Wednesday, March 20, 2024

Kiwifruit sales up on last year

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With the complications of social distancing sorted at most kiwifruit packhouses the market prospects are also looking promising for Zespri as the industry passes through its peak harvest week. In his latest industry update Zespri chief executive Dan Mathieson is upbeat about the prospects. 
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“There remains strong demand in our markets for fresh fruit with high vitamin C and a protective skin like kiwifruit,” he said.

As the sector enters week 18 Zespri reports the delivery of 10.6 million trays to consumers, 2.7m up on the corresponding point last year and 5m trays up on the year before.

Chief grower and alliances officer Dave Courtney said the sector has enjoyed a good run of kind weather and early-ripening fruit, making harvesting and processing flow smoothly despite covid-19 constraints.

“But behind the scenes there has been more complexity and cost, of course, as a result of covid-19.”

Processors have also credited the decision to drop the taste test sampling this year from the process with helping fruit flow.  

That happened when testing company Eurofins Bay of Plenty opted out of the process, leaving the sector without a sampling company this year.

However, the taste profile will be reinstated next season and a conversation has begun on how that will happen, Courtney said.

“We all agree that taste is a critical factor for consumer repeat purchases and we will just have to reassess how we get it right for what consumers want and having a process that works.”

Sales volumes are also looking promising with initial SunGold first week sales into Europe reported as the biggest ever at 1m trays, up on previous record levels of 800,000 to 900,000 trays in a week. 

Despite the impact of covid-19 on food supply chains in some countries distribution has proved to be relatively normal.

Japan has also enjoyed a strong start. 

Courtney said China is going according to plan but there is some disruption in some supply chains and a degree of disruption in wholesale supplies.

The loss of sales to the hospitality and food service sectors is a concern and could be disruptive in some markets in coming months. 

However, there is also a strong level of retail consumer interest in buying healthy, high vitamin C fruit given health concerns.

Zespri expects to deliver 21m trays by mid May, putting the industry 4m trays ahead of the corresponding time last year and a whopping 9m trays up on 2018.

It noticed a trend noticed in February as the full impact of the covid crisis started to hit China where consumers boosted their online delivery orders over conventional retail sales. 

Growers have, however, been cautioned there are indications of lower prices that could influence Zespri fruit positioning in coming months and there is variability in China’s recovery, based on patchy distribution between cities and regions.

Predictions for fruit values remain solid in the meantime with orchard gate returns for Green put at $5 to $6.50 a tray and SunGold at $9.50 to $11 a tray compared to the $11.71 a tray estimate for the 2019 year.

Market supply has been met with solid packhouse numbers over the peak demand period. 

Apata chief executive Stu Weston said his company is packing out at 100% capacity on all shifts with the SunGold harvest now nearing its end. 

Meantime, the chance to tender for the latest tranche of 750ha of SunGold fruit closed on May 8. Last year’s licence round resulted in an average price of $285,000 a hectare. 

Red fruit is also up for its first licence tender and Zespri has been careful not to overplay its potential, pointing to reduced storage quality and smaller fruit size.

“We have the Red fruit in local markets, Singapore and Japan and Singapore, in particular, is going well with good consumer feedback,” Courtney said.

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