New Zealand kiwifruit sector expects drop in profits

Kiwifruit marketer Zespri has sent out an update to growers, forecasting a decent drop in profit this year. Last year, Zespri made a record $361.5 million, but this year that is expected to drop to between $227m and $247m.

Company spokesperson Carol Ward said it had been a difficult season: "Last year was such a record year for us, but this year we released less licenses available to our growers and we've also got a slightly smaller crop. So, that has meant that our profit forecast for the year is down."

Ward said growers should still get good returns this season, despite the dip. "The main thing that we're focused on with our growers is the OGR (Orchard Gate Return), which is about the returns that the fruit that they are producing delivers through to them.”

Due to the lower volumes, Seeka expects full-year net profit before tax to be between $9m and $11m.

Source: rnz.co.nz


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