Kiwifruit merger vote

The amalgamation is an effort by the post-harvest operators to help the kiwifruit industry survive and grow despite the devastating effects of Psa, which is now impacting the entire industry.

Chief executive of HortNZ Peter Silcock believes the amalgamation of Seeka and Satara highlights the ability of New Zealand's horticultural industry to adapt, change and position itself for the future.

"Psa is impacting on the entire kiwifruit industry and the amalgamation of these two post-harvest entities is just part of the wider restructuring the industry is facing. It is critical that the industry makes these changes quickly and retains the capacity and expertise that it needs for the future."

Seeka chief executive Michael Franks describes it is a "positive" deal that will allow the two companies to concentrate on fruit volumes in the face of a severe crop reduction due to Psa and combine their most efficient pack houses.

"The post-harvest sector is currently quite fragmented and whether further consolidation of the industry is needed is hard to say.

"Crops have been significantly affected and some orchards have now been removed.

"This impacts on the whole community, because it is not just the growers being affected. But also those who work for them, the businesses in local towns that provide services to them and that rely on their custom – it really affects the local economy."

Satara chairman Hendrik Pieters says the impact of Psa disease on crop volumes is very difficult to gauge.

"Currently we are down about 10% on our gold crop and that figure is climbing as is the level of Psa in our green orchards. It's difficult to have an answer, there are a lot of decisions to be made about what to do and those decisions will ultimately come down to the individual growers.

"We've done our numbers and decisions do need to be made as our harvest will be down next year, we will need to show leadership."

Pieters comments echo those of Silcock who sees Psa impacting significantly on kiwifruit next year.

"Psa has had a devastating effect on the kiwifruit industry and amalgamation may be one way more companies will go in the future," he says.