A remarkable season of increased yields and the largest-ever New Zealand crop helped lift total Zespri sales volume from New Zealand to a record 137.7 million trays, 18 percent up on the previous year. Sales of kiwifruit from Zespri’s Northern Hemisphere supplying locations also grew by 14 percent to 16.6 million trays, driven mainly by SunGold vines coming into production in Italy.
Zespri Chairman Peter McBride says Zespri sold more fruit faster than ever before during the 2016/17 season, with global fruit sales revenue rising by 19 percent to $2.26 billion.
“Volume growth and continued strong investment by Zespri into marketing and market development helped to lift returns overall with the average return per hectare for New Zealand growers reaching $68,868.”
The 2016/17 season also saw the announcement of 1,800 hectares of SunGold licence allocated for Europe over the next three years, doubling Zespri’s offshore production of the variety to meet growing demand for 12 month supply.
Corporate result: a record profit driven by demand for SunGold licence
Zespri’s net profit after tax more than doubled from $35.8 million to $73.7 million, mainly due to revenue from the tender for licence for Zespri’s proprietary variety SunGold last year. “There was strong industry participation in the release of 400 hectares of SunGold licence in New Zealand last year, reflecting the continued grower confidence in global demand for gold kiwifruit,” says Mr McBride.
Revenue from the New Zealand SunGold licence release is a significant driver of Zespri’s corporate income. A further 400-hectare tranche was released through a tender to New Zealand growers this year and the Zespri Board will decide on a potential three additional tranches of 400 hectares each year up to 2020, subject to an annual review of performance after each selling season.
Green yields support returns, SunGold results outstanding
Mr McBride notes the season was challenging in several respects. “A sharp increase in Green volume and a late start to the season due to delayed maturity put pressure on pricing but record average yields of 12,281 trays per hectare meant the industry could achieve per-hectare returns of $53,555. This is the third season in a row that Zespri has delivered average Green returns of over $50,000 a hectare.”
The Green return per tray was $4.36, down from $5.13 per tray in 2015/16. Mr McBride explains SunGold delivered an outstanding result. “Zespri achieved an average per-tray return for the Gold pool of $8.64 – up from $8.21 in 2015 – despite supply increasing to 48.5 million trays from 32.6 million trays in 2015/16. Average per-hectare returns increased by 39 percent to $98,838. The customer and consumer response to SunGold continues to be very positive, supporting our confidence in market demand.”
The average per-hectare return of $54,427 (2015/16: $52,917) for Organic Green is a record result for the category, supported by strong yields, although the return on a per tray basis fell to $6.86 per tray (2015/16: $7.18). The return per tray for Green14 (Sweet Green) was $5.79 (2015/16: $7.01) but the average per-hectare return increased to $45,853, driven by higher average yields as orchards came into full production.
For more information, contact:
Oliver Broad
Zespri
Tel: +64 27 509 1839.