Zespri is encouraging orchardists to grow more organic kiwifruit by releasing 50 hectares a year of new licences for Zespri Organic SunGold, specifically for green-field plantings.

'We intend to release a total of 250 hectares over the next five years, subject to annual review. The process and rules for this release will be provided as soon as possible,” says Zespri chairman Peter McBride.

The decision was among those made during a strategy meeting in October when the Zespri Board considered the long-term demand outlook for SunGold.

'It is clear from performance in the markets in recent seasons and from our assessment of future demand that we need to accelerate supply growth of SunGold.

'The gap to fill between the strong demand outlook and our current trajectory of supply growth presents a significant strategic opportunity.

'The board has therefore decided to allocate 700 hectares of SunGold licence in 2018 via a Closed Tender Bid.

'Also, Zespri intends to extend the release of SunGold licence out to 2022, meaning a total of 3,500 hectares to be released over the next five years. Demand forecasts support the release of 700 hectares per year. However, this is subject to an annual review that would consider any potential new risks to our current demand outlook.”

Peter says with respect to the 2018 release mechanism and process, the board has considered industry feedback on alternative methods. 'There will be one single pool. All other aspects of the 2017 process will be retained, including a maximum bid area of 20 hectares.”

The average orchard gate return for Zespri Gold fruit is expected to be $9.73 per tray and $110,519 per hectare according to the forecast released by the Zespri board in October.

Forecast returns have increased for all pools and Zespri is targeting a strong, clean finish to the New Zealand season.

Zespri Green growers can expect $6.23 per tray and $55,789 per hectare, while organic green returns are $8.24 per tray and $48,968 per hectare. Returns for Zespri Green 14 are $5.39 per tray and $36,446 per hectare.

The total fruit and service payment, across all pools and excluding the loyalty premium, is forecast at $1.394 billion, compared with $1.341 billion in the August forecast.