Thank you to those of you who arranged the fine spell of weather. We have gone from famine to feast. Sheds are full and we are endeavouring to get as much fruit through the sheds now the fruit is at optimal maturity and quality for storage. We have handled a number of magnificent lines of fruit, with the quality very good particularly in the organic category. Firmness remains closely watched and generally is ok with only a few soft lines.
In relation to our Hayward conventional crop – Seeka believes it is well placed with 28% of the crop to go, a lower percentage than the Industry average 42% left to go at 5 June. Our teams are working with growers to achieve an orderly and timely harvest completion.
The benefits of the plastic bins have become very obvious, easy to clean and handle with no issues at bin tip. A number of growers and truckers have commented how good they are. Wood is good but plastic is fantastic, which is why we want any remaining in orchards returned, we need them for other orchards now the heat is on.
Of course the big issue of the moment is crop management in Hayward. Zespri have advised that they will not be able to sell the entire crop for an economic return, in particular needing to remove between 3m and 5m trays of Hayward fruit in the specific size ranges 18, 22, 25 and 27. The specific size requirement means it has to be done in the shed.
This is a conundrum. How do you allocate the volume to suppliers? Should it be based on a share of the total crop estimate, on crop left to go? Maybe the industry should target inventory which has less value [lower dry matter, poorer storage attributes].
Some suppliers have a far greater proportion of their crop to pack than Seeka, so more length in the road to get the withdraw job done. Some suppliers are more enthusiastic than others about getting on with it. Some suppliers have booked expensive short term coolstore space to handle their anticipated crop and now not needed.
There are other questions; how does the compensation to supply entities work? Should suppliers be able to remove the fruit from the ungraded fruit inventory [bin-store and controlled atmosphere storage]? Should suppliers with strong retail demand in Australia be able to buy the fruit at a fixed price [and high price making sure it goes to retail], are examples of pertinent questions. Dare I mention collaborative marketing at this point?
KGI have taken a particular and appropriate interest in the issue and the interests of Seeka Growers have been well represented by Debbie Oakley. The Seeka Grower’s Council has been called together tomorrow to discuss the matter.
I have fielded a number of calls, some from growers supplying other entities. For clarity the commercial terms that Seeka charges Seeka Growers are negotiated between Seeka and the Grower Council. Compensation paid by the national pool is paid to Seeka Growers and Seeka will only charge negotiated costs. Seeka only charges coolstorage for fruit loaded out. If there is any compensation to Seeka for items like coolstorage then we will present the issue to the Council transparently and negotiate it with them. The costs and consequences of crop management will be handled through the pool and will not fall on the individual grower if your fruit is dumped. The cost is spread across all growers along with any compensation and nationally the cost across all growers is estimated at between $0.20 and $0.30 per tray.
To the numbers [as at midnight 5 June ]
Hayward Conventional
| Seeka packed trays | 15,118,761 | Industry packed trays | 53,428,949 [28.2%] |
| Seeka avge size | 32.31 | Industry avge size | 32.27 |
| Seeka loaded trays | 7,791,629 | Instore trays | 7,327,131 |
| On order | 1,219,931 |
Hayward Organic
| Seeka packed trays | 571,370 | Industry packed trays | 2,324,587 [24.5%] |
| Seeka avge size | 33.84 | Industry avge size | 34.84 |
| Seeka loaded trays | 186,721 | Instore trays | 384,649 |
| On order | 86,316 |
Zespri SunGold G3 Conventional
| Seeka packed trays | 7,296,158 | Industry packed trays | 46,486,446 [15.6%] |
| Seeka avge size | 29.05 | Industry avge size | 29.84 |
| Seeka loaded trays | 4,854,900 | Instore trays | 2,441,258 |
| On order | 516,913 |
Zespri SunGold G3 Organic
| Seeka packed trays | 116,310 | Industry packed trays | 750,270 [15.5%] |
| Seeka avge size | 30.63 | Industry avge size | 29.73 |
| Seeka loaded trays | 68,439 | Instore trays | 47,871 |
| On order | 10,884 |
Zespri Sweetgreen G14
| Seeka packed trays | 178,725 | Industry packed trays | 1,545,117 [11.6%] |
| Seeka avge size | 36.05 | Industry avge size | 36.21 |
| Seeka loaded trays | 150,414 | Instore trays | 28,311 |
| On order | 16,232 |
Thank you for your support and safe harvesting as we push to harvest conclusion.
Regards,
Michael
Seeka Key
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