KEY POINTS:
A slight improvement in the exchange rate has seen forecast returns for kiwifruit growers edge upwards, although payments per tray are still expected to be well down on last season, according to exporter Zespri.
Zespri's latest forecast return for 2007/08 was $645.2 million, excluding the loyalty premium, compared with a forecast in October of $642.5 million and last season's $633.9 million.
The forecast for the season ending March next year expected the payment for green fruit to be $6.23 a tray, up from $6.21 in October but down from $7.41 the previous season.
The gold fruit forecast was $8.75 a tray, compared with $8.73 in October but down from $9.42 last season.
New Zealand sourced gold and green organic sales had been completed, green fruit was 99 per cent sold as at December 9 and volume was up 17 per cent, or 12.9 million trays, on the same time last year.
The company licenses growers overseas to produce gold kiwifruit, and in some cases sources green fruit, in Italy, France, Japan, Korea, Chile and California, with trials running in China and Australia.
The annual report for 2006/07 showed 80.1 million trays of kiwifruit were sourced in New Zealand, compared with 6.1 million from abroad.
Chief executive Tony Nowell said the strength of the New Zealand dollar had created a burning platform to drive efficiencies across the industry.
The impact of the exchange rate compared with last season was about $69.6 million, Zespri said.
"Work is currently underway to identify structured savings and I'm confident that we'll find some relatively significant opportunities," Nowell said. "This is a process that must include the growing, post-harvest, supply chain and marketing aspects of our industry."
A working group of representatives from Zespri, suppliers and New Zealand Kiwifruit Growers is to propose recommendations on the industry's cost structure at this week's meeting of the Industry Advisory Council.
