ENZA Must Explain Where Growers' Money Is Going
ACT's investigation involving ENZA's own figures show that growers are missing out on up to $10 per carton through bad management, excessive spending and waste.
ACT Rural Spokesman Owen Jennings today said that ENZA officials claim that a 14 pound sale for a carton of apples in the UK - the average sale was closer to 16 pounds- meant a return of $1NZ to a grower.
"ACT has figures to show that ENZA's freight and off shore costs would be $21 NZ and that on shore costs should be a maximum of $8, leaving a huge $13-$14 gap.
"It is known that ENZA's tragic gamble on foreign exchange is costing growers $3.50 this year and that the Board has some small residual commitment on another white elephant investment in Napier - but that still doesn't explain the huge gap between what ENZA is getting and what growers end up with in their pockets.
"Growers getting just $6 per carton this year and struggling to survive need some of that $10 urgently. The first bankruptcy has occurred in Hawkes Bay - it's time for action.
"ACT's strong negotiation with National to force ENZA to move to an FAS (Free Alongside Ship) or hopefully a FOBS basis for acquisition will help get some competition in the system and drive down costs.
"Growers need choice to survive. ACT is the only party committed to giving them that choice," said Owen Jennings.
The table of figures is attached.
Sale of apples in UK @ 14 pounds per carton = $NZ 44 @ 32cents
Costs in UK $12.50
Freight $ 8.50
Packing etc $ 5.00
Storage etc $ 3.00
Other possible Board costs
Forex losses $3.50
Napier Loader $1.00
Growers this year will receive between $6 and $7 for per carton. ENZA has sold a considerable portion of fruit @16 pounds or an additional gross of $6.50.