Zespri says grower payments could be up 6%
TE KUITI: Kiwifruit marketer Zespri is forecasting a potential lift of up to 6% in payments to growers this season.
The firm, which markets kiwifruit on behalf of 2500 New Zealand growers and another 1200 in Italy, Japan, Korea and France, is expecting total fruit and service payments of $1.775 billion to $1.875 billion in the year ending March 2020.
Zespri is yet to publish its March 2019 year results but in February forecast a total payment of almost $1.77 billion for that year. That figure, which excludes loyalty payments, compares with $1.43 billion in the year ended March 2018.
Kiwifruit is New Zealand’s biggest horticultural export. Export earnings reached almost $1.7 billion in the June 2017 year, a third of the sector’s total. The next largest contributors were wine at $1.54 billion and apples at $691 million, according to government data.
Zespri chairman Bruce Cameron reminded growers and shareholders the forecasts are the first for the 201920 season and are still subject to significant uncertainty.
In February, the company forecast a net profit range of $177 million$180 million for the March 2019 year, up from the $170 million$175 million it estimated this time last year, and the $101.8 million net profit Zespri reported for the 2018 year.
For the March 2020 year it is forecasting net profit of $180 million$195 million, including increased gross revenue from the 2019 licensing of its Sungold, or Gold3, variety.