Strong Interest In ZESPRI’s New Varieties

Strong Interest In ZESPRI’s New Varieties

Following ZESPRI’s release of detailed information on three newly-commercialised varieties last month, growers have responded with an extremely strong indication of interest for 2010 licences.

The closing date for bids was Wednesday 30 June and the Evaluation Panel (which includes four ZESPRI representatives, one independent Director from the ZESPRI Board, one independent legal advisor appointed by the Industry Advisory Council, and one representative from legal firm Cooney Lees Morgan) has completed its assessment of the applications which were collated and validated by Cooney Lees Morgan.

The two gold varieties (Gold3 and Gold9) were both oversubscribed and the new sweet green (Green14) is currently undersubscribed. All valid bids at the maximum price for new varieties will receive licences this year, following the Evaluation Panel’s decision to pro-rate the oversubscribed Gold3 and Gold9 varieties, and issue an additional 50ha of Gold9 licences.

ZESPRI Chief Executive Lain Jager said that market demand for Gold9 supports the increase. “Our market demand forecast supports the release of 200ha of each variety, and in some cases it was stronger,” said Mr Jager.

“The Evaluation Panel advised ZESPRI of the oversubscription for Gold9, and we decided to increase available hectares to 250ha. We believe this is manageable from a market perspective, and enables all interested growers to participate in this year’s commercial release.” Mr Jager said that ZESPRI expects there will be substantial opportunities for growers to participate in new variety opportunities with ZESPRI in the next few years.

“This initial commercial release of three new cultivars is conservative and reflects the need to manage risk effectively as the industry learns more about the varieties over successive seasons. ZESPRI will progressively release licences over the coming years to match demand as the varieties perform in the market, through the supply chain and on the orchard.”

Overview of Allocations

Growers are receiving their legal documentation this week and once bidders have signed and paid, they can collect their budwood and start planting or grafting.

About ZESPRI Group Ltd

With sales revenues of $1.5 billion, ZESPRI is the world’s most successful horticulture marketing company and the ZESPRI® Brand is recognised as the world leader in premium quality kiwifruit. Based in Mount Maunganui, New Zealand, we are 100 percent owned by current or past kiwifruit growers, and employ approximately 250 people in New Zealand, Asia, Europe and North America. On behalf of our 2,700 growers in New Zealand and 1,200 growers based elsewhere, ZESPRI manages kiwifruit innovation and supply management, distribution management and marketing of ZESPRI® GREEN, ZESPRI® GOLD and ZESPRI® ORGANIC Kiwifruit.

ENDS

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