Zespri boxes

Global New Zealand kiwifruit sales are up 13 per cent on last year, with one third of the export season left to run.

Eight million more trays were sold between the start of the season and week 37 (mid-September) than in the same period last year, New Zealand kiwifruit marketer Zespri said.

Returns are so far up for all categories compared to last season, thanks to an improved size profile, increased sales prices in local currencies and improved foreign exchange rates, the marketer added.

But Zespri’s acting chief executive has warned that maintaining sales momentum through targeted advertising and promotional campaigns is central to ensuring a strong New Zealand season close-out, as global economic conditions continue to weaken.

“We’ve had a strong first half, but of course a good season requires a good close as well as a good start,” Lain Jager said.

In Japan, Zespri customer deliveries are 4 per cent down on last year due to consumer concerns over the economy, as well as cheap domestic fruit and large banana volumes impacting imported fruit sales.

Sales to East Asian markets, however, are so far above 2007, led by market growth in China. And kiwifruit activities in South East Asia continue to build momentum, Zespri said, with sales of Zespri Green 31 per cent up on last year and Zespri Gold volumes 52 per cent higher than 2007.

In Europe, Zespri Green sales are up 19 per cent on the prior year period, while Gold volumes are 6 per cent higher.

But Zespri said the market situation in Europe has deteriorated over the last month. A slowing economy and high volumes of Chilean kiwifruit (up 18 per cent on last year) have impacted sales, it said. The imminent arrival of the European kiwifruit crop on the market could further dent New Zealand’s performance.

In North America, Zespri Green sales are 39 per cent above last year, Green Organic 12 per cent up, and Gold 30 per cent higher than last year. Week 36 represented the largest sales’ week for New Zealand kiwifruit in the last eight years thanks to retailers’ promotional efforts, Zespri said.

In a separate development, Zespri’s Mr Jager has expressed concern over Turners & Growers CEO Jeff Wesley’s alleged recent comments advocating the “managed deregulation” of the New Zealand kiwifruit industry.

“Zespri operates in a very competitive fruit market and does not fear competition, but what we’ve got in New Zealand is an integrated approach to international selling where New Zealand growers choose not to compete with each other. That’s good business, it’s a successful system and as an industry we need to protect the value that that system delivers to growers,” he said.

“Our job at Zespri is to build a genuinely integrated, branded global kiwifruit business that will enable us to serve our customers as well as deliver a prosperous and sustainable future for New Zealand kiwifruit growers.”