he kiwifruit exporter just had a record harvest and is set to pay growers a better yield. Its outgoing CEO explains the seeds it’s now planting for future growth.
After a tough couple of years with cyclones curtailing crops, fruit quality issues and labour shortages, Zespri kiwifruit suppliers can breathe some sighs of relief this season.
“That’s going to be fantastic for growers who are finally going to be getting some financial benefit and reward,” Zespri’s outgoing chief executive Dan Mathieson told Markets with Madison.
While values earned on fruit globally last season were solid, with just shy of $4 billion earned in exports, that wasn’t all passed on to growers through a higher yield, he said.
“If you go back to the 2022 season, one of the big problems was we didn’t have enough people and the quality of that fruit at harvest time was not great. It was getting damaged as it was going into the picking bags.”
Quality had now improved following investments in technology and supervision staff in packhouses, he said.
“That whole piece has just improved dramatically from where it was just a couple of years ago,” Mathieson said.
With higher volumes of kiwifruit now available in markets such as Europe, Asia and the United States, sales were expected to increase - Zespri was bolstering its staff and marketing in the US and Vietnam specifically.
Zespri's trademarked RubyRed kiwifruit variety may provide a profitable opportunity for growers - it can fetch up to $26 a tray, compared with the Green variety's circa $9 per tray price this season. Photo / Mike Scott
The executive who led that improvement was Zespri’s chief operating officer Jason Te Brake - who will take over from Mathieson as chief executive in July.
The 36-year-old told Markets with Madison he had been actively gunning for the job since he was 20 - including telling Mathieson he would be his successor seven years ago.
But Te Brake would oversee new challenges for the kiwifruit marketing co-operative, including an attempt to encourage more growers to own shares in it and increasing competition from other premium fruit suppliers globally, meaning he would have to work harder to protect and grow demand for Zespri’s brand.
Zespri's incoming chief executive Jason Te Brake (left) reveals to Madison Reidy how he became the replacement for outgoing chief executive Dan Mathieson (right) in today's episode of Markets with Madison. Photo / Mike Scott
Mathieson also said Zespri had plans to increase supply on orchards from outside of New Zealand, to ensure it could supply consumers fruit all year round - something that may not go down well with domestic growers.
“We have about 5,000 hectares around the world now, growing outside of New Zealand, but it’s not enough.”
Watch Dan Mathieson discuss new opportunities for growers, including its RubyRed kiwifruit variety which can fetch prices nearly triple that of Green, and how he really feels about leaving the company he’s worked for for 21 years, in today’s episode of Markets with Madison above.
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Disclaimer: The information provided in this programme is of a general nature, and is not intended to be personalised financial advice. We encourage you to seek appropriate advice from a qualified professional to suit your individual circumstances.
Madison Reidy is host and executive producer of the NZ Herald’s investment show Markets with Madison. She joined the Herald in 2022 after working in investment, and has covered business and economics for television and radio broadcasters.
