The international produce auction site NZProduceexchange.co.nz became within one month the dominant factor in the export of Buttercup Squash to Japan and South Korea.
The market for this pumpkin-like vegetable with 30,000 tonnes per annum is limited, a handful of New Zealand companies produce the bulk of the volume. On the procurement side, there is one party that dominates the market.
The vegetable auction was designed partly for this party to circumvent.
The first auctions were pricewise unsuccessful, but brought new buyers to the market and gave more transparency.
The first auction inFebruary 2014 gave good prices, the best prices of the year. The parties who did not participate in the auction made also good prices and vegetable auction prices are the starting point of the spot market prices.
In 2015 volumes were smaller but prices were extremely well.