Zespri says less land needed for $3b future

Zespri can become a $3 billion industry within 15 years and do so using less land than the kiwifruit industry did in the 1980s, says chairman John Loughlin.
He told the annual meeting that Zespri made a commitment earlier this year to triple its export earnings to $3 billion by 2025.
"It is quite extraordinary to think that - thanks to our track record of research and development, innovation, marketing excellence and productivity improvements - we can realistically plan to become a $3 billion-plus industry but still be using less of this country's land resources than when we were far smaller, almost a fringe industry, back in the 1980s."
About 450 growers and shareholders attended the meeting at Baycourt in Tauranga where Mr Loughlin, highlighted the significance of Zespri's stable financial results in the context of market challenges from the global recession and of climatic impacts on the crop.
"The 2009 and 2010 selling seasons have been characterised by tough market conditions in Japan, Europe and North America. Despite this, and some adverse weather which impacted crop volumes, sales of Zespri Kiwifruit have remained strong overall," he said.
"It is this sort of productivity, together with products with broader consumer appeal, that will put money in the pockets of tomorrow's growers," Mr Loughlin said.
Chief executive Laine Jager said: "We are not going to commercialise every good cultivar. Rather, it's about what will earn shelf space and genuinely add value to the category.
"That's what will ultimately benefit growers. "This is about Zespri investing in the future growth of the industry and increasing the green return and, as such, I'm confident that we're doing the right thing.
"With our track record, we have earned the right to grow.
"The future is bright and I know we have the vision and determination to make the most of it."
NZ Kiwifruit Growers Incorporated (NZKGI) president Peter Ombler agreed that the industry had a positive future. "Growers have been invigorated by recent events and the release of the new Zespri kiwifruit varieties.
"The industry is in good heart."
Zespri had announced an increase in payments to growers this season despite the difficult worldwide financial situation and the High Court had ruled in favour of preserving the kiwifruit industry's existing structure.
"One of the most important functions that NZKGI performs is to monitor Zespri performance and make submissions to Zespri representing growers' views as Zespri develops policy, contracts and procedures.
"Most importantly last year, NZKGI was involved in re-negotiating Zespri's commission for the next three years." Mr Ombler said NZKGI had lobbied the Government effectively and taken a key role in the Turners & Growers Court case to preserve the industry's single point of entry structure.
Other key activities included resource management submissions, managing spray issues, reliable and suitable seasonal labour, marketing fruit in Australia and Zespri share alignment.
Zespri had continued to perform well in the markets and was working to increase green returns.
"The future of the kiwifruit industry depends on innovation and cutting-edge marketing by Zespri. Zespri's own research spend was $9 million in the past financial year and there is additional leveraging of government funding." The most recent comparison (in 2008), showed a kiwifruit research spend of 2.5 per cent of revenue compared with dairy produce's 1.5 per cent.
Zespri's export earnings from 2000-2009 had a compound growth rate of 9.88 per cent, underpinned by continuing grower support.
"By contrast, apples, New Zealand's second largest fresh fruit export crop, had negative growth over that period," Mr Ombler said. "Dairy produce had a 9.71 per cent growth."