Zespri Hits $5B in Sales as Govt Backs Horticulture Growth and Grower Profits

New Zealand’s horticulture sector is entering a golden era, buoyed by record global sales from Zespri, robust export growth, and a wave of government reforms aimed at cutting red tape and lifting farmgate profitability. According to Agriculture Minister Todd McClay and Associate Agriculture Minister Nicola Grigg, the latest figures from Zespri not only mark a milestone for the industry but also signal renewed confidence in the country's productive capacity and international competitiveness.

“This week’s announcement by Zespri of more than $5 billion in global sales for the 2024/25 season marks a 31 per cent increase on the previous year,” said Minister McClay. “It’s a testament to the hard work of growers and the Government’s practical support.”

$5 Billion in Sales, $3 Billion in Returns: A Historic Milestone

Zespri’s announcement marks a 31% year-on-year increase in global sales, with a record 220.9 million trays of kiwifruit sold worldwide. Most notably, direct grower returns surpassed $3 billion for the first time, highlighting both the sector's global appeal and the strength of New Zealand’s export-focused horticulture model.

The performance comes amid surging international demand for premium produce, especially kiwifruit, which continues to be New Zealand’s horticultural flagship export.

“The horticulture industry is going from strength to strength,” said Associate Minister Grigg. “Export revenue is set to reach $8 billion this year—up 12 per cent from last year—and kiwifruit is leading the way.”

Trade Policy and Tariff Reform Key to Expansion

Government action on trade and market access has played a critical role in Zespri’s rise. One of the most significant steps was fast-tracking the EU–New Zealand Free Trade Agreement, which came into effect ahead of schedule.

“That move alone saved kiwifruit exporters $43 million in tariffs in its first year,” said McClay. “Since then, exports have increased 69 per cent, contributing an extra $316 million in value.”

This focus on reducing barriers and unlocking new markets is part of a broader effort to expand market access, with ongoing negotiations and agreements with regions including the UK, UAE, Gulf Cooperation Council (GCC), and India.

Reforms and Investments Supporting Grower Profitability

Beyond trade, the Government has rolled out an ambitious agenda to free the primary sector from excessive regulation, improve environmental outcomes, and boost rural resilience. Highlights of the reform package include:

• Removing barriers to vegetable growing to enhance domestic and export production

• Improving the Freshwater Farm Plan system to make compliance simpler and more effective

• Passing RMA amendments tailored to primary sector realities

• Rebalancing the Te Mana o te Wai hierarchy, ensuring flexibility in water management

• Replacing the National Policy Statement for Freshwater Management with more practical rules

• Introducing on-farm water storage rules to improve drought resilience

• Investing in catchment groups, empowering local communities to lead environmental decisions

• Providing additional funding for East Coast debris clean-up, aiding post-cyclone recovery

• Halting new Significant Natural Areas (SNAs), relieving pressure on rural landowners

• Boosting investment in Rural Support Trusts for mental health and crisis response

• Committing over $400 million to emissions-reduction tools tailored to agricultural needs

• Removing $733 million in non-tariff trade barriers to streamline export processes

These measures aim to cut compliance costs, enable productivity gains, and position New Zealand’s growers to thrive both at home and abroad.

“We’re focused on farmgate profitability and cutting the red tape that’s been holding growers back,” McClay said.

A Growing Sector with Global Momentum

The horticulture industry now stands as a pillar of New Zealand’s economy, employing tens of thousands and supporting regional development from Northland to Southland. Zespri’s success is seen as a model of vertically integrated, export-focused agribusiness, blending high-value branding with premium-quality produce and sustainable production methods.

Government officials say the momentum is only building, with horticultural exports becoming an increasingly important lever in achieving economic resilience and rural prosperity.

“Our primary sector is firing again, and this Government is going to keep backing it every step of the way,” said Minister Grigg.

Outlook: A Fertile Future for New Zealand Growers

With record-breaking returns, supportive policies, and high demand from global markets, New Zealand’s horticulture sector appears set for long-term, sustainable growth. Industry leaders and growers alike are optimistic that recent reforms and investments will continue to pay dividends.

The Government’s continued focus on reducing bureaucratic obstacles, enhancing market access, and enabling innovation ensures the foundation is strong for the next decade of growth.