Poor top-fruit returns hit Turners & Growers

Poor top-fruit returns have caused net profit at New Zealand-based Turners & Growers to drop 17 per cent to NZ$14 million (£5.7m), in the year to December 2007.

Revenue from ordinary activities fell 6.4 per cent to NZ$515m.

The high New Zealand dollar hit top-fruit exports, but offshore prices were consistent with previous years.

Domestic markets, including imports, had a good year and were up significantly from 2006.

Prices across most produce lines were firm and consistent throughout the year.

Export volume at subsidiary Enza dropped slightly in 2007, as growers redeveloped their orchards, replacing commodity varieties and replanting with exclusive varieties with stronger returns.

Volumes of trade-marked Jazz apples are increasing incrementally, with significant volumes expected from 2009 onwards.

New variety Envy has generated significant interest and will be propagated globally.

The new top-fruit orchards in Hawke’s Bay were hit by lower than expected returns, and those orchards will be converted from commodity varieties to Jazz and Envy.