Export prices set to remain elevated
Horticultural prices are set to remain elevated this year, reflecting the balance between demand in key export markets and an increase in supply.
New Zealand’s Kiwifruit Product Group (KPG) is also intent on not losing ground in the Australian market in a year when volumes may be slightly down. This is partly due to the demand from other markets and also because of the strength of the New Zealand dollar.
Sales volumes of kiwifruit have been relatively static in Australia, research shows, and the industry plans the promotional push in the year when a hot, dry summer should produce a good tasting fruit.
"Although the campaign details have not yet been finalised, targeting nutritional value is a sensible approach, says Terry Richards, KPG’s Kiwifruit to Australia product group executive officer.
“The research to date shows that the health aspects of kiwifruit are under promoted and we should be focusing on that. Recent research has backed up claims for digestive health,” says Richards.
The three-year campaign costing $200,000-$250,000 in the first year will start in July. “We have done some extensive research on how well kiwifruit is performing in the Australian market and we haven’t seen any marked growth in the returns out of the market. We feel to achieve that we need to undertake more comprehensive marketing work.”
Richards says good market analysis has been done by the agency commissioned by KPG and creative designs will be presented shortly. The campaign will promote kiwifruit generically as the KPG members export both Hayward Green and a number of gold varieties throughout Australia. There are 12 exporters to the Australian market this year.
Richards says New Zealand’s total crop for Hayward Green looks similar or slightly ahead of last year. That is an early estimate because the harvest is just starting.
The quality of the fruit being harvested is exceptionally good, he says. That means Zespri, the single desk marketer for all kiwifruit markets except Australia, is likely to take a bigger slice of the crop this year. “Due to a higher proportion of fruit going to other markets, there will be less Hayward fruit available in Australia than last year,” he explains.
KPG is licensed to export to Australia under the Horticulture Export Authority (HEA), which imposes grade standards, reporting, monitoring, promotion and marketing, says Richards.
Practical requirements are administered by KPG. Its key roles include quality assurance, setting grade standards and auditing packhouses to ensure fruit meets standards.
AsureQuality is contracted to do that auditing.
KPG also has responsibilities for market monitoring so exporters must report to the group on volumes shipped throughout the season.
KPG also has group marketing and promotion responsibilities, hence the latest initiative in Australia.
