SeekaFresh delivers record returns
New Zealand-based Seeka Kiwifruit Industries Ltd (NZX:SEK) has delivered record returns to growers from its SeekaFresh programs that are primarily into Australia. 
In its latest grower forecast, Seeka said that Class 2 returns per Class 1 tray averaged NZ$0.24 (US$0.19) for conventionally grown Hayward Green and NZ$0.50 (US$0.39) for organic Hayward Green in 2014.
The company said these prices were well up on last year and 'significantly ahead' of industry average forecasts of NZ$0.14 (US$0.11) for conventional and NZ$0.16 (US$0.12) for organic green.
The season also saw record returns for SeekaFresh-marketed avocados and kiwiberries.
"Lean overhead cost structures plus an Australia programme directed at major retailers rather than wholesalers, supported by promotions, planning and quality, have delivered Seeka growers record returns," Seeka chief executive Michael Franks said.
Seeka is New Zealand's biggest kiwifruit grower and a leading post-harvest operator. It has been active in the Australian market for eight years under its SeekaFresh brand and has retailer relationships that have spanned more than two decades.
Due to the comprehensive bilateral trade agreement known as CER and an allowance in the Kiwifruit Regulations, Class 2 kiwifruit can be sold outside the Zespri single point entry system into Australia.
This year Seeka's growers produced 1.2 million trays of conventional Class 2 green, with 800,000 trays directly sold by SeekaFresh into Australia and the balance marketed via Zespri's own Class 2 programme.
The organic category has performed particularly well, with Hayward organic volumes into Australia up more than 400 per cent on 2013, while conventional Class 2 green volumes were up by 60 per cent.
"Seeka growers of both conventional and organics are receiving record returns for Class 2 this year on the back of a successful and growing retail programme into Australia," Seeka's general manager for retail services Ray Hook said.
"The SeekaFresh brand is being recognised as premium in Australia and we're looking to a multi-product strategy to increase our penetration into more major retailers."
Approximately 75 per cent of the company's Australia business goes directly to major supermarkets.
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