Kiwifruit returns to fall 9pc

A strong dollar and high freight costs are expected to shave an average of 9 per cent off returns to kiwifruit growers in 2005-2006 despite improved prices, industry marketer and exporter Zespri says.

Zespri yesterday forecast a 70c drop in the average payout per tray of fruit compared with last season to $6.79.

"Kiwifruit is having to work hard to gain market share at higher prices against much cheaper alternatives and to maintain fruit quality for customers," Zespri chief executive Tim Goodacre said.

However, the currency, which hit a near-23 year high of 74.65USc in March, had also helped offset rising freight costs, which were paid in US dollars.

The total kiwifruit crop was forecast at a record 64.8 million trays of green kiwifruit and 14.7 million trays of the premium gold variety.