The Zespri board announced record sales and grower returns for 2015-16 during the company's AGM today. 

New Zealand single desk kiwifruit marketer Zespri announced record sales revenue of NZ$1.9 billion for 2015-16, representing a 22% rise year-on-year.

Total fruit and service payments to growers for New Zealand-grown fruit rose by the same percentage as well, reaching NZ$1.143 billion with an average return per hectare hitting a record NZ$60,758.

"Sales volumes were up 21 percent from the previous season, with sales of 131.6 million trays in the 2015/16 season," said Zespri chairman Peter McBride.

"This included sales of 117 million trays of New Zealand-grown kiwifruit– nearly 22 million trays more than the previous year – and 14.5 million trays of non-New Zealand kiwifruit."

The rise in net profit after tax was not as significant, up 3.5% to NZ$35.8 million, but normalized profit after tax jumped 29% to NZ$27.8 million.

There was also a record volume of SunGold kiwifruit at 27.5 million trays, out of a total of 32.6 million trays in the gold category, with "positive customer and consumer feedback".

There was a record per hectare of Green returns of NZ$56,673, up 5% on the previous season, with higher yields offsetting reduced per-tray returns.

"Across the industry, New Zealand kiwifruit growers have responded year-on-year to the challenge of growing in a Psa environment by improving orchard management practices," McBride said.

"Combined with favourable weather conditions last season, the result was a very large crop of Green of 80.7 million trays. This increase in productivity is positive as it allows us to deliver very good value to both our customers and our growers."

The period also saw continued investment in Zespri’s Northern Hemisphere production. Volumes of 2.3 million trays of SunGold were sold from a total gold Zespri Global Supply (ZGS) volume of 3.6 million trays, with gold volume set to nearly double next season.

“Each season brings its own challenges and opportunities and we remain focused on consistently delivering our strategy over time and staying on track to provide the world’s best portfolio of kiwifruit 12 months a year," said Zespri CEO Lain Jager.

"For the 2016 season and beyond, Zespri will focus on growing demand ahead of supply as our volumes grow strongly and growing our share of the market with a premium price positioning.

"After a late start to the 2016 season with delayed maturity, we’re pleased to report that weekly sales run rates have now surpassed last year’s sales and we’re on track to sell 82 million trays of Zespri Green and 47 million trays of Zespri SunGold of NZ-grown kiwifruit."

During the AGM, McBride added the industry was encouraged to see the progress made in implementing the recommendations of the Kiwifruit Industry Strategy Project (KISP).

"The changes that New Zealand growers overwhelming voted for through KISP have been agreed by government and will ensure our industry keeps providing growth and value to growers and shareholders over the long term," he said.

Through extensive consultation over the past few years, the industry asked the government to amend the regulations to allow for better shareholder alignment with production, update the definition of Zespri’s core business and provide the regulator Kiwifruit NZ with a broader skill set and more independence.

"We’re pleased that the government has agreed to change the regulations to allow these three changes, which ensure that New Zealand kiwifruit growers continue to own and control Zespri into the future."

These regulatory changes are part of a broader package of initiatives agreed by the industry. Other changes either implemented or underway include the formation of a National Maori Growers’ Forum, a new proactive approach to collaborative marketing and an improved share trading platform for Zespri shares.

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