Record kiwifruit volume for 2011

MEDIA RELEASE 25 May 2012

Record kiwifruit volume for 2011

ZESPRI’s 2011/12 financial results show a lift in global revenue of seven percent to NZ$1.62 billion, on the back of a record volume crop of 116.5 million trays of kiwifruit.

The record crop volume increased total returns to New Zealand growers in 2011/12 by 11 percent to $980.4 million, with the average Orchard Gate Return for growers increasing
by 8.1 percent to $45,206 per hectare.

ZESPRI Chairman John Loughlin said being able to sell the record-size crop in an orderly manner, while ensuring ZESPRI could maintain a premium position in its markets, was a significant success in 2011/12.

“As is the case for so many of New Zealand’s primary producers, ongoing global economic uncertainty, rising costs and a volatile dollar are providing significant headwinds for ZESPRI. It is in these difficult times that the united structure of the New Zealand kiwifruit industry really proves its worth,” Mr Loughlin said.

Mr Loughlin said these factors would continue to be a drag on the industry in 2012/13, and their impact would be compounded by the fact the 2012 harvest is the first where crop volumes have been significantly hit by the vine-killing disease Psa.

“After 2011’s record ZESPRI® GOLD volume of 29 million trays, we expect the industry will produce somewhere around 20 million trays of ZESPRI® GOLD this year. This drop in volume will put much of the industry under pressure, but particularly those growers who have lost part or all of their orchards to Psa.

“ZESPRI has positioned itself for these lower volumes in 2012/13, through a reduction of $10 million (14.4 percent) in corporate costs.

“We expect Psa to further impact on Gold volumes in 2013/14. However, in 2014/15 we expect to see Gold volumes recover, as the Psa-recovery pathway centered around the ZESPRI variety Gold3 begins to take effect,” Mr Loughlin said.

Mr Loughlin said a real challenge for the New Zealand kiwifruit industry in coming years is moving from a situation of declining volumes due to Psa, to rapidly-growing volumes in a very short space of time, should the recovery pathway prove successful.

ZESPRI’s net profit for 2011/12 was $20.5 million, compared to $7.3 million in 2010/11. Mr Loughlin said it was important to note the timing of ZESPRI’s Psa funding contribution to Kiwifruit Vine Health, on behalf of the industry, had a significant impact on profit results over the past two years. Adjusted for Psa funding, ZESPRI’s net profit would have been similar for 2010/11 and 2011/12 at approximately $16 million.

ZESPRI will continue to invest significantly in its research and development response to Psa, Mr Loughlin said.

ZESPRI has also released the first forecast of indicative returns to growers for the 2012/13 season. The forecast range for both GREEN and ORGANIC remain similar to the 2011/12 returns, while the forecast range for GOLD growers is significantly higher, due to lower volumes.

2012/13 Indicative Returns (per-tray)


Pools (Fruit Categories) 2012/13 Indicative Returns 2011/12 Final Returns
Average Per-Tray Fruit and Service Payments (excluding Loyalty Premium)
ZESPRI® GREEN $6.80 - $7.30 $7.10
ZESPRI® ORGANIC GREEN $8.45 - $8.95 $8.82
ZESPRI® Green14 $10.50 - $11.50 n.a
ZESPRI® GOLD $13.70 - $14.20 $11.91


2011/12 Financial Highlights
2011/12 2010/11 Variance
New Zealand-grown fruit and service payments1 (including loyalty premium) $980.4 million $883.3 million 11.0%
- Per tray supplied $8.61 $8.68 -1%
Net profit after tax $20.5 million $7.3 million 181%

New Zealand-grown Orchard Gate Return (OGR) per hectare $45,206 (average) $41,830 (average) 8%
- GREEN $33,125 $32,234 3%
- ORGANIC GREEN $35,527 $37,541 -5%
- GOLD $90,911 $83,785 9%

ZESPRI global kiwifruit sales $1.620 billion $1.511 billion 7%

ZESPRI global volume (trays sold) 116.5 million 106.8 million 9%
New Zealand - grown 109.1 million 98.1 million 11%
- GREEN 73.3 million 69.9 million 5%
- ORGANIC GREEN 3.5 million 3.3 million 6%
- GOLD 29.1 million 21.1 million 38%
- OTHER 3.2 million 3.8 million -16%
Non-New Zealand - grown 7.4 million 8.7 million -15%
- GREEN 4.5 million 4.7 million -3%
- GOLD 2.9 million 4.0 million -28%


[1] Total Fruit and Service Payments are all payments made by ZESPRI to the New Zealand kiwifruit industry for the supply of kiwifruit.

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