NEW ZEALAND - After releasing its first full forecast for the 2024–25 season, Zespri reports that it is on track to deliver strong volume back to growers.
“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,” commented Chief Executive Officer Jason Te Brake. “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. 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.”
The forecast noted that per hectare returns are up from last season for all categories.
“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,” Te Brake added. “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 maximize the value we return to growers.”
According to a press release, Zespri noted that increasing competition has reinforced the importance of Zespri’s Global Supply (ZGS) strategy, which involves the company working with offshore growers in Italy, France, Japan, Korea, and Greece to provide kiwifruit year-round.
Additionally, now that the maximum 5,000 hectares of offshore SunGold plantings is now allocated and the gap between supply and demand continues to grow, the industry is discussing the potential expansion of its ZGS program.
"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 noted. “The next stage of these conversations over the coming months will look at what a potential expansion of our ZGS program might look like, as we make a decision as an industry on how ZGS can continue to deliver value for our industry.”
Zespri is now seeking industry feedback on potentially expanding the current 5,000-hectare cap by up to 420 additional hectares of SunGold Kiwifruit per year over six years across the aforementioned countries. Depending on those conversations, Zespri may consider formally seeking grower support for expanding ZGS via a Producer Vote.
We’ll be on the lookout for additional news, so stay tuned!
