Zespri's forecast record returns for green growers is good news for the Bay of Plenty and the country, says Kiwifruit Growers Incorporated president Neil Trebilco.

Yesterday Zespri chairman Peter McBride told growers the company is predicting the highest ever average green (Hayward) payment of $5.23 per tray, or $42,692 per hectare orchard gate return.

Photo: File.

'That equates to around 10 to 20 cents a tray and is the result of a strong finish to the selling season and low fruit loss both on and off-shore,” says Neil.

A reduction in crop volumes has also led to increased competition for crops among post-harvest operators, with consequent reduced packing costs for growers.

How much of the increase individual growers enjoy will depend on the volume, size and dry matter of their crop and how good a job their post-harvest operator did with their fruit, he says.

'Zespri's results are good for the Bay, and for New Zealand, as it generates new positivity in the industry and encourages growers to reinvest in their orchard business, which has a flow-on effect to the wider community,” says Neil.

In the Bay of Plenty, kiwifruit is estimated to account for 20 per cent of the gross domestic product, before the industry was hard hit by the vine disease Psa-V.

Neil says while there is still a way to go, the industry is coming back from the devastation of the disease and orchards are once again selling for good prices.

However, Zespri's record returns for 2013 -2014 season may be difficult to replicate, says Neil.

'The exchange rate will impact on returns next year as Zespri's forward cover (taken out to hedge against exchange rate fluctuations) comes off over time and we will be exposed to the reality of the high dollar.”

Although there has been a significant turn-around in confidence within the industry, as growers find they can produce export quality fruit despite the presence of the disease Psa-V, Neil says now is not the time to relax.

'Psa is still a significant challenge, especially if we get wet, cold weather in autumn. Growers need to continue to be proactive in its management. I would hate to see growers get caught out by not managing the disease.”