Zespri is intensifying its campaign to persuade New Zealand kiwifruit growers of the benefits associated with increasing supply from the northern hemisphere. This strategy aims to maintain and augment shelf space, thereby supporting New Zealand returns as the demand for the fruit escalates.
Nick Kirton, stationed in Bologna as Zespri's northern hemisphere executive officer, disclosed the company's plan to request growers to contemplate the authorization of up to 420 additional hectares annually over the next six years to northern hemisphere cultivators, predominantly in Italy.
This initiative follows a proposal in 2022 to extend northern hemisphere orchard plantings by an additional 10,000ha, which fell short of the requisite 75% grower support, securing just under 70%. The revised proposal now encompasses 2500ha across Italy, France, Japan, Korea, and Greece, with Italy hosting approximately half of the planting area for SunGold variety, and Greece presenting significant orcharding prospects.
Currently, Zespri has approval for cultivating 5000ha of SunGold fruit in the northern hemisphere. The company's total northern supply, known as Zespri Global Supply (ZGS), reached about 30 million trays this season, fulfilling approximately 70% of the demand during the ZGS season.
Italy is a key player in Zespri's offshore SunGold production, contributing over 80% of the supply with a robust network of growers, some of whom have been in partnership with Zespri for more than two decades. Greece also emerges as a significant producer, with approximately 13000ha dedicated to Green kiwifruit cultivation.
Zespri's objective is to amplify the volume of trays from the northern hemisphere to solidify the brand's market presence throughout the year and enhance returns for New Zealand growers. The company recognizes the importance of a year-round supply in a highly competitive market.
Competition from entities like the Italian company Jingold, which markets varieties of Red, Green, and Gold kiwifruit, and plans from Kikoka gold kiwifruit to plant over 2000ha in the coming five years, underscores the necessity for Zespri to expand its northern hemisphere production.
Zespri has facilitated interactions between growers and post-harvest executives from New Zealand and Europe to foster a deeper understanding of the European growers' expertise and dedication to Zespri's fruit standards. Unlike New Zealand, northern growers have the flexibility to supply fruit to various brands, yet many opt for Zespri's SunGold variety.
The challenge of losing consumers due to diminished shelf space is a concern for Zespri, as evidenced by the previous season's shortage of Green fruit from New Zealand, which resulted in competitors seizing market share and affecting Zespri's premium positioning.
Source: Farmers Weekly