Seeka Kiwifruit Industries has delivered record returns to growers from its SeekaFresh programmes, primarily into Australia, the company has revealed.
In its latest grower forecast, the group said that Class 2 returns per Class 1 tray averaged NZ$0.24 for Hayward Green (conventional) and NZ$0.50 for Hayward Green (organic) in 2014, well up on last year and 'significantly ahead' of industry average forecasts of NZ$0.14 for conventional and NZ$0.16 for organic green.
The season also saw record returns for SeekaFresh-marketed avocados and kiwiberries, the group noted.
“Lean overhead cost structures plus an Australia programme directed at major retailers rather than wholesalers, supported by promotions, planning and quality, have delivered Seeka growers record returns,” said Seeka chief executive Michael Franks.
Seeka, New Zealand’s biggest kiwifruit grower and a leading post-harvest operator, has been active in the Australian market for eight years under its SeekaFresh brand and has retailer relationships that have spanned more than two decades.
Due to CER and an allowance in the Kiwifruit Regulations, Class 2 kiwifruit can be sold outside the Zespri single point entry system into Australia.
This year Seeka growers produced 1.2m trays of conventional Class 2 green, with 800,000 trays directly sold by SeekaFresh into Australia and the balance marketed via Zespri’s own Class 2 programme. The organic category has performed particularly well – Hayward organic volumes into Australia were up more than 400 per cent on 2013, while conventional Class 2 green volumes were up by 60 per cent.
“Seeka growers of both conventional and organics are receiving record returns for Class 2 this year on the back of a successful and growing retail programme into Australia,” noted Ray Hook, Seeka’s general manager for retail services. “The SeekaFresh brand is being recognised as premium in Australia and we’re looking to a multi-product strategy to increase our penetration into more major retailers.”
SeekaFresh manager Annmarie Lee added that approximately 75 per cent of the company’s Australia business went directly to major supermarkets.
“Our retail programme means Seeka’s growers get the benefits of avoiding the volatility in the wholesale market,” she said
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