New Zealand kiwi production declines

According to Radio New Zealand (RNZ) and the New Zealand Herald, this year’s New Zealand kiwi harvest is almost complete, with the total harvest volume lower than last year’s record of 177 million boxes. Recently both New Zealand kiwi marketer Zespri and grower Seeka said that they expect a significant decline in company profits this year due to a decline in kiwi production, rising shipping costs and labor shortages.

Just a month ago, Chia-Pedi announced its 2021/22 financial results, with total global fruit sales revenue reaching N$4.03 billion for the first time, up 12 percent from the previous year, and net profit after tax of N$361.5 million. The latest report shows that Japonic has lowered its expectation of net profit for the year to N227 million – N247 million.

Carol Ward, a spokesperson for Japonic, said it was a tough production season. “Last year was a record year for us, but this year we have fewer permits to growers and a slightly lower crop …… which means our profit expectations for the year will also be revised downwards.”

Nonetheless, Ward said growers can still make a substantial return this season. Canaday has eased some of the logistical pressure by chartering ships, but it still can’t combat rising logistics costs. Coupled with shipping disruptions and ongoing labor shortages, these are leading to a significant decline in profits.

Seeka, New Zealand’s largest kiwi grower, also lowered its market forecast. Seeka said that the kiwi harvest is now complete, with total Hayward green-fleshed kiwi production down about 17% from last year and SunGold yellow-fleshed kiwi production down 10.2%. Due to the lower production, Seeka expects full-year pre-tax net profit to be between N9 million and N11 million this year, down significantly from N23.5 million in 2021.

Source: International Fruit and Vegetable Report

Post time: Jul-07-2022