The Country
  • The Country home
  • Latest news
  • Audio & podcasts
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Rural business
  • Rural technology
  • Rural life
  • Listen on iHeart radio

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • Coast & Country News
  • Opinion
  • Dairy farming
  • Sheep & beef farming
  • Horticulture
  • Animal health
  • Rural business
  • Rural technology
  • Rural life

Media

  • Podcasts
  • Video

Weather

  • Kaitaia
  • Whāngarei
  • Dargaville
  • Auckland
  • Thames
  • Tauranga
  • Hamilton
  • Whakatāne
  • Rotorua
  • Tokoroa
  • Te Kuiti
  • Taumurunui
  • Taupō
  • Gisborne
  • New Plymouth
  • Napier
  • Hastings
  • Dannevirke
  • Whanganui
  • Palmerston North
  • Levin
  • Paraparaumu
  • Masterton
  • Wellington
  • Motueka
  • Nelson
  • Blenheim
  • Westport
  • Reefton
  • Kaikōura
  • Greymouth
  • Hokitika
  • Christchurch
  • Ashburton
  • Timaru
  • Wānaka
  • Oamaru
  • Queenstown
  • Dunedin
  • Gore
  • Invercargill

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In

Advertisement
Advertise with NZME.
Home / The Country

Zespri warns of coronavirus disruption risk

By Gavin Evans
BusinessDesk·
19 Mar, 2020 03:24 AM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Kiwifruit marketer Zespri has signalled the risk of low returns to growers this season. Photo / File

Kiwifruit marketer Zespri has signalled the risk of low returns to growers this season. Photo / File

Kiwifruit marketer Zespri has signalled the risk of low returns to growers this season as it tries to assess the potential for disrupted deliveries in global markets and picker shortages here.

The firm, which this week dispatched its first cargo of SunGold fruit this season, said demand for fresh fruit is good and that that may help it weather the coronavirus disruptions it expects.

But it said the board's best-case scenario assumed "at least some disruption across our distribution network." Covid-19 is also impacting labour supply here, but chair Bruce Cameron said it was too soon to say how big an impact that will have on the industry's ability to pick and pack this season's crop.

Last month, Zespri forecast final orchard gate returns for the 2019 selling season at $6.46 per tray for green fruit and $11.71 for gold fruit.

Yesterday, it forecast prices of $4 to $6 for green for the 2020 season and $7.50 to $11 for gold. Its early season forecasts for those varieties usually come in a $1 range.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Cameron said the broader than usual range on forecast orchard gate returns – OGRs - reflects the potential risks Covid-19 poses, the greatest of which would be widespread disruption across the company's global supply chain.

That could include loss of industry capacity, the closure of key ports or markets, heavy restrictions on internal market transport, or large-scale movement controls that stop people buying fresh produce.

"Any of these issues will impact on our ability to achieve our planned run rates which will put pressure on achieving OGRs within the range outlined," Cameron said in a statement.

Advertisement
Advertise with NZME.

Kiwifruit is New Zealand's biggest horticultural export. In the year ended March 2019, Zespri sold 167.2 million trays of fruit globally, almost 149 million of which were grown here, bringing in $3.14 billion in sales revenue and licence fees.

Last month, it forecast a March-year profit range of $187 million to $190m and dividends of up to 89 cents a share.

Given the uncertain environment, Cameron said the firm had arranged extra banking cover for the coming season and is keeping its dividend policy under review.

Zespri is planning to ship 155 million trays overseas this year, in more than 18,500 containers and 47 charter vessels.

Blair Hamill, chief global supply officer, said 32 of those charters are destined for Asia, 11 for the Mediterranean and four to northern Europe.

He said ports in Japan, Korea and Europe are functioning well and have plenty of labour.

Consumer metrics in China are improving and the firm expects its charter services there to run as planned, he said.

"We'll continue to monitor the developing Covid-19 situation closely," he said. "If we see any change in demand or disruption to a port, we will make adjustments to our fruit allocations accordingly."

Save

    Share this article

Latest from The Country

The Country

Giddy Up: Best places to experience cowboy culture

The Country

Vege tips: Getting decorative with gourds and coloured corn

OpinionGlenn Dwight

Glenn Dwight: Lessons from NZ's carless days


Sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

Advertisement
Advertise with NZME.

Latest from The Country

Giddy Up: Best places to experience cowboy culture
The Country

Giddy Up: Best places to experience cowboy culture

From Argentina’s gauchos to Italy’s butteri and America’s rodeo wranglers.

19 Jul 07:00 PM
Vege tips: Getting decorative with gourds and coloured corn
The Country

Vege tips: Getting decorative with gourds and coloured corn

19 Jul 05:00 PM
Glenn Dwight: Lessons from NZ's carless days
Glenn Dwight
OpinionGlenn Dwight

Glenn Dwight: Lessons from NZ's carless days

19 Jul 05:00 PM


Solar bat monitors uncover secrets of Auckland’s night sky
Sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

06 Jul 09:47 PM
NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP