Very hard to say as noone seems to know exactly what the problem is. The fungus issue is well understood and is already in China, so it isn´t a biosecurity or health issue.
Is it China sending a warning about the rumoured inquiry into cheap steel from China ? Could it possibly be China showing us how much the dislike the monopoly that is Zespri ?
Too many unknowns to make an educated guess.
Seeka´s fruit and exports have so far not be affected by this issue.
SCL has in its favour the major shareholding of v. large China Resources. China will not want to bite its own nose off. I wonder if Seeka may end up with a similar major Chinese holder soon to smooth things over?
anyway the shipment delay means kiwifruit will go into storage means a oversupply of stock for next season if they cant sell it into other markets or a dumping of stock either way lower returns coming.
also zespri sell of more licences mean more supply also coming in a couple seasons but they havnt found new markets for all the extra volume so returns may be lower going forward
Not much mention in the media of the fact that Kiwifruit exports to China have started again. A lot more inspection required and a lot of repacking so more cost but fruit exports underway again, which is great to see
More repacking and some extra storage time may not necessarily be too bad financially for SEK !!
Reply With Quote
Originally Posted by LAC
Bookmarks