Innovation and growth help Zespri to top award

ZESPRI — the kiwifruit marketing body that represents 2500 New Zealand growers — increased profits by 38% to $101.8 million in 2018.

It expects higher returns still in 2019, forecasting earnings of up to $180 million and a dividend per share of up to $1.40, compared with 76c per share last season.

That sort of performance is one reason why Zespri won the Deloitte Digital/Marsh Company of the Year award.

But the judges pointed out that those returns were not a oneoff; they also represented the culmination of Zespri’s longterm strategy and dedication to innovation.

‘‘When you look at the volumes, the tray returns, the growth in China, the share price — all of those measures — the company looks very successful,’’ Forsyth Barr managing director and Top 200 judge Neil PaviourSmith said.

Zespri also managed the transition to chief executive of Dan Mathieson (who took over from Lain Jager last November) without losing any financial momentum.

The Mount Maunganuibased company will have to grapple with another change in February when chairman Peter McBride steps down.

Mr McBride oversaw a premium brandled strategy at Zespri and the expansion of the SunGold variety to meet burgeoning demand.

SunGold, developed in response to the Psa outbreak in 2010, has played a key part in the company’s turnaround since the bacteria ravaged the industry.

It is expected to return $10.28 per tray in the 201819 season, up from $10.07 a tray, and provide an average return per hectare of $138,973, from $114,345. That compares with expected returns of $5.47 per tray and $64,455 per hectare for green kiwifruit.

Zespri has committed to planting 700 more hectares of SunGold a year for the next five years, compared with 400ha a year previously.

Mr PaviourSmith said the kiwifruit industry was an example of how to add value to primary sector exports.

‘‘A lot of politicians and commentators and experts often criticise New Zealand as being poor at adding value to commodity production, [saying things like] ‘why do we export raw logs’ for example,’’ he said.

‘‘Now Zespri is still exporting fruit but it’s based around innovation and our expertise as a country in creating this different type of kiwifruit that are commanding these high premiums,’’ he said.

‘‘There’s a really good story in there around innovation and a longterm strategy response from the industry.’’

The success of the gold variety is also driving further innovation among growers — a red variety is in the pipeline. It is two years into a fiveyear precommercial trial stage. When it is commercialised, it will be able to be grown in all New Zealand kiwifruit areas except the South Island and Whangarei, areas that escaped the Psa scourge and no new plant material can be taken into them.

The red fruit’s promise is not just in its colour and taste but in the fact it can be harvested as early as late February.

This will help Zespri’s goal of providing highquality kiwifruit all year round from both New Zealand and nonNew Zealandbased Zespri orchards.

Zespri’s success also provided inspiration for others in the horticulture sector.

The Miro partnership, owned by more than 20 Maori trusts and iwi from the Far North to the top of the South Island, and stateowned science company Plant and Food Research revealed their plans to ‘‘do a Zespri’’ with blueberries and similar crops.

Horticulture, led by kiwifruit, is expected to be New Zealand’s fastestgrowing primary export sector in the year ahead, according to government forecasts. — NZME

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