Stores are starting to empty as we head into heavy loadout weeks. Impressively Seeka loaded 1.3m trays from store last week to go from being full to having space. There are two relevant points I would like to make as a result. Firstly, regardless of our coolstore position we are pleased to have had our crop off before this period of poor weather - simply we were relieved to finish when we did. The unsettled weather since our harvest completion will have really frustrated those still waiting to finish their harvest.
Secondly, the capital replacement cost of Seeka having 1.3m trays of coolstore space sitting full for one week is between approximately $13m and $15.6m, depending upon the type of coolstore excluding the cost of the land. This highlights the hidden cost with the way we do things.
Generally the teams are happy with the fruit quality of both Green and Gold. Offshore quality reports for both are good and very good in the case of Gold 3 SunGold. Time earnings for the SunGold are starting to accumulate and Hayward is at the beginning as reported below.
The teams are working through the process of dumping fruit from inventory. Seeka’s share of the initial 3M trays of large size Hayward to be removed totals 700k trays. Seeka removed 375k trays in the last stages of harvest. The remaining 325k trays will be removed either from packed inventory or UFI fruit [binstore or controlled atmosphere storage]. In any case to comply with the Zespri requirements this inventory must be removed and dumped by the end of week 30.
And the real spectre is that the 3M will be increased to 5M.
To the numbers [as at midnight 26 June ]
Hayward Conventional
| Seeka packed trays | 22,049,962 | Industry packed trays | 891,527,138 [24.1%] |
| Seeka avge size | 32.60 | Industry avge size | 32.48 |
| Seeka Fruit loss | 0.02% | Industry Fruit loss | 0.01% |
| Seeka Fruit Loss trays | 5,135 | Seeka estimated time | $251K [$0.01 per tray] |
| Seeka loaded trays | 10,140,078 | Instore trays | 11,909,884 |
| On order trays | 922,802 |
[Please note, most of the fruit loss trays to date will be allocated to the kiwistart pool and it is very early in the storage season].
Hayward Organic
| Seeka packed trays | 1,128,448 | Industry packed trays | 3,988,245 [28.3%] |
| Seeka avge size | 34.51 | Industry avge size | 35.05 |
| Seeka Fruit loss | 0.01% | Industry Fruit loss | 0.01% |
| Seeka Fruit Loss trays | 60 | Seeka estimated time | $22K [$0.02 per tray] |
| Seeka loaded trays | 410,264 | Instore trays | 718,184 |
| On order trays | 70,880 |
Zespri SunGold G3 Conventional
| Seeka packed trays | 7,320,653 | Industry packed trays | 46,519,454 [15.7%] |
| Seeka avge size | 29.04 | Industry avge size | 29.84 |
| Seeka Fruit loss | 0.03% | Industry Fruit loss | 0.05% |
| Seeka Fruit Loss trays | 2,151 | Seeka estimated time | $568,251 [$0.077 per tray] |
| Seeka loaded trays | 5,549,085 | Instore trays | 1,771,568 |
| On order trays | 300,646 |
Zespri SunGold G3 Organic
| Seeka packed trays | 116,300 | Industry packed trays | 750,270 [15.5%] |
| Seeka avge size | 30.63 | Industry avge size | 29.73 |
| Seeka loaded trays | 85,669 | Instore trays | 30,631 |
| On order trays | 19,986 | Come on orders! |
Zespri Sweetgreen G14
| Seeka packed trays | 177,653 | Industry packed trays | 1,550,729 [11.5%] |
| Seeka avge size | 36.05 | Industry avge size | 36.21 |
| Seeka loaded trays | 176,563 | Instore trays | 0 |
| Seeka Fruit Loss to date trays | 1,090 [0.61%] | Est time income | 0 [Nil time in G14] |
All done and dusted for the G14 – pretty pleased with the results and offshore quality looks ok.
Seeka after 5’s are coming on 4/5/6/7 July as below:
4 July – Main Road Kaitkati
5 July – Huka Pack
6 July – Oakside
7 July – Ohope Edgecumbe
The 2016 harvest wrapped up last week, a number of our teams have taken time out before we turn our focus onto packing bin store and inventory management. We look forward to catching up with those of you who will be attending the 'after 5’s' next week.
Regards
Michael
Seeka Key
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