Seeka has started the year will with real momentum as it continues its growth strategy. Having completed a successful NZD$50m capital raise late in 2018, the Company announced the acquisition of Aongatete Coolstores Limited in early March 2019 for NZD$25m.
“It has been a busy time both operationally and strategically for the company with the drive to become New Zealand’s premier produce company,” said Michael Franks, CEO. “We have throughout the first quarter of 2019 been harvesting plums, pears and nashi in Australia, with Australian Hayward kiwifruit about to commence. It’s been a dry growing season in Australia, while yields and size are down, fruit quality and taste has been exceptional.”
The New Zealand kiwifruit harvest started a week ago with Seeka harvesting approximately 1.5m trays of SunGold by 19 March around 24% of the New Zealand industry volumes processed at that point. At the same time the company has purchased and is integrating Aongatete into the production mix and delivering the combined benefits to all growers.
The New Zealand kiwifruit growing season has been unusual due to a very dry period after Christmas which has slowed the growing season, and brought the SunGold harvest early.
Seeka has undertaken significant capital works building new packhouses and packing machines in preparation for increased volumes and as part of its heartland growth strategy. In 2018 Seeka purchased the KeriKeri kiwifruit related orchards and post-harvest business from T&G Global. Subsequently Seeka has been in the process of successfully selling those orchards with a term supply to Seeka, and has embarked on a major upgrade to the packing facility. A new 90,000 square foot packhouse has been built along with a new Compacc 6 lane grader with NIR technology. The packhouse facility was opened and ready on time and when completed with the coolstore construction will cost over NZD$20m.
Franks said he was delighted with the build, “The team has done a fantastic job in getting it ready for the season. This is a major investment in the region, probably the largest single investment made there in decades.”
A continuing concern for the Industry and Seeka was the continuing shortage of labour. “We are lucky that the Government has recognised this and increased our quota of overseas workers allowed under the RSE scheme. While these were appreciated more will be needed. The early start of the kiwifruit season had overlapped with the continuing apple season in the Hawkes Bay. We are short of workers full stop and are going to need a massive increase if we are to run all the sheds at capacity and get the fruit into store at its optimum maturity.”
Seeka had continued to innovate to hire more New Zealand workers. In the latest venture Seeka had joined with Ngati Haua of Whaharoa to transport people from Whaharoa to its Huka Pak site at Mount Maunganui. This latest venture complimented other initiatives where Seeka transports workers from up to 1.5 hours drive away from Murupara and Rotorua.
“People can earn fantastic money in the kiwifruit industry, but we simply need more people to pay it to,” said Franks.
For now the company is well set as it continues the New Zealand SunGold harvest, heads to the Hayward harvest in both Australia and New Zealand.
For more information:
Michael Franks
Seeka
Tel: +64 21 356 516
Email: Michael.Franks@seeka.co.nz