I recall similar debate re A2M with respect to patents.....
Printable View
I recall similar debate re A2M with respect to patents.....
A2M milk test Patent expired?
https://www.foodanddrinkbusiness.com...patent-expires
"A patent filed in New Zealand 20 years ago by the founders of The a2 Milk Company to protect their milk testing method expired yesterday, but the growing company says it's business as usual."
Marketing in ASA?
Yes...I succeed with this occasionally. Thanks.
But lately...without touching anything...I seem to bet getting a pop-up message saying " Leave Site ? Changes you made may not be saved." And two boxes...Leave and Cancel. Then it just sits and not sure what I end up doing to exit cleanly. Annoying. Must be really p.......ing off the frequent posters.
They don't care because they know they can get away with it,their govt won't pull them up and there is money to be made,slap a zespri sticker on even better,add value ,and zespri paid for it all.Actually 5,000 hectares now ,10 million trays.Zespri naively think marketing illegal Chinese gold kiwis is a solution!?. Fool me once.....no shame over there though,just milk it.;)
Kiwi fruit industry that they PICKED and exported a record amount of fruit this year
Obviously finding labour not a problem after all
Whatever well done that industry
https://www.nzherald.co.nz/business/...FMJCFK64DPDKE/
More possible rub off for SEK, following on from Avocado sales up 40% in value, reported in NZ Herald, 11 June 2021.
https://www.nzx.com/announcements/375366
the tech sounds fancy.....
Fruitometry’s new service utilises advances in telemetry, imaging and artificial intelligence (AI) using deep neural networks that quickly digitise orchards to provide insightful reports for targeted orchard management, horticultural process control and supply chain fruit volume estimation. Their proprietary software streamlines real-time image processing, AI training annotation, data warehousing, analytics and comprehensive report generation into a scalable service.
Seeka's minority investment of $2.6 million values Fruitometry at $10 million.
https://fruitometry.com/
- density maps - growers can pinpoint areas of orchards that require attention
- low cost - This makes it economic to scan orchards many times each season
Attachment 12725
From the Fruitometry web site. Amazing technology.
"Orchard labour costs have more than doubled since 2013 and will continue to increase due to short labour supply and increasing wages.
This impact can be mitigated by using the right tools and metrics to optimise labour inputs."
At the risk of getting political...this is one of / the type of productivity advances that NZ Inc needs.
Shortage and cost of labour making us think about doing stuff in a more scientific way.
Good news...amazing technology. Hope its use can be expanded into other crops.
It would be great but I think we have a long painful way to achieve it. Not at all limited to horticulture but equally applicable to all primary industries and no doubt other industries as well. I know my industry, fishing, is at crisis point here in NZ and there is no short term technological solution to fix it.
xxxxxxxxxx
xxxxxxxxxx
xxxxxxxxxx
xxxxxxxxxx
Article in Northern Advocate, 19/7/21.
Northland had record Kiwifruit crop, worth $76M.
Seeka had most of it, with @1.7M trays packed themselves, and mostly Gold variety.
With BOP, Coromandel & East Coast added, should be plenty of cream on the pavlova, and Avocadoes to be tossed into the salad as well.
xxxxxxxxxx
xxxxxxxxxx
xxxxxxxxxx
xxxxxxxxxx
xxxxxxxxxx
xxxxxxxxxx
13 cent divvie ann. today, ahead of tomorrow's reults.
Half year profit $30.8M, up 77% on pcp.
Juicy.
HY results are out ... looking good but full year guidance looking amazing:
https://www.nzx.com/announcements/377529
Basically expecting to repeat the big earnings from last year and on top of that expected settlement from the crown for Kiwi fruit disease ...:
Seeka - never can have to many (well, at least not at the moment ;) ).Quote:
Full year operational guidance
Seeka has substantially improved operational earnings in the period. Full-year net profit before tax (NPBT) is forecast to be between $13.5m and $16.0m. This includes $1.4m of restructuring and acquisition costs, and excludes any one-off gains or extraordinary items (should they settle in the year) and $1.8m of OPAC profit to the acquisition date (NPBT). Note that $9m of pcp NPBT was from a gain on orchard sales.
New Zealand dollars ($ millions)
FY21 Guidance Lower range $13.5m: Change on FY20 ( 17%)
FY21 Guidance Upper range $16.0m: Change on FY20 ( 2%)
FY20 Audited Net profit before tax $16.3m
Full year guidance
Further to the full year operational guidance of net profit before tax, Seeka expects a one-off extraordinary gain from the successful settlement of the kiwifruit claim against the Crown. The actual amount to be received by Seeka is unknown with the distribution subject to High Court approval, with the timing of payment expected to be received before the end of 2021. Seeka is estimating that its share of the distribution could lift the net profit before tax for the 2021 year to between $20.0m and $22.0m.
Yes...another pleasing result. Its interesting....for all the bleating about labour shortages etc etc....the Kiwifruit and apples seem to be getting picked, the cows are milked etc etc.
3.5% of our portfolio.
reported NTA of $5.44 as well...
What a pretty picture:
Attachment 12851
But wait, there is more:
I take that that 2022 will have potential (obviously, weather permitting - this is agriculture) to trump even a great 2021 ...Quote:
The company delivered on its strategy to improve earnings while delivering operational excellence, registering multiple highlights across the business in the six months to June. This included the purchase of Ōpōtiki Packing and Cool Storage Limited (OPAC) on 4 May, and in July announced a minority stake in the high-tech orchard-focussed start up Fruitometry. As OPAC was purchased mid-season and had already earned 85% of its full-year EBITDA prior to takeover, Seeka will incur the operating overheads for the remainder of 2021. From next year, these earnings will be recorded in Seeka’s Group f inancial statements. The business is now integrated, operating and cost structures reset, and synergy savings are on target. Acquisition and restructuring costs are included in this interim result.
A great result indeed. Well done SEK
seller depth looks very slim; reckon this is only going to go one way for awhile!
Interesting to note what causes SP fluctuations.
In 2017, an updated announcement of estimated NETT Profit AFTER tax of $7.8M, led to a SP of $7.10
Today, an ann. of estimated NP Before Tax of $20/22M.
Where will that take the SP?, considering more efficiencies and synergy than 2017.
Worthwhile to compare result to SKL on a pro rata basis as well.
yeh thx for quantifying that - I was thinking that was the case
still happy with eps growth tho eh!?
my biggest holding ;+) tho have tended to overpay but despite the vagaries of horticulture I see this as long term resilient. so I enjoy the fruit of the dividends and accept one year they might not be there coz you know stuff happens.
also happy with the corporate side of the business on top of the pure horticultural side.
Yes I added a bit this morning after reading the report. Still nowhere near to what I had a few years ago though.
I'm happy with how this one is sailing now. It is a very different and much stronger business to what it was 2-3 years ago and it would be great to see them using the newly created synergies to become more efficient and grow EPS to further reduce debt and continue to pay moderately decent dividends. I'd also like to see some dividend to SEK from the Australian business which has not been as good as I was hoping.
Using current data, my target price is $6.30, and @ 5% divvie based on current price, keeps me in kiwifruit pavlova.
I say near term, as soon as PSA settlement money arrives.
still pretty good result over that one too -- I'm sharing the pavlova here BTW
still not a lot of shares on issue - obviously merger has seen benefits
not a crumb in sight in the other thread -- the resident snails from over Broken Hill Hobby mine must have got in early .. ;)
While the result and outlook is good for SEK, good enough for me to add a few, we need to be mindful of the tough market condition. This from a newsletter yesterday:
"This week Zespri has released the first forecast for this year’s crop. The forecast is for substantially reduced orchard gate returns per tray, and returns per hectare at the lower end of the earlier forecast ranges. Uncertainty remains in the forecast, with cost pressure shipping issues and foreign exchange movements all contributing to a lower per tray return. Thankfully yields are up and this will remedy the reduction to some extent."
looking good for new highs soon , brought back in a while ago
Yet another acquisition :
SEK
14/09/2021 12:23
TRANSACT
PRICE SENSITIVE
REL: 1223 HRS Seeka Limited
TRANSACT: SEK: SEEKA ANNOUNCES FURTHER KIWIFRUIT ACQUISITION
14 September 2021
SEEKA ANNOUNCES FURTHER KIWIFRUIT ACQUISITION BY AMALGAMATION
Seeka Limited ("NZX:SEK") has entered an amalgamation agreement to acquire
leading Northland kiwifruit business Orangewood Limited ("Orangewood").
Orangewood shareholders are offered 0.6630 new Seeka shares and $1.35 in cash
for every Orangewood share. The issue price for each new Seeka share is $5.33
being the volume weighted average price of Seeka shares traded on the NZX
Main Board over the 10 business days ended 13 September 2021 (all fractions
of Seeka Shares are to be rounded up to the nearest whole number).
The amalgamation consideration values Orangewood net assets at $4.71m. Seeka
will assume approximately $1.84m of debt as part of the acquisition bringing
the total transaction value to $6.55m.
The amalgamation proposal released with this announcement summarises certain
key terms and conditions of the acquisition by amalgamation, including that
the offer is conditional on 75% or more of Orangewood shareholders voting in
favour of the amalgamation at a meeting of Orangewood shareholders intended
to be held on Friday 1 October 2021.
If the Amalgamation becomes effective, up to 639,302 new Seeka shares,
representing approximately 1.6214% of the total number of shares currently on
issue, will be issued on the effective date described in the amalgamation
proposal. No recipient of new Seeka shares is a Director of Seeka or an
Associated Person (as that term is defined in the NZX Listing Rules) of Seeka
or a Director of Seeka.
Orangewood Chair Brad Davies says:
"The amalgamation of Orangewood, which needs capital investment, with Seeka
which has invested in Northland, has available processing capacity and a
proven track record of delivering competitive returns to its growers and
stakeholders, makes sense from every perspective and we recommend it to
Orangewood stakeholders."
Seeka Chair Fred Hutchings says:
"This amalgamation is consistent with Seeka's heartland growth strategy,
further expanding our service delivery in the key Northland region. Seeka
expects the amalgamation will be accretive to shareholders upon full
integration, with the bigger business generating material efficiencies,
synergies and cost savings that will benefit all stakeholders."
The Boards of Seeka and Orangewood unanimously recommended the amalgamation.
tu te fruity...
Good to see them growing hopefully a good little merger may have to google them see what I can find out about orangewood
https://orangewood.co.nz/
see on there latest news page they have 3 big orchard developments going on
The attached photos show one of these developments which will be one of New Zealand’s biggest gold kiwifruit orchards - once completed the orchard will span approximately 75 hectares in total and will be completed over 3 phases. Phase 1, which is currently under construction is 28 hectares.
https://orangewood.co.nz/news/6/41/New-Developments
so seeka brought a company which was in a growth phase itself. cool win win more earnings to factor in once these developments come on
ex div this friday , not to late to get your 13cps dividend be quick 2.4% return better than the bank
confess I reduced into this rally, as it was over 20% of my portfolio.
I gotta be slightly conservative esp with horticulture.
(but I have a history of selling way too soon! )
ceo buying shares on market at 5.15 , always a good sign
https://www.nzx.com/announcements/380051
Someone sold a big volume at a bit of a discount today. Market sentiment a bit weak at the moment.
Welcome on board!
I am pretty confident they will do well over the next years to come - they are currently implementing a quite impressive and sensible growth strategy ... and even if everything might break down in the years to come, people always will need and want fresh food and fruit.
I bought in on Friday. First time holder, long time follower. SP seemed quite attractive- below what the CEO recently paid and before that below what the recent amalgamation shares were priced at.
Sek have a good growth feel about it. I am looking to slightly reduce retail stocks and move some money into comvita and sek. Probably good to be in food when inflation is about.
The Orangewood amalgamation looks to be a sensible approach to continuing the SEK growth story and also cosying up to some additional growers. I suspect that in the short term post the amalgamation becoming effective, there will be some Orangewood former shareholders who will take advantage on the liquidity they now have through having shares in a NZX listed entity to sell some of their shares. I suspect this will suppress the SEK share price in the short term and if you believe in the SEK long term story might provide a good buying opportunity.
So do you think the potental banning of the "Hi cane" spray will have any impact. Almost got on board until this came up in the last week or so.
I don’t totally understand the potential impact but from what I understand:
- The EPA hasn’t reached a final decision, with submissions on the proposal to ban it still being received. However, given it has been banned in Europe and some other countries including the US have it under review, I assume it is more likely than not it will be banned in NZ.
- The proposal is to phase out over five years, so all of the impact is not instant.
- Hi-Cane has greater benefits in warmer climates, so presumably Northland Kiwifruit more impacted that BOP kiwifruit. BOP a far bigger part of SEK’s business than Northland.
Question is what would the consequences for SEK will be:
- SEK operated orchards less profitable?
- Reduced incentive to plant new Kiwifruit orchards if financial returns reduce?
- Total crop reduces, potentially having some upwards pressure on market price of fruit?
- Less capital investment required by SEK to expand packhouse facilities?
- Pressure on chemical companies to develop a safer alternative more quickly than they would otherwise?
The EPA has been working on the matter for some time, so assume the announcement not a total surprise. SEK has still been actively growing its business and the CEO has been buying additional shares on market so I assume SEK directors and management have confidence in SEK’s future.
I recently bought in as they seem to know what they are doing and the dividend yield was another factor. Downside risk is things such as weather and disease,
but if these don't eventuate should be plenty of growth.
And of course if the share price stagnates for no good reason it becomes a takeover target.
seeka shareholder update to be held on zoom
Seeka Seeka Limited [NZX:SEK] advises that its stakeholder update for 2021 will be on Tuesday 26 October 2021 starting at 3pm.
https://www.nzx.com/announcements/380726
I bought more at 5.05 this week, Seeka is now 40% of my food theme, food is about 20% of my overall portfolio. I have diversified my horticultural holdings a bit though as I see risk being too concentrated in kiwifruit.
I like the straight-talking CEO, and it is good to see the company coping well with so many challenges and still making good progress on its growth plan. Likely more challenges ahead though.
I also like investing in companies whose products I buy myself, as a sort of practical hedge. Avocados are real cheap now, not good for growers, but I am eating more in a fortnight than I normally eat in a year. Mashed avocado, cider vinegar, salt, lots of black pepper, yum.
$5.05 was a good price. I'm a bit overweight SEK at the moment and decided to sell a few last week at $5.17. Still currently one of my bigger holdings as I think they have a good growth strategy and are fairly, if not under, priced. Not sure if they are a good natural hedge for the price of food though as if there is a bad harvest year, the price of food goes up and the price of the shares will come down?
Seeka is my 2nd biggest holding after alibaba
Guess the main risk associated is China and gold kiwifruit situation there what may happen in future dent profits not sure. Or the affect possibility of banning of the certain spray will affect northland operations and orangewood acquisition and development. It is one of the few companies on nzx doesn't seem fully priced
Good point, it only really works for prices lead by exports or over-production. For local under-production something else is needed. Investments in non-hydro electricity generation might help if drought is the cause of the bad harvest, but my ultimate hedge against high local food prices is my vegetable garden.
Not the perfect combination, but don't listen to the food snobs, lamb tastes good with anything. Chardonnay can cope with cooler climes so I've started experimenting with that first (also chardonnay is very versatile for winemaking). Later on I would like to experiment with growing Merlot but I may have to do more for frost protection.
so how much wine do Seeka produce?
Cheers for that. First time I heard about Trollinger in NZ. I might check with them whether I can buy a few bottles to test whether it tastes like the wine I know from Wuerttemberg ... though it sounds I still need to wait a wee while - first commercial harvest in 2023!
I’m hoping that SEK have already nailed the kiwifruit harvest and export for this season - and that Covid impacts are relatively small.
We’ll find out on 26/10.
Growers in BoP offering $25.5+ for kiwifruit bud thinning.
Is that what they advertise as a set hourly rate or potential on piece rates reasonable money for unskilled labor
It's hourly. Not sure if it's including or excluding holiday pay. 6 years ago it was $15ph.
If it's quoted as an hourly rate for employees it legally has to be excluding holiday pay. This wouldn't be surprising as the going rate for an employee as it was the median hourly rate in previous years that Immigration was using for Essential Skills visas (went up to $27 this year). The overall shortage of labour at the moment has probably set this as a 'de facto' minimum wage in some industries.
Hopefully things have improved in the hort viticulture industries compared to the days when I managed contracting crews seemed to attract rather crooked owners
From what I hear they are still up there with Chorus in terms of questionable subcontracting practices. Potentially a few investment risks there both in terms of regulatory risk given the current government's signalling that it wants to move on the issue of contract workers, as well as labour shortages as well.
The RSE scheme with the seasonal workers from the islands has been a great model for both the producers and the workers coming here.
I’m steering away from primary industry at this stage. I’m in the wine sector and we have just been coped with a 8% labour increase cost…The govt will give u something, but also penalise u for using it… kiwi fruit might have a bit more margin give, but others will be hurting.
Thanks for sharing what's happening in your sector. The meat industry increasing minimum wages by 10% as well, but I don't think these increases are limited to primary industries. This is going on throughout our adrenaline filled but stuttering economy (printed money, lack of suitable staff and never ending lockdowns).
I'm heavy into primary industries and believe they will continue to drive our economy out of our current precarious situation.
Seeka upgrades market guidance
https://www.nzx.com/announcements/381418
good stuff looking forward to more acquisitions
An interesting snippet on National Radio today about the challenges to the kiwifruit industry around orchard prices and bare kiwifruit-suitable bare land, about 3 minutes in.
https://www.rnz.co.nz/national/progr...1-october-2021
possibly just part of a general downtrend .. maybe Covid & a bit of Northern sector gloom at play at the mo ? ;)