WELLINGTON - Extremely strong revenue flows have propped up the forecast end-of-season returns to kiwifruit orchardists.
This is in spite of the glut of cheap summer fruit in Northern Hemisphere supermarkets that has hurt apple exports.
The Kiwifruit Marketing Board, which operates as Kiwifruit New Zealand, is holding its forecast at $399.2
million in net distributable returns to growers, or $7.32 a tray.
This was based on a submitted crop volume of 54.5 million trays, 14 per cent down on the crop volume last year and less than had been sought for export.
"Our forecast is nudging last season's record result," said chairman Doug Voss.
He gave credit to the whole Zespri team and the strategy it used this season to maximise revenue despite the fruit shortage, while cutting internal overhead costs.
The board's marketer, Zespri International, was now preparing to exit sales of the New Zealand fruit for the season.
"After weighing up all the factors that could affect the close of play, we will achieve a very solid performance again this year," Mr Voss said.
"We have already exceeded the three-year industry performance target of 60 per cent growth on orchard gate return, achieving 71.4 per cent in two years."
Another indication of the season's performance could be measured by grower payments, which were ahead of schedule and had been increased.
Kiwifruit New Zealand has confirmed that it will make a further progress payment on November 15, averaging $1.20 a tray for green kiwifruit, 50 per cent up on the 80c a tray indicated the previous month.
Mr Voss said the industry was in a favourable position to capitalise on rapid progress in other strategic areas, including the corporatisation of the industry with the creation of Zespri Group Ltd.
Growers had responded positively to restructuring plans and the share-allocation policy for Zespri Group presented to them in a series of nine meetings during October in the main kiwifruit-growing areas.
The final restructuring plan will be sent to Food and Fibre Minister John Luxton for his signature before formal approval is sought from 75 per cent of growers through a referendum at the end of this month.
"I would urge all producers to vote and seal our future as a leading New Zealand-based corporate and the world's leading marketer and producer of kiwifruit," Mr Voss said.
The aim was to have the new structure operating by the start of the new season on April 1.
- NZPA
