Kiwifruit generic

New Zealand kiwifruit packer EastPack plans to invest NZ$8.5m (US$5.8m) in new equipment this year to handle a planned growth in output by 14 per cent.

EastPack, a grower-owned company, is the single largest supplier of Zespri Gold kiwifruit in New Zealand, with sites in Te Puke, Edgecumbe and Opotiki.

The company's new equipment will include a six-lane fruit sizer with soft bin tipping and automated packing, it said in a press release.

'We have to compete for supply,' EastPack chairman Ray Sharp said.

'The high rate of capital spend will continue to ensure that the company has modern facilities that support efficient delivery of quality across all key processes and are adequate to meet the increased volumes we are targeting.'

EastPack is targeting a 14 per cent growth in output this year at 18m trays, with a further 5 per cent surplus capacity. The company plans to grow a further 10 per cent in 2011.

The company's pre-audited balance sheet was looking hearty, according to EastPack chief executive Tony Hawken, helped in part by the company's adoption of LEAN Manufacturing Excellence principles in 2009.

'We're seeing the results on the bottom line with improved out-turns, reduced fruit loss, lower delivery costs and higher grower returns,' Mr Hawken said.

'But we are also investing more in training and putting additional technical and field resources on to the orchards to help growers optimise their crop value and profitability by meeting the marketer's specifications.'