As fresh produce company Turners & Growers lines up Zespri in its legal sights once again with claims it is dragging the kiwifruit industry down, the exporter has actually forecast increased returns.
Although plagued with patchy pollination and a dry 2010 summer resulting in reduced fruit yields, there was an upside, according to Zespri chief executive Lain Jager.
He said the dry, warm growing conditions improved fruit taste, which translated into strong market demand.
As a result Mr Jager said it appeared that strong sales and lower than usual fruit loss will offset a 34% increase in bunker fuel rates.
This has led to a projected fruit and service payment of $856.2 million, which is $22.3 million up on last season.
Modest improvements in green kiwifruit returns will please growers who have been under significant financial pressure following strong volume growth and rising costs.
Despite the positive news for Zespri, it still faces the continuing battle with T&G, even after winning the first round.
Following legal challenges by T&G, this month the High Court in Auckland found that the Kiwifruit Export Regulations were lawful and that it had no jurisdiction to determine if there was any breach of them.
Instead, allegations of any breaches of the rules must be heard by industry regulator Kiwifruit New Zealand.
While T&G has announced its plans to appeal the decision, a second round of challenges is scheduled to be heard at the High Court on May 2, next year.
Apples, the mainstay of T&G, are doing well both in New Zealand and from orchards located offshore, including Australia.
Mr Gibbs said he was looking forward to selling New Zealand produced apples in Australia following the recent World Trade Organisation decision ruling against restrictive conditions banning exports there.
He pointed out that behind the government’s positive stance on the apple trade issue with Australia, it continues to maintain regulations that allow Zespri to operate as a near monopoly exporter.
Liam Baldwin
Wed, 18 Aug 2010