New Zealand kiwifruit giant Zespri International is being undermined by illegal shipments to China.

Sources say the development is losing the fresh produce big boy some NZ$ 2-3 million every year, as a reported 0.5m trays of contraband fruit are being moved annually.

Black market exports to other Asian nations in the trading block are also damaging Zespri.

Spokesman Dog Voss said: 'Prices are good as a result of big spending on promotions, but the effort is being undermined by other NZ kiwifruit selling for NZ$ 2-3 less.' Oak Shore Holdings will take the stand in court this week, charged with flouting NZ kiwifruit exporting law.