The chairman of kiwifruit marketer Zespri predicts the bacterial disease PSA could put some growers out of business.
Since it was first discovered on an orchard near Te Puke last November, the vine killing disease has been found on 280 orchards in all growing areas except Northland.
Zespri chairman John Loughlin told the firm's annual meeting in Tauranga that the industry is at a dark hour because of PSA, though he is confident a management solution to the disease will be found in the next two to four years.
Chief executive Lain Jager says PSA will challenge both orchard viability and the company's export marketing strategy.
But he says there's an increasing world demand for New Zealand grown kiwifruit, some of which is driven by the guarantee that it is safe to eat.
Mr Jager says early predictions for this year suggest growers will receive slightly less for their export fruit than last year due to the continuing high value of the New Zealand dollar.