Zespri has announced total returns to New Zealand kiwifruit growers fell by NZ$158m (US$135m) last season, compared with the previous year.
Outlining the company’s annual result for 2013/14, Zespri chairman Peter McBride said the performance could be directly linked with a 15 per cent drop in total production volume, which was blamed on the Psa vine-killing disease.
More pointedly, a 55 per cent fall in gold kiwifruit volumes saw overall returns dip below NZ$805m (US$685m) , compared with NZ$959m (US$820m) in 2012/13.
While McBride said strong demand across Zespri’s 53 markets ensured outstanding returns for fruit-baring orchards last season, this news was of little comfort to the majority of New Zealand’s gold growers who are currently grafting their Hort16A (Zespri Gold) crops over to the more Psa tolerant Gold3 (Sun Gold) variety.
“The gold returns were heavily influenced by the short supply of gold volume due to Psa,” McBride said. “So while this did produce record returns for those with a crop, the 2013 season was painful for those who are still re-establishing their orchards after Psa.”
Zespri chief executive, Lain Jager said foreign exchange rates also impacted on grower returns.
“Foreign exchange cost growers NZ$21m (US$17.9m), compared to the previous year,” Jager explained.“However, grower returns would have been NZ$88.5m (US$75m) lower for the same period without our ongoing hedging policy.”
The news was better for green kiwifruit growers, with Zespri reporting the average per hectare return (NZ$42,659) for Hayward (Zespri Green) was the highest on record. McBride said this underlined confidence in the industry’s future.
“After the impact of Psa over the past three years, there is a real sense of optimism in the industry now,” McBride said. “Orchard prices have rebounded, investment has started again and the future looks bright.”
Zespri also announced its supply of non-New Zealand-grown fruit increased from 8.8m trays in 2012/13 to 11.2m trays in 2013/14, a 27 per cent increase in volume, delivering an 87 per cent increase in profit.
The marketer’s net profit after tax for 2013/14 was NZ$17.2m, more than double the NZ$7.5m profit recorded in 2012/13 when it was ordered to pay a hefty fine for an under-invoicing scam involving its former Chinese importer.
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