revenue was given guidance......
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revenue was given guidance......
Wage increases weren’t factored in prior to arrangements with growers so it’s a hit to the bottom line. I’m a Coolstore manager at a competitor to Seeka and it’s a 5-10 million dollar hit to Seeka according to their throughputs and staff levels.
The poorer quality (soft pressure, low dry matter) fruit is two fold. Firstly instead of going into palletised trays/bulk packaging, it goes straight into a reject bin and feeds the pigs or gets made into fruit juice concentrate which is pennies on the dollar, so less volume of fruit for Seeka to charge packaging, packing, logistics, Coolstore, CC checking, etc where they clip the ticket. Secondly for the fruit that does make the cut, it needs to be quality checked more, more thrown to reject, which are a cost that Seeka and the likes can get reimbursed for by growers, however it’s an average of seasons, if Seeka hiked their costs back in Jan/Feb knowing it’s a low dry matter/soft year then who would pack with them? So the costs are outweighing the reimbursement. For any orchard Seeka owns themselves the problems above just compound.
In a sense, yes still charge for putting fruit into a reject bin for juice/stock feed but you clip the ticket less times.
No Coolstore, no packaging, no condition checking, no loading onto a container truck, where you clip the ticket every time, etc
All I’m saying is, the PE and dividend yield look ripe for the picking, but Seeka has a lot of shareholders that pack and grow kiwifruit and they know what the years been like this far with a week to go of GA packing and a few more weeks of HW
Thanks very much for the enlightenment.
A few things to reflect on there.
good insights thx epower
Kiwifruit growers set to decide on contentious Zespri-China deal, after major diplomatic push
https://www.stuff.co.nz/national/pol...iplomatic-push
the only winner is china. kiwifruit plantings in china expand regardless of outcome of vote , but if growers approve the deal china gets the expertise to grow it as well. zespri market share in china will never be huge either way as growers in china will eventually market it as made in china which is currently more popular and is the party line for all business in china than overseas brands
When I was a kid, these were Chinese Gooseberries. The plant is a native of China and used there for food for thousands of years. Taken to New Zealand, rebranded as kiwifruit and grown commercially. A new variety, bred in New Zealand, has been taken back to China and grown there commercially .... and we are offended?
Seeka grows fruit in other countries with arrangements with local growers. That is fairly standard practice.
When I was a kid, chinese gooseberries were smaller than golf balls, and the plants had come from seeds of the 'Yang Tau' or 'Mi Hau Tau' vines that a missionary woman had brought back to Wanganui from the Yangtze gorge area sometime about 1910?. In about 1920? large numbers of seeds from the vines she grew were sent to nurserymen Hayward Wright near Auckland and Bruno Just near Palmerston North.
Hyperactive Bruno grew hundreds of vines and sold them as ornamentals at first, he then cross-pollenated flowers from the sturdiest plants with the biggest fruit, and kept repeating the process until after about 30? years he had a disease-resistant plant, and huge-but-coarse fruit.
Over the same decades Hayward Wright had produced a tasty and moderately large fruited variety, but susceptible to root-rot. So Bruno spent the next ten years figuring out how to graft the soft-tissued Hayward shoots onto his bullet-proof roots. (His grafts kept producing big foaming callouses thought to be disease cankers) When Bruno had it perfected, the NZ kiwifruit boom started, and DSIR staff took over developing other varieties. I worked with a member of the Just family.
The big disease-resistant Hayward/Bruno plants was/is very different from the Yang-Tau vines growing near the Yangtze gorge.