Growers Approve Expansion Plan to Secure Year-Round SunGold™ Supply and Strengthen Market Position
New Zealand’s kiwifruit industry has taken a significant step forward as growers have approved the expansion of Zespri Global Supply (ZGS).
The vote allows for the allocation of up to 420 additional hectares of Zespri™ SunGold™ Kiwifruit per year over the next six years across Italy, France, Japan, South Korea, and Greece. This move aims to meet the increasing global demand for Zespri’s fruit amidst a rapidly evolving and competitive market.
The decision came after extensive industry discussions to develop a resolution that growers would support. The proposal was met with overwhelming approval, with 90.6% of growers voting in favor and a 93.29% backing by fruit weight count.
To be successful, a producer vote under the Kiwifruit Export Regulations requires at least 75% support in both categories.
“The benchmark for a successful producer vote is high, so the final count is an encouraging sign of the level of grower support for ZGS. We had almost 72% grower turnout by entity and almost 85% by production, which shows how engaged growers have been in this process.”
Zespri CEO, Jason Te Brake
The expansion is strategically aimed at ensuring year-round availability of Zespri’s SunGold™ Kiwifruit to key markets. According to a press release, the move aligns with Zespri’s vision to lift supply to meet forecasted demand, a necessity given intensifying competition in the category.
“The outlook for Zespri Kiwifruit is positive,” Te Brake noted. “I’ve spent a lot of time in the markets with our customers in 2024. They want more of our fruit, and they want it all year. The result of this vote is crucial as we continue working towards 12-month supply for key customers in key markets, filling more demand and supporting New Zealand grower returns into the future.”
The vote’s success coincides with a strong season for Zespri, which saw a record-breaking crop volume of 190 million trays delivered. Forecasts for November Orchard Gate Returns (OGRs) show improvement across nearly all categories compared to August projections. This positive trend is especially evident in the per-hectare returns for Green and Organic Green kiwifruit, which have reached record levels due to increased yields and maintained market value.
Zespri’s expansion is poised to support growers’ profitability by maintaining the company’s leadership position in the competitive kiwifruit market. The allocation and planting of the new SunGold™ hectares are scheduled to commence in early 2025.
The additional supply from these regions will help Zespri provide a consistent product to its global customer base and sustain strong returns for New Zealand growers.
The expansion plan reflects the industry’s commitment to innovation and responsiveness to market dynamics. The support demonstrated by growers underscores their confidence in Zespri’s strategy to enhance supply while maintaining quality and value.
Te Brake emphasized the importance of unity within the industry, stating, “The process that has brought us to this point, along with the result of the vote, reflects the ability of our industry to come together on pressing issues with a focus on delivering strong grower returns and maintaining Zespri’s position as leaders in a competitive category.”
With Zespri’s planned expansion, the future looks promising for the kiwifruit sector. This strategic decision not only addresses the current demand for SunGold™ Kiwifruit but also positions Zespri to remain resilient and adaptable in a fluctuating global market.
