The Country 24/03/25: Jason Te Brake talks to Jamie Mackay

The chief executive of Zespri comments on the prospects for a record harvest (205 million trays) and near-record returns. But can we find a home for it all?  And what variety is faring best?  Red, Gold and Green?  

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Episode Transcript

Speaker 1 (00:00):
News out late last week that Zesbury was expecting a
record harvest two hundred and five million trays and near
record returns. But here's the question, Jason to Break, chief
executive of Zesprey. Can we find a home for all
this product? Yeah?

Speaker 2 (00:17):
Actually, we've been able to build really strong demand over
a number of years with a good brand and a
good product. So at the moment, we've got a good
strong demand from our customers in the market and very
confidence we get into the season that we've got a
home for all this fruit at good pricing for our
growls as well.

Speaker 1 (00:35):
How much do we send into the US? And you
know why I'm asking this question around Trump and his tariffs.

Speaker 2 (00:42):
Yeah, so the moment, we send probably about six to
eight percent of our total product into the US. It's
a developing market for US, so we're actually investing quite
heavily to grow demand in North America at the moment.
I mean Trump and teriffs. Look, we don't know which
way that's going to fall, but probably the biggest thing
that we're worried about is what's the flow on around

(01:04):
the world through China, through Europe when he's got tariffs
and stuff. So that's probably what we're waiting to see
a bit more about as it comes through.

Speaker 1 (01:12):
So two hundred and five million trays, that's a hell
of a lot of trays, beating last year's record of
one hundred and ninety million trays. Jason, it's not that
long ago I think you had and your production of
one hundred and forty five million trays. Is there any
danger of creating a kiwi fruit glut? I know you

(01:32):
said you found a home for it all, but surely
there must be a ceiling point at some stage, or
is this a super food that the world wants?

Speaker 2 (01:41):
No, we're pretty confident that you know, Actually, we've got
good demand for the product and good demand for a
good brand, and customers around the world are still wanting
to spend good money on premium, high quality, consistent fruit.
If you went back and a couple of years ago,
we're one hundred and forty five million trays. Because we
had sign clans, we had a whole lot of challenges

(02:01):
that actually brought our industry quite low in terms of
productivity and affects our growers. If you went back before that,
we're about one hundred and seventy million trace. So it's
been a steady growth. We've been able to build good
demand and maintain good pricing through that cycle.

Speaker 1 (02:17):
The ruby red is already on the market, it's on
the ships, it's about to land if it hasn't already
in the likes of China. So how big a deal
or how much of the pie is the red versus
the gold versus the green?

Speaker 2 (02:32):
Yeah, so Read still only about two percent of our overall,
the gold ends up being about sixty five sixty six percent,
and then green is about thirty thirty two percent, so
very very much dominated by gold. Still got a strong
green in there. And then Read is the exciting one

(02:53):
that's coming through and growing quite rapidly. Read this year
will be up basically double what we Worke did last year,
with still strong demand there.

Speaker 1 (03:02):
Just finally you've just forecast orchard gate returns. Let's start
with the gold, the big one, between eleven and twelve
to fifty a tray. What is the record price?

Speaker 2 (03:11):
The record price if you think back a couple of
seasons ago, we were around that's sort of mid twelve
to late twelves. So I mean, we'd like to be
able to push towards the higher end of that range
as the season goes on to be back at close
to record pricing.

Speaker 1 (03:25):
Yeah, and Green eight dollars to nine fifty a tray.
That's good, a good return for Green And interestingly Ruby
Red has dropped a wee bit from your original forecast.

Speaker 2 (03:34):
Why is that just as more volume comes on. We
always said that as the category grows and we're getting
more volume, you will see a little bit of dilution
starting to take place. So we've probably been a bit
artificially high in recent seasons and now he's starting to
sort of equal out around that sort of mid fifteen
to sixteen dollars per tray level.

Speaker 1 (03:55):
Ke we for it's going to be worth four point
five billion dollars to us this year. How are you
getting on getting your feet under the desk because they've
been under for about a year now. As the chief
executive of Zesprey, you must wake up, Jason to break
and pinch yourself every morning, do you well?

Speaker 2 (04:11):
I mean I've been in the role for what nine months?
Eight of nine months. The team's going really well, and
you know, we're in a really good place, good product,
good brand, good people around the world. So look at
things are going well, but we also know that it
doesn't take much. Also, a little bit of uncertainty around
the world, and you've already talked about one particular person

(04:32):
making decisions, but you know, things always pop up, so
we're just trying to keep on our toes and players.
Yes we can really Well.

Speaker 1 (04:38):
Good on you doing a great job at Zesprey Jason
to break. Thanks for your time on the country, Jeff