MARKET REPORT

 

With January now behind us and export packing not far away from completion, it’s timely to strategise on where we see activity trending over the coming weeks.

Key issues currently include a gradual lift in prices, good demand, settled weather for harvesting and fruit quality that is nothing short of superb. Whilst that is our overview, it would seem that not all marketers are seeing the world through our eyes.

Whilst we acknowledge that the current market situation is somewhat fluid, an astute observer would likely comment that the market is being either over-fed or under-marketed. We are noting that some companies are showing signs of nervousness and have instigated advertising / promotional activity. The impact of this is to reduce grower value.

We are approaching the last few months of the season and our tactic is to increase our stock levels as the end of export packing is always a period when volumes tend to diminish. With our stock-on-hand sitting at a date/ age level of less than seven days, we have sufficient buffer stock to maintain a steady on-going flow into retail. That was our strategy going into February and that is what we will continue to do………good sensible stock volume with robust shelf-life. We will be encouraging our competitors to ensure that the market is maintained in the current “generally” positive condition and not to impact values with surplus or uncontrolled supply.

Any over-supply situation will potentially take the top end out of the values we are offering – as discounting (promo/advert) activity now in train is impacting size 30’s and smaller. We must be careful to ensure that any expansion of advert / promo does not put incremental downward value-pressure on larger sizes.

I have updated our CSD table below.

Size

CSD $ per TE

18

$25 to $27

20

$29 to $32

24

$25 to $27

28

$24 to $26

32

$16 to $19

 

Zeafruit Avocado Role changes

As I write this note I only have two of three announcements finalised – with the final announcement to be made next week.

These changes are an exciting new step for Zeafruit – the avocado procurement sector is changing and we need to be adaptable to meet the type of requirements expected going forward.

I plan to spend a lot more time engaged in the avocado space and a new Procurement Manager will work alongside me ensuring the needs of our growers, pack-houses, exporters and industry partners are met.

Rick Hannay is retiring – that is correct!!

Rick has been a feature of the Zeafruit avocado business since he started with us in 2012. His dedication, work-ethic, initiative and drive have seen our business grow and expand to where we are today.

Rick made the decision to step back to part time hours from the beginning of March 2020 and will finish his contract with Zeafruit on Thursday 25 February 2021.

He will not be lost to the company and you will see him from time to time as he has some project roles with us in the pipeline – the first of which will be an eight day period in March introducing our new appointment to you all and making sure our client service is not interrupted.

A farewell drink will be arranged over the next few weeks – more details to come.

Danielle Dunseath is changing roles.

After three years with Zeafruit Danielle has made the decision to head back to university to complete a teaching degree focused on early-childhood education.  Many of us would ask why she needs to get a degree for that when she has had to deal with many of us behaving like children on a daily basis!!

During her period with the company Danielle has significantly improved our fruit-movement processes between pack-houses and end-customers utilising her considerable computer literacy and planning skills. Her up-grades of our logistics processes have proved hugely beneficial to the business. Her work around maturity testing and compliance has allowed us to improve our service offer in areas that Rick or myself had little competency in.

Fortunately Danielle will not be lost to Zeafruit as she has accepted a part-time role focused on making sure our back-room operations are ‘on-point’. That allows us to retain her knowledge and experience within the company.

We wish her all the best back at University and we are very pleased that she will continue to overview our logistics processes whilst supporting our new Avocado Manager once his appointment is finalised this week.

Danielle will finish up full time on the 12th of February and start her part time role from the 15th of February.