New Zealand kiwifruit co-operatives EastPack and Satara are considering a proposal to merge their grower-owned operations to create the country’s largest kiwifruit packing and cool storage business.
If the proposal, made by EastPack, goes ahead it means the new company would handle around 26 per cent of the national crop with assets of more than NZ$90 million and income of some NZ$85m.
EastPack believes the move would “benefit financially and protect both companies’ growers an shareholders”. It forecasts a saving of some NZ$2m in the first 12 months.
The proposal is to buy out Satara’s non-grower shareholders at NZ$1.40 a share leaving the new business completely grower-owned. But the board is advising its shareholders to await an independent report before selling.
Talks between the two companies broke down last year.
Meanwhile, the kiwifruit harvest has begun and the first shipments for Europe are expected to depart around April 17, according to Zespri. The first vessel bound for Japan was expected to leave this week. The harvest is running earlier than last year in line with a normal season, although wet weather interrupted picking earlier this week.
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