Welcome to this weeks update. The forecast rain really didn’t eventuate and our dry late summer continues. Cold weather is forecast to come.
There are lots to think about in this update. Primarily questioning, what happens next? In the last few summers, it has rained regularly throughout the summer and autumn, Hayward fruit has grown nicely late into the season. SunGold seems to put more of its condition on prior to Christmas and seemingly less affected by the late season rainfall. This year – we haven’t had the rainfall. Hayward fruit growth has stalled and dry matter levels are up in both Hayward and SunGold.
What happens if it rains now?
In previous growing seasons where it has rained after a period of drought – fruit has not kept well. Storage problems have abound and those have typically been higher fruit loss years. Early market access and shipping is vital to avoid the risk of storage wars late in the season. The problem faced by the Industry in 2019 is that the Zespri shipping program for Hayward is late. Proportionately Hayward growers deserve to have more fruit shipped early as late fruit sales tend to erode the average pool returns not enhance them. Late Hayward sales of New Zealand grown kiwifruit have to compete with the fruit grown for Zespri offshore.
In 2018 the supply chain for Hayward delivered a total cost of quality of $1.80 per tray (the highest ever) and over 6% of the Hayward shipped to Europe (40m trays) were dumped offshore. Incredible statistics really and they offer a good opportunity for improvement, even if it’s seemingly only Seeka that thinks so.
While it might not be raining yet…..we have to recognize and accept we live in New Zealand. It will rain soon enough.
Seeka’s post-harvest pricing and innovative grower share scheme
Seeka has released its post-harvest pricing for 2019. And this is an interesting dynamic. Not only are we competing with the other post-harvest operators in offering prices to our growers, seemingly now also Zespri. Zespri have dramatically increased the pack-differential component of the post-harvest compensation to the extent that Seeka can reduce the Hayward base pack price. In spite of cost increases primarily around labour, the extent of the increase to the pack diff compensation is beyond the increase on actual cost and we have reduced the base pack price. The price for SunGold has increased only modestly.
In addition to the base pricing, Seeka is running another grower share scheme, the details of which will be outlined to growers in the upcoming “after-5 grower” updates.
After 5’s
Come along to our informative after 5 meetings to discuss the upcoming harvest, current crops, orchard gate returns and Seeka's business performance.
Refreshments start at 5pm, presentation at 5:30pm, followed by a light meal.
Please click here to RSVP
Regards
Michael
Seeka Key
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