Growers threw off earlier reservations about offshore gold fruit expansion to support Zespri's plan this time.
Growers threw off earlier reservations about offshore gold fruit expansion to support Zespri's plan this time.
More New Zealand-branded gold kiwifruit will be grown overseas from next year after global marketer Zespri received strong support from the industry to expand offshore orchards.
Kiwifruit growers have voted to support the allocation of up to 420 additional hectares of Zespri SunGold kiwifruit per year oversix years across Italy, France, Japan, South Korea and Greece.
The producer vote was the marketer’s second attempt to get offshore growing expansion over the line with growers, a step it argued was necessary to enable the company to lift supply in line with forecast demand in an environment of intensifying competition “and an increasingly dynamic category”.
Grower-owned Zespri has the statutory right to export all New Zealand kiwifruit, except to Australia.
The resolution achieved 90.6% (1803 votes) support on an individual vote basis and 93.29% support in terms of weight of supply. Individual opposition to the plan was 9.40% (187 votes) and 6.71% by weight.
Individual voter turnout was 72.21% and 84.36% by weight. Under the Kiwifruit Export Regulations, a producer vote must receive at least 75% by individual votes and by fruit weight from those who vote to be successful.
Zespri chief executive Jason Te Brake said the vote outcome reflected the ability of the New Zealand industry to come together “on pressing issues with a focus on delivering strong grower returns and maintaining Zespri’s position as leaders in a competitive category”.
“The outlook for Zespri kiwifruit is positive. I’ve spent a lot of time in the markets with our customers in 2024 – they want more of our fruit, and they want it all year. The result of this vote is crucial as we continue working towards 12-month supply for key customers in key markets, filling more demand and supporting New Zealand grower returns into the future.”
The vote result comes near the end of a strong season for Zespri, with a record export crop volume of 190 million trays delivered, and November forecast orchard gate returns up across almost all fruit categories compared to the August forecast, Te Brake said. Forecast per-hectare returns were at record levels for green and organic green on the back of improved yields while maintaining strong value in the market.
The allocation and planting of the additional SunGold hectares would begin early next year.
Grower advocate NZKGI supported the expansion along with Māori Kiwifruit Growers Inc, whose members represent 10% of New Zealand’s total export crop.
New Zespri chief executive Jason Te Brake.
Zespri this time two years ago failed to get enough producer support to expand plantings of its SunGold overseas, excluding China and Chile by up to 10,000ha.
The vote was close, but fell short of success because some growers who did not own shares did not believe more offshore planting would benefit them. Under 50% of Zespri’s growers own shares, a level the company is working to lift.
The company has run offshore production for nearly 25 years to complement New Zealand supply. It has 1500 contracted offshore producers.
The aim of the expansion is to support the marketer’s strategy of being able to offer the world Zespri-branded fruit for 12 months of the year. In New Zealand, kiwifruit is a seasonal crop. The approved offshore maximum of 5000ha has been allocated.
Zespri has 2800 New Zealand growers and 1500 contracted growers offshore.
In 2023-2024, it supplied 164.2 million trays of kiwifruit to consumers in more than 50 markets, and posted global operating revenue of $4.21 billion.
