Please accept this Grower Update to the end of week 12 [Sunday 22 March].
Introduction
Welcome to the first weekly update for 2015. The nights are cooling and the fruit is coming on. The first of our G3 has been harvested and packed. The G3 harvest has become significantly more complex with the requirement to achieve dry matter thresholds by size grouping and colour across a maturity area. Please be reminded that in the case of G3, protocol A is not allowed as a regular mainpack protocol. We have had some protocol B clearances and we have shipping orders for fruit protocol B. Our first Hayward has been cleared and is currently being picked. Similarly our first G14 has been harvested and is being packed today. G14 is again a little stressful with some growers experiencing fruit drop before the fruit has reached harvest maturity. A modified harvest maturity criteria (by Zespri dispensation) has been put in place for crops with dropping fruit however it requires the fruit to be stored for 2 weeks post-packing before being cleared by a QC. We feel that these conditions add an element of risk at a time when we expect to be at full packing capacity. Thankfully fruit harvested to date has achieved normal clearances. Our team has put in place a careful strategy to harvest G14 to deliver its best outcome.
Our kiwiberry harvest is continuing and we have about two weeks to go. Markets for this fruit have been very strong to date.
So far there are no safety issues to report. Our start-ups to date have been smooth and fortunately without untoward events.
To the statistics as at midnight last night [only G3 packed to date]:
G3 Packed : 49,524 Trays Industry Packed: 414,014 trays Seeka share 12%
Other updates:
Oakside Recovery: The insurance claim has been accepted by the lead insurer NZI. Engineers appointed and our team is working with the assessors and adjusters. The site is largely cleared now and the reinstatement of the damaged end walls to the cool rooms is ready to go. The end wall across the central coolstores and adjacent to the North Shed will be replaced prior to the main season.
Also rooms have been cleaned and the evaporators in room 3 removed for repair and cleaning. Information systems have been livened up and the “White House” commissioned as the new coolstore control point. Forklifts are all replaced, and where necessary bins have been washed. . Replacement of the new loadout area around the container docks and canopy area is scheduled for completion prior to the main season. We do not anticipate any significant capacity issue.
Oakside and Pioneer builds: Both of these capital upgrades are making good progress. The new canopy at Oakside is in place and complete. The coolstores and pre-coolers at both Oakside and Pioneer are also on track for completion in the next 2 or 3 weeks.
Lab constraints: There have been significant issues with the AgFirst lab this year – with website outages, issues with sampling, and issues with results. There is significantly more complexity and demand on the lab this year given the changes to harvest criteria for G3, and Zespri is contemplating the same criteria for Hayward next year. In my opinion, the reality is that the Industry should have moved to the second provider last year when it had the chance and these changes would then not have had such a negative impact as has occurred. We now have what we have and must be patient. These people are doing the best they can.
Grower pricing: We have had a lot of positive feedback from our growers about the reduction in price that was negotiated with Seeka Growers at the last meeting. Quite simply the changes to the pack differential would have resulted in growers being double charged if the rebate had not been put in place. There has been some negative reaction from other quarters of the Industry. It seems that kiwifruit people like to say the Industry is best served by having a competitive post harvest industry but it is a different story when we actually have one.
Kind regards
Michael
Seeka Key
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