The international marketer, which made the cover of Time magazine last month, is forecasting end of season returns to suppliers will rise 3.6 per cent on last season on the back of expected increased sales revenue some four cent up on 2002. Overall supplier returns per tray are forecast to increase by 0.2 per cent.
"The markets are continuing to sell strongly-despite some erosion from currency movements driven by the higher New Zealand dollar and reduced spending on fruit by consumers in Japan and East Asia," said Zespri ceo Tim Goodacre. The company's fruit also performed well battling stiff competition from other drink and snack sectors in the northern hemisphere heatwave, said Goodacre.
Zespri's season is 90 per cent complete and the company reports a 1.1 per cent sales increase in Europe. Sales were strong throughout July and August despite the season beginning a week later and with reduced quantities of fruit.
Price increases in the old world will help boost Zespri's coffers as year to date pricing is 15 per cent up on 2002 with gold and organic fruit achieving significant premiums over green. However, for the second year in a row, volumes of gold kiwifruit have been less than forecast pre-season.
Zespri will shortly be working with an industry advisory council to review the supply chain. Areas the company is keen to identify cost savings and efficiency benefits include freight, packaging and pack types as well as fruit loss and wastage before and after shipping.
"As an industry we must look dispassionately at all our business costs so that we dedicate resources to the areas where value is created," said Goodacre.
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