Key Takeaways:
- Zespri is leveraging its ZAG Innovation Fund to connect with global startups and researchers to address industry challenges.
- The company focuses on sustainability, productivity, and climate resilience, aiming to support growers while ensuring long-term profitability.
- Zespri’s strategy integrates collaborations with growers, technology startups, and research institutes to advance innovation in kiwi fruit production.
- The fresh fruit industry, particularly kiwi fruit, has significant growth potential, with Zespri on track to exceeding its longstanding global revenue target of $4.5 billion by 2025.
- Jiunn Shih emphasizes that businesses should balance profitability with social and environmental responsibility to create long-term value.
Driving Innovation in Kiwi Fruit Production
Leveraging the ZAG Innovation Fund
In an increasingly challenging agricultural landscape, Zespri is taking an innovation-driven approach to tackle issues such as climate change, supply chain disruptions, and productivity challenges. Jiunn Shih, Chief Marketing, Innovation & Sustainability Officer at Zespri, highlights how the company is fostering external collaborations through the ZAG Innovation Fund to integrate cutting-edge solutions into kiwi fruit cultivation.
“Our industry thrives on innovation. We recognize that many of the solutions to address these challenges often lie outside of our internal expertise,” Shih explained. “The ZAG Innovation Fund is our way of connecting with startups, researchers, and solution providers globally to address key issues such as environmental sustainability, yield optimization, and supply chain efficiency.”
Zespri, a $4 billion NZD ($2.3 billion USD) business, is facing the same industry-wide pressures as other agricultural players. The ZAG Innovation Fund provides a structured platform for startups to test and validate their solutions, offering funding for proof-of-concept projects. This approach not only accelerates the commercialization of novel technologies but also ensures that the solutions are directly applicable to kiwi fruit cultivation.
Bridging the Gap Between Innovation and Commercialization
Supporting Startups in AgTech
One of the major hurdles for AgTech startups is proving the commercial viability of their innovations. According to Shih, many startups struggle with securing funding for pilot projects and integrating their solutions into real-world farming environments. The ZAG Innovation Fund aims to bridge this gap by providing financial support and direct access to Zespri’s grower network.
“We don’t take equity in these startups. Instead, we fund pilot projects and proof-of-concept trials. If the technology proves successful, we help scale it across our global network of growers,” Shih noted.
In its first year, the fund received 124 applications from 15 countries, with 11 projects moving into the pilot phase. Technologies being tested include the use of volatile organic compounds (VOCs) to improve kiwifruit maturity assessments and biochar applications to enhance soil health and carbon sequestration.
Balancing Sustainability with Profitability
A Stakeholder-Centric Model
Zespri’s approach to sustainability goes beyond compliance and into creating real, long-term value. The company follows a stakeholder-centric model that prioritizes growers, consumers, and environmental impact alongside financial performance.
“I firmly believe that businesses should create profit by solving real problems for people and the planet,” Shih emphasized. “It’s not about maximizing shareholder returns at the expense of society and the environment.”
Zespri’s sustainability commitments include ensuring that 100% of its packaging is recyclable, reducing carbon emissions, and investing in soil health initiatives. The company sold a record crop of more than 190 million trays at strong value for growers this season, proving that sustainable practices can coexist with strong commercial growth.
The Future of Kiwi Fruit and Fresh Produce
Market Potential and Growth
Looking ahead, Zespri sees tremendous growth potential in the fresh fruit sector. Kiwi fruit remains a small but fast-growing category, with significant opportunities to expand global market penetration.
“In many markets, kiwi fruit still represents less than 1% of the fruit bowl,” Shih noted. “With increasing consumer awareness of health and nutrition, we are well-positioned to continue our strong growth trajectory.”
By 2030, Shih envisions Zespri as an even stronger global brand, continuing to lead in its core markets while making a greater positive impact on farming communities and the environment.
Concluding Notes
Setting a Model for Sustainable Agribusiness
Zespri’s innovation-focused, sustainability-driven strategy is a testament to how agricultural companies can tackle global challenges while remaining profitable. By fostering collaborations with startups, growers, and researchers, Zespri is not only improving kiwi fruit production but also setting a model for the future of sustainable agribusiness.
For those in the AgTech space, Zespri’s ZAG Innovation Fund presents a unique opportunity to bring cutting-edge solutions to a rapidly growing sector, ensuring that the future of kiwi fruit—and fresh produce as a whole—remains resilient, sustainable, and commercially viable.
