The biggest problem facing the New Zealand kiwifruit industry is the impact of a high NZ dollar on grower returns.

Zespri chairman Craig Greenlees told delegates at the marketer and exporters’ annual general meeting last week that the impact of foreign exchange on the industry is some NZ$140 million (£52.5m). Although Zespri’s hedging policy tries to minimise the effects of the currency differential, and mitigate the risk to growers, the cost is still likely to reach NZ$92m. “This represents a foreign exchange impact of NZ$0.75 to NZ$1.60 a tray across all pools,” said Greenlees. He also cautioned that the situation is unlikely to get any easier for growers in the foreseeable future. “With the high NZ dollar and with our constant demands for higher and more consistent quality, 2007-08 is set to be even more challenging than the season just past,” he said.

Globally Zespri’s volumes sold to mid-July were 15 per cent up on last season with green kiwifruit sales in Europe up six per cent on last year, organic fruit sales up 19 per cent and Gold sales up eight per cent.

“Maintaining our early sales momentum remains the priority as we come up against increasing volumes of good quality summer fruit and Chilean volume being sold in Europe at 15-20 per cent less than last year,” said Greenlees.

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