Zespri 2023 kiwifruit crop: Export volumes down after bad weather but quality improving

Zespri chief executive Dan Mathieson said it had been an extremely challenging growing season in New Zealand.

Zespri says extreme weather this year has contributed to a lower-than-expected New Zealand kiwifruit crop this season, with one variety heading towards one of the lowest volumes in 20 years.

The Mount Maunganui-based kiwifruit marketer expected to export around 136 million trays of Green, SunGold and RubyRed varieties to more than 50 countries this season, according to the latest New Zealand crop estimate.

This is down from the 171 million trays in 2022, with this season’s crop potentially reducing even further following April’s hail event in Te Puke, a statement from Zespri said on Thursday.

Chief executive Dan Mathieson said in the statement it had been an extremely challenging growing season in New Zealand.

“Like many others in the primary industries around the world, kiwifruit growers have faced a particularly tough time this growing season, including many weather-related challenges.

“As a result, we have a limited supply of kiwifruit for our customers this season, particularly Green kiwifruit where we’re expecting one of the lowest volumes in the past 20 years, with around 42 million green trays available which is down from around 61m trays in 2022.”

He said Zespri was working with global customers to make the most of the challenging season.

Mathieson said in the statement that while the lower volumes were disappointing, it provided an opportunity to focus on lifting fruit quality - an issue in recent seasons - and to prepare for more fruit next year.

“There’s been a huge effort across the industry and our supply chain to do everything possible to lift quality this season, including making sure we had a really good quality harvest.”

He said feedback from initial shipments to Asian and European markets was that quality was “much better”.

More than half this season’s fruit was harvested and planning for a larger crop next year had started.

“From a supply perspective, we’re expecting significantly more volume in 2024 as growers rebound from this season’s weather-related reduced yields and more of our licenced SunGold kiwifruit hectares come into maturity.”

Mathieson said in the statement the growth was expected to continue and was forecast to reach almost 230 million trays in 2027/28.

It was hoped this would move Zespri “back into a period of sustainable growth with our customers and sustainable value for our growers”.

He said Zespri was investing in its brand and developing new markets, and the industry was working to build more resilience against adverse weather events into its supply chain.

In March the NZ Herald reported Zespri had forecast a slump of up to $144m in its corporate net profit after tax for the 2023 financial year compared to last year.

Zespri confirmed it will proceed with plans to list on the NZX late this year.

Only growers will be able to own the listed shares, as per the current restriction on shareholding. Zespri will not be seeking to raise capital as part of the listing.

The company, which has the statutory right to export all New Zealand kiwifruit except to Australia, has told growers its forecast range of net profit after tax for the year ending March is $217m-$227m. Last year’s net profit after tax was $361.5m.