Kiwifruit Insurance: Protecting Your Orchard from PSA and Weather Events

The Kiwifruit Industry and Its Risks

New Zealand is the world's third-largest kiwifruit producer, with the Bay of Plenty region at the heart of a $3+ billion export industry. The industry has come a long way since PSA (Pseudomonas syringae pv. actinidiae) devastated orchards in 2010–2013, but growers today face an evolving range of risks.

PSA Disease Coverage

PSA cover is one of the most frequently asked-about topics in kiwifruit insurance. The challenge is that PSA is a biological disease, and most standard named perils policies exclude disease. However, several options exist:

• **Business interruption cover** — if a PSA outbreak forces a significant reduction in your orchard's productivity, business interruption cover can compensate for lost revenue during the recovery period
• **Re-establishment costs** — some policies will cover the cost of vine removal, soil treatment, and replanting following a PSA-forced removal
• **Specialist disease cover** — available from select international markets accessed through brokers like AJG and Aon, though typically with significant sub-limits

Weather Events: The Bigger Annual Risk

While PSA grabs headlines, weather remains the most consistent threat to kiwifruit orchards:

Hailstorms at flowering (typically September–October) or during vine growth can damage emerging shoots and fruit. Hail nets provide physical protection, but the nets themselves can be damaged and the installation cost (typically $30,000–$80,000/ha) should also be insured.

Late frosts in the Bay of Plenty are infrequent but catastrophic when they occur. Frost at flowering can destroy 80–100% of a crop.

Cyclone & wind events — Cyclone Gabrielle in 2023 caused significant damage to Bay of Plenty orchards, highlighting the importance of storm cover.

What a Good Kiwifruit Policy Looks Like

A comprehensive kiwifruit orchard insurance programme typically includes:

1. Standing crop cover — hail, frost, wind, fire

2. Orchard infrastructure — hail nets, irrigation, packing shed

3. Business interruption — loss of income during recovery

4. Post-harvest quality cover — losses from storage or handling failures

5. Liability — public and product liability

Getting a Quote

Given the complexity of kiwifruit insurance, we strongly recommend working with a specialist broker. Use our enquiry form to connect with an adviser who works specifically in the Bay of Plenty and horticulture sector.