The Country 20/11/25: Jason Te Brake talks to Jamie Mackay

 We track down the chief executive of Zespri in Japan to discuss its November forecast for the 25/26, with record returns expected (at a per hectare level) for all fruit groups.

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Episode Transcript

Speaker 1 (00:00):
Let's kick it off with Jason to Break, the chief
executive of Zespery in Japan early morning over there. Thanks
for some of your time, Jason. Do you still squeeze
your six foot six frame into economy when you're traveling
on behalf of Zesbury.

Speaker 2 (00:15):
Yeah, I've been known to do that. I can fit
the leaves under the seat in front of me if
I need to, Yep.

Speaker 1 (00:21):
Surely, surely with these record returns, Jason, you can afford
to go further up the plane.

Speaker 2 (00:28):
Well, look at the main thing I us for us
is continue to focus on what actually we need to do,
which is selling and marketing our fruit for the best
value we can. And you know we're having a strong
year this year, which is good, seeing good demand for
the fruit and a strong recognition for our brand as well.

Speaker 1 (00:44):
So let's have a look at the press release forecast
portray returns up from your August This is the November
forecast release yesterday, up from the August forecasts for all
fruit groups, and as I said earlier on a per
their level, record returns are now forecast for all fruit groups.

(01:05):
Is that because we're getting more productive as well as
better prices.

Speaker 2 (01:09):
Yeah, there is an element of We've actually had a
pretty strong production season last year, so orchard yields are
are up, and at the same time we've been able
to maintain and in some cases like green beansh able
to increase the value of the fruit as well.

Speaker 1 (01:26):
You had a record crop of two hundred and fifteen
million trays this year, obviously having no difficulty finding a
home for it all.

Speaker 2 (01:35):
I mean, we worked pretty hard, to be honest. It's
been a tough season, and globally, you know, the world
is changing almost every week, it feels like, so particularly
through Asia, it's been more challenging. But we've had a
very strong year in Europe, very strong year in North
America and being able to really work on a diversified
market portfolio.

Speaker 1 (01:57):
The fact that or the news that Trump the tariffs
some keyw fruit's got to be good for your industry.

Speaker 2 (02:04):
Yeah, definitely. I mean we're a little bit concerned just
around the price inflation impact and whether that would see
consumer demand drop off in the coming season, but obviously
having that drop into tariff in a teriff for US
has been over forty million dollars that we will spend
this year on tariffs, So good to be able to
get that money back into the pocket.

Speaker 1 (02:24):
When we look at returns on a per hectare basis
for all the fruit types, zespery sun gold or your
gold key with fruit basically stands out head and shoulders.

Speaker 2 (02:37):
Yeah. I mean gold has still got very strong demand
around the world, and we're still continuing to increase the
amount of licensing that we've been doing, seeing more demand
in the future. And that's right throughout most of our
key markets. We've seen good, strong demand at good value
as well.

Speaker 1 (02:53):
I note that key we fruit red or zesprey key
we fruit red returns more than half the amount on
a per hectary basis than gold. It obviously yields lower
as the crop, but you still get good returns for it.

Speaker 2 (03:09):
Yeah, Ruby read your finding that because it's still a
maturing product for us. So some orchards are going quite
well because they've been more established, they've got higher productivity
on a per tray basis, we're getting a better return
for that. But some orchards are still early in that stage,
so they are still maturing and getting their productivity up.

Speaker 1 (03:30):
The last talk a couple of seasons ago that zestberry
green or just the old normal key we fruit that
we all grew up with Chinese gooseberries. If you're old
enough to remember, that would be a bit of a
sunset industry, but it's very much made a renaissance.

Speaker 2 (03:46):
Yeah, And to be honest, we're actually seeing strong demand
on green as well. We had a health claim this
year in the European Union, which is the first time
a fresh fruits had a health claim before, but particularly
around digestive health, and you've seeing that for a europe
through Asia markets they're putting quite a focus on digestive health.
North America this year has also been quite strong for
US with demand as well.

Speaker 1 (04:07):
I see Mike Hoskin hosking, I better get it right.
I'm sounding like Winston. They're champions Key we for Green.
He's a bit of a health freak, old Mike. And
are you finding that this is part of the reason
why people are getting in behind it? Is it, for instance,
more healthy for you than kee we Fuit gold, which
would be my preference.

Speaker 2 (04:28):
It depends on what you're after. So I mean, obviously
having Mike pushing us as always beneficial. But you know,
we're obviously spending quite a bit on advertising, promotion and
branding around the world every year as well, so that
certainly is helping. We're seeing that people will buy it
for different reasons. So if they're focusing on digestive health
and they want fiber, then green is great. If they

(04:49):
want vitality and vitamin C, then sun gold and ruby
read is like a real novelty type product. But it's
particularly attracting younger consumers into the category, which is really good.

Speaker 1 (04:59):
We know that the a are particularly attracted to kiwi
fruit red the fruit. They love the color, and I
guess they love the taste as well. Is that what
you're seeing in the likes of Japan where you are now.

Speaker 2 (05:11):
Yeah, both Japan and China are our key markets for
ruby red, but also this year we launched in the
USA as well, so that was quite strong. You're seeing
younger consumers, so younger you know, sort of kids, teenagers,
early adults who probably wouldn't be buying kiwi fruit enjoying
the taste, enjoying the sort of the vibrancy of the

(05:32):
color with ruby red, and then saying oh, actually I
might start buying more Kiwi fruit. So it's bringing people
into the category, which is quite good.

Speaker 1 (05:39):
How are you getting on with the piracy issues in China.

Speaker 2 (05:45):
In terms of the unauthoriaty.

Speaker 1 (05:46):
Yeah, I'm sorry I should have said unauthorized planting, but
you know what I mean.

Speaker 2 (05:50):
Yeah, yeah, I mean, look, it's we're seeing an increasing
sophistication in terms of what they're doing there. So they're
getting better at growing the fruit, they're growing more of it,
and they are also getting better at selling the fruit.
We're actually able to keep a buzz that you know,
we're currently pricing about double what they are and being
able to keep that value quite strong because people are

(06:12):
still recognizing that there's good quality fruit coming out in
New Zealand and they're willing to pay the premium for that.
But we certainly see a bit more activity happening in
our space at the moment. On that one.

Speaker 1 (06:23):
Jason to Break, chief executive of ZESPRI with us. He's
in Japan at the moment and he stops off on
the way home.

Speaker 2 (06:32):
Yeah, heading through to Singapore US this. We've got to
catch up with our marketing team in Singapore looking at
the future for our brand and how we position that
around natural nutrition and health. So a big focus for
us over the next ten years will be how we
really double down and focus on building a strong brand
that's globally iconic around the world.

Speaker 1 (06:51):
Jason to Break. Look at me as a very small
time investor in the keyw fruit industry. I don't mind
if you upgrade to premium economy on the way home
from Singapore or with your sex what sex frame? I
reckon you've deserned it or you've earned it, you deserve it.

Speaker 2 (07:06):
Okay, thanks Jamie, I'll keep that You're.

Speaker 1 (07:09):
Going to take no notice of that at all, But anyhow,
I admire your discipline.

Speaker 2 (07:14):
No, thank you very much. Yep. No, We've got to
keep focusing on doing what we can for grower returns
and making sure we get the money back to our
growers because you know it's challenging out there. Water cultures
are a tough industry to be and so we've got
to make sure we keep focusing back on value for
our growths.

Speaker 1 (07:27):
Oh, you keep working hard for the key with fruit
growers of this country. Jason to Break, their chief executive
of as Espring