Please accept this update to our growers and stakeholders to the end of Week 47.
Seeka has fully loaded out with our forecasts, loss rates and time earnings all stable. The rest of the industry is completing their loadouts and accordingly the industry statistics are changing as they complete.
A lot of attention is now applied to reviewing the aspects of the season that could have gone better, making sure that our capacity plans are well set in the knowledge that the Hayward crop yields next year will be significantly lower than 2016. At Seeka, our planning for next year was completed sometime ago and as a result we are committed to the coolstore builds at Main Road, Transpack and KKP. In addition to these builds, a new grader is being constructed and commissioned at Main Road with the existing Main Road grader being relocated to Peninsula. This is keeping our teams busy.
The Seeka360 headquarters is making good progress. The new roof is nearly completed and the plastic cover is expected to be removed in the next 2 weeks. It has been a substantial renovation and while every wooden wall has been replaced [internal and external] along with the roof. Our people are looking forward to the new headquarters and the setting. We have no trouble attracting talented people to work in our company with many people travelling from Tauranga, and Mount Maunganui to do so. As a regionally based business our commitment to each of the regional locations remains and we maintain regional offices in Edgecumbe, Opotiki, Whenuakite and Keri Keri all with excellent people
The focus for the industry moves to reviewing and changing the arrangements for next year. Early start regimes, taste and payment processes are being discussed. On the agenda is the Zespri initiative to establish an enduring margin. This agreement seeks to set the formula, for Zespri, to set its commission for the next 10 years with a right of renewal for a further 10 years. Essentially the margin mechanism sets Zespri’s margin from the sale of NZ fruit to 2% of sales, with margin beyond that to be rebated. While the 2% threshold might be fair, the issue is that there is no incentive for Zespri to manage its costs.
The SAP system which has struggled to pay growers on time, is now seemingly struggling to calculate forecast accurately. As a result there is a justified chorus of Grower’s calling for an audit of the pools including promotional spending and allocation is growing momentum.
Many growers are focussing on the Orchard Gate Return forecasts, and trying to measure the comparative performance of their post-harvest service provider based upon the respective forecast. This is never easy and really relies on the accuracy of the forecaster. This year this complicated process is even more complicated due to the errors made by Zespri finance in the August forecast that were seemingly corrected in October. However, noting that some payments are set from the August forecast, it is likely that the consequence of these errors are enduring. As a result, suppliers are looking more closely at other payments, including taste. Separately, Seeka has raised an issue with Zespri about the operation of the quality system, and the consistency of results.
And to the numbers at midnight Sunday end of week 47 [27/11/2016]
Avocados continuing
Our teams have packed a total of 279,000 avocado trays in the current season with 205,000 trays exported . Market conditions remain good and while they softened last week, they between AUD$30 and AUD$40 per tray. Seeka is currently shipping around 8 containers per week, with 5 going direct to retail. Our teams will work right through the Christmas period delivering a reliable, lean and integrated supply line to our customers.
Road Shows next week
Please note that the Seeka 'After 5' Christmas updates for our growers occur next week. The presentations will take no more than one hour with the chance for growers to mix and mingle after. Please feel free to come along, however please ensure you RSVP to Annie Moir 07 573 0303, annie.moir@seeka.co.nz.
The details are below:
OPOTIKI
Mon 5th December 2016
Ohope Charter Club, 7 Bluett Road, Ohope
5pm for 5.30pm presentation
MOUNT MAUNGANUI
Tue 6th December 2016
Huka Pak, 221 Totara Street, Mount Maunganui
5pm for 5.30pm presentation
TE PUKE
Wed 7th December 2016
Oakside, 242 Rangiuru Road, Te Puke
5pm for 5.30pm presentation
KATIKATI
Thur 8th December 2016
Corner of Main Rd & Wharawhara Rd, Katikati, Main Road Katikati
5pm for 5.30pm presentation
Kind regards
Michael
Seeka Key
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