Zespri, entitled by statute to be the exporter of all New Zealand kiwifruit except to Australia, is an export hero for this country, leading the industry's recovery from the devastating PSA vine virus in 2010 to last year reporting record global revenue of more than $4 billion.
New Zealand's reputation as arguably the world's highest quality producer of kiwifruit has been hard-earned over decades and millions of dollars of investment in R&D, innovation and more recently, commercialisation of the megastar gold fruit brand SunGold. The sector is just over half way through the export season.
Craig's Harris isn't the only one spelling out the level of concern.
Michael Franks, managing director of NZX-listed kiwifruit grower and packhouse operation Seeka, told the Herald the fruit quality issue this season is "major" with more than one symptom and no verified causes yet.
"For whatever reason we don't understand, the fruit is far more fragile this year. The apple industry is also experiencing this. It makes the fruit far more susceptible to picking damage (like) punctures and cuts. These cuts turn into rot quickly."
The rot spreads juice onto other stored kiwifruit causing an "unsightly" condition.
Franks said a second issue, which the industry here has never experienced but has been seen by Zespri overseas, is called 'superficial skin rub". It has affected fruit already shipped to market.
Onshore "fruit loss" is potential earnings lost between packing and selling, and offshore loss is fruit that doesn't end up getting sold to the consumer, Franks said.
He said the financial loss to growers per tray of "fruit loss" this season would be double that of the "calamitous" $1.20 four or so years ago.
Last year the loss per tray was around $1.80, he said.
Franks said Seeka, like other industry players already suffering an acute Covid-fuelled labour shortage, was working long hours checking trays for the issues before shipping.
Studies into the problems were underway but it was too early to say exactly what the causes of the issues were, he said.
Possible culprits were a push to earlier harvesting or a spray type. It's been suggested part of the problem is that the labour shortage has led to fruit being picked while wet, but Franks said the issue was too wide for that.
It was also too early to say if New Zealand's kiwifruit's good name was at risk.
But because the New Zealand industry was founded on high-quality production "this is a fundamental issue", said Franks.
Asked what action Zespri was taking, chief executive Dan Mathieson in a written response said "in the immediate term we have tactical plans in place like more repacking and increased quality checks through the supply chain to ensure we deliver the best quality fruit to customers and respond when any issues are raised. On top of that, industry leaders are focused on identifying the causes.
"We know the labour shortage is a significant contributing factor but we're looking at everything from what we are doing on orchard through to how our incentives are structured and how we are managing the supply chain. We're fortunate to have the structure and scale and people that we do in the industry and a history of responding to challenges and the industry's leadership is focused on finding a way forward.
"The good news is that demand around the world remains strong and the industry is well placed to continue to realise that and to deliver value back to New Zealand once we tackle the challenges currently in front of us."
The Herald asked Zespri how serious the fruit quality issue was.
Mathieson's response: "This season we are seeing greater variability which is a significant challenge and as we have signalled to growers it will impact on returns during a really difficult season for growers around the world. Delivering premium quality fruit is critical to our brand, our relationships and our ability to deliver ongoing value. As an industry we're committed to responding to the current challenges in order to continue to do that."
NZKGI, the organisation which represents the interests of New Zealand's 2800 kiwifruit growers in a written statement said: "The 2022 kiwifruit harvest has seen an increase in this fruit loss which is contributing in a reduction of kiwifruit being exported to markets than forecast previously.
"There are a range of issues contributing to the increase in fruit loss. Of particular note is a rash on the fruit, physical damage as well as operational issues which has also increased the rate. NZKGI's Performance portfolio is advocating for growers to ensure that industry investigations, which are underway, uncover the reasons for these aforementioned issues."
Zespri's Mathieson, in an advisory to growers last week, signalled the company's orchard gate returns forecast to growers on August 23 would show fruit loss "significantly" above levels predicted in June. He said returns were also likely to be at the bottom and possibly lower than ranges forecast in June.
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