Kiwifruit production boom

New Zealand's largest kiwifruit supplier is predicting a production increase of 5.6 per cent this year.

Seeka Kiwifruit Industries is estimating just under 20.8 million trays, compared to 19.6 million last season.

The forecast means Seeka expects to handle more than 27 per cent of fruit produced nationally this year.

Chief financial officer Michael Franks said the 2006 result was pleasing given difficult harvesting conditions because of rain. Seeka said it was still too early to update fruit value projections.

Meanwhile, Seeka said it had completed the $825,000 purchase of 25 per cent of the Paengaroa fruit-handling business Kiwi Produce.

Under the deal, Seeka and kiwifruit co-op Satara will own 45 per cent of Kiwi.