The 2017 New Zealand kiwifruit season is on the horizon, our plans are well set and our capital projects well on the way to being ready for the commencement of the season. We are satisfied with all of the projects but startled with the developments at Main Road [Katikati] and Peninsula [Whenuakite] as these are stunning upgrades.
Our teams are now completing a very successful avocado campaign and the Avofresh Board met last week to review the season likely to deliver our growers more than $24 per tray on average with the highest returns at over $35 per tray for providing late fruit.
Our kiwiberry harvest is scheduled to commence just as soon as the weather clears.
Avocado programme
The 2016/2017 Seeka avocado programme has now supplied 470k trays to export and supplied to local market 210k trays. Growers will receive excellent returns from the integrated harvesting, packing and marketing programmes. Importantly, the success of this programme has been through Seeka and its supplying growers honouring our retail commitment. As well as providing our retail customers a secure supply of high quality fruit right through to the end of the season. More than 50% of our total volume handled this year was handled after Christmas, with the majority of post-Christmas supply going direct to retail. It has meant that our returns are up, with a significant premium paid to those growers who supplied post-Christmas. Some statistics, forecast average export returns for the season a fantastic $24.42 per tray, pre-Christmas pool return $21.89 per tray, and post Christmas average $26.78 with the highest late season supply at $35.26.
Kiwifruit monitor data
The monitor data for Gold3 is indicating that fruit weight appears to be ahead of last year and noting that last year was late – our technical advice is that we appear to have normal maturity this year. Dry matter appears to be running a little ahead of last season and is increasing at the same rate as last season; brix levels are slightly higher than this time last season.
Hayward monitor data is showing fruit weight is about the same as this time last season, dry matter is ahead of this time last season; brix levels are running above last season and are slightly higher than in 2015. Bring it on!
G14 – to pool or not to pool that is the question – but which pool?
There are some important developments happening with Zespri’s licensed PVR variety G14 SweetGreen that growers should be aware of. Zespri has written to all the G14 growers outlining issues in the market, including access to China and a lack of market demand in the key market Japan. With this demand the likely returns to growers wither substantially. Zespri has written and invited G14 growers to indicate whether they would be happy to join the hayward pool with the returns from the G14 sales pooled with the hayward growers sales returns. There might be some issues with this suggestion amongst the silent Hayward majority I suspect.
Reminder from our compliance team
With harvest approach growers are reminded that they must have a water test done before harvest to comply for their 2017/18 Global gap audit. These tests can be done by : BOP Regional Council – Whakatane - Hill Laboratories / ZIl water test Hamilton 07 8582000.
Supply Chain Health and Safety Responsibilities
There is a whole new focus coming target on Orchard risk management and safety following the tragic death of a sampler last year in an orchard. As a result of a review into incident there will be a sensible tightening of the safety requirements and far more onus on growers and suppliers to have identified on orchard risks. It means that we have to overhaul all our maps and:
The simple message is that we all want people who enter orchards to be safe and our team will find a sensible way to collect the risk assessment information and make it available to those who need it.
Grower Share Scheme
This current grower share scheme has completed for this round with Seeka considering the next scheme to enable grower involvement in the company. Nearly every grower at Seeka is a shareholder in the post harvest company with some 2m shares issued under the scheme. The shares issued had a combined value of $7.62m and today those shares have a value of $9.247m. Growers have benefited from the capital value that their fruit has generated and continue to. Also, those shares have benefited from $574k in dividends paid largely tax free.
By way of example – growers who participated in the first round of the scheme were allocated shares at $3.04 compared to $4.60 today and have received $0.84 per share to date in dividends full imputed.
Sea Fishing Tournament
The annual Seeka Sea fishing tournament is next Friday the 24 of February. For those of you who haven’t yet entered, and are planning on coming along please contact Annie Moir annie.moir@seeka.co.nz or 07 573 0303 to secure your spot in the tournament.
Kind regards
Michael
Seeka Key
Contacts