Zespri chief executive Dan Mathieson said this season’s crop had benefitted from exceptional growing conditions, resulting in an estimated 66 million trays of SunGold harvested, and Green fruit in the “high 70 millions”. The SunGold harvest was estimated to be up 10% on last year’s volumes.
After the much-publicised pressure of labour shortages to get fruit harvested off vines this picking season, Mathieson said market prospects were very positive in both traditional and the rapidly developing Asian markets.
“Europe in particular is going very well. There has been short supply in Europe and we are finding the SunGold variety is selling well. The Hort16a (first Gold fruit) did not go so well there, with its sweeter taste profile, compared to the SunGold now.”
Zespri offered samples of red kiwifruit at the Mystery Creek Fieldays – a new variety that has recently received positive consumer reviews in test marketing in Singapore.
“We are particularly excited about it – we know we have to have it in the portfolio but it still has a few boxes to tick.”
Mathieson said the marketer was struggling with the fruit’s storage life, which needed to be at least 12 weeks, but was sitting at about eight now. It could be two seasons before that issue is resolved and it becomes more commercially viable.
China continues to charge ahead in sales volumes and is now Zespri’s biggest single market, accounting for 27 million trays, of which 16 million are SunGold.
Japan, for years a relatively staid market, has also had a new lease of life. It’s expected to be up 10% this year, accounting for 26 million trays.
“Much of this has come from taking a more integrated approach with retail customers at the point of consumer purchase, to really drive demand.”
However, while the European Union remained strong, Great Britain remains a tougher market to crack with the indomitable strength of major food retail chains determining shelf space and selling relationships.
“Britain is a bit like the United States was a few years ago. However, we are looking at e-commerce as a different way to reach consumers and deliver.”
The marketer is already enjoying success with China’s significant online food sector, with web sales accounting for 20% of sales there.
With 700ha of SunGold already allocated for planting this year, and further tranches to come over the next four years, Mathieson was well aware of the labour demands the industry faced.
“We currently employ about 18,000 people and by 2030 that is expected to be 29,000. We need a lot more people to come in to the industry at all levels.”
Stringing seasonal tasks together made full-time employment a possibility, and better accommodation facilities were needed to retain the appeal for seasonal work.
“And even at a managerial level we need to attract more talent to the industry. We have 22 offices around the world and want to tell that story to people interested in working in that sector.”
Other than labour shortages, Mathieson cited land and water availability as another potential constraint on the sector’s growth plans.
But the SunGold variety has also proven adept at growing in a wider area beyond the Te Puke-Western Bay of Plenty district, further south into eastern Bay of Plenty, Gisborne and Hawke’s Bay.
“We are seeing strong interest from Maori groups that are already invested in timber and dairy and are looking to diversify their investment. A Te Kaha group on the East Coast are now growing SunGold for early harvest, with great taste.”
With free trade talks commencing this week between New Zealand and the European Union, there was a prospect the present 8% tariff could ultimately go. It was costing about $30 million a year now, and Zespri would be one of the parties in government-industry negotiations.
“Europe still accounts for half our Green sales and has good prospects for SunGold, particularly in Spain, Germany and the Benelux countries.”
