New Zealand kiwifruit and avocado packer Apata has bought a 33 per cent share in horticultural marketer Primor Produce in a move to integrate the operations of the two businesses.
Apata and Primor have worked together for 23 years, according to Apata’s CEO Steve Low, and the new share purchase has been in the works for the last six months, reported the Bay of Plenty Times.
“We now have complete integration between post-harvest and marketing services,” stated Mr Low. He said the partnership with Primor had helped Apata grow to its current size.
The share sale was motivated by a desire for vertical integration rather than financial stress, furthered Primor director John Carroll.
“The fact that we have agreed to sell 33 per cent of our shares says a lot about how much we value doing business with Apata,” he told the Times.??“Neither company is under financial stress. This is a simple evolution of what has already been a successful, positive and simple relationship. This is us saying it is appropriate to continue doing business together while embracing opportunities we can both benefit from. Now feels the right time to change the shape of it.”
The move is a further step in Apata’s drive for vertical integration, and follows on from an announcement two weeks ago the company would partner with kiwifruit orchard management company Oropi Management Services (OMS).
“In bringing the strengths of Apata and OMS together, we will be able to offer growers more options,” Mr Low said of the deal.
“In fact, growers will be able to access a wrap-around service. OMS is experienced in orchard leasing and management of organic and conventional kiwifruit, which complements our post-harvest services.”
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