The kiwi dollar closed trading on June 12 at a high of US$0.4892 compared to US$0.43 just two months ago making it one of the strongest currencies in the world this year.

Avocado growers who have important sendings to the US are claiming they are being hit already whereas as large scale global operators such as Zespri and Enza are protecting against the effects. Analysts forecast that the situation could cause greater concern if the kiwi dollar rises above US$0.50 as many exporters have based profit margins on that figure.

'Our exchange basket is weighted in euros and yen,' said a spokeswoman for Zespri International. 'The New Zeland dollar is climbing against the US dollar which is not Zespri's major trading currency. So at this stage we are watching, but believe that our hedging policy and forward cover that is in placeSwill help mitigate the impacts of any greater volatility.'