Zespri: organic fruit's time is yet to come in China - FreshFruitPortal.com

Zespri: organic fruit's time is yet to come in China

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Zespri: organic fruit's time is yet to come in China

While margins can be tight and not all consumers are willing to pay premiums for organic food, the category has witnessed growth across many countries in recent years. Some growers are finding the market to be stagnant in Europe where the concept is well-established, but organic fruit and vegetable sales surged by 15% in the U.S. last year. In China the idea is much more novel, but even small demographics in China can mean big bucks due to sheer population size. At www.freshfruitportal.com, we speak with a representative from New Zealand kiwifruit exporter Zespri, who aims to keep ahead of the curve in a niche sector.

Since launching its organic line in China three years ago, volumes have been minimal at around one hundred thousand cartons for Zespri with no large-scale promotions to date, but the iconic New Zealand group continues to strengthen its position in the market. organic kiwifruit zespri

Just over two weeks ago, New Zealand kiwifruit packer Seeka reported a 73% jump in organic kiwifruit volume. As Zespri is the only company allowed to export the country's kiwifruit to non-Australian destinations, it would have likely been responsible for much of this uptick in sales.

However, a Zespri marketing director who asked not to be named told www.freshfruitportal.com organic kiwifruit was yet to become part of the mainstream market in China.

"To begin with, there's not a whole lot of a market out there for organic products right now. And not all of our potential customers have realized the benefits of being 'organic'. So the sector remainsĀ  a niche market, and the consumers are the ones who practice their organic lifestyles," she said.

She said the organic fruit was brought into the Chinese market through several channels, including online retailer Fruitday.com.

When asked about the difference between Zespri's organic kiwifruit and a regular kiwifruit, the marketing director emphasized on the conceptual significance.

"First of all, being organic is a concept that signifies our respect for land and for nature. In terms of texture though, Zespri's organic kiwifruit is no different from its regular peer, but what sets it apart is how it responds to the growing demand for an organic lifestyle among today's consumers.

"As we all know, it's pretty selective for regular kiwifruit on the market when it comes to soil quality and fertilizer standard, etcetera. And Zespri's organic kiwifruit is grown to even stricter standards on the environment, soil and nutrients.

"It takes three years to cultivate qualified soil and the right planting environment for organic kiwifruit."

She said Zespri's organic kiwifruit had been certified by authorities from the U.S., Japan and several European countries, in addition to certification from the Chinese government.

Although Zespri has started experimenting with organic fruit in China, its main business in the Asian market still centers around the conventional product, with different marketing strategies developed for thw two segments.

She concluded that raising awareness of going organic among consumers was not all that easy in China, with a need to fully develop the niche market before a transition can take place.

"As of now the organic food market is focused on organic vegetables and not so much on organic fruits, not to mention organic kiwifruit.

"Chinese consumers have less confidence in terms of food safety in their market, so they have been very cautious with their food selection. For us, we must find those who do accept the idea of 'going organic', talk to them, and open up their market. As they say, it takes two to tango - we are waiting for other players to join us in growing the organic fruit sector as a whole," she said.

www.freshfruitportal.com

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