2

Hail damage

Hail strikes can devastate fruit while it is still on the vine. The Zespri Distribution Pools provide partial financial compensation to Zespri growers whose Class 1 export kiwifruit is directly damaged by hail while on the vine. Fruit is then unable to meet export standards because of that damage. This page provides guidance on the cover available, and how it is funded from Distribution Pools (determined by fruit group), and how to make a claim for compensation from the Pools.

If hail strikes your orchard, advise Zespri within 72 hours of the event, even if you’re unsure whether fruit damage has occurred.

Pool Distribution for Hail Damage Policy

The Pool Distribution for Hail Damage Policy (the Policy) sets out:

Who can claim

New Zealand Zespri growers whose Class 1 fruit was damaged by hail event.

How to claim

Call Zespri Grower Support Services on 0800 155 355 or email them at contact.canopy@zespri.com

Provide your name (or owner or lessee details), KPIN, contact details for the Zespri-appointed assessor, orchard address, date and time of the hail event, an estimate of the percentage of fruit damaged, and any additional relevant information (such as hailstone size or canopy damage) to support loss assessment.

What is covered

Class 1 Standard Supply export kiwifruit that has been directly struck by hail, on the vine, and is unable to then meet Zespri export standards because of that damage.

What is not covered

It does not cover other kiwifruit classes, nor other losses associated with hailstorms (for example, water stain, fruit softening, leaf damage, or loss of dry matter or loss of yield caused by the collapse of a covered canopy onto a vine).

Constructive Total Loss Limit

  • A Constructive Total Loss (CTL) is when hail damage is so significant that it is assessed as though all remaining unharvested Class 1 fruit in the orchard has been lost.
  • CTL is measured against thresholds (% of potential yield), which reduce as the growing season progresses.

How the Distribution Pools are funded

  • Funded by a per‑tray deduction from all growers in the fruit group pool.
  • Deduction is calculated after the season is complete and all claim payments are known.

How compensation payments are calculated

  • Each fruit group Pool has:
    • A Maximum Indemnity Limit or Maximum Aggregate Distribution (a cap on payouts). It is based on an agreed percentage of total orchard-gate return (OGR) for the respective Pool.
    • An agreed dollar value per tray equivalent based on the average on-orchard cost per hectare plus an agreed percentage uplift of on-orchard cost.
  • If claims exceed the pool cap, payments are scaled back on a pro‑rata basis.
  • Payments are net of salvage value and other recoveries, and exclude GST.

Consider taking out extra insurance

The Policy does not provide for full compensation for hail damaged fruit. Growers who seek full or additional compensation should consider purchasing private hail insurance or discuss with their grower entities.

Further support

For further support, the NZKGI Adverse Events webpage offers guidance to growers during extreme weather, natural disasters, biosecurity incidents, and market disruptions. It outlines where to get help, who to contact, and provides timely grower alerts, policy updates, and wellbeing resources to support both the practical and personal impacts of adverse events.

The full Policy is available on the Zespri Canopy website here.

Frequently asked questions (FAQ)

What do I need to do if hail hits my orchard?
You must notify Zespri within 72 hours of the hail event — even if you’re unsure whether fruit damage has occurred. Contact: You’ll need to provide:
  1. Your name and KPIN
  2. Contact details of the person a loss assessor should get in touch with
  3. Contact details for distribution payments
  4. Orchard address
  5. Date and time of the hail event
  6. Owner or lessee name
  7. Estimated percentage of fruit damaged
  8. Any helpful details (hail size, leaf damage, etc.)
What if I notify Zespri late?
Zespri may decline your claim if the loss assessor is unable to accurately assess hail damage because of late notification.
What is covered under the Policy?
The policy covers:
  • Individual Class 1 Standard Supply kiwifruit that:
    • Are directly struck by hail
    • Are on the vine (after fruit set)
    • No longer meet export standards
    • Is for the current season only.
  • All fruit groups that have a Distribution Pool: Zespri Green, Zespri SunGold, Zespri Green Organic, Zespri SunGold Organic, Zespri Sweet Green, Zespri RubyRed.
What isn’t covered under the Policy?
The policy does not cover:
  • Consequential damage such as water stain or fruit softening
  • Leaf damage, vine damage, or dry matter loss
  • Non‑Class 1 fruit
  • Any additional costs or losses caused by the hailstorm.
What happens after I notify Zespri?
  • Zespri will appoint an independent loss assessor to do a preliminary estimate of the damage.
  • If the event was a large-scale event, the assessor will communicate with estimated timeframes for the estimate assessment.
  • If the event was smaller-scale, visits will be completed within a few days of notification.
  • The assessor will give you and Zespri the estimate of damage.
When can I start trying to clean up or mitigate damage?
  • Don’t do anything on the vines until at least the preliminary assessment has been completed.  The assessor needs to see the damage first hand.
  • Tasks such as mowing can continue as normal.
What happens if the estimate is Constructive Total Loss?
  • If the assessor’s initial estimate is CTL, then the assessor will:
    • arrange a formal assessment, and
    • provide a plan for how best to measure the loss. The plan will reflect the timing of the season, the extent of damage and how you want to best mitigate the losses.
  • After the formal assessment, you can opt in or out of CTL. You don’t have to take up CTL; you can choose to go ahead with harvest.
  • Your fruit must be dropped if you take CTL.
What is a Constructive Total Loss?
CTL is when hail damage reaches or exceeds specified thresholds, allowing the loss to be assessed as though all remaining unharvested Class 1 fruit in the orchard has been lost.
  • The CTL thresholds reduce as the growing season progresses.
  • It applies only to unharvested fruit.
How is the value of damaged fruit worked out?
Payments are based on an agreed value per tray, which reflects:
  • Average on‑orchard costs per hectare
  • An agreed uplift of those costs
There is a cap on the value per tray, linked to the August Forecast OGR for each variety.
Does this policy fully cover my losses?
This policy provides partial compensation only and does not fully insure you against hail losses. Consider private hail insurance or additional top‑up cover, depending on your risk profile. We recommend discussing options with your grower entity or insurance broker.
How are the Distribution Pools funded for hail claims?
Pools are funded by deductions from Class 1 Standard Supply fruit returns from all New Zealand orchards growing that fruit group. All growers contribute to the Pools, including those with orchards under netting or solid cover.   Each fruit group Pool has a cap on the total amount that can be paid out for hail damage. This is known as the Maximum Indemnity Limit or Maximum Aggregate Distribution. The cap is based on an agreed percentage of the Pool’s total OGR.
  • Indicative caps are set early in the season
  • Final caps are confirmed after the February Official Supply Estimate
More information about Maximum Indemnity Limits is on the Zespri Canopy website here.
My orchard is covered by hail netting (or solid cover), do is still contribute to the Pools and can I still claim for hail damage?
Yes, you still contribute to the Pools, as the Distribution Deduction is applied in the Fruit Return calculation. Yes, you can still claim for hail damage. Growers with eligible canopy cover may qualify for a reduced deduction of 20%. More information about Covered Canopy Reduction and eligibility is on the Zespri Canopy website here.

The information on this page is provided for general guidance only. While every effort is made to keep it accurate and up to date, for all current policy details, eligibility criteria, and application requirements, Growers should refer to Zespri Canopy for the most up‑to‑date and complete information.