Frankly Speaking

Frankly Speaking - Week 4
29 January 2020

Week ending Sunday 26 January

Welcome to 2020. In commencing our grower updates for the year, we wish you a safe and optimal harvest and every success and happiness in the year ahead. There is a lot going on as we prepare for the upcoming kiwifruit harvest. Disciplined operational and contingency planning is paramount at this time of the year to make sure we are set to deliver our growers a professional and timely harvest. We are well into our preparation cycle with meetings already held with our picking contractors, and getting set for our internal operational planning conference on Wednesday 19 February. We will outline the harvest plan to our growers between Monday 24 February and Tuesday 3 March at the After 5 meetings. The next Seeka Growers Council meeting is Thursday 13 February.

There are a number of new issues as we prepare for the year ahead including:

  • It’s been very dry in New Zealand and set to be very hot next week. Fruit size will be affected in some orchards.
  • The cost of labour will increase significantly with the increase in minimum wage by 6.8%. It is a shock to the cost structure, and we are working hard to mitigate the increase to growers where possible. And it is set to increase again in 2021. Importantly, this increase will flow right through the cost structure as relativities all need to adjust.
  • Bank finance is tightening, and we have had a number of reports from growers that some banks are restricting new lending in the Industry.
  • Market uncertainty with the new coronavirus outbreak in China and spreading, along with the unsubstantiated reports of large areas of SunGold grafted in China outside of Zespri’s control. The Industry has significant market exposure to China.
  • Continuing inflation in key costs including transport and energy.
  • Continuing need to invest in core onshore infrastructure and the lack of real supply chain innovation.
  • The challenge to the EPA to reconsider the continuing use of Hi-cane.

While 2019 was a really good year, there are challenges in front of us and post-harvest really needs to hit its straps and optimise for growers.

Our avocado business has continued to harvest throughout the break. Seeka has now achieved an important milestone with Woolworths Australia, having delivered over 1m trays to this customer, and well above its planned volumes in the 2019/2020 harvest. Export returns now look to be around $17 per tray, up on our earlier expectations.

The kiwiberry harvest is about to commence.

Seeka supports Samoa

Tragically a measles epidemic hit Samoa with over 80 fatalities prior to Christmas. Seeka recruits over 160 RSE workers from Samoa and they add to the richness of our contracting, orchards and packhouse communities. Having consulted with the NZ Government, Seeka chose to support the community and made a substantial donation to an aid agency called Soul Talk. Soul Talk supports the carers of the ill in Samoa and helps families who suffered loss. The monies provided by Seeka has helped Soul Talk to provide simple provisions to those who were sick from nappies to food, in cases helped with the burial costs, the cost of counselling and the costs looking after the carers.

We also have made sure that all the Samoan workers here in New Zealand were immunised and provided free immunisation.

In talking about this support, we are mindful that its not about promoting Seeka, but really to let our supporters know that we have supported those who have been impacted through this tragic event. If you are interested to know more please contact Kate Bryant at Seeka360.

Seeka kiwfuit growers After 5 Meetings schedule

  • Katikati: Monday 24 February, Fairview Estate, 34 Sharp Road
  • Mount Maunganui: Tuesday 25 February, Seeka Huka Pak, 221 Totara Street
  • Te Puke: Wednesday 26 February, Seeka360, 34 Young Road
  • Kerikeri: Thursday 27 February, Bay of Islands Golf Club, Golf View Road
  • Ohope: Monday 2 March, Ohope Chartered Club, Bluett Road
  • Coromandel: Tuesday 3 Marc​h, Flaxmill, 1031 Purangi Road

Refreshments from 5pm, presentations start at 5:30pm, followed by a light meal. 

Kind regards,
Michael

Seeka Key
Contacts