HortResearch chief executive Paul McGilvary and Zespri chief executive Tim Goodacre

HortResearch chief executive Paul McGilvary and Zespri chief executive Tim Goodacre

In the 100th year since kiwifruit was first brought to New Zealand, Zespri, the world's largest kiwifruit marketer, and HortResearch, a crown research institute and world leader in fruit science, have moved to strengthen the platform for New Zealand's largest horticultural exporter with sales of close to a billion dollars.

Under the terms of the agreement, intellectual property ownership of Zespri™ Gold and all new cultivars developed in future by HortResearch will pass to Zespri. HortResearch will also be Zespri’s principal provider of research services.

HortResearch chief executive Paul McGilvary said: "Zespri has committed to increasing its funding of our kiwifruit breeding and research programmes and we have agreed to invest at least half our kiwifruit royalties in further kiwifruit research. We have also secured the certainty of income essential for our long-term planning."

Zespri chief executive Tim Goodacre said: "The agreement clearly demonstrates Zespri's commitment to create wealth for New Zealand grower shareholders through long term investment in innovation. We have aligned ourselves with HortResearch as our exclusive breeder because HortResearch has the world's best germplasm resources and has a proven track record in successful kiwifruit research. This is also about two New Zealand businesses working together to enhance the viability of the New Zealand kiwifruit industry over the long term.

"The global success of the HortResearch cultivar Zespri™ Gold is proof of what can be achieved, with current sales of up to $170m in just seven years since it was first planted."

Kiwifruit growers are also positive about the new agreement. President of New Zealand Kiwifruit Growers Inc. Grant Eynon said, "The new and stronger relationship gives growers more security to growers, knowing that the marketing and science effort are working in harmony and with the latest market information."

The kiwifruit industry continues to grow with Zespri forecasting sales for the year to March 31 to be $930m, 11 per cent higher than last year. Significantly higher volumes and prices are being achieved in Europe and Japan.

The new agreement is effective from April 1.