Supplier provides update on New Zealand kiwifruit season, as well as plans for expansion in Australia
New Zealand company Seeka says it is on track to pack around 45m to 47m trays of kiwifruit this season, contributing to an overall estimated 220mn due to be harvested in the country.
However, in a meeting with shareholders, it said it expected to face some big challenges in the 12 months ahead.
Although it reported a “limited impact” in orchards from last weekend’s Cyclone Vaianu, it said the weather was now “a key factor” in the New Zealand harvest.
Added to this, amid conflict in the Middle East, it pointed out that growers now face additional cost as a result of the international fuel situation, which has led to the introduction of weekly fuel adjustments paid to transport operators.
Australian expansion
Reflecting on last year’s financial figures, which included a 7 per cent increase in total revenue to NZ$440mn and a pre-tax profit up 60 per cent to NZ$47.5mn, the company highlighted significant growth in its Australia business.
There, it saw its kiwifruit production grow by a quarter last year, according to new figures provided by the company.
And it achieved a 24 per cent increase in earnings to NZ$3.2mn, mainly thanks to retail sales growth in tropical fruit, kiwiberries, kiwifruit and citrus, the report revealed.
Across its Seeka Australia business, the group said it sold 5,615 tonnes of fruit – also up 25 per cent – on the back of “good demand” for domestic fresh produce.
Improved pear and nashi yields contributed to a 48 per cent rise in Ebitda to NZ$4.7mn.
This year, however, could be different as the company’s Australian volumes are down, it said, reflecting a “very hot, dry summer”.
That said, its expansion plan includes 18ha of kiwifruit entering production, new orchards for Ruby Roo red nashi and jujube by 2027, and a further 36ha of kiwifruit by 2028.
