Frankly Speaking Week 34 Update [Sunday 28 August ]
Welcome to the Week 34 Update.
Sales reporting is showing a trend of a divergence in returns from each variety. At the end of week 32 Zespri had sold 37m trays of Gold, 9.1 m trays ahead of the same time last year with approximately 10.5m trays to go. Pricing is strong and average revenue per tray is ahead of the same time last year by 6.5%. It's a good result, stunning when you consider the lift in volume. It is likely that SunGold growers will receive more than last years return of $8.10 per tray noting Seeka's particularly good fruit loss statistics this year.
Hayward however is another story. In the organic category, sale rates are similar to last year with 1.9m trays sold, half way through with another 1.9m to go. The average sales price is weaker by 6.8%. Conventional Hayward has sold 36.2m trays, 1.5m trays below last year and there are still 44m trays to sell which is 4.7m more than the same time last year. The average price is 7.3% below last year. The Hayward return is concerning. The crop management of 5.2m trays [dumped fruit] across the industry and higher costs of servicing the China market [effective 100% repack] means that the per tray returns will be down potentially below the Zespri range of $4.20 - $4.80 per tray and below Seeka's early forecast to growers of $4.26. It's a disappointing result.
While yields have increased year on year, this is not universally the case and for growers who grew the same yield as last year will have a significant drop in income – worse for those with a lower yield.
Supplying the China market is challenging. Suppliers are issued shipping orders to supply the market and set about preparing the fruit. It's onerous and some suppliers have shortage the orders and as at last night 400 pallets for this weeks load outs had been shorted. The commercials are still not right. Seeka has maintained its deliveries but in doing so has provided more fruit than its share as we have not been shorting orders. The China supply has been tough for the crews. Undertaking the China orders means that the fruit has to be super-cleansed. It exposes that fruit to a higher chance of loss and the checking and repacking process slow and labourious.
In the case of SunGold supply to China in the last two weeks Seeka has supplied approximately 14,214 trays above our market share [52 pallets] and in the case of Hayward supply to China Seeka has supplied approximately 24,809 trays above our market share [92 pallets]
To the numbers [as at midnight 28 August]
Bryan Grafas farewell
Please remember that the farewell for Bryan Grafas will be held at 4pm on 15 September at ASB Baypark Arena (upstairs). Please rsvp to Stephanie Kivell 07 573 0303 (EXT 7003) or stephaniek@seeka.co.nz if you would like to join us.
Regards
Michael
Seeka Key
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