Sales volume up 18pc
Aremarkable season of increased yields and the largestever New Zealand crop helped lift total Zespri sales volume from New Zealand to a record 137.7 million trays— 18 per cent up on the previous year.
Sales of kiwifruit from Zespri’s northern hemisphere supplying locations also grew by 14 per cent to 16.6 million trays, driven mainly by SunGold vines coming into production in Italy.
Zespri chairman Peter McBride says Zespri sold more fruit faster than ever before during the 2016/17 season, with global fruit sales revenue rising by 19 per cent to $2.26 billion.
“Volume growth and continued strong investment by Zespri into marketing and market development helped to lift returns overall with the average return per hectare for New Zealand growers reaching $68,868, ” he says.
The 2016/17 season also saw the announcement of 1800ha of SunGold licence allocated for Europe over the next three years, doubling Zespri’s offshore production of the variety to meet growing demand for 12 month supply.
Zespri’s net profit after tax more than doubled from $35.8 million to $73.7m, mainly due to revenue from the tender for licence for Zespri’s proprietary variety SunGold last year.
“There was strong industry participation in the release of 400 hectares of SunGold licence in New Zealand last year, reflecting the continued grower confidence in global demand for gold kiwifruit,” says Mr McBride.
SunGold delivered an outstanding result. Zespri achieved an average per-tray return for the Gold pool of $8.64 — up from $8.21 in 2015— despite supply increasing to 48.5 million trays from 32.6 million trays in 2015/16. Average perhectare returns increased by 39 percent to $98,838. The average per-hectare return of $54,427 (2015/16: $52,917) for Organic Green is a record result for the category, supported by strong yields, although the return on a per tray basis fell to $6.86 per tray (2015/16: $7.18). The return per tray for Green14 (Sweet Green) was $5.79 (2015/16: $7.01) but the average per-hectare return increased to $45,853, driven by higher average yields as orchards came into full production.
“We can be satisfied overall with performance in the season, with a good result delivered despite the challenges of a sharp increase in supply and a relatively late harvest,” Mr McBride says.
Looking ahead— Zespri chief executive Lain Jager notes the volume outlook for 2017/18 is slightly down on last season but still the second-largest crop in the company’s history.