Zespri earnings up for 201718 season

NEW Zealand’s kiwifruit giant Zespri has reported a lift in earnings for the 201718 season, despite the volume of kiwifruit sold falling by 11% during that period.

Production volumes suffered because of a cloudy summer, which deprived the fruit of vital sunshine at a key time in the year.

In addition, frosts in Italy affected its crop being grown there in partnership with local growers.

Despite that, the bottom line has improved for Zespri. Global kiwifruit sales rose 6%, to $2.3 billion, compared to to $2.2 billion the previous year.

Zespri chairman Peter McBride said the uplift in value reflected strong consumer demand and excellent market performance.

‘‘We sold a record volume of SunGold while growing returns at both pertray and perhectare levels. Supply of Green and Organic Green reduced considerably from the exceptionally high volume of the previous year, but very strong consumer demand more than offset the impact on perhectare returns for Green and mitigated the impact on Organic Green perhectare returns.

‘‘The industry’s performance during the last season reinforces our confidence in our strategy and potential for strong and sustainable growth,’’ he said.

Zespri chief executive Dan Mathieson said the 201718 season represented good progress, and the company was now looking forward to growth in kiwifruit volume.

‘‘We are anticipating record production of New Zealand and nonNew Zealand kiwifruit this year driven by increasing supply of SunGold and a recovery in supply of Green,’’ he said.

Mr Mathieson said Zespri remained on track to reach its target of increasing sales to $4.5 billion by 2025.