Zespri Worried About Impact of
GE on Exports 

GRAHAM SKELLERN / Bay of Plenty Times (New Zealand) 15aug03

Leading exporter Zespri International fears overseas kiwifruit sales might fall if the Government lifts the genetic engineering moratorium in October.

The Tauranga-based company has told the Government its worldwide marketing efforts are based on New Zealand's clean, green and healthy image—and it does not want the moratorium lifted.

Zespri—which had record sales worth $860 million in the financial year to March 31—pushed kiwifruit as a natural product and the company believed the release of GE could compromise its success.

Chief executive Tim Goodacre told Zespri's annual meeting yesterday the company was concerned overseas markets and consumers might be put off kiwifruit if GE was introduced in New Zealand.

Europe is a key market for Zespri. "We don't sell into a scientific market; we rely on the consumer perception, which is totally different. In Europe, the gap between science and consumer acceptance has widened because of the food scares with beef and chicken. This has made the consumer suspicious."

Mr Goodacre said GE was a hassle Zespri would rather not have.

"It puts pressure on when it doesn't even apply to kiwifruit. We don't know what impact GE will have on sales but do we have to go down that route?" Zespri's green and gold kiwifruit varieties would continue to be naturally produced.

"If we have to we will be promoting very strongly overseas that kiwifruit is not genetically engineered. If we do that well we'll be able to minimise the impact."

Zespri, the world's largest kiwifruit marketer, has told the Government that GE food varieties should be considered on a case-by-case basis and the industry sector should be fully consulted before any variety was released.

Zespri has also suggested that the Government might have to establish a compensation fund if the release of GE impacted on industry sales.

Meanwhile, Mr Goodacre told the annual meeting that current sales indicated Zespri was on track for another good season. Net sales revenue in local trading currencies was expected to increase as a result of higher volumes, strong pricing in Europe and improved pricing for Zespri gold in Japan.

Zespri's currency hedging policies should mitigate some of the effects of the strong NZ dollar, he said.

Zespri is now selling kiwifruit in Europe at an average of 5.95 ($11.45) a tray—15 per cent more than two years ago.

European sales were 1 per cent ahead of the same period last year—representing an increase in revenue of 13 million ($25 million).

source: http://www.mytown.co.nz/story/mytstorydisplay.cfm?storyID=3518246&thecity=bayofplenty&thepage=news&type=nzh 2sep03