Zespri chief executive Tim Goodacre has defended the single desk system for selling New Zealand kiwifruit saying it helps ensure the marketing spend needed to compete effectively on overseas markets with fruit from other sources.
Zespri has also had to deal with a cut in export volumes this year and the company recently reported a drop in half-year net profits despite stronger sales, as it increased "loyalty payments" to growers, widely viewed as an incentive to ensure producer backing for the single desk system.
“When we know we have all of the supply of New Zealand kiwifruit ... we can then invest in selling that product, even prior to the season,” said Goodacre, explaining that with deregulation “you aren't able to make those sort of longer-term commitments.”
Goodacre said Zespri fruit attracts a 30-40 per cent premium over other global producers and the company would fight hard to retain that. “We only get that because of the brand and the acknowledged value,” he told the NZ press on Monday.
New Zealand kiwifruit was briefly in the spotlight last week when erroneous claims were made in the press regarding carbon emissions generated by air-freighting the fruit. Goodacre said being environmentally sustainable was part of Zespri's “brand value”, with the product seen as clean and green, and was hopeful this would help avert any problems.
“Our customers [are] certainly not seeing it as an issue,” he said. “We would need to monitor that. But they are comfortable because again they see Zespri as being a very responsible marketer of a sustainable product.”
Meanwhile, beleaguered Goodacre could face charges dating back to his time at the Australian Wheat Board where it was alleged he was told about kickbacks paid to Iraq connected with the oil-for-food scheme. Goodacre, due to leave the company by March, said the monopoly helped give Zespri scale and certainty of supply, meaning it could better invest in its brand and fruit quality.
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