Zespri Group, the country's statutory kiwifruit exporter, raised its forecast for tray returns across all varieties in the 2018 financial year and is accelerating licensing for its SunGold fruit on growing demand for the sweeter variety.
The Mount Manganui-based company forecasts total fruit and service payment to be $1.39 billion in the year ending March 31, up from a previous forecast of $1.34b, with the board signing off on higher returns to growers, it said in a statement.
Zespri paid $1.39b to growers in 2017 due to a steep increase in supply.
The forecast for net profit was trimmed to a range of $96 million and $101m from an earlier projection of $98m and $103m. It also expects to pay a dividend of 69-to-73 cents per share.
"Forecast returns have increased for all pools and Zespri is targeting a strong, clean finish to the New Zealand season," chair Peter McBride said in a letter to growers.
Zespri expects to pay $6.23 a tray for the green variety and $8.24 for organic green, up from an August forecast of $5.84 and $7.92 respectively, and $9.73 and $5.39 for gold and Green14 varieties, compared to an earlier projection of $9.28 and $5.25 respectively.
