New Zealand single-desk kiwifruit marketer Zespri has announced a record 2016-17 season, with global sales rising 19% year-on-year to NZ$2.26 billion (US$1.63 billion) on the back of "exceptionally high yields." 

Zespri chairman Peter McBride explains the high yields and late start to the New Zealand season meant lower per-tray returns for Zespri Green but continued strong per-hectare returns for the Green business. 

“A particular highlight was the performance of SunGold which saw a sharp increase in both volume and per-tray returns – up 39 percent to $98,838 per hectare and five percent per tray to $8.64,” McBride said at the annual shareholder meeting.

The results correspond to Zespri's financial year to March 31, covering the performance of New Zealand kiwifruit sold in the 2016 season with sales running from April to November each year and its counter-seasonal Northern Hemisphere season with fruit sold from October to March. 

Most of Zespri’s fruit is from New Zealand and the company also sources fruit from Italy, France, South Korea and Japan.

Zespri kiwifruit returns for the 2016-17 and 2015-16 seasons. Source: Zespri

McBride outlined to shareholders the growth in the organization's Global Supply, Zespri’s 12-month business.

“Volumes in this business grew from 14.5 million trays to 16.6 million trays for the reported season with sales in this business growing from $183.6 million in 2015/16 to $215.6 million in the reported period with contributing operating profit growing from $10.4 million to $11.9 million," he said.

"A highlight was the strong gold growth of 46 percent from the previous season (from 3.6 million trays in 2015/16 to 5.3 million trays) and the extra 1,800 hectares of SunGold license to be allocated in Europe over the next five years will see European volumes quadruple over the next five years."

'Confidence underpins orchard values'

Zespri's net profit more than doubled year-on-year in the 2016-17 season from NZ$35.8 million to NZ$73.7 million, due mainly to the NZ$67.2 million in license revenue from the New Zealand SunGold tender in 2016.

McBride also spoke about an upcoming Special General Meeting planned for March next year where Zespri will seek shareholder approval for constitutional changes to align shareholding more closely with production following the recently announced changes to the Kiwifruit Export Regulations.

Zespri chief executive Lain Jager says the industry is in good heart. “Strong returns and confidence are underpinning strong orchard values in the sector and Zespri is focused on delivering value for growers by investing to grow demand around the world,” says

“Strong returns and confidence are underpinning strong orchard values in the sector and Zespri is focused on delivering value for growers by investing to grow demand around the world,”  Jager says.

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