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Home / Rotorua Daily Post

Zespri seizes market

By Carmen Hall
NZME. regionals·
19 Nov, 2015 04:00 AM4 mins to read

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China is set to become Zespri's largest market in the next few years, due to massive growth, says chief operating officer Simon Limmer. Photo / George Novak

China is set to become Zespri's largest market in the next few years, due to massive growth, says chief operating officer Simon Limmer. Photo / George Novak

Markets in China and Taiwan are going from strength to strength for Zespri - with China tipped to shortly become the largest importer of its fruit.

Chief operating officer Simon Limmer said sales to China had increased by about 40 per cent this season.

"China is set to be our largest country market in the next few years."

Limmer said that Zespri's market mix had changed and continued to evolve.

"In 2002, 56 per cent of sales were in Europe. This has dropped to 43 per cent in 2015 as sales in China and the rest of Asia continue to grow."

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In China, the Zespri brand was one of the most recognised fruit brands with sales forecast at more than 18million trays of New Zealand kiwifruit and 2million trays of Zespri Global Supply (ZGS) fruit in China for the 2015 season. Up from 11.3million trays of New Zealand fruit and 2million trays of ZGS fruit last season.

"We are investing strongly to support the market side of our business in China through market development appointments," Mr Limmer said.

"Our central office in China is in Shanghai and we have opened a regional office in Beijing, with plans to develop regional representation in Guangzhou, Xian and Chongqing over the next six months."

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Taiwan sales tracked even higher and reached a record of 9 million trays of NZ fruit and forecast sales of about 400,000 trays of ZGS fruit in the 2015 season.

Sales were up 43 per cent on the previous season, with further strong growth forecast, he said.

"Our continued investment in health communications has increased consumption among our existing consumers, while also attracting new consumers to the category. The New Zealand/Taiwan free trade agreement has also helped Zespri to deliver improved value to consumers and shareholders in our fourth-largest country market."

Premium Zespri kiwifruit had been sold in Taiwan for 18 years, he said.

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Moving forward, it was too early to accurately estimate the 2016 crop, "other than to say we are forecasting around similar levels of green and a strong increase in gold volumes, on this season".

Trade figures released showed spectacular growth in New Zealand's exports to Chinese Taipei, said Bay of Plenty MP Todd Muller.

The popularity of kiwifruit boded well for the region.

"Bay of Plenty kiwifruit exporters had a 24 per cent increase since 2013, bringing a welcome lift for growers," Mr Muller said.

Underlying the exponential growth was the Economic Cooperation Agreement between New Zealand and the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Anztec) which entered into force in December 2013.

"Before entry into force, New Zealand's goods and services exports to Chinese Taipei were valued at $987 million a year. Since then, exports have increased by 22 per cent, rising to $1.2 billion in the year ended June 2015," said Mr Muller.

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"These early results are extremely encouraging and will build jobs and more opportunities, particularly in regional and provincial New Zealand."

Trade Minister Tim Groser said other sectors to benefit from Chinese Taipei were cherry exports, up 150 per cent; wine, up 56 per cent and dairy, which had increased its value by 21 per cent to $350 million a year.

Mr Groser said these positive early results gave confidence that free trade agreements, closer economic partnership agreements and broad, comprehensive economic cooperation agreements like this one were all steps towards a more prosperous New Zealand.

ZEST OF ZESPRI

* Sales revenues of $1.57 billion in 2014/15.
* One of the world's most successful horticulture marketing companies.
* Zespri brand is recognised as the world leader in premium quality kiwifruit.
* Based in Mount Maunganui, it is grower owned.
* Employs about 350 people in New Zealand, Asia, Europe and the Americas.
* It distributes the management and marketing of Zespri Green, Zespri SunGold, Zespri Organic, Zespri Gold and Zespri Sweet Green kiwifruit.

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