Originally Posted by
Jaa
The best of a bad situation I guess and some irony in China re-acquiring kiwifruit from NZ. Bad news long term for Zespri, Seeka and the local Kiwifruit industry but is just how the CCP parts of China does business. Respect for intellectual property or other's creativity is not a consideration and there's no legal system to help you. Business and investors need to see the relationship and market for what it is.
This is what I would say if I was CEO but it is not what I would do. The last thing Zespri should do is teach their involuntary state owned Chinese partner best practices in how to grow the fruit and manage their orchards. Once the partner has learned all their is to know, Zespri will have a new global competitor at half the price. Hopefully we are not still this naive. After the Lion Nathan, Rakon, Fonterra, and other disasters with Chinese state or state approved partners.
All businesses/industries reliant on the China market should have a risk premium applied.