Kiwifruit now nestles comfortably among apples and oranges on retail shelves and is recognised by many consumers as a mainstream fruit rather than an exotic.
The fuzzy green fruit and its golden counterpart are grown in a number of areas throughout the world, and Italy, New Zealand and Chile represent the world’s leading exporters.
It has been an eventful few months for Zespri International Europe and the marketer welcomed its first arrivals of New Zealand kiwifruit on May 16 - the earliest start to the season since 2001.
“The New Zealand kiwifruit season started strongly in mid-April, but due to a long, warm and humid period we saw fruit maturity levels stabilise for Zespri Green and Gold,” Jean-Louis Warnimont, marketing services manager Europe for Zespri tells FPJ. “Fruit continued to grow rather than ripen, helping to achieve the largest average sizes for at least the last 10 years.”
When questioned about rainfall delaying the season in early June, Warnimont was philosophical. He says: “During the main harvest period, rain is something the pickers and packers are used to. It is typical of autumn weather in New Zealand and this year they had to be just a bit more patient. Supply to markets has not been significantly affected by the delays in harvesting.”
Around 49 million trays of Zespri kiwifruit are expected to reach Europe this year. This will comprise of 43m trays of Zespri Green and 5.2m trays of Zespri Gold. Final picking out of New Zealand is expected to be completed by week 25.
Zespri Gold has been a winner for the New Zealand marketer and Zespri is close to making it available year-round. The smooth-skinned fruit is supplied out of New Zealand between June and August, and from Italy between December and January.
The gap will be filled by growers in Chile, who are already supplying Zespri Green. “We are currently planting [Gold] in Chile but it takes a while until our exacting quality requirements can be met,” Warnimont notes.
“With Zespri Gold we have a unique and exclusive product in terms of sweet taste, colour and appearance,” he continues. “The substantial advertising and marketing programmes for Zespri Gold in all main European countries have strongly increased brand awareness and consumer demand. This allows us to move, not only in the UK, but throughout the whole of Europe, an increasing annual volume in line with rising production from all over the world.”
Exporters also have other reasons to be optimistic. The drop in value of the New Zealand dollar against other major currencies spells good news for national shippers. “The most significant movement has been in the New Zealand dollar/euro exchange rate,” Warnimont says. “At NZ$2.06 to e1, it is now back to the levels of 2002, having been as low as NZ$1.70 back in December 2005.”
Exchange rate factors hit Zespri’s results for 2005-06. The exporter reported a NZ$26.4m full-year net profit after tax but group chairman Craig Greenlees said overall returns had been eroded by some NZ$61.4m and growers felt the brunt of the New Zealand dollar’s strength in lower returns.
Other factors such as higher freight costs, a record crop, variable fruit and storage quality issues, fruit and service payments and orchard-gate returns, also ate into profits.
Zespri’s global kiwifruit sales finished the year down three per cent at NZ$991.1m despite record sales volumes and strong pricing in key European markets.
According to recent reports, Zespri will pay out all of its profit in dividends this year in recognition of the disappointing prices grower-shareholders achieved for their fruit.
Elsewhere in the southern hemisphere, Chile is enjoying a strong campaign. “Chilean kiwifruit growers and exporters are optimistic about market conditions facing this year’s harvest, both in Europe and the US,” says Christian Carvajal of Asoex. “Growers are expecting a good return on their fruit this season. This year, the New Zealand kiwifruit harvest is lower and Chile will have a harvest with very good sizes and quality of fruit.”
Sizes are slightly larger this year, with counts averaging at 33 compared to last season’s counts of 30-36.
Kiwifruit exports are expected to reach 14.6m cartons this year, according to Decofrut, a Santiago-based fruit service and information provider.
“Exports during the current season through to May 31 totaled 11.9m cartons, six per cent more than during the 2005 and 2004 seasons when exports at this time had reached about 11.2m cartons,” says a Decofrut spokeswoman.
While exports to the US have risen some 2m cases and Latin American markets have increased volumes by 13 per cent compared to last season, volumes to the Middle East have declined by 20 per cent.
Exports to Europe and the Far East have seen little variation, with an increase of three per cent and a two per cent decline respectively.
“Chilean exporters opened some controlled atmosphere chambers in the middle of May - two weeks earlier than normal,” says Decofrut. “This would explain, in part, the large amount of volumes shipped in May in relation to previous seasons.”
Despite the higher volumes, Chilean kiwifruit has faced tough competition in EU markets this year. “There was earlier competition coming from New Zealand kiwifruit and supplies from Italy that remained in some markets until the end of May affected Chilean sales,” Decofrut explains.
However, the company is confident that further gains can be made in the UK. According to the firm, the UK is an “exquisite” market for fresh produce, as it imports and is willing to pay for high-quality products.
“In the UK, there is also room for organic produce and Chile is becoming one of the best organic kiwifruit providers in the world,” Decofrut claims.
Chile is the world’s third largest kiwifruit exporter and Felipe Espinosa, president of the Chilean Association of Kiwifruit Producers, calculates there will be about 12,000 ha under kiwifruit production in Chile this year, which compares favourably to the official figure of 6,640ha just two years ago. Nurseries are selling around 600,000 plants a year.
Approximately 70 per cent of Chilean kiwifruit is planted in regions VI and VII. The two regions are considered to be the best producing areas due to the availability and quality of water supply, as well as good soil and climatic conditions, says Carvajal.
Chile’s kiwifruit harvest kicks off in March and runs until late-April/early-May. The bulk of Chilean exports normally begin during the last week of March and continue through to September. However, technological improvements in storage facilities have allowed the export season to be extended through to November.
Similarly to other countries, Chile is keen to diversify its kiwifruit portfolio and has introduced two hybrids of the well known Hayward variety. Summer Kiwi and Green Light will ensure the Chilean season gets off to an earlier start. The yellow-flesh varieties Zespri Gold and Jintao have also been introduced in limited volumes.
“Last year was the first time Chilean gold kiwifruit was exported,” Decofrut says. “It was a sample and volumes will still be small for at least three years. But from our point of view, there is room for both kiwifruit types. Gold kiwifruit has a more tropical flavour, is less acidic and has a smoother skin than green. It will capture new palates and increase general demand.”
Chilean kiwifruit is finding greater favour in the UK, according to importers. “Demand is good at the moment due to the good weather we’ve been having over the past couple of weeks,” says Mark Key, Greencell’s import manager. “Chile’s shipping good quality product.”
Greencell works with three suppliers in Chile and is on course to handle 1.5m cartons. “As yet, we’ve had nothing to show that it’ll be an unusual season. I predict it’ll be business as usual,” says Key.
Meanwhile, a number of European producers enjoyed some success during their campaigns. Prior to the start of the season, Italian growers reached an agreement on minimum kiwifruit quality for the new season. Producers agreed to adhere to the accord drawn up with the national agricultural organisation CIA to supply according to minimum quality standards, setting a minimum fruit maturity level of 6.2 brix for harvesting and brix levels of 11 at consumption.
Growers forecast a harvest of some 430,000t of fruit and producers reported a strong deal. “Overall, we enjoyed a good season and prospects were very good, even towards the end when we had good quality fruit and high prices,” Luca Antonietti of Novafruit tells FPJ.
Adriafruit’s Luca Aragone agrees: “The quality was really good and in mid-June, a producer opened the last refrigerated room and we were still able to offer Italian kiwifruit in a really good quality condition.”
Elsewhere, Greek kiwifruit producer Zeus Kiwi reported strong demand in its key markets this season. The company ships to a number of markets including the Middle East and exported its last load to the UK on April 24.
“Our exports to the UK were considerably higher this season, as were our sales to Europe generally, particularly to the eastern European countries,” says Zeus Kiwi’s George Kroussaniotakis. “The domestic market is also expanding every year and we are proud to be one of the leading suppliers there too.”
Similarly to other kiwifruit producers, Zeus Kiwi is planting and experimenting with new varieties. “Some are very exciting, but it is our intention not to lose sight of our core product, the Hayward variety, and try to enhance its taste even more,” Kroussaniotakis says. “We are achieving this by constantly updating our sorting and storing methods.”
Kiwifruit may still be something of an exotic fruit but variations on it still command attention. Tesco trialled Chinese red kiwifruit in its stores two years ago.
“The flavour was superb and plans are always under review to see how we could fit it in with our brands again in the future,” says Tesco’s Claire Jenkins.
With China looking to boost its kiwifruit exports, it seems we could all be enjoying red, yellow and green kiwifruit in the near future.
DECOFRUT REACTS TO GLOBALISATION
Decofrut provides market information and quality control services for the international fruit industry. In its early years, Decofrut focused on advising Chilean export companies, but in these times of globalisation, it has expanded its remit.
The company has experienced significant growth over the last decade. It has 11 offices located in the main ports around the world, including bases in Sheerness, Rotterdam and Genoa.
“Decofrut’s goal is to help fruit agents to have good operational procedures and on-time and accurate information for better commercial results,” says a spokeswoman.
