New Zealand kiwifruit marketer Zespri has released its latest final payment forecast for the 2009/10 season, predicting a 6 per cent rise in total payments.
While the forecast is a positive sign for New Zealand growers dealing with turbulent export markets, the payment rise is due solely to growing Zespri Gold returns, while returns on both Zespri Green and Green Organic have fallen.
Total fruit and service payments for the season, excluding Zespri’s loyalty premium, have been predicted at NZ$827m, or NZ$8.06 per tray, up from NZ$779m or NZ$7.59 per tray in 2008/09.
The new forecast represents a rise of NZ$22.3m over the earlier prediction in August, and NZ$48m over the previous season.
Green returns fell by NZ$0.07 per tray over 2008/09, and Green Organic fell by NZ$0.46 per tray, while Gold returns rose by NZ$2.29 per tray.
Zespri CEO Lain Jager said the forecast rise was a result of reduced costs, especially fuel, and an improved exchange rate, particularly with the yen, as Japan is one of Zespri’s largest markets.
“It’s important to note that this is only a forecast and we have a way to go in most markets,” he explained. “At this stage Green pricing and sales volumes are tracking as expected as we work our way to a positive close for the Green season.”
Zespri said its integrated structure allowed it to make rapid decisions early in the season to thin harvests and leave lower-quality fruit on the vines, a reference to the concerted campaign by rival horticultural group Turners & Growers to discredit the company’s New Zealand kiwifruit export monopoly.
“This year has been about reacting flexibly and commercially in a difficult and dynamic market,” said Mr Jager. “We needed to reduce volumes and reduce price in some markets to sell through the crop in an orderly manner.”
Mr Jager said it was important to note the positive growth in overall returns did not mask the drop in Green prices.
“This positive market performance does not take away from the fact that Green returns have not been where they need to be over recent seasons and this year has been another challenging season,” he stated.
“Despite the challenges of an increasing world supply of Hayward, we see some real opportunities for the Green business over the next three years.”
The results of a Zespri breeding programme currently in commercial block trials are due next year, expected to include the announcement of a new green kiwifruit variety.
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