Zespri has released its first full forecast for the 2024-25 kiwifruit season, with forecast per hectare returns up from last season for all categories, according to a news release.
The report predicts record levels for green and organic green.
The full forecast follows the indicative ranges released in June for per tray and per hectare returns, the release said. In its August forecast of the 2024-25 marketing year, Zespri predicts a return of $7.80 per tray for Zespri green, $11.10 for Zespri organic green, $10.68 for Zespri SunGold, $13.45 for Zespri organic SunGold and $16.74 for Zespri RubyRed.
Zespri CEO Jason Te Brake said the latest forecast reflects both the strong season start and the competition seen more recently in markets, including from summer fruit.
“The industry put a lot of work into getting off to a really strong start to the season to meet early season demand and that’s set us up well in a year where we have a lot more fruit to sell,” Te Brake said in the release. “Although strong competition is always challenging around this time of the year, we’re already seeing signs that this fruit is moving off shelves and we expect this trend to continue over the next few weeks. The fact we’re on track for a strong lift in per hectare returns across all varieties this season, and record returns for green and organic green growers, is a testament to the hard work the industry has put in following a really challenging period.”
With a total crop of more than 190 million trays to sell, Zespri was focused on finishing the second half of the season strongly, Te Brake said.
“This season’s improved growing conditions have meant grower yields have increased and we’ve got a lot more fruit to sell,” he said. “But quality and demand are strong, and we’re well placed to deliver a strong result to growers.”
In-market campaigns will also support consumer demand and maximize grower returns, he added.
Increasing competition reinforced the importance of Zespri’s global supply strategy, set up by growers more than 20 years ago, Te Brake said. The strategy involves Zespri working with offshore growers in Italy, France, Japan, Korea and Greece to provide kiwifruit for 12 months of the year, allowing Zespri to have counter-seasonal supply in place to complement the New Zealand season and drive value for New Zealand growers, he said.
With the maximum 5,000 hectares of offshore SunGold plantings now allocated and the gap between supply and demand growing, the industry is discussing the potential expansion of its Zespri’s global supply program to protect value for the industry, the release said.
“The next stage of these conversations over the coming months will look at what a potential expansion of our [Zespri global supply] program might look like, as we make a decision as an industry on how ZGS can continue to deliver value for our industry,” Te Brake said.
Zespri says it is now seeking industry feedback on potentially expanding the current 5,000-hectare cap by up to 420 additional hectares of SunGold kiwifruit per year over six years across Italy, France, Japan, South Korea and Greece. Depending on the nature of those conversations over the next few months, Zespri may consider formally seeking grower support for expanding the Zespri global supply program via a producer vote, which would require 75% support to proceed, the release said.
