Currency and freight costs hit kiwifruit returns

The strong dollar and higher freight costs will continue to depress returns to kiwifruit growers in the 2005/06 season, says industry marketer and exporter Zespri.

It said those two factors had the potential to cut 60c a tray from the core green kiwifruit and more than $1 a tray from the premium gold variety.

Zespri said it planned to focus on the best-performing markets and cutting costs to achieve the same returns to growers as the 2004/05 season of $4.31 per tray for green kiwifruit, $5.75 for organic and $5.42 for gold.

The returns were between 23 per cent and 32 per cent lower than the 2003/04 season because of difficult selling conditions and the strong dollar.

Chief executive Tim Goodacre said: "I am pleased to say this season's crop is looking good, however it is set to be a challenging season for growers, impacted by the continued strength of the dollar and significant increases in freight costs."

The total kiwifruit crop was forecast to be similar to last year's record volume at 60 million trays of green kiwifruit and 14.5 million trays of the gold variety, he said.

Zespri had net sales of $911 million in the year to March 2004.

Formed in 2000 from the former Kiwifruit Marketing Board, Zespri is owned by about 2500 kiwifruit growers.

- REUTERS