The massive toll PSA is taking on the kiwifruit industry is becoming ever-more obvious as Zespri announces it is being forced to lay off workers.

With more than half of Te Puke’s gold kiwifruit orchards infected, and that number expected to rapidly rise this spring, Zespri says crop yields are significantly lower and there isn’t as much work to do.

Zespri group manager, Simon Limmer, told Country 99TV Zespri is having to restructure its operations because of PSA.

"In terms of the impact on the industry across the board, I guess the service providers such as post-harvest and such as Zespri are having to consider what their options are and what the future looks like.

"We’re still just working through and work out what production levels will look like for the coming season. But effectively it’s going to have quite a serious impact and we’re going to have to reconfigure the business accordingly from a Zespri perspective and I think you’re also hearing that from a post-harvest level."  

Redundancies are expected to be made across the company, which employs 250 people, both in New Zealand and abroad.

"For the next couple of months we just need to understand exactly what we will be dealing with for the coming season.

"Zespri is very much a business driven on the volume of kiwifruit and how we then allocate that, distribute that, and optimise that across the various markets that we’re selling to. So a reduction in volume does impact on us quite significantly."

Meanwhile, Zespri has also released its latest forecast for the current season – with green kiwis down 35c a tray.

Weaker global demand will also see gold kiwifruit down $1.06 a tray with green organic kiwifruit down 41 cents.

And growers infected with PSA-v, who have also signed contracts with Kiwifruit Vine Health are being compensated – green growers will be receiving $65,000 a hectare over three years, while gold growers will get $50,000 over two.