The New Zealand Kiwifruit Industry Future Opportunities and Challenges

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The New Zealand Kiwifruit Industry Future Opportunities and Challenges
The New Zealand
Kiwifruit Industry
Future Opportunities
and Challenges
The New Zealand Kiwifruit Industry Future Opportunities and Challenges
Northland 3%

                                       Auckland 4%
    2,435 growers
                                              Bay of Plenty 82%

                          Waikato 4%
                                                       Gisborne 2%
    ~14,500 hectares
    -                                             Hawke’s Bay 2%

                       Nelson 3%

Industry stats
                                                     Hectare distribution
The New Zealand Kiwifruit Industry Future Opportunities and Challenges
0 – 2 ha           791
3,055 registered      2 – 5 ha          1,508
orchards              5 - 10 ha          589
                      >10 ha             161

Average orchard size: Green – 3.5ha; Gold – 2.6 ha

56 packhouses and 67 coolstores used

Over 400 on-orchard labour contractors registered

~ 10,000 permanent staff; ~15,000 seasonal staff

                                           Industry Statistics
The New Zealand Kiwifruit Industry Future Opportunities and Challenges
The Zespri System
The New Zealand Kiwifruit Industry Future Opportunities and Challenges
All Varieties, NZ & ZGS Supply

             China

            Japan

   Spain & Portugal

            Taiwan

         Germany

           Benelux

            France

       Italy & Med

             Korea

      United States

                      0              5000000         10000000        15000000    20000000         25000000     30000000
                          Zespri Green                 Zespri Green (Organic)   Zespri Gold & Zespri SunGold
                          Zespri Sungold (organic)     Zespri Sweet Green       ZGS Supply

Sales Volume (TE) Top 10 Markets 2017
The New Zealand Kiwifruit Industry Future Opportunities and Challenges
Global sales
           $2,500

           $2,000                                                                                         2,046

                                                                                                  1,723
           $1,500                                      1,505      1,522
                                                                          1,456
 NZD (m)

                                              1,359                                       1,401
                                     1,300
                                                                                  1,205
                    1,063    1,082
           $1,000

            $500

                                     152                                                  168     184     217
                    81       82               142      120        98      106     145
              $0

                         New Zealand grown kiwifruit           Non New Zealand grown kiwifruit
The New Zealand Kiwifruit Industry Future Opportunities and Challenges
Kiwifruit direct economic contribution
             700

             600

             500

             400
$ millions

             300

             200

             100

               0
The New Zealand Kiwifruit Industry Future Opportunities and Challenges
Developing and
      marketing the world’s
      leading portfolio of
      kiwifruit products for
      12 months of the year.

Zespri’s strategy
The New Zealand Kiwifruit Industry Future Opportunities and Challenges
Long-term demand for Zespri kiwifruit
The New Zealand Kiwifruit Industry Future Opportunities and Challenges
Healthy eating     Global demographics   Position in the fruit
                                                  bowl

Demand for SunGold       Leadership in     Leadership in global
                          innovation        kiwifruit industry

A confident view of demand…
The importance of strengthening our demand
                     position
Kiwifruit is still an underdeveloped category within the fruit bowl but with a huge growth
potential. The risk of not accelerating growth:

• Give up shelf space to other kiwifruit suppliers
• Give up shelf space to other fruit
• Loss of share within the fruit bowl means it will be more costly to build mental and
  physical availability
• Forfeiting the opportunity to bring further value back to our growers, our industry
• It is a dynamic race… standing still means falling behind.
Our
Opportunity
 2025 Global Target

NZD4.5bn
revenue
Kiwifruit direct economic contribution
             700

             600

             500

             400
$ millions

             300

             200

             100

               0
Macro risk                Grower risk                               Market risk

•   Global political   •   Biosecurity risk has not gone away   •   Loss of market access to a major
    uncertainty        •   Poor taste                               market
                       •   Increased compliance and             •   Competition – particularly in the
•   Global economic
                           growing cost including minimum           Gold space
    uncertainty                                                 •   Markets don’t develop to plan
                           wage going up
                       •   Land/ Labour/ Water constraints      •   Other fruit competition – another
                                                                    fresh fruit, or more convenient fruit

Risks to the plan
                                                                    products
Projected growth   Requiring
                                      A bigger,   Post-harvest
 equivalent to      significant new
                                      more        investment
 another Te Puke    plantings
                                      capable
                                      workforce

Managing the challenges and risks of growth
Seasonal Shortage based on current
         supply estimates
Seasonal Peak Compounded Over Time
Industry led strategies to address labour
shortages

• Implement an Attraction Strategy addressing
   • Worker Welfare
   • Flexible and reliable working arrangements
   • Accommodation & Transport
   • Career pathways

• Investment in technology development
Working with Government
Possible areas for collaboration
• New approaches to utilising under-employed and unemployed
• Continued access to RSE
• Skills training
Thank you.
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