N E W S FONTERRA TAKES TOP PRIZE 8 JULY 2017 KIWIFRUIT INCREASE IMPRESSIVE A new report from the University of Waikato says kiwifruit’s contribution to the New Zealand economy is set to increase from $2.6 billion last year to $6.14 billion in 2030, with an additional 29,000 jobs driven by the new cultivar Zespri SunGold. The new breed, also known as Gold3, has emerged from a Government-backed breeding programme and without it, the report says New Zealand’s industry would be less than half the size of the 2030 projections. Waikato University Professor Frank Scrimgeour says the report quantifies the contribution the kiwifruit industry and the new cultivar breeding programme makes to the economies of Bay of Plenty, Northland and New Zealand, as well as Maori growers, along with growth projections to 2030. Regional growth projections are very strong: in Bay of Plenty, kiwifruit accounts for 10,762 full-time equivalent (FTE) jobs now and an additional 14,329 jobs by 2030, along with a 135% increase of GDP contribution to $2.04 billion. Northland is set to increase by 506 jobs over the same period, with contribution to GDP set to increase 135% to $72 million. Scrimgeour says the industry is a leader in horticulture practice and international marketing, making it significant for the overall economy of New Zealand far beyond export receipts. Zespri general manager innovation Carol Ward says the New Zealand kiwifruit industry is on track to more than double global sales to $4.5 billion by 2025, driven by Zespri SunGold. “We are grateful for the support of the New Zealand government over the past seven years through the MBIE Research Partnership Scheme, which has resulted in Zespri SunGold,” she says. Last season (2016/17), 46 million trays of Zespri SunGold were sold with an export value of $686 million, up 70% from the previous year. “The investment in this partnership – $13.5 million from the government and $29.2 million from Zespri, as well as significant internal funding from Plant & Food Research – shows the government’s commitment to supporting the aim of the horticulture sector to double the value of its earnings to $10 billion per annum by 2020,” Ward says. ExportNZ Auckland and Waikato - divisions of the Employers and Manufacturers Association – have patted Fonterra on the back with the presentation of the Westpac Exporter of the Year supreme award for 2017. Fonterra Foodservice has been recognised ahead of 24 competitors for its product innovation, which also saw the cooperative clinch the Exporter of the Year (total sales over $25 million) category. Foodservice – which has grown aggressively particularly in Asia – has met changing customer expectations, Fonterra chairman John Wilson says, which has catered ‘out-of-home’ outlets such as bakeries, cafes, restaurants, hotels and fast food chains. “Everyone at Fonterra shares in this award – from our farmers who produce the highest quality milk through to our people who develop new products and deliver them to our customers around the world,” Wilson says. “Through innovation and new product development, Fonterra is meeting the challenge of adapting to rapid changes in our key export markets. A fundamental part of our Co-op’s strategy is to grow value by converting more of our milk into higher value consumer and foodservice products and to achieve this we have grown our foodservice business in line with our goal of $5 billion sales by 2023.” China is an extremely competitive dairy foodservice market, where the world leaders are battling for commercial success, says Fonterra global Foodservice director Grant Watson. “We hold a 40% share of the imported dairy foodservice business there. We are China’s leading dairy foodservice provider and have grown at around 30% year-on-year to have our people located in more than 76 cities across China.”
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