Zespri nets $2.26b in sales

Zespri AGM held at the ASB Arena. Zespri Chairman, Peter McBride explains how the company has managed to net $2.26b in sales. Photo/John Borren

Kiwifruit company Zespri has netted a record $2.26 billion in sales.

The company announced the 19 per cent increase on last year at today's annual general meeting, where about 500 growers and shareholders gathered at the ASB Arena.

Zespri chairman Peter McBride said the the high yields and late start to the New Zealand season meant lower per-tray returns for Zespri Green but continued strong per-hectare returns for the Green business.

"A particular highlight was the performance of SunGold which saw a sharp increase in both volume and per-tray returns - up 39 percent to $98,838 per hectare and five percent per tray to $8.64," Mr McBride said.

The meeting reported on Zespri's financial year to March 31, covering the performance of NZ kiwifruit sold in the 2016 season with sales running from April to November each year and Zespri's counter-seasonal Northern Hemisphere season with fruit sold from October to March. Most of Zespri's fruit is from New Zealand and the company also sources fruit from Italy, France, Korea and Japan to supply key retail customers with Zespri-branded fruit all year round.

Here in New Zealand, Zespri runs four product pools to supply the market: Zespri Green, Zespri Green Organic, Zespri Gold and Zespri Sweet Green.

Zespri chief executive Lain Jager said the industry was in good heart.

"Strong returns and confidence are underpinning strong orchard values in the sector and Zespri is focused on delivering value for growers by investing to grow demand around the world."

At the company's annual meeting in Mount Maunganui today, chair Peter McBride said he recognised the 2017 season had been difficult, with some growers facing lower average yields for green and organic green varieties.

"However, market conditions are positive and our August forecast reflects a good demand position," McBride said. "It is supported by strong investment to build product and brand awareness, earn shelf space and support sales through retail channels.

"The August forecast shows average OGR (orchard gate return) returns per hectare for green and green organic that reflect lower yields and higher per tray returns. Gold continues to perform strongly across all markets, reflected in good returns. Green 14 returns are off this year, impacted by a very narrow market mix for this small category. I note these are averages and recognise that the result may be difficult for orchardists with lower yields."

McBride said the company was focused on improving returns on green kiwifruit crops, growth from its SunGold variety, developing its organic category and commercialising new varieties.

"I am confident that successful implementation of this strategy supported by 12 month supply will see continued growth in grower and shareholder returns," he said.

- Additional reporting from BusinessDesk