
New Zealand's citrus market is focused on the domestic market, and the supply of supermarkets. Japan, USA, the Pacific Islands, and China are New Zealand’s largest export markets. The citrus domestic market is worth about $70 million per annum with a further $9 million in export crops, mainly lemons like the Yen Ben variety. Japan is the largest market.
Find out more about citrus growing success in the New Zealand market.
Horticulture New Zealand
Horticulture New Zealand works in partnership with product groups and district associations and advocates for and represents the interests of New Zealand’s 4,200+ commercial fruit and vegetable growers.
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Requirements
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Scale
Citrus can return a profit from a small or large-scale enterprise. Owner-operators with existing infrastructure (for example a packhouse) can be commercially viable if they have at least 7 hectares of citrus. You will need at least 25 hectares of citrus to employ a full-time orchard manager and generate the revenue needed to invest in infrastructure. Turning a profit from growing citrus depends on several factors, like:
- your location - access to the market, or infrastructure, or to a packhouse
- your production practices - modern machinery and equipment or smaller scale efficiencies
- the market demand and access to the market
- your operational efficiencies - larger orchards may benefit from economies of scale.
Equipment and infrastructure
There are various tools and equipment needed for growing and harvesting citrus. These include:
- tractors, spraying equipment, slashers and fruit bins
- fruit trees, trellising, bird netting, sheds and in some instances a cool room and fruit grading equipment
- pruning equipment
- transport
- packhouse
- secure water supplies e.g. a dam or bore, and
- irrigation equipment such as pump, filter mains, sub-mains and outlets.
It's estimated that you'll need to grow at least 25 hectares of citrus to offset the costs of investing in machinery and equipment. Contractors could be used to provide some of these services if you are farming on a smaller scale.
After harvesting your crop, you'll need well-ventilated storage sheds to maintain the quality of your onions. You'll need to sort, grade, clean, and pack your onions into bags or crates, ready for the market. If you're located near a packhouse and are able to partner with them, they'll help you with this.
Jobs and people
Your people and labour requirements are seasonal, based on key milestones, like planting and harvesting. You'll need a mixture of unskilled labour, as well as specialists. The specialists will help you with:
- managing the crop cycle,
- pest management techniques,
- harvesting and,
- post-harvest management.
The peak demand for labour and specialists by citrus farmers is during planting, pruning, and harvesting times.
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Costs and returns case study
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Case study - Northland Citrus Orchard
Here is an example of a Valencia citrus orchard in Northland, let's imagine it had 25 hectares of navel oranges grown last year.
It yielded 1,250 tonnes of oranges, bringing in a revenue of $725,000.
It had $570,000 in expenses, and the farm made a profit of $150,000
It would take 10 years for the trees to reach full production, 6 years for positive cash flow, and 12 years for the orchard to reach payback for the initial development costs.
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Costs
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Operational costs
The estimated operational costs to grow citrus vary according to the specific crop grown (for example, oranges are around $20,000-$25,000 per hectare per year, and lemons are closer to $40,000). This depends on factors, like:
- scale of the operation
- level of mechanisation
- specific farming practices
- regional and locational factors
- market conditions.
Labour costs can be significant, especially when you're first setting up your orchard. Some other examples of costs that you'll need to consider are:
- root stock/quality plants
- fertilisers
- pesticides and herbicides
- skilled and unskilled labour
- permits, licenses, or certifications
- compliance with regulations and food safety standards.
Development costs are highly variable but it has been estimated that they range from $28,000 per hectare for lemons to $32,000 per hectare for oranges.
Ngā Mahi a Wai Māori - Growing Citrus
Costs
There are some costs you will need to consider, and these will change with the amount produced. Here are some examples:
Type of cost
Variable factors
Root stock for planting
Citrus variety, quality, and quantity
Fertilisers and soil amendments
Quantity and type of fertiliser
Pest and disease management
Control measures and treatment
Irrigation
- Water usage fees
- energy costs for pumping water
- maintenance and repairs
- additional infrastructure
Labour
Wages, benefits, and labour requirements at different stages of production
Harvesting and packaging
- Labour costs
- packaging materials
- grading
- sorting
- packaging
Storage
- Electricity or cooling costs
- monitoring equipment
- post-harvest handling and storage
Marketing and distribution
- Transportation
- packaging
- promotional materials
- marketing channels like wholesalers of vendors
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Returns
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Yield (and time to profit)
It typically takes several years to establish a sustainable and profitable operation. It has been suggested that it takes around 6 years to achieve positive cash flow.
Maximising the amount of good quality citrus grown will increase the profits you earn. Factors that can contribute to higher citrus yields include:
- crop management
- variety selection
- planting density
- water management (drainage and irrigation)
- nutrient management
- weed control
- harvesting at the right time.
Revenue
Prices paid for citrus are highly variable due to market conditions and the supply of fruit to the market. In 2017, lemons returned $1.10 per kg to the grower, navel oranges 0.50 per kg, and mandarins $1.40 per kg.
Citrus NZ monitors the volume and price of all citrus varieties produced in New Zealand from April to March and publishes a report at the end of the season.
Returns from citrus production are influenced by a variety of factors, including:
- market conditions (in the domestic market supermarkets prefer to deal with a single large supplier who can guarantee their volumes. New Zealand also imports citrus year-round from other countries, for example, the USA). Both of these situations drive down prices paid to growers and this is why many growers have created value-added products like marmalade.
- yield
- quality (especially maximising the size grade of the crop)
- production costs
- pricing strategies
- events beyond your control, for example, weather conditions or market fluctuations.
Things we can do to create better returns include:
- efficient practices to maximise yield and production.
- market demand and pricing
- quality and grading
- Cost management
- Storage and post-harvest handling
- Value-added opportunities
To help you make informed decisions and maximise returns, it's important for you to:
- stay informed about market trends through research.
- maintain good relationships with buyers.
- regularly assess your orchard's production and financial performance through tracking costs.
Read about producing value-added products from your citrus orchard on Horticulture New Zealand
Operating profit
To estimate your operating profit, you'll need to look at the amount of money generated from selling your citrus, minus your production costs. Some factors may affect your revenue and influence your orchard's operating profit. These include:
- orchard size
- yield - the quantity of citrus sold
- market conditions and fluctuations
- production costs and efficient horticultural practices
- pricing strategies
- weather conditions.
You will need to consider your production costs, which can include:
- labour
- rootstock/nursery plant costs
- fertilisers
- irrigation
- pest and disease management
- machinery maintenance
- storage
- packaging
- marketing costs.
These costs can be affected by having efficient horticultural practices and effective cost management.
Each orchard will have factors specific to them and different market dynamics. Keeping accurate records of your production and financial records can help you see where improvements could be made and increase your operating profit.
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Using this information safely
You should talk to horticultural experts, industry associations, and experienced citrus growers in your region to get:
- more precise information and insights tailored to local conditions and market dynamics, like expected citrus yields
- valuable guidance on the optimal property size and practical advice based on their experiences
- help analysing your financials and assess a timeline of when your farm may be profitable.
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There is legislation, industry requirements, and standards to meet when growing or selling your citrus crop.
Learn more about growing and selling requirements on Citrus NZ
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Export requirements
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Aotearoa exports citrus to a limited number of export markets including Japan, USA, the Pacific Islands, and China. The authorities can provide information on what's needed to export citrus, including:
- procedures
- documentation
- fees or licences
- packaging standards
- biosecurity requirements.
To export citrus to the few high-quality niche markets overseas you first need to discuss your plans with Citrus New Zealand. You will need to follow legislative requirements, including:
- paying levies to Citrus New Zealand and Horticulture New Zealand on the sale of your citrus. This is also required for domestic sales.
- meeting export requirements, like documentation and packaging standards
- ensuring food is grown so it can be sold under the Food Act 2014
- meeting regulations around risks to freshwater.
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Levies for citrus sales
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You would pay $0.14 per $100 of sales to Horticulture New Zealand, which goes towards industry-wide maintenance and development activities.
You would pay $0.01c per kg sold for fresh fruit or $0.003c per kg sold of fruit for processing to Citrus New Zealand. You will also pay 0.5c per kg sold of fresh and processed citrus as a biosecurity levy to Citrus New Zealand. If the amount or ending year changes, you will be notified. This money is for crop-specific activities, like research and development or domestic promotion.
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Food Act 2014
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You must comply with National Programme 1 requirements under the Food Act 2014. This includes:
- following safe food practices, like checking for pests and using clean water
- registering your business with either your local council or MPI
- getting your business verified.
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Resource Management Plan 1991
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You will need a freshwater farm plan, either now or by 2025 if your whenua will have:
- 20 hectares or more of arable and/or pastoral use, or
- 5 hectares or more of horticultural use, or
- 20 hectares or more of combined uses.
These plans identify actions to manage and mitigate risks of on-farm activity to freshwater. They must be certified and audited, then recertified every 5 years.
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Certifications and registrations
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Some additional certifications and registrations may make your citrus more appealing to buyers.
You can choose to get certified with New Zealand Good Agricultural Practice (NZGAP) for a yearly fee. Some retailers and wholesalers only take crops from an NZGAP-certified supply channel.
Find out more about organic produce production in New Zealand through organic certifier, Biogro.
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Here are some resources for further reading.
Locate and explore different uses for your whenua
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