New Zealand gold kiwi rocked by bacterial disease - The Packer

New Zealand gold kiwi rocked by bacterial disease

12/17/2011 02:07:00 AM
Tom Karst

The significant reduction to production is going to last for several years and will force some rationalization in the post harvest sector. Already two of the largest packing and coolstorage operators have completed merger negotiations which are waiting on shareholder ratification. It is likely there will be across the board discounting on packing charges in 2012 as packhouses scramble for throughput.

As a result there will be some closures and mergers as the sector re-aligns itself. Zespri itself will rationalize its workforce on and off shore to align its costs with the new reality. In terms of marketing, while having less crop should make it easier to sell, the Green crop will only be reduced by 5% perhaps 10% at most and it is by far, more difficult to sell and maintain pricing at a premium to other exporters/producers of kiwifruit.

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