Week 47

With a week of wet weather behind us causing the inevitable reduction in domestic volume, we are now moving toward that pre-Christmas period when export pack-out percentages will decrease and domestic volume will likely increase.

The intensity of upcoming export packing will impact the New Zealand market and unfortunately bring an end to export-level pricing for sizes 16 to 28 which we have enjoyed so far this season.

We noted in our previous Market Report that pressure on returns for premium sizes was occurring based on volume but more particularly on the ‘value variance’ driven by the sheer quantity of size 30 and smaller. This may well be something we face for the remainder of the season, especially as export pack-out rates progressively decline. Let’s not underestimate the significant volume of smaller sized fruit still to be harvested.

Based on the above facts Zeafruit has started to pursue options with our retail partners for advertising and promotional activity which so far this season has been infrequent. Therefore the challenge is clear; we need to retain consistent value whilst at the same time increasing volume sales. The most logical strategy to achieve this is by slightly reducing current value with ongoing price adjustments to maximise sales, thus avoiding severe reductions to returns.

The values listed below are what we foresee across our pricing bands over the next fortnight – this may change if the lift in volume causes competitors to overreact rather than pursue a sensible marketing strategy.