Mount Maunganui-based kiwifruit marketer Zespri says fruit quality remains a key focus as the industry responds to increasing competition in export markets.

Chief executive Jason Te Brake says while sales remain strong, lower harvest pressures this season mean the industry is managing slightly elevated levels of softer fruit and remaining focused on quality management at the back end of the season.

“Our priority is keeping our sales rates up and moving fruit steadily through to customers to avoid a build-up of aged inventory.

“We’ve also increased checking onshore before fruit is shipped, while the industry has embraced targeted quality interventions and tighter inventory management to help protect customer confidence and grower value.”

Jason says recent conversations with the kiwifruit industry have also focused on strengthening Zespri’s position in a changing China market.

“We are confident in the future of our China market, but it is becoming more challenging. We are facing increased competition from locally grown G3, which is increasingly competing with more variable New Zealand G3 at the back end of our season.

“The emergence of Chinese G3, supported by strong quality, brands and routes to market, is something we need to respond to strongly. Our focus is on having high-quality fruit on shelves all year round to protect and build our brand, retain shelf space, strengthen relationships with our partners and maintain our category leadership.”

Brand protection

Jason says the focus is on delivering a solution that protects Zespri’s premium brand and grower returns in China, now and into the future.

“Our priority will always be maximising New Zealand grower returns and, as part of that, we need to give ourselves the ability to compete as strongly as possible, securing our retail, distribution and supply-chain relationships with the highest-quality fruit year-round.

“That fruit quality is critical. We can only command a premium when our quality consistently justifies it, and the clear feedback from our customers is that, at the moment, it does not, particularly at the back end of the season where quality is variable and where fruit is competing directly with Chinese G3.

“That means higher quality costs, slower sales and a risk to our brand premium over time if we don’t respond.

“Any solution also needs to be practical and sustainable.”

Zespri has been discussing two options with the industry.

The first is to continue competing from New Zealand with a focus on improving late-season quality, investing in post-harvest innovation and developing long-storing varieties.

The second is a tightly controlled China Supply procurement model.

“If we pursue China Supply, the model must create and protect value for New Zealand growers while giving Chinese partners a clear incentive to meet Zespri standards and support the brand long term,” says Jason.

“There are risks and opportunities with both options, and we will keep working through these openly with growers over the coming months.”

He says no decisions have been made and any proposal would proceed only with grower support through a producer vote.

Strong returns

With Zespri entering the latter stages of the 2026 season, its latest forecast expects strong returns for growers from a record crop of 225 million trays.

The August forecast shows average per-hectare returns are expected to exceed last year’s record returns for all categories except Green and Organic Green.

Jason says the forecast per-hectare returns reflect this season’s increased yields and the value secured across global markets despite a more challenging market environment.

Mike Murphy, head of communications and strategic projects at New Zealand Kiwifruit Growers Incorporated (NZKGI), says the higher yields resulted from good pollination, an increase in orchard hectares and favourable weather.

He also notes growers should prepare for the upcoming El Niño weather pattern, which is forecast to bring dry conditions interspersed with heavy rainfall.

“Preparedness for both irrigation and drainage systems will be front of mind.”

Jason says forecast per-tray returns remain within the indicative ranges provided by Zespri in June.

“Green and Organic per-tray returns reflect strong demand, lower Green volumes and the expectation of a shorter selling window this season.

“SunGold forecast returns reflect a more challenging market environment, with increased competition from summer fruit, pricing pressure across parts of Asia and a larger-than-expected crop.”

Jason says with more fruit to sell, the focus has been on managing the allocation of this year’s crop to help maximise grower returns.

“Quality remains our major focus as we move through the second half of the sales season, with our teams managing this through careful market allocation and inventory management, and by working closely with suppliers and customers to maximise value for growers.”