Wednesday, 17 June 2015 11:28

Back where it belongs!

Written by 
Zespri chief executive with examples of red, green and gold kiwifruit. Zespri chief executive with examples of red, green and gold kiwifruit.

The kiwifruit industry is just about back to where it was before PSa, says Zespri chief executive Lain Jager.

He says this year will have seen a recovery of gold kiwifruit to 32 million trays, almost the same as in the days before PSa and triple the low of 11 million trays in 2012.

Jager told Rural News at Fieldays that the recovery is tremendous news for New Zealand kiwifruit growers, who have seen land prices recover and a huge sense of optimism in the industry.

Zespri operates at a significant competitive disadvantage costwise relative to its main southern hemisphere competitor Chile, Jager says.

“That means we can’t be the lowest cost producer, so we have to brand our product, position it at a premium level in the market and focus on quality and taste. That gives us the opportunity to have great fun with innovative marketing programmes around the world.” 

On innovative marketing, Jager says Zespri is tremendously pleased with the marketing they have developed with McDonalds restaurants in Mexico.

“That’s a fantastic position for us because it’s about health and kids having fun and we are hugely excited about that.” 

A Zespri strength is the close relationship between growers and the marketing arm of the company, Jager says. This is vital to building a strong brand producing a premium product and securing good prices for growers.

“The Zespri brand is now the fifth strongest brand in fruit globally. That’s remarkable because it’s only been in the market since 1998, so it’s still a new brand. But it is strongly supported by growers with promotional funds: this year 77 cents/tray for green kiwifruit and over $2 a tray for gold. 

“Growers are investing in promotion and support of that brand and that means consumers can recognise our quality through the brand. It’s all part of the value proposition that says ‘here’s a premium, healthy fruit and this is what Zespri means in health and vitality’. This is giving us recognition and excitement in the markets and powering our growth.” 

Jager says Zespri spends $20 million on R&D each year, half of which goes on plant breeding. It is now developing a new variety of red kiwifruit and test marketing it in Australia and Singapore. 

“Red kiwifruit is very challenging commercially because it’s small. It’s a short-storing variety but we know consumers want red kiwifruit. We are working with Plant and Food Research to breed bigger, longer-storing, vibrant highly flavoured red kiwifruit.”

More like this

Crackdown on Chinese use of Zespri IP

Authorities in China have clamped down on companies in that country which have been packaging and selling their own local fruit under the Zespri brand.

Kiwifruit set to benefit from NZ-EU FTA

The fast-tracked implementation of New Zealand’s Free Trade Agreement with the European Union (EU) could provide a significant boost for the kiwifruit industry.

Featured

Rural Change to merge with RST

The Rural Change programme, providing free private mental health professional sessions to the rural industry, is set to continue its next chapter within Rural Support Trust from 1 July 2024.

Strong growth in farm salaries - report

A new report shows farm employers across the dairy, sheep and beef, and arable sectors have continued to invest strongly in one of their greatest assets – their staff.

National

Celebrating success

The Director General of MPI, Ray Smith says it's important for his department to celebrate the success of a whole…

Cyclone's devastating legacy

One of the country's top Māori sheep and beef farms is facing a five-year battle to get back to where it…

Machinery & Products

Factory clocks up 60 years

There can't be many heavy metal fans who haven’t heard of Basildon, situated about 40km east of London and originally…

PM opens new Power Farming facility

Morrinsville based Power Farming Group has launched a flagship New Zealand facility in partnership with global construction manufacturer JCB Construction.

» Latest Print Issues Online

The Hound

Cut with care

OPINION: The new government has clearly signalled big cuts across the public service.

Bubble burst!

OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter