China is the New Zealand kiwifruit industry's biggest opportunity, and also its biggest threat.

That's among the messages given to 550 growers and industry representatives yesterday at the Zespri Momentum Conference in Tauranga.

China – opportunity and threat - Xavier Naville and Frank Gibson of Vision Management Consultants where among the speakers at the Zespri Momentum conference yesterday.

Xavier Naville and Frank Gibson of Vision Management Consultants told the conference that China is potentially Zespri's biggest and most valuable market, but within five to seven years its kiwifruit production could double and China will be the dominant force in kiwifruit.

Already 50 per cent of the world's kiwifruit is grown in China. New Zealand accounts for 66 per cent of kiwifruit imported into China but competition is growing.

However, China still offers potential for New Zealand kiwifruit, and much of that lies in the second and third tier cities, but Xavier and Frank warn taking advantage of that growth won't be easy.

'No other country in the world has 660 cities and 250 important retail chains, which makes distribution different and complex.”

Premium fruit are emerging as among the best sellers and for the Chinese consumer, price is often seen as an indication of quality. Consumers in China are rapid adopters of technology and consider modern trade (ie supermarkets) and e-commerce channel as more reliable than traditional forms of retail.

The two-day Zespri Momentum Conference has attracted 550 delegates including growers and post-harvest operators, and industry contractors and suppliers.

'On-line sales are bigger and faster growing in China than any other country and the internet is the main platform for consumer information,” says Frank.

Chinese also trust the advice and opinions of their peers on social media when making decisions about what to purchase, and food safety is among their biggest concerns.

Zespri ceo Lain Jager told the conference that kiwifruit is a northern hemisphere business. 'It's where the majority of the demand comes from, where investment and growth opportunities are, where but it's also where competition, change and disruption will come from and where we need to be positioned to be relevant.”

Zespri CEO Lain Jager uses this image of an off-shore fruit display to illustrate how significant the competition is for New Zealand kiwifruit.

Lain challenged the industry to think about its future, asking if current supply chain channels are still appropriate or whether the industry should consider investing in in-market facilities.

Internet-enabled home delivery channels may take business from traditional retailers and Lain asks what role trusted brands will play in those channels.

Lain warns the industry can't be complacent. It's recovery from the impacts of the vine disease Psa-v has been remarkable, but there are other challenges ahead, including from Chinese production of kiwifruit. 'There are thousands of kiwifruit varieties in China and China is developing a very significant agri-business funded by very deep pockets.”

Among the big questions Lain says is: 'how do we innovate faster to stay ahead of the competition and deliver a sustainable future for New Zealand kiwifruit growers?”

Other speakers yesterday included global retail futurists Doug Stephens, Chris White, managing director of Eurofruit Magazine, and Cameron Bagrie, chief economist for ANZ New Zealand.

The conference continues today with Professor Jaqueline Rowarth, Professor of Agribusiness at the University of Waikato as the first speaker, followed by a series of break-out sessions on a range of topics from succession planning for orchards to what consumers want in a kiwifruit and how it grow fruit which meets those expectations