Frankly Speaking

Frankly Speaking - Week 36
4 September 2018

We are pleased to provide you with this grower update to Sunday September 2nd. As anticipated Zespri have announced their decision to remove 1m trays of Hayward conventional from inventory in New Zealand. We have been reporting slower than ideal sales to you for some time as the Hayward conventional programme has contended with; competition in Europe following a heat wave, an abundance of lower priced summer fruit, competing kiwifruit programmes, early supply and lower priced SunGold fruit in Europe, and a late sales programme planned for China. This has meant that the overall programme is vulnerable to slower sales in some of the markets. While disappointing, 1m trays is probably too low. It runs the risk that suppliers can remove lines of fruit they didn’t have confidence in and would have been fruit loss in New Zealand so the 1m trays will be eroded by better onshore performance. It sets us up for a second round of crop management later.

Hayward conventional has performed a lot better onshore than we might have anticipated at packing time. There is a little bit of alternaria across the industry, and while our fruit loss is slightly higher than the industry, it can be explained by the advanced shipping earlier in the season, the CA volumes packed and the reality is that fruit loss is all very low.
 
The Hayward Organic demand remains strong, the Seeka and industry shipping programme is tracking ahead of forecast. SunGold fruit loss and performance in market continues to be outstanding.
 
To the numbers:
 
 


Kind regards,

Michael

 

Seeka Key
Contacts