At this time of the year everybody is waiting – waiting to see what blocks pass early, what volume is available and what tray numbers will look like once harvesting starts and crop estimates evaluated. Given that we currently have a very short supply with very high returns, there is always the discussion surrounding how we set value going into the new season.
There is no definitive algorithm that gives us the exact answer – it has to be more about open and honest discussion, an understanding of what tray volumes will be available and the extent and number of blocks that are closing in on a Eurofin pass. For Zeafruit it is also about engaging with our retail partners as they are key to moving volume at sustainable values.
Based on tray numbers I see becoming available, we have already determined our early season values, early promo/advert spend and our forecast of how values and volumes will track between the start of the season and the end of August. We are engaged with our retail partners throughout these discussions, promos/adverts are booked and retail price points agreed.
This season, the trade is telling us that it is necessary to achieve an immediate consumer uptake of the expected volumes. For this to be successful values will need to be set at realistic levels and within a more even pricing band. Current prices will not achieve consumer uptake at the levels required.
The key point from this message needs to be that we have a clear plan with our retail and food-service customers and we are set to go when things kick off.
Rick and Danielle will continue to liaise with you over maturity testing and compliance requirements – remember early season Eurofin charges for clearances are refunded by NZ Avocado.