Big growth forecast for Bay kiwifruit industry

New research forecasts big growth in the Bay's kiwifruit industry over the next 12 years. Photo/George Novak

The kiwifruit industry will bring another 14,300 jobs to the Bay of Plenty over the next 12 years, according to new research commissioned by Zespri.

Economic Development Minister Simon Bridges, MP for Tauranga, launched a report of findings from the research in Parliament this evening.

Waikato University Professor Frank Scrimgeour said the report quantified the kiwifruit industry's contribution to the Bay of Plenty, Northland and New Zealand economies, as well as to Maori growers.

The report also looked at future industry growth to 2030.

Mr Scrimgeour said regional projections for the Bay of Plenty were strong.

Researchers estimated that by 2030, the contribution of kiwifruit to the Bay's gross domestic product (GDP) would increase by 135 per cent to $2.04 billion.

Kiwifruit would go from providing 10,700 jobs to 25,000 jobs.

Nationwide, the Kiwifruit GDP was on track to hit $6.14 billion and add 29,000 new jobs by 2030.

The report found the growth was driven by the development of new kiwifruit variety Zespri SunGold, also known as Gold3.

Without Gold3, the projections would be more than halved.

Last season (2016/17) 46 million trays of Gold3 were sold with an export value of $686 million, up 70 per cent from the previous year.

Gold3 came out of a breeding programme run by Zespri and Plant and Food Research, with support from the Ministry of Business, Innovation and Employment's research partnership scheme.

Zespri's general manager of innovation Carol Ward said the company was grateful for the Government's support over the past seven years.

"The investment in this partnership - $13.5 million from the government and $29.2 million from Zespri, as well as significant internal funding from Plant & Food Research - shows the government's commitment to supporting the aim of the horticulture sector to double the value of its earnings to $10 billion per annum by 2020," Ms Ward said.

"The New Zealand kiwifruit industry has a goal of increasing kiwifruit consumption around the world and is on track to more than double global sales to $4.5 billion by 2025, driven by this great new kiwifruit variety, Zespri SunGold.

Dr Bruce Campbell, chief operating officer of Plant and Food Research, said breeding a new cultivar was complex work.

It linked deep scientific knowledge with an understanding of the needs of both growers and consumers.

"The long-term commitment by both Zespri and the New Zealand Government in the kiwifruit breeding programme has allowed us to deliver a game-changing new kiwifruit, for the horticultural industry and the nation.

"This is a great example of an NZ Inc investment focused on creating value by delighting consumers."