Record returns for green growers

Green kiwifruit growers are anticipating a record high return of $51,047 per hectare thanks to good quality fruit and decreased competition in the markets.

Zespri has announced forecast per tray returns of $5.71 for green fruit, up 37 cents, meaning orchard gate returns will break the $50,000 mark for the first time.

Zespri's Simon Limmer says promotion of the health benefits of green kiwifruit have helped lift returns.

Chairman of the Green Growers Group, Mike Smith of Welcome Bay, says the results are very pleasing and growers are hoping they can be maintained against 'the wall of gold fruit coming on stream”.

The record result comes despite the ravages of the bacterial disease Psa which caused thousands of green and gold vines to be cut out and re-grafted.

It is a remarkable turn-around for green growers even compared to pre-Psa days, says Mike.

'I once stood up at a public meeting and said some green growers would be better off on the dole than growing green kiwifruit, and that was before Psa,” he recalls.

The $51,047 return is an average. Some growers will receive significantly more per hectare while others will receive less. 'However, the good pay-out will help those who are still struggling with Psa,” adds Mike.

The industry's current volumes of around 68-70 million trays of green fruit are about right, but well down from the 80 million of the past, Mike believes.

Simon Limmer, Zespri acting general manager of China operations, says reduced volumes of both gold and green New Zealand fruit in the market is among the reasons for the improved returns.

There has also been less competition from Chilean fruit after growers there were hard hit by frosts.

High fruit quality, taste and the promotion of the health benefits of green kiwifruit are other factors.

Simon says; 'Across the board the industry from growers to post harvest has done a great job on fruit quality. The more fruit sold in market, the less handling and re-packing has to be done.”

Returns are also up for gold fruit, with the forecast at $9.57 per tray compared to $9.36 predicted in August. Organic green growers should receive $6.81 per tray, up from $6.35 and for new variety Green 14, the returns are predicted to be $6.98, just up from $6.93.

Simon admits the big challenge for the industry now is coping with the predicted rapid increase in volumes of gold fruit as the new variety G3 comes on stream.

'The rate of growth will be challenging,” he says. 'The top end volumes are not the problem. It is the rate of change which could be up 10-15 million trays in one season.”

This will test the industry's ability to cope, while maintaining fruit quality and taste values.

'Zespri's job is to make sure all our distribution pipelines flow freely and to marshal our off shore resources,” he adds. 'Zespri will be turning on all the taps in all markets to drive demand. It's an exciting time.”

The challenge of handling rapidly building volumes of fruit is a good problem to have says Simon, especially following the very tough years of 2011 to 2013 when the impacts of Psa were at their height.

'However, we can't throttle back on managing Psa,” he explains.

'The last two winters have been quite kind but this spring we are seeing more Psa in some areas, in green males and in gold vines. This summer will be the time to see exactly what Psa has done.”

The bacteria appears to be more virulent in cold, wet windy conditions.

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