The New Zealand kiwifruit industry is looking forward with a sense of cautious optimism after two tough years of having to learn how to manage the bacterial disease Psa, according to Zespri chairman Peter McBride.
Talking after the 2013 Zespri annual meeting in Tauranga, McBride said that while the industry’s path out of Psa remained uncertain, it had made 'tremendous progress' since the disease was first confirmed in 2010.
“We have come a long way, learnt a lot and taken some really positive steps to returning the industry to growth again,' he said. 'This spring will be a critical time in understanding how well we are doing, which is why we say there is cautious optimism in the industry rather than stating categorically that we are on the path to recovery.'
At the meeting, McBride told over 300 grower-shareholders in attendance that 2012/13 delivered strong results for the industry, with the highest green kiwifruit returns since 2003, record gold returns and the highest organic returns since 2008 – with the positive results likely to continue this year.
“Fruit markets are strong and we are having a vintage-taste season following the hot dry summer, which means demand is strong across our markets” McBride outlined
China
In addressing Zespri’s customs issues in China, McBride said it was clear that they would have no impact on Zespri’s future in the country which, subject to supply, is forecast to be Zespri’s largest market by 2018. although he admitted the ongoing legal process made open comment on the case difficult.
“We have to work through the historic customs issues in China in a deliberate and considered manner,' he noted. 'We cannot fast-track this process. We must be respectful of China’s system and continue to cooperate with the relevant authorities in a humble and open manner until the matter is resolved.”
McBride said that there was tremendous opportunity for New Zealand kiwifruit growers in a world of growing middle classes and demand for quality and safe-to-eat food, and urged Zespri to maintain a 'commitment to excellence'.
Meanwhile, Zespri CEO Lain Jager said the enthusiastic market reaction to the first commercial quantities of the new Zespri Gold variety, known as SunGold, was 'great news' for the industry.
“Our customers’ enthusiasm to grow their Gold sales gives us confidence in this category as we recover from Psa and rebuild our gold volumes to levels higher than before Psa,” Jager said.
Structural changes
Jager explained the changes made to Zespri’s sales and marketing structure to support the company’s next growth stage, as the Psa recovery pathway begins to take shape.
“Our strategy is to deliver the world’s leading portfolio of kiwifruit products,” said Jager, adding that Zespri would continue to invest in developing new varieties, accelerate its 12-month marketing programme and continue to refine supply chain operations to achieve this goal.
With regards to China, Jager said the company had identified a number of issues which, in combination, meant its oversight of the actions of our former importer were not sufficiently robust.
“It is critical that the company learns from this experience and moves forward with respect to its operations and relationships in China and we will continue to keep growers updated with our progress,” he added.
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