Kiwifruit rides out Psa scare for now

The Psa bacterial outbreak did not dramatically affect fruit output this season but the future is uncertain, says Zespri. Photo / APN

Total returns to kiwifruit growers are up despite a stuttering global recovery, rising oil prices and the outbreak of a bacterial disease, says exporter Zespri.

Total returns to growers in 2010/11 were $883.3 million, up from $849 million the previous year, with net global sales of $1.5 billion.

Zespri chairman John Loughlin said the results for 2010/11 were particularly pleasing considering the challenges facing growers.

In November New Zealand was found to have Psa - a bacterial disease first identified in Japan about 25 years ago.

The industry in total had not lost much crop in the current harvest, with green fruit of a similar size and gold up quite significantly, Loughlin said.

Beyond the current harvest, the future of the kiwifruit industry in the short to medium term was uncertain, with the impact of Psa yet to be determined, he said

"My sense at the moment it's likely to impact over several seasons."

Kiwifruit Vine Health general manager John Burke said the disease had shown a lot of progression in Italy and France.

"Pretty well we have infection right across Italy in gold and there is also quite a significant infection in green," Burke said.

In New Zealand there were 229 Psa positive orchards with 83 per cent in the Te Puke area and 107 orchards confirmed as having a virulent strain of the disease.

Zespri, which controls exports of kiwifruit to countries other than Australia, said early signs for the 2011/12 selling season were for another challenging year in the face of increases in oil prices and a strong dollar, while higher green organic and gold fruit volumes would put pressure on average market returns.

Indicative returns per tray were expected to be slightly lower than in 2010/11, although Loughlin said total returns were expected to rise.

"Zespri, like the wider kiwifruit industry, is focused on Psa and is leading a significant research and development programme into all aspects of the vine disease," he said.

"We have a tough 24 to 48 months ahead of us as we learn how to live with and manage Psa.

"However, I'm confident the industry will overcome Psa and meet its long-term growth plan to triple export earnings from $1 billion today to $3 billion by 2025."

Zespri's net profit was $7.3 million, down from $25.9 million - a drop attributed primarily to a $12.9 million contribution to the response to Psa in New Zealand and a rise in the loyalty payment to growers from 15c to 25c a tray.