Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Seeka offers kiwifruit growers share incentive for supply

Seeka offers kiwifruit growers share incentive in exchange for trays

By Suze Metherell

Sept. 3 (BusinessDesk) - Seeka Kiwifruit Industries, the fruit grower and coolstore and packhouse operator, is looking to secure kiwifruit supply over the next three years by offering growers shares in return for exclusive supply from their orchards.

Under the growers incentive scheme eligible growers will be issued new shares annually in proportion to the number of trays provided, at a rate of 10 cents worth of shares to every tray, until 2016, the Te Puke-based company said in statement. Seeka shares were unchanged near a five-year high at $3.29 on the NZX and have gained 57 percent this year.

Local kiwifruit growers have been struggling with the outbreak of Pseudomonas syringae PV actinidiae in 2010, which infected about 40 percent of the nation’s orchards, with gold fruit varieties hardest hit. Seeka expects the gold market to double in 2015 once re-grafted SunGold orchards reach commercial volume.

In the first six months of 2014, Seeka's kiwifruit volumes packed rose to 20.2 million trays from 18.8 million a year earlier, while first-half profit rose to $1.48 million, from $672,000 a year earlier on an 18 percent lift in sales to $79.2 million. Market share for Hayward, the green kiwifruit variety, grew to 15 percent, but the Zespri SunGold variety slipped to 11 percent, as the recovery in gold fruit variety is yet to reach commercial volumes, Seeka said.

"The post-harvest environment remains competitive," Seeka said when it reported first-half results. "The margins are tight as post-harvest companies drop prices to attract custom. While capacity overall is expanding to handle greater volumes of fruit, a competitive environment is expected to continue."

Seeka is now implementing post-Psa strategies, which have included selling non-core assets, including a 20 percent stake in Opotiki Packing and Cool Storage for $3.1 million, and diversification, such as buying Glassfields (NZ), the fruit ripening and import business, for $5.25 million in April.

Eligible growers have until the end of the month to join the scheme, with the first round of new shares for the 2014 harvest to be issued on Oct. 7.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Balance Of Trade: NZ Posts Trade Deficit In October On Falling Dairy Exports

New Zealand’s posted its largest monthly trade deficit for October in six years, while narrowing the shortfall from September, led by a fall in dairy exports to China while all main imports into the country rose. More>>

ALSO:

Gigatown Winner: Plenty Of Positives For Dunedin

Although the city has taken the Gigatown title, along with new ultrafast 1Gbps broadband and funding for $700,000 worth of UFB-related initiatives across the community, Mr Cull says Dunedin has gained so much more through its involvement. More>>

ALSO:

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news