Truffle ‘price war’ divides growers
| Published date | 22 July 2021 |
| Date | 22 July 2021 |
| Publication title | North Canterbury News |
Limestone Hills owner Gareth Renowden, of Waipara Valley, grows Perigord black truffles in his truffiere of about 220 trees in North Canterbury.
The truffle species was the first type to be planted in New Zealand, had the most growers devoted to it and fetched the highest prices, he said.
The average market price for a premium Perigord truffle in New Zealand had been about $3 a gram for the past 20 years, he said.
In the past two years, more growers in New Zealand had been supplying Perigord truffles to the domestic market.
Demand for truffles dropped last year, after restaurants closed due to the financial impact of COVID-19.
Consequently, some ‘‘newcomers’’ to the sector began selling Perigord truffles for a ‘‘ridiculously low price’’ last year.
A North Island truffle co-operative ‘‘triggered the price war’’ by working with Bidfresh — a division of food wholesaler Bidfood — by marketing truffles for $1 a gram.
Bidfresh used low prices as a ‘‘weapon’’, rather than creating a client base by building relationships, like truffle growers had over several years.
George’s Truffles owner and New Zealand Truffle Association acting president George Wilkinson, of Tasman, sold his Perigord truffles from $1 a gram - ‘‘undercutting’’ the market, Mr Renowden said.
Many growers were ‘‘ropeable’’ by the price being ‘‘hammered’’ down.
‘‘There was a lot of ill-feeling about how the market had been devastated by these very rash and ill-considered short-term plans.’’
A steady price was important, as growers created a business plan on a forecast financial return, so when the price dropped it had a serious impact on a truffiere operation, he said.
As Mr Wilkinson had ‘‘led the price war’’ he was in no position to advocate for the sector and to get growers co-operating to create export opportunities, or to make efforts to rebuild grower returns.
‘‘Dumping truffle in the market is not a very nice thing to do to your colleagues.’’
The sharp fall in pricing was an ‘‘eye-opener’’ for growers.
‘‘No-one expected the pricing in the market to collapse quite as dramatically.’’
The drop had resulted in him losing ‘‘a few sales’’ but most of his clients stayed with him because he had built ‘‘close relationships’’ with them over the past 15 years.
Mr Wilkinson said he grew Perigord...
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