Frankly Speaking

Frankly Speaking - Week 17
1 May 2018

Welcome to our week 17 update. The weather over the weekend has been terrible with torrential rain and flooding. Growers are invited to check their orchards for damage particularly track access and loading pad for the yet to be picked orchards, to ensure that pickers, contractors and equipment have safe access and egress.

Harvest is proceeding well. The wet weather enabled tired harvest and post-harvest crews to have a well-earned day off and for the teams to clear the curing canopies. Our goal is to substantially complete the SunGold harvest before the next weather event. While generally the SunGold fruit is in good shape, there are occasional spongy lines and the continuation of over-ripes particularly in large sizes. Our teams have deployed people at the bin-tip to remove these as much as possible with the post-harvest teams wanting to pack a good storing inventory.

Zespri has provided an advanced movement mechanism for earlier shipping to Europe and Japan. The mechanism allows operators to store fruit in offshore coolstores ahead of market demand. While the commercial mechanisms that wrap around the mechanism are favourable it comes with some risk of fruit quality that can be quite punitive. Seeka strictly has sufficient coolstorage. But there is a consequence in not participating being that the market is flooded [potentially oversupplied] that the non-participating supplier doesn’t get an order for that size and packed product that remains in New Zealand for an inordinate time. So it is complicated.

Brixes in the Hayward fruit is starting to climb and there are clearances now in the mid-7 range. Huka Pak Machine 2 remains processing Hayward 24 hours, and we will swing further capacity to Hayward as the volume comes on and as we complete the SunGold packout. We are satisfied with the Hayward fruit quality presented and thank growers for their efforts.

To the numbers [week ended midnight 29 April 2018]:

SunGold Conventional

Industry Packed         38,100,766             Seeka Packed        6,872,716    [18%]
Industry average size          30.28             Seeka average size       29.81
Loaded out                   3,245,838             In store                  3,626,878
On order [next 2 weeks]  783,797
Large size profile continues – 30% of the fruit is a size 22!

SunGold Organic

Industry Packed            864,222            Seeka Packed             98,497    [18%]
Industry average size         27.57           Seeka average size        24.89
Loaded out                      55,074           In store                        43,423
On order [next 2 weeks]     7,046

Hayward conventional

Industry Packed            18,909,091          Seeka Packed        4,347,751   [23%]
Industry average size             30.28          Seeka average size       29.81
Loaded out                     2,536,351           In store                  1,811,400
On order [next 2 weeks]  1,455,583
Busy loadout weeks

Hayward organic

Industry Packed                864,222         Seeka Packed             166,521   [19%]
Industry average size            33.24         Seeka average size         32.99
Loaded out                       133,518          In store                        53,003
On order [next 2 weeks]     40,533
Nice organic size profile, good orders, waiting for mainpack

Sweetgreen G14

Industry Packed             890,616         Seeka Packed               52,351   [6%]
Industry average size         35.36         Seeka average size        35.99
Loaded out                      52,351          In store                                0
On order [next 2 weeks]           0
All done – just the part pallets being consolidated at another supplier. Successfully completed thanks

Hail Insurance

The national pool has a hail insurance policy held on your behalf, once a year it is reviewed. Hail cover is provided for kiwifruit damaged on the vine as a direct result of a hail strike unable to meet the export standard. The Green pools have a cover of $6 million and the Gold and other variety pools have cover with a limit of $6 million.  The first $3 million is self-insured by the pool and a commercially purchased insurance policy covers the next $3 million.

Some of the questions that need to be considered are:

  1. Should the pool continue to provide hail insurance or should growers get their own cover?
  2. Should the policy cover for the Gold crop be the same as Green? Is the cover enough for Gold given the increasing volumes the higher value and growing costs?
  3. Do we change the pool cover to a per ha cost recovery cover? Growers would have to consider taking their own insurance to cover off other orchard costs associated with the hail damage?

You pay for this insurance and this is your chance to have your say. Feedback should be sent to your CRM so we can forward it to Seeka Growers.
Happy and safe harvesting

Kind regards
Michael

Seeka Key
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