New Zealand Kiwifruit
New Zealand Kiwifruit
The New Zealand kiwifruit sector is one of New Zealand’s success stories. The industry has doubled in size and value in the last seven years and today kiwifruit is New Zealand’s largest horticulture export. It is New Zealand’s fourth largest export behind dairy, meat and forestry products.
In the year ended August 2024, kiwifruit exports were valued at NZD3.1 billion. This was an increase of NZD524m or 20% on the previous period in 2023.
The kiwifruit industry has proven to be resilient to economic and global downturns and represents a compelling opportunity for investors seeking exposure to the New Zealand primary sector.
The industry’s structure has enabled growth driven by volume and value:
Volume: Total volumes continue to increase year on year. 193m trays (695,000 tonne) was exported 2024, compared with the previous record of 175m in 2022
Value: Zespri holds the Plant Variety Rights for the hugely popular SunGold™ and RubyRed™ kiwifruit varieties. In addition, Zespri continues to successfully increase pricing and consistently achieves a pricing premium of 50% - 75% in the markets above that of its international competitors. This additional value is returned to New Zealand growers, to the benefit of the wider New Zealand economy.
As the fourth largest export sector, the industry provides significant benefits to New Zealand:
Job creation: Horticulture is labour intensive. Every hectare of SunGold™ kiwifruit creates 45 – 50 times the labour/FTE requirements of Dairy and more than 100x that of that of Sheep and Beef. More kiwifruit means generating more jobs for New Zealand.
Value Creation: Kiwifruit orchards are highly productive. Kiwifruit orchards produce an estimated 40 times more tonnage of produce per hectare for export than Dairy, and more than 120 times the output per hectare of Sheep and Beef (Class 5, finishing blocks). More kiwifruit means more efficient use of New Zealand land.
Increased export receipts: The average orchard gate return for SunGold™ kiwifruit has been more than 15 times the equivalent gross farm earnings for Dairy since 2018, and more than 75 times that of Sheep and Beef approximately. More kiwifruit increases New Zealand export earnings from New Zealand land.
Lower emissions: The “cradle to grave” emissions per kilogram of kiwifruit consumed are 80% less than Dairy and 75% less than Sheep and Beef. More kiwifruit will lower the carbon footprint of New Zealand’s agriculture sector, as new orchard developments are most typically on land previously used for Dairy and /or Sheep and Beef.
New Zealand’s competitive advantages
New Zealand Geography
New Zealand is the only southern hemisphere kiwifruit producer of note. We benefit from a favourable supply window (May - November) that has low overlap with northern hemisphere supply.
Plant Variety Rights
Zespri has exclusive rights globally to grow and sell the SunGold™ and RubyRed™ varieties and can balance global supply with demand, to ensure consistently high pricing across both protected varieties.
Zespri, the Global Category Leader
Zespri is the world’s largest exporter and marketer of kiwifruit and the sole global exporter of New Zealand grown kiwifruit. Zespri sells into more than 50 markets, manages 30% of the global volume and is the most recognised fruit brand in China’s largest cities. The Zespri brand is associated with quality, and Zespri consistently achieves a pricing premium of 50 – 75% over that of its international competition.
A Health Powerhouse
Kiwifruit has the greatest nutritional density of all commonly eaten fruits – 3 times the vitamin C of an orange, more potassium than a banana, and more vitamin E than avocados. In just one serving per day, kiwifruit can support the immune system, digestion and energy levels due to its vitamin c levels, fibre, low glycaemic index.
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