Jason Te Brake. Photo: Supplied / Dscribe Media
Voting opens today on a proposal from kiwifruit marketer Zespri to increase plantings of SunGold in other countries.
Zespri wants to expand its global supply by up to an additional 420 hectares of SunGold kiwifruit per year over the next six years across Italy, France, Japan, South Korea and Greece.
The plan would be subject to annual review by the Zespri Board to confirm forecast demand remains ahead of supply.
Chief executive Jason Te Brake said 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.
"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 Zespri Global Supply 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."
Voting opens today and for the plan to be successful it requires support from at least 75 percent of producers who vote, both by number and weighted production.
Te Brake said Zespri's Five Year Outlook confirmed demand for kiwifruit remains strong, although competition continues to intensify.
"Planting more SunGold hectares in the northern hemisphere is a crucial part of our plans to deliver this and to maintain our position in the category.
"Having spent a lot of time on the ground with our customers in the last few months, it's very clear they want more of our kiwifruit, but if they can't buy from us, they'll look elsewhere."
Grower group supportive
New Zealand Kiwifruit Growers chief executive Colin Bond said the group is encouraging growers to vote in favour of the plan.
"When speaking to growers we ask does the 12 month supply strategy make sense? the answer is yes, can we achieve that strategy out of New Zealand? the answer is no, therefore we should support expanding how much is grown in the northern hemisphere
"There's no arbitrage here, so there's an opportunity we want to try and capture and opportunities come with risks but the view from a grower forum was that the opportunities outweigh the risks and those risks can be managed."
Photo: Supplied / LDR
Bond said growing kiwifruit in other countries has been a strategy at Zespri for nearly 20 years, "they're wanting to grow the existing strategy and that's why they're asking growers to expand."
A very similar vote to increase offshore plantings failed to get across the line in 2022.
Bond said despite that being only two years ago - the industry was in a different space.
"There's a few things that are different this time, in 2022 we were coming through a tough season, a labour crisis, a quality challenge and the message from a lot of growers to Zespri was get your own house in order before we expand overseas.
"In that vote they were wanting to expand by 10,000 hectares a year, this time we're coming off a really good season, the start to 2025 looks positive, we feel like we've got growth under control in the industry in New Zealand and Zespri is only asking for 25 per cent of what they asked for last time."
Bond urged growers to vote, voting opens today and closes 5 December.
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