New Zealand-based produce company Turners & Growers did not quite achieve the 10-20% profit rise for 2014 that its board forecast on Jan. 21, but nonetheless recorded a "solid" result for its pipfruit category despite price pressures across most markets.

In an announcement of its preliminary results for the year, the company noted a profit before income tax of NZ$24.9 million, which represents a year-on-year rise of 6%.

T&G said pipfruit was the main contributor to the figure, with profitability increasing 8.5% to NZ$23 million.

"New Zealand export volumes for 2014 were in line with the prior year. The anticipated volume growth did not eventuate in 2014 due largely to a number of hail events in late December 2013," the group said.

"Despite price pressure across most markets, and a difficult European environment due to economic sanctions against Russia, T&G Pipfruit achieved a solid result for its New Zealand programme."

Despite the strong results, lower grower returns were seen compared to 2013, but there were some positive signs.

"It was pleasing to see that Jazz™ returns were held close to 2013 levels and there was a notable increase in the Envy™ return for 2014.

"This was also supported by an on-going focus on efficiency improvements in the supply chain and further overhead cost reductions.

"The Northern Hemisphere growing and marketing programmes in North America and Europe continued to expand both in sales and volumes produced. Delica, T&G’s pipfruit exporter to Asia, enjoyed continued sales and profit growth with more fruit available for the Asian markets, especially Envy™."

In terms of other international produce sales, the diversified produce trading and grape business units were up year-on-year, while the kiwifruit segment fell behind the 2013 result.

"Main profit contribution came from strong trading results in North America in berries, citrus and stone fruit. Furthermore the Diversified Produce Trading business unit benefitted from continued growth in Fiji and steady exports into the Pacific Islands," the announcement said.

"Supply shortages in New Zealand, Australia and South America in the first half year were offset by a strong finish in the last quarter of 2014. The Grape category experienced a challenging year.

"Despite lower pricing levels in Asia than expected and set-up costs for establishing a grape growing operation in Northern Peru the business unit’s Operating Profit met expectations."

T&G attributed to lower volume and frost issues in New Zealand and Chile respectively for its kiwifruit business.

"Consequently T&G could not reach its 2013 Operating Profit level for the kiwifruit business.

"During 2014 T&G opened a service and marketing office in Shanghai, China. The setup costs for the year were substantial, yet T&G is now strategically well placed to support the future growth in that important market."

The international produce trading segment declined from NZ$4.7 million in 2013 to NZ$1.9 million in 2014.

www.freshfruitportal.com