3.2 Kiwifruit
Production and Trade
New Zealand kiwifruit production fell 11% to an estimated 242,000 tonnes in the year ended March 2003. The number of export trays supplied to ZESPRI Group Ltd at free-on-board ship (FOB) fell from 65.9 to 60.5 million trays. This was due to reduced flower and fruit numbers, resulting from dull wet conditions in autumn 2001, and cool wet conditions over pollination. The flavour of the crop was good.
Frosts in spring 2002 affected the crop to be harvested in 2003, resulting in production levels that are expected to be only slightly up on the 2002 crop.
In the medium term, volumes are expected to increase gradually due to the maturation of grafted and planted vines. Urban expansion is likely to reduce production around the city of Tauranga. By year ended March 2008, kiwifruit production is projected to be just over 300,000 tonnes. Crop projections assume that the outbreak of Varroa mite infestation in beehives will have no effect on pollination.
The key kiwifruit markets are the EU and Japan. In the year ending March 2003, 57% of New Zealand's kiwifruit exports went to the EU, and 20% to Japan (by volume). The top five destinations (the EU, Japan, the US, Australia and Taiwan) took 92% of the volume exported.
Prices
The total supplier payment per tray (at FOB) for the 2002 crop (year ended March 2003) of Gold kiwifruit (all grades) is estimated by ZESPRI International to be $10.13/tray, 16% higher than the 2001 crop, and around 27% higher than the price for conventionally grown Green kiwifruit (at $7.96/tray). Total payment for the 2002 Green Organic crop (all grades) is estimated at $9.90/tray, 26% higher than for the 2001 crop, and around 24% higher than the price for conventionally grown Green kiwifruit.
Supplier prices for the 2002 crop are estimated to be some 17% higher than for the previous year's crop. This was related to the good flavour and lower volume of the New Zealand crop, the unusually small European crop, a strong promotional programme and favourable forward exchange cover arrangements.
Prices are expected to decline slightly in the short to medium term, due to increasing supply and exchange rate factors, with forward cover buffering the effects of forecast exchange rate movements. The supplier payment at FOB for year ended March 2008 is projected to be very similar to the return in the year ending March 2003.
Contact for further information:
Irene Parminter
Phone: (07) 838 5323
Email: irene.parminter@maf.govt.nz
