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NZ: Last year Zespri result not representative of industry stateZespri has released news of record sales worth $1.62 billion on last year's crop. The figure represents a sale of 116.5 million trays of kiwifruit - a rise of 7%.
However, the good news is muted slightly by the fact that it does not represent the situation as it stands today. As New Zealand Kiwifruit Grower's President, Neil Treblico says, the situation is representative of the industry in April-May of last year before PSA reached its peak.
There are no expectations of this kind of result this year. The New Zealand dollar is too high to make exports appealing and the crisis in Europe is hitting consumers' spending power. At the same time PSA has reduced the predicted gold kiwifruit crop prediction by 9 million trays to 20 million.
As a result of a shortage of gold kiwifruit there will be higher prices, but not enough to offset the losses.
Zespri is cutting its own costs in a bid to see it through the difficult times ahead. The company has reduced its corporate costs by 14% - $10 million.
Zespri Chairman, John Loughlin, says he expects it will be 2014-2015 before the gold kiwifruit harvest can make a recovery.
Source: bayofplentytimes.co.nz; radionz.co.nz
Publication date: 5/29/2012
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