New Zealand horticultural exporter Zespri is expecting up to a 40 percent dive in its profit this year. The company has also confirmed to green kiwifruit growers that they will not receive any more significant progress payments for fruit picked last autumn. Zespri has a global operating revenue of $4 billion. It has been beset with fruit quality issues in overseas markets this season, costing it millions of dollars and threatening its reputation.
In a letter to shareholders, chairman Bruce Cameron said the forecast range of corporate net profit after tax for the year ending 31 March 2023 is $217 million to $227m, including license release income. This is down from the last financial year's record profit after tax of $361.5m, with the bottom end of the range below the November 2022 forecast range.
Rnz.co.nz reported that, earlier this year, green growers received a shock announcement from the exporter that fruit payments would be about 60 cents a tray lower than forecast. No progress payments were paid in February and it has just confirmed to growers they will receive little, if any, more money this year.
“The latest February forecast reflects the challenges our industry has experienced in the 2022 season with fruit quality,” Zespri chairperson Bruce Cameron said in an industry update. Volumes from its growers in other countries were also down, he said.
Source: stuff.co.nz