Booming export sector is again being severely affected by Labour shortages

Good news keeps coming from our primary sector , strong profitability growth posted by Silver Fern Farms with over 55% increase in profit from $65.4m in 2020 to $103.8m in 2021. Synlait’s profit growth for the 6 months to 31st January was over 300% ($6.4m to $27.9m), But with a cautionary note that the future market expectations remains unclear. Zespri’s latest variety Ruby Red is enjoying premium market returns.

Zespri has just released price guidance, that puts Orchard Gate returns at $15.50 - $19.00 per tray a significant premium of over 50% higher than Sun Gold .This exciting contribution to an already booming export sector is again being severely affected by Labour shortages.

“Zespri has already commenced exporting new-season fruit. The first shipment of the year was scheduled to reach Japan on 28 March 28. At this stage Zespri is budgeting for 190m trays of kiwifruit to be picked, but there are some doubts to whether this will be achieved given how severe the labour shortage is. The kiwifruit industry estimates it will require 24,000 seasonal workers for picking and packing this year, but expects to be about 6,500 short of this number, meaning it will be the worse labour shortage the industry has experienced”