Zespri Green kiwifruit

Zespri’s early forecasts on average returns for the 2009/10 kiwifruit season have pegged a small decline in orchard gate returns (OGR) for the Green and Green Organic brands, but a increase in Gold returns.

Average OGR for Zespri Green is forecast at NZ$3.42 (US$2.34), down 7 per cent from last season. Green Organic OGRs are down 8 per cent to NZ$5.79 (US$3.96), and Gold is up 33 per cent to NZ$7.21 (US$4.93).

Total payments (excluding loyalty premium) for Green are NZ$6.88 (US$4.70), down 2.5 per cent from 2008/09. Green Organic went down 5 per cent to NZ$8.81 (US$6.02) and Gold went up 20 per cent to NZ$11.67 (US$7.98).

This year’s decline is not surprising, Zespri CEO Lain Jager told Fruitnet.com, given the performance of global markets.

“We’re experiencing the same conditions as all other fruit marketers are globally,” he explained. “We’ve had flat volume performance on last year – there’s not a lot of growth – and general pressure on pricing in markets.

“Our pricing is off about 10 per cent on last year in many markets. My observation would be that that’s in line with most other crops, and actually better than some,”

The August forecast has followed a declining trend in New Zealand Zespri Green returns established over the last six years, according to Mr Jager, although he says the season is only half though and the forecast is an early one.

“There’s been a theme in the New Zealand kiwifruit industry over the last few years of Green growers not getting great returns,” he explains.

“Is the green kiwifruit industry going to get better? That’s just down to global supply and demand trends.

“There’s more Italian and Chilean green kiwifruit that going to come onto the market, so I think we can expect to see a continuation of the kind of returns we’ve seen over the last five years. I don’t see anything that will change that in the next few years.”

On the positive side are Zespri’s continuing strong returns from the Gold variety. Compared to the Green returns this year of about NZ$27,500 (US$18,800) per hectare, Zespri Gold is netting over NZ$70,000 (US$47,900) per ha.

“Because it’s a niche crop, our growers have got stronger returns for the Gold. It’s been quite successful this year,” said Mr Jager.

Zespri’s new varieties currently in commercial block trials, which include a new green variety, are also looking promising.

Set for a final commercial decision next year, Mr Jager said if all goes well commercial grafting of the new varieties could start as soon as June 2011.