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Zespri On Track To Deliver Strong Value Back To Growers
Zespri has released its first full forecast for the 2024/25 season, with forecast per hectare returns up from last season for all categories, reaching record levels for Green and Organic Green.
The full forecast follows the indicative ranges released in June for per tray and per hectare returns.
Zespri CEO Jason Te Brake says the latest forecast reflects both the strong season start and the competition seen more recently in markets, including from summer fruit.
“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.
“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.”
Mr Te Brake confirmed that with a total crop of more than 190 million trays to sell, Zespri was focused on finishing the second half of the season strongly.
“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.
“That will be 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 maximise the value we return to growers.”
Mr Te Brake said increasing competition reinforced the importance of Zespri’s Global Supply (ZGS) strategy, set up by growers more than 20 years ago. ZGS involves Zespri working with offshore growers in Italy, France, Japan, Korea and Greece to provide kiwifruit for 12 months of the year. This allows Zespri to have counter-seasonal supply in place to complement the New Zealand season and drive value for New Zealand growers.
With the maximum 5,000 hectares of offshore SunGold plantings now allocated and the gap between supply and demand growing, the industry is discussing the potential expansion of its ZGS programme to protect value for the industry.
"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.
“The next stage of these conversations over the coming months will look at what a potential expansion of our ZGS programme 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 Italy, France, Japan, South Korea and Greece.
Mr Te Brake says that depending on the nature of those conversations over the next few months, Zespri may consider formally seeking grower support for expanding ZGS via a Producer Vote which would require 75 percent support to proceed.
2024/25 August OGR Forecast per tray and per hectare returns
Pools (Fruit Categories) | 2024/25 August Forecast Per Tray | 2024/25 August Forecast Indicative Range Per Tray | 2024/25 June Indicative Range Forecast Per Tray | 2024/25 August Forecast Per Hectare | 2024/25 August Forecast Indicative Range Per Hectare | 2024/25 June Indicative Range Forecast Per Hectare |
| Zespri Green | $7.80 | $7.50 - $8.10 | $7.50 - $8.50 | $83,280 | $80,000 - $86,000 | $80,000 -$91,000 |
| Zespri Organic Green | $11.10 | $10.60 - $11.60 | $9.75 - $11.25 | $84,903 | $81,000 - $89,000 | $75,000 -$86,000 |
| Zespri SunGold Kiwifruit | $10.68 | $10.40 - $11.00 | $10.00 - $11.25 | $154,113 | $150,000 - $159,000 | $143,000 - $161,000 |
| Zespri Organic SunGold Kiwifruit | $13.45 | $13.00 - $14.00 | $12.50 - $14.00 | $138,390 | $134,000 - $144,000 | $129,000 - $144,000 |
| Zespri Green14 | $8.36 | $8.00 - $8.75 | $8.00 - $8.75 | $53,272 | $51,000 - $56,000 | $51,000 - $56,000 |
| Zespri RubyRed Kiwifruit | $16.74 | $16.25 - $17.25 | $16.25 - $17.75 | $71,653 | $70,000 - $74,000 | $69,000 - $76,000 |
ABOUT
ZESPRI
Zespri is 100 percent owned by current
and former kiwifruit growers and has a global team of 850
based in Mount Maunganui and throughout Asia, Europe and the
Americas. Our purpose is to help people, communities and the
environment thrive through the goodness of kiwifruit, and we
work with 2,800 growers in New Zealand and 1,500 growers
offshore to provide consumers with fresh, healthy and
great-tasting Zespri Green, Zespri RubyRed and SunGold
Kiwifruit. In 2023/24, we supplied 164.2 million trays of
kiwifruit to consumers in more than 50 markets, and recorded
global operating revenue of NZ$4.21 billion. Zespri is
committed to sustainability, with areas of improvement
identified right through the supply chain including our
pledge that by 2025 we will use 100 percent reusable,
recyclable or compostable packaging, do more to help the
environment, and work with our partners to be carbon
positive by
2035
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