Frankly Speaking

Frankly Speaking - Week 10
10 March 2020

Week ending Sunday 8 March 2020

Welcome to this week’s update to Seeka’s growers and stakeholders. The New Zealand 2020 kiwifruit harvest is underway with early SunGold maturity clearances. An estimated 450k trays have cleared across Northland, Coromandel, Matakana, Mangatawa, Te Puke Central and Ohinepanea. Seeka has commissioned Huka Pak, Peninsula and Kerikeri. Oakside and Main Road (Katikati) are receiving fruit and will be commissioned tomorrow. All other sheds are ready. Seasonal recruitment is a little light but actually good momentum and sign up rates recently, and the RSE’s have stated are arriving.

Kiwistart rates for SunGold commence this coming Saturday and there is a mix of half week and full week rates.

SunGold Conventional

ISO Week

Date

Average Kiwistart Rate

Week 11/12

Sat 14 March – Tue 17 March

$4.01

Week 12

Wed 18 March – Fri 20 March

$2.99

Week 12/13

Sat 21 March – Tue 24 March

$2.33

Week 13/14

Wed 25 March – Tue 21 March

$1.92

Week 14/15

Wed 1 April – Tue 7 April

$1.34


SunGold Organic

ISO Week

Date

Average Kiwistart Rate

Week 12

Wed 18 March – Fri 20 March

$4.15

Week 12/13

Sat 21 March – Tue 24 March

$3.31

Week 13/14

Wed 25 March – Tue 21 March

$2.54

Week 14/15

Wed 1 April – Tue 7 April

$1.74


The Industry is focused on the looming issue of coronavirus. Zespri has tested the market plan and believes the plan is sound, but has provisioned contingency plans in the case that there are unexpected outbreaks and the consequences requires suppliers to be nimble. Thankfully the virus is not a food safety issue and the distance from the market further enhances our food safety profile. Also, kiwifruit is healthy, packed with nutrients and great for us. 

From a Seeka perspective, we are working through the contingency plans of what to do should we have an outbreak in our workforce in addition to working with the local health officials. These plans are set. And as outlined at the recent grower focused Seeka 'After 5pm' updates – we believe that our regionally dispersed sites along with extra capacity in the coolstore footprint and system help to reduce our risk profile. We are taking nothing for granted and are preparing ourselves for disruption hoping that there is none and we have a smooth harvest.

Ironically – right now – it's the weather that is holding us up.

The kiwiberry program is complete and fruit is largely loaded out. Fruit quality, market response returns, and yields have been nothing short of tremendous. The grower profit forecasts this year look exciting and just reward for those growers who have persevered with this fledgling variety. Overall Seeka processed approximately 80k trays of kiwiberry, with the OGR anticipated to be over $200k /ha for most growers (and in one case predicted at more than $300k).

The avocado pools are now finalising – average export returns at the orchard gate are forecast to average $18.80 per tray (or $18.30 per tray after deducting transport) with timing of harvest increasing or decreasing that average. These returns are similar to the previous selling season and pleasing noting the significant increase in volumes. In total Seeka has handled around 730k trays of avocados and anticipates that it will deliver growers an average OGR of $18.80 from export fruit, and $10.50 per tray on average from the local market. Seeka is continuing to pack avocados through the Autumn for the local market, is paying growers in 2-weekly pools and returns look exciting.

Happy and safe harvesting – numbers will follow next week

Regards

Michael

Seeka Key
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