Sales momentum carries over from strong start to season, putting kiwifruit marketer on course to deliver increased per-hectare returns across all categories
Zespri has released its first full forecast for the 2024/25 season, with forecast per-hectare returns up from last season for all categories, reaching record levels for Green and Organic Green fruit.
Zespri CEO Jason Te Brake said the forecast reflects both the strong season start and the competition seen more recently in markets, including from summer fruit.
“The industry put a lot of work into getting off to a really strong start to the season to meet early season demand and that’s set us up well in a year where we have a lot more fruit to sell,” he said.
“Although strong competition is always challenging around this time of the year, we’re already seeing signs that this fruit is moving off shelves and we expect this trend to continue over the next few weeks.”
Te Brake added that the results of the forecast are a testament to the industry’s hard work.
“The fact we’re on track for a strong lift in per-hectare returns across all varieties this season, and record returns for Green and Organic Green growers, is a testament to the hard work the industry has put in following a really challenging period,” he said.
Green turnaround
In 2017, Zespri embarked on a strategy to reduce its Green supply and bring it into line with market demand. Production has reduced from around 80m trays to 60m trays, with a focus on improving quality. The kiwifruit marketer has also targeted Green supply on higher returning markets. Reflecting the success of this strategy, orchard gate returns have improved from less than NZ$4 in 2017 to NZ$9.55 last year.
The projected record per hectare Green returns for 2024/25 are likely to bolster grower confidence in the marketer following some murmurs of discontent when orchard gate returns for Green fell short of forecasts in 2022/23.
Second half momentum
Te Brake confirmed that with a total crop of more than 190m trays to sell, Zespri was focused on finishing the second half of the season strongly.
“This season’s improved growing conditions have meant grower yields have increased and we’ve got a lot more fruit to sell. But quality and demand are strong, and we’re well placed to deliver a strong result to growers,” he said.
“That will also be supported by the exciting campaigns our in-market teams have developed featuring our Kiwi Brothers as we look to take advantage of strong demand for our fruit and maximise the value we return to growers.”
Offshore SunGold plantings reach cap
Te Brake said increasing competition reinforced the importance of Zespri’s Global Supply (ZGS) strategy, set up by growers more than 20 years ago. ZGS involves Zespri working with offshore growers in Italy, France, Japan, Korea and Greece to provide kiwifruit for 12 months of the year. This allows Zespri to have counter-seasonal supply in place to complement the New Zealand season and drive value for New Zealand growers.
With the maximum 5,000ha of offshore SunGold plantings now allocated and the gap between supply and demand growing, the industry is discussing the potential expansion of its ZGS programme to protect value for the industry.
“We’ve had some good conversations with the industry in recent months on the importance of ZGS and its role in protecting grower value as we face increasing competition,” Te Brake said.
“The next stage of these conversations over the coming months will look at what a potential expansion of our ZGS programme might look like, as we make a decision as an industry on how ZGS can continue to deliver value.”
The industry conversations will consider the potential in expanding the current 5,000ha cap by up to 420 additional hectares of SunGold Kiwifruit per year over six years across Italy, France, Japan, Korea and Greece.
Te Brake said that depending on the nature of these conversations, Zespri may consider formally seeking grower support for expanding ZGS via a Producer Vote which would require 75 per cent support to proceed.
