Top kiwifruit on a roll in Asia

Zespri has made a strong start to the season, with high-quality kiwifruit commanding better prices in key Asian markets.

Zespri chief executive Tim Goodacre said yesterday that early concerns about the late start to the season were beginning to ease as it became clear the fruit quality was significantly better than last year.

Because it sells its fruit as a premium-branded product, Zespri has more control over price than other exporters who sell produce into bulk commodity markets. But, to maintain that premium, the company - which had revenue of more than $1 billion last year - must maintain rigorous quality standards.

In the Japanese market, where Zespri kiwifruit commands the largest profit margin, sales volumes are up 53 per cent on the same time last year.

Sales in the "tiger" markets of Taiwan and Korea are also well ahead despite the delayed supply.

Goodacre said that as Japan was the most lucrative market, Zespri tried to direct as much fruit there as possible.

But Europe was the biggest market by volume and was vital to the success of the season.

Although Europe was at an earlier stage in the export season, prices there were also looking to be at least as good as last year.

Conditions in Europe were testing, with competition from Chile and the overhang of a large Italian crop, much of which had been sold at discount prices.

But Goodacre said it still looked like there was a good price platform in Europe to build upon this season.

He warned growers at the start of the season that the rising value of the dollar and higher freight costs meant Zespri was effectively starting out with a deficit of $60 million compared with the year before.

The goal for the season was to reel in that deficit through improved performance.