Kiwifruit industry turns 10, and what a present

By Glenys Christian
Over the Gate

The annual report of Kiwifruit New Zealand says it would be "imprudent and foolhardy to sit back and enjoy the status quo."

But what a performance the country's youngest producer board has turned in as a 10th anniversary present.

Orchard gate returns to growers were $100 million ahead of the previous season's at $257.9 million. That is an average per hectare return of $23,753, well up on $15,386 the year before.

Looking back over the past 10 years, orchard values have risen from $24,000 a hectare to $144,000, and the fruit from $8 to $24 a tray.

But nothing in those statistics tells of the agony of the 1992 season, when the kiwifruit industry was all but lost in a glut of fruit that swamped world markets.

Since those dark days, the industry has taken a tough look at itself and has decided to combine the best features of competitive marketing with its single-desk structure.

Last season saw a smooth transition to free choice in onshore handling of the crop, with accompanying savings to growers.

Now there are two major issues the industry must tackle to make certain momentum is maintained - corporatisation and the global commercialisation of the yellow-fleshed Zespri Gold fruit.

While Kiwifruit New Zealand chairman Doug Voss says he has pleasure in presenting the board's newly released annual report to the Minister of Food and Fibre, John Luxton, there is no mistaking his frustration when he refers to the slow progress being made towards corporatisation.

There had been hopes that the Government would look at these major issues separately from the overall strategy for evolution of the industry, which Kiwifruit New Zealand presented to the Government in November. However, the April 1 deadline that the board had set for corporatisation has well and truly passed.

Talks are still continuing with the ministerial advisory group, which includes John Palmer, the former chairman of the Kiwifruit Marketing Board, as well as its project team.

But despite assurances that constructive progress is being made, the July 1 deadline which the Government had indicated could be possible for corporatisation has now had to be flagged away as well.

Matters are further advanced with global commercialisation of Zespri Gold.

After a lengthy round of grower consultation meetings, further details of a new company, Kiwifruit International Ltd, which is to market kiwifruit grown overseas, are expected to be announced at Kiwifruit New Zealand's annual general meeting next week.

A prospectus is likely to be issued to growers and they can then make their own decisions as to whether they wish to be financially involved in the all-important move to 12-month marketing.

This strategy has been the subject of acrimonious debate and court proceedings in the past, but now Kiwifruit New Zealand believes the necessary protection is in place to make sure New Zealand growers are the beneficiaries.

The hardest lesson the kiwifruit industry has had to learn is to avoid infighting.

A repeat of a result like last season's, and resolution of both the corporatisation and Zespri Gold commercialisation issues, would be the very best way to show that the industry has truly gained a maturity beyond its years.

* Glenys Christian can be contacted at glenysfarm@xtra.co.nz.