Frankly Speaking

Frankly Speaking - Week 23 Update
12 June 2016

Frankly Speaking Week 23 Update [Sunday June 12]

 

After a wet end to last week, we are back into fine weather and should be able to finish harvest before the next anticipated rain event next week.  Getting this spell of fine weather is appreciated. It is getting colder and understandably there is a push to get to the end while at the same time transacting a safe, orderly and professional harvest that does not compromise fruit quality.

 

The big issue over Queens Birthday weekend was the revelation that Zespri believes it cannot economically sell all the large size Hayward kiwifruit. Over the long weekend Zespri sought to agree the commercial terms for withdrawing a volume of fruit – and in Seeka’s case this is 700,000 trays of size 18, 22, 25 and size 27 Hayward fruit. In total the volume of fruit to be removed is 3m trays in this tranche with the potential for more to be removed later.

 

Seeka asked for more time to be able to consult with the Seeka Growers Council given the importance of this issue to Hayward growers, some changes were negotiated as a result. These include being able to withdraw the fruit from ungraded fruit inventory [bin store and controlled atmosphere storage] and from packed inventory in addition to across the grader. The Seeka Growers Council met on Monday and as part of its normal monthly meeting agreed the commercial terms to be paid to Seeka in each of the circumstances.

 

Seeka had proposed crop managed fruit should able to be purchased at a fixed price for sale into Australian retail.  Seeka has demand for these sizes at retail and this would have provided positive return to the pool. However this was rejected as other suppliers seemingly didn’t want Seeka to gain a commercial advantage from this situation.

 

Seeka asked Zespri to review the allocation methodology, wanting Zespri to consider allocating the relative share of crop management based on “share of crop to go” rather than “share of total crop estimate” as Seeka is relatively well advanced in its harvest. This was not supported by other suppliers so not implemented.

 

Seeka is taking all efforts to ensure we focus on crop managing poorer lines of fruit, lower dry matter lines, compromised lines or lines that may have been in store for some time waiting for Zespri orders.

 

Of course all of it is a poor surrogate to selling the fruit, and it begs the question again about the role a proper functioning collaborative marketing system could play in adding value to all growers.

 

To the numbers [as at midnight 12 June ]

 

Hayward Conventional

 

Seeka packed trays    18,054,416      Industry packed trays 69,701,605 [25.9%]
Seeka avge size   32.36  Industry avge size 32.45
Seeka loaded trays  8,407,425     Instore trays  9,646,991
On order   1,378,887    

 

                     

Hayward Organic

 

Seeka packed trays    790,004          Industry packed trays 3,100,978  [25.5%]
Seeka avge size   34.39 Industry avge size 35.02
Seeka loaded trays  271,552     Instore trays  518,452
On order   133,574    

 

 

Zespri SunGold G3 Conventional

 

 

Seeka packed trays    7,423,925              Industry packed trays 47,239,552 [15.7%]
Seeka avge size   29.04  Industry avge size 29.84
Seeka loaded trays  5,107,688     Instore trays  2,406,237
On order   484,771      

 

                                              

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  74,722  Instore trays    41,588
On order   8,360    

 

                                              

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  155,818    Instore trays   22,907
On order   22,621    

 

 

Our tribute to Dave Waters

 

I am sad to report the passing of Dave Waters who worked seasonally at the Main Road Katikati Packhouse. Our industry and our company relies on dedicated people like Dave who come and work for us day in day out, season by season and we are very sad to lose him.  Our condolences go to Dave’s family, friends and work colleagues.

 

 

Thank you

 

For the great lines of fruit that our teams have been handling recently. They have been much appreciated by our teams pushing to complete the harvest.

 

Regards

 

Michael

Seeka Key
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