Kiwi specialist Zespri sets up US$2 million innovation fund

ZESPRI, the world’s largest marketer of kiwi fruit, has set up a US$2 million annual fund to drive agricultural innovation and mitigate the impact of climate change globally.

Called ZAG, the fund will support projects that increase productivity in kiwi orchards and raise the quality of the fruit, as well as those that promote people’s well-being through kiwi consumption. The fund is also focused on projects that protect and enhance the environment, and those that benefit kiwi growers and their local communities.

Based in New Zealand, Zespri works with about 4,000 kiwi growers domestically and in Italy, Japan, South Korea and France. It serves consumers in over 50 countries.

The launch of ZAG comes as Zespri sees farmers directly experiencing the effects of climate change, said the company’s global chief marketing, innovation and sustainability officer, Jiunn Shih.

“We’ve seen changing weather patterns bring increased rainfall and higher temperatures during the autumn and winter seasons in New Zealand. And some of the extreme weather events we’ve experienced have contributed towards the industry having lower yields and less fruit this season,” he said, adding that the company cannot address these challenges alone.

In South-east Asia, Zespri’s investments will focus strongly on emissions reductions, shipping and packaging solutions. Shipping in particular contributes to 43 per cent of the company’s carbon footprint.

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“We recognise the importance of the region as an innovative hub and believe that through ZAG, we can tap into the talent and solutions that are being incubated here to apply them to our kiwi fruit industry,” said Shih.

The ZAG fund will partner innovators and pilot their concepts, but Zespri is not looking to take equity in these businesses. “Zespri has opted out of the equity route multiple times, and it has been proven to work in piloting and scaling solutions for our industry,” he said.

Asked about cheque sizes, Shih added that it will be completely dependent on each project, with no minimum or maximum disbursement fixed. While the US$2 million sum is an initial commitment, Zespri intends to replenish it over the years.

“We remain committed to fostering innovation in the kiwi fruit industry, and we will be sustaining the fund over time to ensure its continued effectiveness,” Shih said.

He acknowledges that the path to mitigating climate change is not straightforward, and this is reflected in how the new fund is named. “ZAG comes from the word ‘zigzag’, because the path towards a sustainable future for all is far from linear,” he added.