Zespri reveals forecast grower earnings for this export season

Zespri's latest orchard gate return forecast brings mixed news for its 2800 New Zealand growers.

Kiwifruit marketer Zespri says New Zealand’s number-one horticulture export industry is on track to deliver its largest crop ever and it has a goal of $4.5 billion in global sales this season.

The grower-owned company said its latest indicative forecast for the 2024-2025 season reflected improved yields, with 197 million packed trays of fruit expected.

Forecast per hectare orchard gate returns had increased from last season, with the midpoint of current ranges above last season’s final per hectare returns for all pools. Forecast green and organic green fruit per hectare returns were expected to be at record levels.

But indicative per tray returns have dipped from last season’s record highs.

Last season, Zespri posted $3.99b in global sales.

Outgoing chief executive Dan Mathieson said while there were some challenges this season, Zespri was continuing to see strong demand, with the industry’s efforts to deliver consistently high-quality fruit supporting strong sales in key markets.

”It’s really pleasing that today’s forecast indicates we’re on track to deliver strong value to growers and to meet our target of $4.5b in global sales revenue by 2025,” said Mathieson, who leaves shortly for a top position with a US export berry company after seven years as Zespri’s CEO.

“After a tough growing season last year, it’s great to see per hectare returns rebound on the back of much better on-orchard yields, which is positive news for our growers.

”Feedback from customers on this season’s fruit quality has been positive and has supported the strong start we’ve made in key markets, including achieving record sales weeks in our core markets.

“Maintaining our focus on quality in a season where we have significantly more fruit to deliver will remain critical to maximising value for growers,” Mathieson said.

While forecast per hectare returns had strengthened off the back of larger volumes of fruit this season, per tray returns had dipped from last season’s record highs, he said.

However, the bottom end of the latest forecast per tray range had lifted from Zespri’s March indicative forecast for all categories other than SunGold and Green14 Kiwifruit.

“It’s an encouraging forecast. However, there are still some challenges in this season’s smaller fruit profile and unfavourable foreign exchange movements from the Japanese yen,” Mathieson said.

Zespri’s June indicative per tray forecast for green fruit is $7.50-8.50, compared to $7-8.50 in its March forecast. The latest per hectare forecast for green fruit is $81,000-91,000, against $75,000-91,000 in March.

Zespri’s global best-seller SunGold is forecast to achieve $10-11.25 per tray, compared to $10-11.50 in March. The indicative orchard gate return per hectare for SunGold is $143,000-161,000, against March’s $145,000-166,000.