Disagree about management, they went on an acquisition spree at the top of the cycle,
abused their RSE workers, upset the government which they rely on to grant RSE worker permits and tried to install complicated sorting machinery in the middle of what is a short packing season while they were extremely short staffed. The Australian and fresh fruits expansions have never produced consistent profit to justify the capital invested.
Part of past years profits came from developing orchards and selling them. A good strategy when times are good but not one that will work as well through the cycle.
The rollup acquisition strategy (Aongatete, Opotiki, Gisborne, Northland etc) seemed like a good idea to me but I can't shake the idea that the sellers knew the industry and their assets better than Seeka and in hindsight obviously got the better end of the deal. Many of this year's problems came from Opotiki and Gisborne, more marginal areas for Kiwifruit as is Northland.
NTA is $6.07 and Seeka are becoming a monopoly in packing which should allow them to create some economies of scale via automation and scale. It is a tough seasonal industry though which relies on plentiful short-term cheap labour to be profitable. Labour NZ has not supplied for a decade or more now. The industry relies on backpackers, RSE workers and various immigration scams.
Freight costs are at least coming down
according to Maersk.
The investment also hinges on the industry as a whole. International competition is increasing with China stealing the root stock and growing it with little sanction from NZ. Plenty of other supplies in the international market at half the price anyway so Zespri relies on its brand, quality, relationships and innovative new species. All of which relies on the quality of the fruit, the industry thus can't afford another year of poor fruit quality.
Having said that unlike all the positive posters I am still holding! :eek2: