Good growing conditions in pollination should produce a larger New Zealand kiwifruit crop than last season, according to exporter Zespri International.
Higher than average day and night-time temperatures and adequate amounts of rainfall should also mean the fruit quality will be good and fruit size larger than in 2003. Both Gold and green kiwifruit stand to benefit.
Zespri expects to begin harvesting green kiwifruit this month peaking in late April and finishing by the end of May. Gold is also expected to begin harvesting earlier this year than in previous seasons.
But the strength of the New Zealand dollar is a cause for concern. The currency is particularly strong against the US dollar having risen 10 per cent in the past three months and 40 per cent since this time last year. The rise is expected to continue for the first half of 2004, forecasts Zespri and is also having a knock on effect on exchange rates against the euro and Japanese yen. Against sterling however, the change is less dramatic compared to a year ago having slipped just three per cent.
"Mitigating as far as possible the impact of the strong NZ dollar is a major consideration for us in planning the next NZ sales programme which will start in May," said chief executive Tim Goodacre. "The bottom line is that we cannot escape the hig dollar's backlash despite extensive risk management efforts and we expect to see an end to our run of consecutive record returns.
"That said, managing foreign exchange movements is a competency integral to being an effective international marketer and Zespri is constantly seeking advantage through efficiency gains and wise allocation of product to maximise returns in any season. We will be factoring in foreign exchange impacts as part of our budgeting, forecasting and market management processes."
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