Welcome to this edition of Frankly Speaking – Seeka’s update to growers, outlining the latest Industry, grower and corporate . We are well and truly in the home straight for the 2019 Kiwifruit season. Hayward trays in store are now under 200k, and SunGold is fully loaded. And apart from some class 2 trays destined for our retail programs in Australia, we are done.
Seeka’s fruit loss remains low, exceptional in the case of SunGold, and our offshore fruit quality is excellent. The Entity team are working through the latest individual orchard gate return forecast for each of our suppling growers. The average forecast returns have increased for each of our kiwifruit varieties with SunGold up $0.25/te (to $158,422/ha), Hayward conventional up $0.0.21/te (to $70,639 /ha) and Hayward organic up $0.03 te (to $63,487/ha).
The returns are pleasing, but growers are now faced with increased costs – particularly with the increase in the cost of labour. The minimum wage is increasing by 6.8% to $18.90 per hour next April and this increase will create a structural shift in our labour market with an average wage increase of more than 5% predicted. Hayward growing margins will be under pressure, and the returns will need to lift again in 2020 to maintain viability.
Hot weather has brought on the male flowering – and our milling operations at Oakside, Aongatete and Kerikeri are all underway.
The avocado harvest continues with Seeka now over 50% through harvest, historically we have got to 50% at Christmas. Our marketing and harvest strategy has placed an emphasis on establishing and maintaining new Asian markets. These are expected to take over 30% of our fruit in 2019/20 compared to less than 10% previously. So far so good – fruit quality from Seeka has been exceptional – and our customers have rewarded us with good demand and pricing.
To the numbers
Aongatete
Aongatete fruitloss excludes fruit under the insurance claim.
Kind regards
Michael
Seeka Key
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