Adverse Weather Marked the New Zealand Kiwifruit Production in Season 2022/23

New Zealand's recent weather events in the form of heavy rainfall, floods, and landslides are just a few more weather mishaps in a series that has impacted kiwifruit production in 2022 and continues this year. Still, there was considerable additional weather-related damage to kiwi production. Frost damage in October 2022 led Zespri, the world's largest kiwifruit marketer, to project a 10-15% reduction in its green and gold kiwifruit volumes for the 2023 season. According to Zespri's official crop forecast report in December total New Zealand Supply Class 1 was at 164 million trays in the 2022/23 season, a 7.34% YoY drop.

The 2022 harvest of New Zealand was initially expected to be a record. However, problems with labor, COVID-19, adverse weather, and the quality of kiwifruits left a bitter-sweet taste for New Zealand traders. Severe quality issues led to what could be the worst quality kiwifruit in 20 years, according to local insight from Tridge. Growers have also alluded to increased costs in inputs, fuel, transport, and labor payments, which affected the profit margin of kiwi farmers in New Zealand.

                                 Seasonality of Fresh Kiwifruit in New Zealand

Source: Tridge

On October 6, 2022, parts of New Zealand experienced severe frost, the likes of which had not been seen in many years. The affected regions included Opotiki, Edgecumbe, Tauranga, Katikati, and Edgecumbe. Frost damage has resulted in a 10-15% reduction in Green and SunGold variety kiwifruit for the 2023 season, as well as a 15-25% reduction in the intended RubyRed variety kiwifruit crop, according to damage assessments by Zesprit. In addition, in W5 and W6 of January 2023, heavy rains hit New Zealand's North Island, causing landslides, floods, and infrastructure damage. The impact on agricultural commodities was substantial, leading to washed-away crops and flooded fields. Despite some kiwifruit plantations standing in water, farmers expect that sound draining systems could avert significant water damage and yield losses, and farmers are preparing for the start of harvest in March.

Top 10 Tradeflows of New Zeeland Kiwifruit Export

Source: Tridge

China is New Zealand's number one trading destination for kiwifruit. Still, there are setbacks: the impact of unauthorized G3 (Zespri-protected variety of kiwifruit) plantings in China and the risk of further growth remain a potential threat for New Zealand traders. The harvest window competes directly with New Zealand fruit, which enters the market in the last quarter of the year. Illegal plantings of Sun Gold (G3), a high-value gold kiwifruit variety from New Zealand, have nearly doubled in China in 2020, reaching an estimated 4,000 ha. SunGold, or G3, is owned by Zespri, and growers in New Zealand pay hundreds of thousands of dollars per hectare to cultivate it.

With a forecast of reduced kiwifruit production, export figures will decrease by at least 10%. New Zealand traders will have to focus more on the quality of shipments and adjust export strategies. Also, additional effort must be made to better promotion of other Kiwifruit varieties that suffice in quantities.