Kiwifruit returns hit by poor fruit quality, rising costs – Zespri

From RNZ | 18 August 2022

Overview of kiwifruit in the U.S. market, complemented by charts from Agronometrics. Original published on August 16, 2022. 

Kiwifruit growers have been told to expect lower returns this year due to poorer fruit quality and rising input costs.

In an update sent to growers, Zespri chief executive Dan Mathieson said fruit quality remained an ongoing and significant issue this season.

“Zespri is continuing to work with our colleagues across the industry and with our partners to address the immediate and longer term issues to ensure we see improvements this year and into the years ahead.

“We are not alone in facing this challenge, with quality issues evident across other global fruit categories this season, and our competitors and colleagues have also battled labour shortages, supply chain congestion and inflationary pressures, all of which impact grower returns.”

Mathieson said this was likely to be reflected in the next orchard gate returns forecast on 23 August.

“Since publishing our indicative orchard gate return range in June, the costs associated with this season’s fruit quality will be updated and fruit loss is expected to be significantly above the levels considered by our earlier forecast, resulting in less fruit available for sale.

“While pricing is holding in most markets where we continue to look for opportunities to improve net value, the cost increases we are seeing with freight, labour and quality mean that this season’s returns will be under pressure.”

kiwifruit prices by hist

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

Indications were conventional fruit returns would be at the bottom of, and possibly even below, the ranges published in June, he told growers.

Organic fruit, where quality is closer to last season, was tracking between the mid-point and the lower end of the range published in June.

kiwifruit volumes by his

Source: USDA Market News via Agronometrics.
(Agronometrics users can view this chart with live updates here)

The News in Charts is a collection of stories from the industry complemented by charts from Agronometrics to help better tell their story.

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