After extensive discussions with the industry, Zespri has confirmed it will seek grower approval to expand its Zespri Global Supply (ZGS) business via a Producer Vote. Voting will open on 11 November and close on 5 December.
The resolution will ask growers to support the allocation of up to 420 additional hectares of SunGold Kiwifruit per year over six years across Italy, France, Japan, South Korea and Greece, subject to annual review by the Zespri Board to confirm forecast demand remains ahead of supply and the provision of annual reporting to growers.
The resolution reflects significant grower input, industry feedback and the need for Zespri to expand in line with forecast demand to protect grower returns. Zespri has had offshore production for almost 25 years to complement New Zealand supply.
Zespri CEO, Jason Te Brake, says expanding offshore plantings is important in continuing to deliver value to growers and reflects both the positive outlook for kiwifruit and an increasingly competitive category.
"Zespri's priority is to create value for New Zealand growers. We do that through an outstanding product and brand and also by listening to our markets and delivering what they want and see value in. What's clear is that our markets want more of Zespri's high quality fruit, and they want it year-round. Competitors have seen this opportunity too and are building their own brands and supply to take market share.
"The expansion of ZGS is a critical part of how we will meet this demand and respond to the growing challenge of more competition which we expect to continue to increase in the years to come."
"It will help us maintain our current position as leaders in a very dynamic category, which will support New Zealand grower returns into the future," concludes Mr Te Brake.
For the vote to be successful, it requires support from at least 75 percent of producers who vote, both by number and weighted production. Results will be announced in mid-December.
For more information:
Anna Cross
Zespri
Tel: +64 27 316 7777
Email: [email protected]
www.zespri.com