Zespri is reporting a strong 2010 kiwifruit season has lifted total payments to growers above season forecasts.

Total returns to growers in 2010/11 improved from $849 million to $883.3 million compared to the prior year, an increase of four per cent.

This saw the average orchard gate return for Green growers increase nine per cent to $32,234 from the 2009 season.

Net global kiwifruit sales increased one per cent to $1.511 billion in 2010/11, despite the global volume of Zespri kiwifruit sold falling one per cent in the same period.

Zespri chairman John Loughlin says the results are particularly pleasing when considering the challenges facing kiwifruit growers.

'A stuttering global economic recovery, rising oil prices, seasonal challenges in New Zealand, the impact of Psa on Zespri's orchards in Italy, and the confirmation of Psa in New Zealand, meant a tough environment in 2010/11,” says John.

'Against this backdrop, delivering increased total returns to growers is a testament to the

New Zealand kiwifruit industry's ability to keep innovating and delivering.

'The increased return to Green kiwifruit growers was a highlight because average orchard yields were down by four per cent, freight costs due to rising oil prices were up five per cent and the New Zealand dollar strengthened through the year.

'The industry is benefiting from strong growth in Asian markets, which delivers both a positive market mix effect and supports pricing across all markets as demand generally outstrips supply.”

John says Zespri's net profit has fallen significantly, from $25.9 million to $7.3 million, and this fall was primarily due to contributing $12.9 million to the response to Psa in New Zealand, and increasing the loyalty payment to growers from 15 cents per tray to 25 cents per tray.

The board has announced an intention to declare a final dividend of four cents per share to be paid in August 2011.

The early signs for the 2011/12 selling season are for another challenging year in the face of further increases in oil prices and a strong New Zealand dollar.

Increased volumes of Green Organic (increase of nine per cent) and Gold (increase of 28 per cent) will put pressure on average market returns as more fruit will go into lower returning markets than in previous years.

Indicative returns are therefore expected to be slightly lower than 2010/11.