Zespri said the growers had waitedfor the results of a producer vote on expansion this month “because they want SunGold”, the global marketer’s best-selling fruit developed by the New Zealand industry.
Zespri was successful in its second attempt to get grower support for expansion of its offshore growing operations, a strategy to help ensure Zespri-branded fruit is available in world markets year-round.
New Zealand-grown export kiwifruit is seasonal.
Zespri has contracted some offshore orchardists for 25 years but the total growing area previously approved by the New Zealand growers who own the marketer and exporter is now fully allocated.
Growers this month voted in support of allocating an additional 420ha of SunGold plantings in the existing offshore production locations of Italy, France, Japan and South Korea.
Production of SunGold will also begin in Greece, where Zespri has contracted branded green fruit-growing for many years.
Trials of SunGold production in Greece had produced “impressive results” due to that country’s rich soil and ideal climate, a Zespri spokeswoman said.
Planting of the full new allocation in all nominated countries would start early next year.
Offshore growers had been offered competitor varieties but had waited for the result of this month’s producer vote “because they want SunGold”, she said.
“It has a premium reputation, it commands a good price and Zespri is known for its innovation and marketing.
“Many are also proud, long-term Zespri growers and the successful vote is a positive opportunity for them, as well as new growers.”
The additional hectares would be allocated to a mix of existing and new growers, depending on their location and history of growing.
Zespri sold a total of 164 million trays of branded export fruit in 2023-2024 – 27.4 million of which were grown offshore.
Overseas fruit production contributed $654.2 million to Zespri’s global operating revenue of $4.2 billion in 2023-2024.
Andrea Contario's Italian kiwifruit orchard is a major supplier to Zespri's offshore-grown fruit programme.
Between 2019 and 2023, Zespri lifted its offshore volumes by 68%, extended the programme by five weeks and maintained pack-out rates of 84%.
Offshore operations supplied 19.1 million trays of first-class SunGold fruit in 2023-2024.
Italy is Zespri’s biggest offshore producer with 926 orchards recording 20,318 million trays last year, 12.3% of total supply. SunGold was 81% of the Italian crop, and green 19%.
France, with 86 contracted orchards and Japan’s 167, produced only SunGold fruit.
South Korea’s 299 Zespri orchards are also devoted to SunGold.
Zespri does not own or lease land in its offshore production programmes. It contracts growers who work on a commission basis under a licence agreement. The licence cannot be sold or transfered. If a contractor sells their orchard, they must return the licence to Zespri.
New orchards are audited by Zespri before they are permitted to plant SunGold.
Initial additional plants for the expansion programme will come from Zespri’s nurseries in Italy, the company said.
Some growers would graft on to plants and use budwood rather than nursery plants.
Vines grafted with budwood early next year would have their first crop harvested and on the market in October 2027.
New plants would have their first crop harvest in late 2028.
The spokeswoman said expansion of offshore production was a critical part of Zespri’s plan to provide 12-month supply to key customers in key markets.
“It is one part of a bigger plan; we are also focused on improving yields from existing hectares, extending storage, optimising inventory management and using the right commercial incentives with our suppliers.”
Zespri’s Northern Hemisphere supply executive officer Nick Kirton said the successful producer vote this month was “a huge vote of confidence from New Zealand growers”.
Zespri’s Northern Hemisphere partners were also very pleased with the result, Kirton said.
“We experience increasing competition every day up here. These additional hectares are welcome news not only to our growers and partners but also to our customers who want Zespri-quality fruit all year round.
“The important thing now is to execute well, combining this increased supply with other projects such as extending storage, lifting yields and improving inventory management.”
Zespri, owned by present and past New Zealand kiwifruit growers, has the statutory right to export all New Zealand kiwifruit, except to Australia.
Andrea Fox joined theHerald as a senior business journalist in 2018 and specialises in writing about the $26 billion dairy industry, agribusiness, exporting and the logistics sector and supply chains.
