Zespri’s 2022-23 financial results reflect a challenging season

Zespri’s 2022-23 financial results reflect a challenging period for the kiwifruit industry, according to a news release.

Zespri kiwifruit
The study will look at the corridor between Tauranga and Zeebrugge in Belgium via the Panama Canal. A low-emissions shipping corridor is defined as a route between two or more ports where zero-emission shipping solutions are demonstrated and reported.
(Photo courtesy of Zespri)

Zespri’s 2022-23 financial results reflect a challenging period for the kiwifruit industry, according to a news release.

Grower returns were down, related to fruit quality issues that have been driven by the industry’s severe labor shortage, the release said.

Zespri recorded total global fruit sales revenue of $2.37 billion in 2022-23, down 3% compared with the record result of 2021-22. Global sales volumes declined from 201.5 million trays in 2021-22 to 183.5 million trays in 2022-23, the release said.

Increased quality and other costs resulted in grower returns being down on the record highs of recent seasons, with Green and SunGold Kiwifruit per hectare returns outside the lower end of the season’s initial forecast ranges, the release said.

“This was one of our toughest-ever seasons and the industry worked incredibly hard to deliver our fruit to market, despite facing an extraordinary number of challenges including a significant labor shortage,” Zespri CEO Dan Mathieson said in the release.

Zespri continued to see strong demand and pricing in the market and secured millions in savings via its foreign exchange hedging policy, he said in the release.

The results illustrate the importance of the industry’s efforts to improve quality which remains a key driver in delivering stronger returns in future years, he said in the release.

“We know this is a challenging period for growers, particularly Green growers, given the fact we also have lower volumes of fruit in the 2023-24 season,” Mathieson said in the release. “The investment we’ve made in building consumer demand and a world-leading fruit brand, alongside our long-term customer and supply chain relationships, means we’re well placed to get back on track and increase the value we can deliver back to growers, the industry and New Zealand communities.”

Zespri’s non-New Zealand supply sales decreased to $314 million, down from $325 million last year, the release said.

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