Zespri is predicting higher returns to New Zealand’s kiwifruit growers this season, thanks to the positivecombination of better pricing, sizes and exchange rates.
Chief executive Tony Nowell told local media that the industry has made an exceptional start to this season with a record crop of good-quality early fruit arriving in an encouraging market environment.
The forecast for green kiwifruit this season now sits at between NZ$6.75 (£2.68) and NZ$7.15 a tray, up from $6.30 the previous season, while gold kiwifruit returns are expected to be between $9.30 and $9.70, up from $8.81 a tray.
Total fruit and service payments at Zespri in the year ending March 31 were $660.5 million (£262m), up from $654.3m the previous year, but the average payment per tray fell 14 per cent to $6.93.
"Were extremely encouraged by the positive start to this season with fruit being harvested, packed and loaded with minimal constraints,” said Nowell. "The increase in forecast payments for the 2008-09 season is attributable to improved in-market pricing, size profile and foreign exchange situation, but is offset to some degree by increased shipping costs."
Zespri indicated to growers in December that size 33 was the best profile on average, and the crop has come up trumps. "[That advice] gave them the opportunity to thin their crop ... and I have to say the growers responded magnificently," Nowell said,
Improved returns will be welcomed by growers, many of whom have been hit hard by foreign exchange movements. "It's improved quite nicely for us on yen and euro, those are the two big trading currencies for us for kiwifruit," Nowell said.
New Zealand Kiwifruit Growers president Graham Wiggins said: "I am encouraged by the increase in fruit and service payments but recognise that growers' on-orchard and post-harvest costs have risen significantly. The whole industry must continue the industry's war on costs to drive for extra value and cost efficiencies on-orchard and throughout the supply chain."
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