WELLINGTON: New Zealand’s biggest kiwifruit grower hopes to increase its stake in the export avocado market. Seeka Avocado business manager Dr Jonathan Dixon said the company would like to handle more fruit and “could probably double what we have been processing”.
Last season, fruit exported by Seeka accounted for just over seven per cent of the national crop.The Orchard Gate Return (OGR) for its avocado growers for the 2014-15 season was on average $16.03 per export tray with further payments projected of about 30 cents per export tray.
In the 2013-14 season, Seeka orchards’ average yield was 12.3 tonnes per hectare, giving a total OGR of $45,862 per hectare. That was more than twice the industry average OGR of $20,721 per hectare reported in the Avocado Industry Annual Report.
Chief executive Michael Franks said Seeka was smaller than some avocado exporters in the sector and had chosen to focus its efforts on Australia, where it had an established presence through its SeekaFresh branding.
This year’s domestic Australian crop was down on projections and Seeka had managed supply with its growers to ensure it had sufficient fruit available for the Christmas/New Year period when prices were highest, he said.
“We control our supply chain and as this year’s returns confirm, we are very effective at managing our supply of fruit to maximise pricing for our growers.”
SeekaFresh Manager Annmarie Lee said controlling the supply of fruit from orchards was the key to maximising returns for growers.
“We only supplied fruit to the market in response to our customers’ demand,” she said.”We targeted the periods where we thought there would be the most value in the market.
“Our approach results in maximum market returns, while maintaining high quality standards. And we were very disciplined and responsible, to ensure we didn’t compromise the price for other New Zealand avocado exporters.”
However, Avoco director Alistair Young said Avoco had created strength in the Australian market, which many of its competitors enjoyed.
“Avoco in conjunction with our Avanza partner Just Avocados shipped 602,000 trays to the USA and a further 577,000 tray to Asia and Japan,” Mr Young said.
“These shipments represent 92 per cent of all New Zealand exports outside Australia. It is these shipments that created the strength in the Australian market that many of our competitors enjoyed.”
“If Avoco had shipped that fruit into Australia there would have been a very poor seasonal outcome for growers due to market oversupply in Australia.
“The Avoco payout was a very strong result brought about through global marketing which enhanced not only our growers’ returns but benefited the entire industry,” he said.
New Zealand Avocado CEO Jen Scoular said over 7 million 5.5kg trays of avocados were packed and marketed – 43 per cent higher than the previous season. Returns were still being finalised.
