Last week a number of marketers advised NZ Avocado about an increase in un-forecasted volumes that they intend distributing into the New Zealand market. The advice is appreciated however not surprising given grower feedback and commentary around harvesting over the last month. This notification does however provide Zeafruit an opportunity to clarify our position to our grower suppliers. Clearly we are not one of those who anticipate an unexpected volume spike.
Zeafruit continues to meet daily orders with a steady supply from multiple packhouses. Our stock level is continuously matching demand however we still have capacity to increase both sales and inward volumes depending on the orchard crop-profile. Our ratio between medium / larger and smaller sizes is about right, however, as has been the case all season, medium and larger fruit are attracting much better values. It needs to be noted that there is intensive price discounting happening within certain retail and wholesale programmes in sizes smaller than 30’s.
Additionally we are in a very satisfactory situation in respect to date-age of current stock. This is a critical aspect in maintaining firm values. Nothing will move the market down faster than the entry of aged stock. This will remain very important going forward to ensure consumer repurchase confidence is maintained.
The most significant risk to pricing stability is the potential for ill-disciplined supply of the un-forecasted volume. The risk is that surplus-to-export product could be delivered into the domestic market in such volumes that values across the sector are diminished. Given the decreased values for some lines being offered currently, the threat is real. Therefore the positive comments around being notified of additional volumes might be outweighed by any uncontrolled supply – something we have witnessed in previous years when oversupply has occurred.
Growers supplying Zeafruit are urged to ensure that packing dates are arranged. If harvesting continues at current levels or increase in a planned manner we remain optimistic that grower returns can be maintained.
If the situation changes we will advise accordingly.
As previously advised Rick Hannay will retire officially from his daily work duties this Thursday – 25th February.
Rick has been a huge part of the Zeafruit avocado development since he joined us in 2012, in fact I would go further to say he has been the main reason why our business has been successful in this sector. His unwavering approach has always been that growers must be looked after, they should be paid what they are expecting to be paid and that updates are given, whether it is good or bad news.
Within our business Rick has been a mentor and a fantastic sounding board given his experience and all of us will remember his enthusiasm and work ethic which is second to nobody.
He will be a big loss to our business, we wish him and Ngaire all the best for a long and enjoyable retirement.
Many of you will get to say goodbye in person when Rick introduces you all to our new Avocado Manager, Steven Merriman in March. Rick will spend eight days inducting Steven into our business and showing him the big shoes to fill. This will happen between the 8th and 17th of March.
$25 – $27 CSD
$29 – $32 CSD
$25 – $27 CSD
S24 – $26 CSD
$16 – $19 CSD
Glen and team.