Kiwifruit growers can now vote on whether they think Zespri should increase plantings of the lucrative SunGold variety in existing production locations overseas.
Photo: RNZ/Carol Stiles
The kiwifruit marketer wants to increase plantings in Italy, France, Greece, Korea and Japan by up to 10,000 hectares to ensure it has SunGold to sell all year round.
Voting on the proposal opened on 28 July and growers have until 24 August to cast their vote; the idea needs 75 percent of growers support to pass.
Company chief global supply officer Alastair Hulbert said the current approval of 5000 hectares for Zespri SunGold Kiwifruit outside of New Zealand was not going to produce sufficient fruit to achieve 12-month supply in key markets.
"By 2031, the current approved hectares would meet less than 30 percent of the demand in the New Zealand off-season. The proposed expansion of up to 10,000 additional hectares of Zespri SunGold Kiwifruit would allow us to meet up to 90 percent of that demand - achieving 12-month supply in key markets.
"If the vote is successful how we've structured the plantings is we're going to do a first tranche that takes us from now until 2028, and that'll be 6000 hectares. And every year, we will report to the industry the progress of those plantings.
"Now, when we get to 2028, the Zespri board needs to undertake to look at the supply and demand equation and to make sure that supply is always 10 million trays below potential demand. And then they will give us approval on an annual basis to continue with that next 4000 hectares to complete the 10,000 hectares."
Hulbert said Zespri did a road show in March to chat to growers about the proposal.
"We got really good feedback about the pros and cons and some risks: one of the growers big concerns was that we always kept demand ahead of supply which is one of our principals at Zespri."
"The way the proposal is designed is that if it comes to a point where there is to much planted we can stop there and pull back."
He said if it did not get across the line, it would be business as usual.
"We'll continue with the 5000 hectares that we have, but we will then have an increasing gap between supply and demand.
"If it doesn't get across the line with the growth in New Zealand fruit and increasing customer and sales rates we will never be able to achieve 12 month supply and the real danger of that is it will let competitor kiwifruit come on the shelves and fill that space that we're leaving."
NZKGI which represents growers said reaction to the idea has been mixed.
Chief executive Colin Bond said some growers are excited about the prospect of securing 12-month supply while others are worried about risks.
"There's the biosecurity risk which isn't new in our industry, but the main concern with year round supply is where does the New Zealand supply end and where does the offshore supply start, so there are concerns about those shoulder seasons."
He said NZKGI is focused on ensuring growers are well-informed to cast a vote.
"We've reached out to a number of experts on 12 months supply to understand their perspective and the feedback was consistent. And that was with 12 months supply you get to your product is in front of consumers all year round, and you've got shelf space all year round.
"I'm hoping growers are informed and get out and vote, that's the important thing."
