Zespri's recent court win in China over plant variety rights for the protected G3 SunGold variety comes as the marketer completes a five-year study on possible approaches to the large volume of illegally grown fruit now entering the Chinese market.
A grower vote in New Zealand in 2021 rejected a proposal for a collaborative marketing trial with growers in Sichuan that would have seen their fruit marketed under the Zespri label alongside the New Zealand supply. Concerns included loss of intellectual property and perceptions about the quality of China-grown fruit.
Since then, the planted area has continued to rise. Estimates suggest up to 7500 hectares of G3 are now in the ground across China, including about 5000 hectares in Sichuan. This is approaching New Zealand's total G3 planted area, while the estimated output of 41 million trays is similar to Zespri's total G3 sales into China. The expanded Chinese supply is affecting Zespri's market position during periods when Chinese fruit is available.
Sichuan province, with a population of 94 million, is a major kiwifruit region with about 50,000 hectares of orchards. Around 30,000 hectares are planted in Red varieties, with the remainder in Gold types, including G3 and the local Jinyan variety.
Zespri's monitoring work has tracked the orchard development of illegally imported G3 vines and assessed whether fruit quality could be maintained should a collaboration be reconsidered. Early in the project, Zespri identified 20 growers with about 1000 hectares of G3 as possible candidates for a trial.
While the recent legal ruling supports Zespri's intellectual property protections, the scale of plantings raises concerns about ongoing enforcement costs.
During a Farmers Weekly visit to Sichuan, local growers acknowledged the court decision but did not expect it to halt planting. Yan Zhiqiang, director of a new packhouse handling unauthorised G3 fruit and head of the Chengdu Kiwifruit Growers Association, said growers study Zespri production methods. "We regard Zespri as the gold standard to meet, and middle-class families in China want to buy Zespri fruit. We know Chinese fruit is not as high quality as Zespri's, but it is still relatively good."
Government policy allowing expanded fruit plantings has created further interest in Gold and Red varieties. Yan said Zespri's Ruby Red entering the market could increase consumption among younger buyers. He also stated that "the time is ripe for collaboration," noting support from local authorities.
Sector investment in Sichuan continues regardless of any future Zespri involvement. Government initiatives include nine agri-park sites around Chengdu focused on research and infrastructure. The city also houses testing laboratories capable of analysing fruit quality and provenance using isotope and chromatography technology.
Yan's company has completed two adjacent packhouses with a combined capacity of 6.5 million trays and is planning further expansion.
Source: FarmersWeekly
