One of China's largest fresh produce companies says New Zealand kiwifruit growers may need to consider a commercial partnership with Chinese producers to maintain their position in the market. Liu Zijie, owner and founder of Good Farmer, is Zespri's second-largest distributor in China and handles around one quarter of the company's exports into the market.
Speaking to Farmers Weekly at the China International Import Expo in Shanghai, Liu said his company has worked with Zespri for 13 years and now employs 220 staff in China dedicated solely to the brand's imports and distribution. "Particularly now under the leadership of Michael Jiang here in China, the team knows how to go wide and deep into the China market and, with a five-year strategy now firmly in place, it gives us more confidence in our own planning," he said.
He noted that Zespri's position as a brand, rather than simply a country-of-origin label, has strengthened its retail presence, supported by year-round supply from global production regions. However, he warned that Chinese growers are increasing plantings of G3 kiwifruit, especially around Chengdu, and that this expansion coincides with a period when Zespri has limited fruit available.
"The timing of Chinese growers in Chengdu for harvest is particularly good for the Chinese New Year [January-February period], which brings a really big increase in demand for fruit as gifts," he said. Zespri currently relies on Italian-grown SunGold fruit for the New Year period, but this supply takes six weeks to ship and faces a 20 per cent tariff. Available Italian volumes are also limited.
Liu supported earlier efforts by Zespri to evaluate Chinese growers in Chengdu as potential partners, though any arrangement would require approval from New Zealand growers. "There is still some way to go with quality here in China. Some growers have good techniques and land, but not all, but they are getting better," he said.
He warned that without collaboration, China may develop a domestic brand that competes directly with Zespri. "If Zespri does not join up with local growers, I am sure in the near future a Chinese company will make a brand of equal quality, and Zespri will lose its opportunity here to really gain value over the Chinese New Year market period," He suggested the timeframe for action is "one year, maybe two at most."
Liu estimated that the Chinese market is short by at least 10 million trays of supply for the New Year period. Zespri is marketing about 45 million trays into China this year, and it believes the market could absorb another 15 million during the New Zealand offseason.
He said collaboration would not require major infrastructure investment by Zespri and would likely strengthen existing relations between China and New Zealand.
Source: FarmersWeekly
