Thursday, 07 June 2018 12:55

Kiwifruit returns humming

Written by  Pam Tipa
Zespri chair Peter McBride. Zespri chair Peter McBride.

Green and organic green kiwifruit growers were better off per tray this year than last, according to figures released by kiwifruit marketer Zespri.

It says while SunGold returns were lower per tray, the average return per hectare was up 16% with orchard production increases.

The total fruit and service payment to growers increased by 6% to $1.47 billion. 

Zespri’s global kiwifruit sales for the year were also up 6%, at $2.39b. Total revenue, which includes license income, was $2.51b.

Zespri chairman Peter McBride says Zespri delivered a good sales result for Green. The average per-tray return for Green was considerably stronger at $6.71 (2016-17: $4.36). 

“This was supported by good quality and low rates of onshore fruit loss. The average per-hectare return for Green across the industry was $59,981, a new record for the category, and the result was achieved in spite of a 27% decline in average yields.” 

McBride claims the result for SunGold gives confidence in Zespri’s long-term outlook.

 “Zespri achieved a strong increase in returns at the same time as continued growth in volumes. Sales volume for the total Gold category rose by 9% to 52.1 million trays and the average return per hectare across the industry was up 16% at $114,345.” 

The average return per tray was $10.06 (2016-17: $8.64).

The Organic Green return per tray was $8.93 (2016-17: $6.86), reflecting increasing demand in Europe and other major markets and an improved market mix. The return per hectare fell 4% to $52,375 (2016-17: $54,427), impacted by a 26% decrease in average yields.

Zespri sold just over 1.2m trays of Sweet Green. The average per-tray return was $5.61 (2016-17: $5.79) and the average per-hectare return was $38,937 (2016-17: $45,853). 

The per tray result was affected by a smaller crop and early season quality issues. 

The focus for the category remains on it being an early, high-taste offering to get the Green season off to a strong start. 

McBride notes the uplift in value reflects strong consumer demand and excellent market performance. 

“We sold a record volume of SunGold while growing returns at both per-tray and per-hectare levels,” he says. 

“Supply of Green and Organic Green reduced considerably from the exceptionally high volume of the previous year, but very strong consumer demand more than offset the impact on per-hectare returns for Green and mitigated the impact on Organic Green per-hectare returns.

“The industry’s performance during the last season reinforces our confidence in our strategy and potential for strong and sustainable growth.”

More like this

Featured

'One more push' to eliminate FE

Beef + Lamb New Zealand (B+LNZ) is calling on farmers from all regions to take part in the final season of the Sheep Poo Study aiming to build a clearer picture of how facial eczema (FE) affects farms across New Zealand.

Winston Peters questions Fonterra divestment plan

Foreign Affairs Minister Winston Peters has joined the debate around the proposed sale of Fonterra’s consumer and related businesses, demanding answers from the co-operative around its milk supply deal with the buyer, Lactalis.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Quid prod quo?

OPINION: Ageing lefty Chris Trotter reckons that the decision to delay recognition of Palestinian statehood is more than just a fit…

Deadwood

OPINION: A mate of yours truly recently met someone at a BBQ who works at a big consulting firm who spent…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter