Record Kiwifruit Harvest Brings Optimism, but Green Growers Face Profitability Challenges
Signs for the 2026-27 kiwifruit crop look good, but there are still some challenges for growers – especially those who produce green kiwifruit.
The approval means kiwifruit growers who become or are Zespri shareholders will be able to use their Zespri shares as security when applying for lending as well as access finance to support the purchase of additional shares.
Greater Flexibility for Orchard Investment
Reuben Tucker, Westpac NZ managing director institutional & business banking, says the move will make it easier for shareholding kiwifruit growers to secure finance.
"Funding the purchase or development of a kiwifruit orchard is a significant undertaking so we're really pleased to be able to support our horticulture customers in this way," Tucker says.
"We think the move will be particularly helpful in situations where traditional security is insufficient, including where land cannot easily be mortgaged, such as whenua Māori land,” he adds.
While Westpac NZ kiwifruit grower customers aren’t required to provide Zespri shares as security, Tucker says having the option will be beneficial.
“Structuring lending in a way that best suits the customer is something we’re really focused on so it’s great to be able to present this as another option for customers.
“Our country’s kiwifruit industry is currently in a really strong position, with export prices and volumes having continued to climb over the past few years.
“Given this context, we think our kiwifruit grower customers will be particularly welcoming of this additional flexibility in structuring debt to expand their operations or invest in a new project.
“We have a strong and enduring relationship with Zespri and are really pleased to be working with them to support the kiwifruit industry in this way.”
Zespri Share Ownership Continues to Grow
Tracy McCarthy, Zespri's executive officer grower & industry, says the move reflects the growing value of share ownership for kiwifruit growers.
"Grower ownership of Zespri is a core part of our industry structure, and we’re seeing more growers invest in Zespri shares," McCarthy says.
“Total Zespri share value currently sits at around $1.8 billion and initiatives that help growers to better leverage that value have the potential to support further investment, growth, and resilience across the industry.
“This news is a positive development for our shareholders considering opportunities both on-orchard and beyond. It’s encouraging to see options emerging that recognise the value of Zespri share ownership and give growers greater flexibility when it comes to investing in their future.”
NZKGI Welcomes Greater Access to Shares
Colin Bond, chief executive of advocacy body New Zealand Kiwifruit Growers Inc. (NZKGI), says his organisation has been pushing for greater grower ownership of the industry, which he says is important for industry stability.
"While Zespri’s actions to increase their shareholding have been largely successful, there is still room for more growers to have a stake in their marketer," Bond says.
"Initiatives such as this increase growers’ ability to access Zespri shares, providing additional certainty."
Supporting New Zealand's Economic Recovery
Tucker says conversations with customers at Fieldays reinforced the fact that New Zealand’s horticulture sector is well positioned to support the country’s economic recovery.
“The kiwifruit sector in particular plays a critical role in our economy and we’re really excited about this new arrangement with Zespri.
“We encourage both existing Westpac customers and anyone else interested in purchasing or developing a kiwifruit property to get in touch with us to chat about what the new arrangement could mean for them.”
