Kiwifruit sector's big night out
The turmoil and challenges faced by the kiwifruit industry in the past 30 years were put to one side but not forgotten at a glitzy night for 400 kiwifruit growers and guests in Mt Maunganui recently.
A brand new, premium variety, which for the first time ever will be sold exclusively online at $3.80 each, in a bid to improve returns for growers.
Michael Franks, Seeka CEO, believes it could completely change the industry, likened to the Gold Kiwifruit in the 1990s.
The New Zealand avocado industry is in one of the worst states it’s been in decades. Extreme weather events and new crop production in export markets have lead to a significant reduction in export volumes.
Traditionally, 85% of New Zealand's avocados are exported to Australia, although the Australians have overproduced and saturated not only its own market, but also those in India and Asia, further squeezing New Zealand growers.
Over the last 3 years, domestic retail prices have plummeted by 61%. Avocados that once fetched $3.22 are now selling for a mere $1.25, leaving growers like Peter Guy of Pahoia, forced to sell their Hass for less than what it cost them to produce it.
“For the first time in 20 years we haven't exported. We left our fruit on the trees last year, something that we’ve never done before. Some growers are saying they’re either pulling them out, or going to plant kiwifruit. Luckily we planted some GEM™ trees about 7 years ago, which are now good to go.”
Guy called a meeting with Franks - Seeka owns the licence to the GEM™ in New Zealand. He pleaded with Franks that the traditional supermarket route would not yield the fruitful profits that the growers ever so needed.
“I said if you want to sell the GEM™ in the supermarket, that's not where we're selling ours. We sat
down and I told him I think we should go direct-to-consumer.”
Gracefully, Franks agreed with Guy, and granted exclusive distribution rights to The Avo Tree. A direct-to-consumer Avocado subscription service based in Te Puna, Bay of Plenty. The decision has been welcomed with open arms by Thorley Robbins, director of The Avo Tree.
“It’s just what we need. A decent, premium avocado that is not only a superior product to the Hass in taste, size and reliability. But it’s going to retail at almost 3x the price of the Hass. So the growers can actually make some money off of the fruit that they’ve spent the last 20 years growing,” says Robbins.
In a risky yet necessary move, the direct-to-consumer model has been embraced by Franks.
“I think the GEM™ is going to be huge for the industry. There hasn’t been a big change like this in over 20 years. It could be similar to the Gold [kiwifruit],” says Franks.
The streamlined supply chain of The Avo Tree, allows growers to receive better returns and consumers, much better fruit.
The GEM™ is laden with a host of qualities.
- Approx. 20% larger than the Hass on average.
- Takes longer to brown after cutting open due to a unique enzyme.
- Growers can fit 400 x GEM™ trees per hectare, compared to only 150 x Hass.
- Skin changes colour when ripening like the Hass.
- Taste like the Reed, a premium avocado that sells out at $3.50 each in Feb - May.
- Season: August - October
- Skin is dappled in gold specks.
