|
Welcome to our week 32 update. The Seeka Growers council have met and approved the Tuesday 15 August 2017 kiwifruit payment.
August payment summary:
|
|
HWCK |
HWOB |
HE (G14) |
GA (G3) |
|
Zespri average Progress payment |
$0.200 |
$0.920 |
$0.180 |
$0.300 |
|
SGL average grower payment |
$0.544 |
$1.064 |
$0.952 |
$1.509 |
|
Average payment excluding Kiwistart |
$0.293 |
$0.894 |
$0.273 |
$1.331 |
|
Kiwistart payment averaged over all trays |
$0.251 |
$0.170 |
$0.679 |
$0.179 |
|
SGL Average Grower Payment |
$0.544 |
$1.064 |
$0.952 |
$1.509 |
Details of this payment are covered in the Dollars and Sense letter, sent out with your payment advices.
After the issues with the kiwistart payments last year, and continuing forecasting issues, Zespri has increased staff numbers involved in the payment process and this year the kiwistart payment has gone a lot smoother than it did last year. These changes are acknowledged by Zespri as a short term solution and they have announced a $70m investment to re-implement SAP the accounting system used by Zespri. The Council also questioned Zespri about cashflow payments, timing of payment by size, and effectively the level of grower cash balances held by Zespri on growers’ behalf.
The Council raised questions relating to the alignment of the revenue from the sales programme compared to the amount growers have received year to date. As an example, Zespri G14 [HE] variety is 99.9% sold, with growers paid 38% year to date. And it is important, when you consider the lower Hayward crop volume this year and earlier selling season, should growers also expect an earlier cashflow?
Gold3 sales are forecast to complete middle of October. Zespri is not able to finalise the pool until the customer claim and rebate process is complete. This should be able to be completed by December allowing for the majority of payments for Gold3 to be paid by the end of the year. Seeka Growers policies ensure that cash is paid out quickly and some costs being scheduled for payment later in the year when cash flow from the marketer permits. This benefits Growers and by having separate bank accounts there is always transparency between the Entity and Seeka’s accounts.
Operationally fruit loss in all varieties is low across the Industry and at Seeka. Our off-shore quality is also excellent and in some cases reflecting an early loadout profile. 90% of the Gold 3 crop has been shipped with approximately 5 million trays remaining to be shipped by the end of week 36 to complete this programme for 2017. There remain 24 million trays of Hayward to be shipped and overall this category is 63% shipped. Hayward Organic is 75% shipped with 700K currently in inventory. Fruit loss for all categories continues to track better than expected.
To the numbers: [to midnight Sunday 13 August]
|
INVENTORY PERFORMANCE AS AT 31/7
|
HAYWARD CONVENTIONAL
|
HAYWARD ORGANIC
|
SWEETGREEN G14
|
SUNGOLD G3
|
SUNGOLD ORGANIC
|
TOTAL
|
|
Packed |
14,799,410 |
687,406 |
90,038 |
8,542,692 |
115,585 |
24,235,131 |
|
Shipped |
10,685,126 |
595,461 |
89,778 |
7,849,490 |
109,888 |
19,329,743 |
|
Instore |
4,094,861 |
91,245 |
- |
648,590 |
2,403 |
4,837,099 |
|
On Order |
1,086,112 |
32,365 |
|
514,558 |
567 |
1,633,602 |
|
Lost - TE |
19,423 |
700 |
260 |
44,612 |
3,294 |
|
|
Lost % |
0.16% |
0.10% |
0.29% |
0.52% |
2.85% |
|
|
Industry Lost % |
0.15% |
0.16% |
0.23% |
0.55% |
1.59% |
|
|
Estimate time $ |
$995,978 |
$78,966 |
-$3,905 |
$690,066 |
$9,337 |
|
|
per tray |
$ 0.067 |
$ 0.115 |
-$0.043 |
$0.081 |
$0.081 |
|
Regards,
Michael
|
