Growing and Marketing the World’s Best Kiwifruit

Purpose: Information
Submitted by: ABAC New Zealand

High Level Policy Dialogue on Food Security and
Blue Economy

Iloilo, Philippines

4-6 October 2015

About Zespri

● Retail category leader in kiwifruit
● 100% owned by past and present NZ growers
● 2,500 NZ growers cultivating 12,000 hectares
● Unique industry structure with customer & consumer focus
● Global marketer to over 50 countries
● Turnover of NZD $1.6 billion and growing
● Zespri brand underpinned by the Zespri System 

An Integrated System underpinned by continuous improvement

Kiwifruit Industry Invests 2.5% Turnover in R&D

It was an industry under threat…BUT NOW BACK ON TRACK

Protecting value through the supply chain

Crop Forecasting and Allocation

• Volume and timing of supply
• Supply advised to markets

Market Demand Driven

• Markets gather customer demand
• Communicated to production base

Production and Logistics

• Right fruit in the right pack types
• Delivered to the right market, best condition, on time

 
Protecting value through fruit quality

• On Orchard
  − Good Agricultural Practice
• Post Harvest Facility
  − Quality control systems: Weights, counts, labelling, packaging, temperature
• Zespri International Ltd
  −Quality audit of packhouses and coolstores
• MPI (Ministry for Primary Industries)
  − Phytosanitary compliance audit on Zespri
• Wharf Checkpoint
• Export Security - Customs audit

Ensuring quality in the markets

• Traceability
  – Packs of fruit can be traced right back to the production area
• Intercheck
  – Systematic checking of fruit quality on arrival in the market
• Product technical support

Managing quality from coolstore to shelf

• Reliably good taste and eating experience critical
• Optimal ripeness
• Easy to: find, select, transport, store, ripen, prepare, eat, dispose of waste
• Confidence in health & food safety
• Predictability for consumers
• Opportunity to underpin sales growth
   

Enhancing value through grower incentives

• Zespri aims to get as much cash flow back to growers as quickly as possible
• Greatest driver for repeat purchase is taste
• Minimum taste standard minimizes poor eating experience
• Growers receive more for higher BRIX and dry matter
• Supported by education, outreach
• Delivering fruit early to market secures shelf space, extends selling season
  –so Zespri incentivises early supply

Sustainability and Innovation

• Integration of sustainability principles across the Zespri System
• Culture of innovation and efficiency
• 100% Recyclable packaging
• Worlds first compostable fruit label on Zespri Organic Kiwifruit
• Sustainability dashboard of environmental measures underway
• Bio-spife eating utensil
  − Kiwifruit waste material blended with renewable plant derived plastic (PLA)
  

  

  
  
  

• Improved orchard productivity and efficient resource use through enhanced management and breeding superior varieties.
• Extensive orchard research and industry-wide grower education.
• Leading crop protection integrating cultural techniques and biological controls with the latest technology in pest and disease control.
  
  
  
  
  
  
  
  
  
  
• Developing knowledge and tools to enhance our growing and supply chain systems:
  − Carbon/greenhouse gas reduction
  − Water use efficiency
  − Refinement of packaging materials
  − Managing waste kiwifruit material
  − Reduced reliance on non-renewable resources
  − Supporting biodiversity
  − Preserving bees and supporting bee Keepers

Company Overview

• Biggest single site in NZ (20ha) with four packhouses and 32 coolstores
• Packed over 13million tray equivalents of Green, Gold and Organic Kiwifruit
• Increasing grower supply base of 280+ Kiwifruit Growers across 1,000+ha
• Privately owned company with annual turnover 100M+, Industry Share 10%
• Permanent staff of 130 plus up to 1,200 seasonal staff from March until June
  

Operation Overview

-The Zespri System in Post‐Harvest Context

Framework

• Developed by the Trevelyan’s team and introduced in 2011.
• Based on The Natural Step (TNS) scientific principles for Sustainable Business Development.
• Drives innovation and improvements across Environmental, Social and Economic areas of the business.
• Promoted to engage Growers, Staff, Business Partners, Community and the wider Supply Chain.

Economic Performance

• Provide quality packing and cool‐storage services at a fair price so growers remain viable.
• Maximising export trays per/ha through accurate packing, low levels of fruit loss, effective cool‐storage and inventory management.
• Consistently leading industry in Orchard Gate Returns (OGR’s) to growers across all varieties.
• Result is a business with increasing market share, a stable and profitable grower supplier base, in a resilient position of growth for the future.
    

Environmental Performance

• Site‐wide focus to “do more with less” drives resource efficiencies.
• Reducing waste to landfill has resulted in savings of $90,000 since 2010 that will accumulate over years to come.
• Monitoring our carbon emissions has resulted in a reduction of 43% since 2010, influenced mostly by careful management of refrigerant use.
• Our GHG emissions are transparently reported to stakeholders in our GRI (Global Reporting Initiative) G4 Report.
   

Social Performance

• Treat our growers, staff, community and customers fairly, and with respect.
• Have a strong connection to our community through our sponsorship & donations and community care policies.
• We have many health, safety and wellbeing initiatives for our staff.

Our relationship with Zespri as a respected business partner enables us to deliver healthy, safe and high quality fruit to the global marketplace.

The focus on maximising economic returns to growers is underpinned by Environmental and Social responsibility to secure a sustainable future for the New Zealand Kiwifruit Industry.

In conclusion
- a cooperative model generating sustainable grower returns