There are three main factors influencing Kiwifruit Growers profitability, productive yield, cost of production and the return they receive for the crop they produce.
When a kiwifruit crop is put through a packhouse, it is separated by size and quality into four grades. Class 1 and 2 are usually exported, class 3 is usually sold on the New Zealand domestic market, and class 4 is usually sent for processing or used as stock feed.
The major factor influencing a kiwifruit growers total return is the return they receive for the fruit that is exported (normally 85 – 98%). But the return from class 3 fruit sold on the New Zealand domestic market also has an important impact on a growers total return, and hence overall orchard profitability.
The purpose of this report is to look at the South Island domestic kiwifruit market, and consider if there is a potential benefit to South Island kiwifruit growers from cooperating in their sales and marketing efforts.