New Zealand’s Zespri Gold kiwifruit growers can expect a solid rise in price over the 2009/10 season, according to new forecasts released by the international kiwifruit marketer.
The average Gold price in 2008/09 was NZ$9.70 per tray, Zespri said in a press release, but in the current season the forecast price is set at NZ$11.20-11.70.
“Demand is growing year on year and this season exceeds supply, meaning Zespri Gold has been able to maintain pricing levels in local currencies,” the release said.
The prospects for growers of Zespri Green and Green Organic are not so bright, however.
“Due to the global economic environment, we are not seeing the usual year-on-year growth for Zespri Green kiwifruit, the largest category in our portfolio, with demand at about the same level as last year and weaker pricing in fruit markets generally,” said Zespri CEO Lain Jager.
Zespri’s green offerings are still garnering a significant margin over the competition, he added.
The market has presented New Zealand kiwifruit exports with a mixed basket this year – on the positive side, oil prices have decreased 53 per cent since last year.
On the negative side, the financial crisis has pushed down prices in most major markets. An overhang of Northern Hemisphere kiwifruit has also dogged sales.
“Traditionally at this time of the year, the Northern Hemisphere kiwifruit sales have finished, leaving a clear run for New Zealand kiwifruit,” Mr Jager said.
“This year, however, there is still Italian kiwifruit in the market in Europe and domestic kiwifruit on retail shelves in Japan.”
Early sales have started well, Mr Jager said, but added that uncertainty in many markets meant that could change, and that a possible strengthening of the New Zealand dollar could lower returns.
Whatever the rest of the season brings, Zespri can also build on the firm footing it established in the last financial year.
Net profit after tax rose from NZ$19.7m in 2007/08 to NZ$23.9m, and total global kiwifruit sales grew 25 per cent to NZ$1.45bn. Sales of New Zealand-sourced kiwifruit rose 8 per cent to a record-breaking 100m trays.
While the European market is still Zespri’s biggest, last year taking 60m trays, the biggest growth came in China, south-east Asia and North America, with combined sales rising from 10.8m trays to 13.7m.
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