Zespri to introduce 'red-flesh' kiwifruit to S. Korea in near future

By Byun Duk-kun
TAURANGA, New Zealand, Aug. 31 (Yonhap) - Zespri International Ltd., New Zealand's sole exporter of kiwifruit, will soon introduce the latest variety of its product to South Korea, company officials said Wednesday.
"We will commercialize the world's first red variety (of kiwifruit) in next one or two years," said Matt Crawford, Zespri's governmental relations manager.
South Korea will be one of the first countries outside of New Zealand where the new variety of the fruit will be market-tested and sold, he added.
South Korea is currently the world's fifth-largest importer of Zespri products, with some 7 million trays or 25,000 tons of green and gold kiwifruit shipped there annually. The export volume to South Korea represents nearly 7 percent of Zespri's total shipments, which came to US$1.28 billion in 2010.
The company also plans to introduce two new varieties of gold kiwifruit that allow early and late harvest, thus enabling year-round supply and shipments of its products to South Korea and other major markets.
The planned introduction of new varieties of kiwifruit comes as Zespri is struggling to keep its South Korean sales afloat.
"Another big challenge in Korea is the very high tariff. We have to pay a 45 percent tariff, which means huge costs for the business sending kiwifruit to the Korean market," Crawford said.
"Our main competitor Chile pays 11 percent tariff, so it's very hard for us to compete over price with Chile. (Introducing) new varieties is a key to growing in Korean market and other markets as well," he added.
Chile was the first country in the world to sign a free trade agreement with South Korea, which has been in effect since 2004.
South Korea and New Zealand held three rounds of negotiations for a free trade deal, but have been unable to resume their talks since they hit a stumbling block in 2009.
"Hopefully, FTA negotiations will start again and we will have great results for kiwifruit," Crawford said.
bdk@yna.co.kr