CEO Jason Te Brake tells NZ Herald company acknowledges mounting local pressure and is weighing up potential options
New Zealand-based kiwifruit marketer Zespri has told the NZ Herald it is considering its response to increasing competition from locally grown G3 kiwifruit in China, including the possibility of establishing a tightly controlled Chinese supply programme.
In conversation with the newspaper, chief executive officer Jason Te Brake said the illegally grown fruit was increasingly competing with its own New Zealand-grown product towards the end of the season.
“We are confident in the future of our China market, but it is becoming more challenging,” he commented. “We are facing increased competition from locally grown G3, which is increasingly competing with more variable New Zealand G3 at the back end of our season.”
The emergence of Chinese G3, supported by strong quality, brands, and routes to market, was something it had to respond to, he added.
As Fruitnet has previously reported, Zespri is understood to be discussing two potential responses with New Zealand growers.
The first would involve continuing to compete from New Zealand by improving late-season fruit quality, investing in post-harvest innovation, and developing longer-storing varieties.
The second would involve a tightly controlled supply procurement model within China, one designed to provide high-quality fruit throughout the year.
“If we pursue China supply, the model must create and protect value for New Zealand growers while giving Chinese partners a clear incentive to meet Zespri standards and support the brand long term,” Te Brake said.
He noted that no decision had been made on the matter, and that any proposal would require the support of New Zealand growers through a producer vote.
