25 June 2011 - A match made in avocado heaven

A successful 23-year relationship between Bay of Plenty kiwifruit and avocado post-harvest operator, Apata Limited, and Auckland-based produce marketers, Primor Produce Limited, just got stronger as two of the largest players in the avocado industry join forces.

Apata Chief Executive Officer, Steve Low, is pleased to announce Apata has purchased a cornerstone share in Primor, a decision certain to influence the avocado scene.

“We now have complete integration between post-harvest and marketing services. Many years ago our focus was on kiwifruit and our avocado business developed because the avocado peak-season occurs during our kiwifruit off-season.

“But it was our strong personal connection and inherently successful business partnership with Primor that really helped get us to the next level and become the size we are today,” says Mr Low.

Mr Low says the decision to invest was not made overnight but was carefully negotiated over a period of six months.

“Strategically, we focus on providing a premium service to growers.  So, over the past few years we ensured continual reevaluation and improvement to our harvesting logistics, and post harvest packing supply chain, while investing a sizeable amount of capital into those systems.”

But Mr Low says what became increasingly apparent and imperative during the last few seasons is that Apata needed to have a stronger strategic focus to encourage more growth.

“Our principles in considering how to foster and grow our avocado business were based on taking the years of success we’ve experienced and figuring out what we needed to do from an orchard, post-harvest perspective to ensure optimisation of our services.

The way forward for Apata, Mr Low says, was to invest in Primor.  “The company is an extremely efficient and high performing market business and has a well developed network into key Australian and Asian markets, in addition to the New Zealand domestic market. It means we can share even more of our successes with each other.”

According to Mr Low, Apata will gain a deeper understanding of marketing strategies while becoming more visible.

According to Mr Low, Apata will gain a deeper understanding of marketing strategies while becoming more visible.

“While we are the largest post-harvest avocado provider, we will not lose sight of what is really important, which is our growers.  We will work closely with growers to target certain markets.  In essence, we will send their fruit at just the right time and to the best location, resulting in optimum returns to the grower’s pocket,” he says.

As far as professional marketers go, Mr Low says Primor are very connected with growers unlike some marketers that sit in an office and work from their desk.  “We won’t need to introduce Primor employees to growers because they already know them.  I expect this to be a very natural progression for everyone.”

John Carroll, Primor director and also a director of the Avocado Industry Council, says he was impressed even as a young man, by the way Apata operated.

“Back in the 1980s when I worked in Te Puke I visited packhouses in the Bay of Plenty area as part of my job.  Myself and my colleagues found Apata staff to be uncomplicated yet professional and held a balanced view of their importance.  They are still like that today.  They do things accurately with a good attitude and not everyone is made that way,” he says.

Mr Carroll says Apata were not the first to hold discussions with Primor regarding a financial partnership over the years.

“The fact that we have agreed to sell 33 percent of our shares says a lot about how much we value doing business with Apata and is a huge credit to them.

“No one had to do this.  Neither company is under financial stress.  This is a simple evolution of what has already been a successful, positive and simple relationship.  This is us saying it is appropriate to continue doing business together while embracing opportunities we can both benefit from.  Now feels the right time to change the shape of it,” says Mr Carroll.

He also says the New Zealand avocado industry needs allegiances and stronger, seamless supply chains to help increase export.

“We handle over 30 percent of our national avocado crop which is mostly packed at Apata.  Our focus has been on the Australian market where we do substantial business with Coles Supermarkets.  The beauty of supplying to Australia is that it is a high value market on a world scale, right on New Zealand’s doorstep.

“Because Australia is close, the fruit doesn’t have to travel far, and our natural supply window into that market is right in the peak of their consumption time, which is their summer.  And just like other parts of the world, the Australian avocado market has continued to grow.  It’s been a real success story particularly in the past 10 to 15 years.  There are always new consumers coming into the market and existing consumers are finding more and more ways to use avocados,” says Mr Carroll.

But he says New Zealand can be a significant international player in our own right. 

“Apata buying into us not only gives us a degree of security, but it achieves the same for customers and growers.  We are positioned to deliver the best product, information and supply possible to a wide range of world markets.

During a time of financial uncertainty for many companies Apata is moving ahead.  Apata’s significant investment in Primor closely follows another recent announcement whereby Apata purchased 50 percent of Te Puke-based orchard management services company, Oropi Management Services.

9 June 2011 - Apata teams up with OMS

Kiwifruit and avocado post-harvest operator, Apata Limited, is pleased to announce its new business commitment with kiwifruit orchard management providers, Oropi Management Services (OMS).

Steve Low, Apata CEO, says the opportunity this new partnership presents to growers is extremely beneficial.

“In bringing the strengths of Apata and OMS together, we will be able to offer growers more options. In fact, growers will be able to access a wrap-around service.  OMS is experienced in orchard leasing and management of organic and conventional kiwifruit, which complements our post harvest services,” he says.

Mr Low says both companies are well-established and the decision to invest in 50 percent of OMS stems from a recent strategic review that identifies the need for Apata to develop capability in this area.

“OMS has similar industry values to the way Apata operates.  Both companies believe in providing growers with a premium service, which results in excellent returns for growers,” says Mr Low.

Former Zespri chairman and OMS director, Doug Voss, says the new partnership creates a win-win situation.

“I feel absolutely positive about this new partnership.  It gives Apata the capability of having an orchard management service while helping OMS grow into a bigger, stronger organisation.  Together, we can provide a whole new range of services to growers.

According to Mr Voss, OMS is already a significant orchard management and contracting company in the Bay of Plenty, and the synergy with Apata will ensure future growth.

“We definitely share common values and beliefs with Apata and have known each other for a long time, which makes for a natural, easy, partnership.  We operate our services in similar ways, like employing very experienced staff and implementing effective operational systems,” says Mr Voss.

In addition, OMS is BioGro-certified for organic kiwifruit, but Mr Voss says they offer total management services for both organic and conventional kiwifruit.

“The high level of expertise between our companies means we can put our heads together and look after everything a grower needs.   For example, we can provide turn-key orchard management for growers, or we can modify a plan for a grower who might want to do the work themselves.  Apata can become part of our management plan to include picking, packing, storing, and exporting grower fruit.

“OMS also offers a comprehensive spray programme including fertiliser application,” says Mr Voss.

20 May 2011 - Apata poised for bumper avocado crop

An estimated 5.7 million trays of avocado are ready to be picked and New Zealand’s largest avocado post harvest operator, Apata Limited, is well equipped to handle it.

Steve Low, Apata CEO, says he is excited about this year’s harvest and that the business is geared up to handle the logistics without compromising fruit quality.

“Apata offers the best harvesting operating systems and technology in the country to manage avocados.  This is coupled with a deep understanding of our growers, a robust marketing programme, and our accuracy in determining when fruit is mature and ready for picking is spot on.

“We believe every piece of fruit has value and we have invested in the resources to ensure we cover that,” says Mr Low.

For example, Apata’s Turntable Road packhouse uses the latest equipment installed for avocado operations include multi-million dollar presorter technology, namely, the Invision Optical Grader.

“The optical grader takes up to 25 digital photographs of each avocado to assess its quality and then the fruit is weighed by the presizer machine.  This works in tandem with our grading and quality team, and based on the combined assessment, the fruit is separated into the appropriate class on line in one operation.  We are then able to target a customer or market specific grade standard and can genuinely provide a higher export fruit recovery,” says Mr Low.

Apata services all avocado regions in New Zealand and this season will have approximately 50 hydraladas for picking and a fleet of trucks and tractors available.

“Our sites located in Turntable Road and Whangarei are well resourced.  It is rare for 50 hydraladas to be managed by one post harvest operator,” says Mr Low.  “And our ability to work closely with our growers over harvest creates a very strong partnership.” 

Apata is also very committed to the ongoing support of the avocado industry structure.

“We have a leadership role in industry compliance and are New Zealand GAP accredited.  For example, water blasters are mandatory but not every facility has one, or they don’t use them correctly, which may lead to an inferior product.   We also continually adopt our manufacturing processes to lift our efficiency and effectiveness through our ongoing commitment to the LEAN programme,” says Mr Low.

Apata’s partnership with Primor Produce provides strong connections to Australia and its retail markets, which will be vital this season, to optimise returns to growers.

12 April 2010 - Integrated Avocado Partnership Delivers Outstanding Results and Increases Export Share

The integrated orchard to customer supply and delivery system operated by leading post harvest service provider Apata and marketing exporter Primor has delivered another outstanding seasonal result for its Northland and Bay of Plenty avocado growers.

“Our partnership connects postharvest and marketing expertise and works to support growers get the most from their crop.  We have an unmatched, seamless orchard to customer chain tuned to deliver what the market needs when it needs it and that focus and responsiveness generates best net Orchard Gate Returns,” said Apata CEO, Todd Muller. 

Primor Produce Director, John Carroll said the integrated system the partners operate has proven its value year after year to grower suppliers and customers.

“We have a creditable record, returning consistently superior financial returns to growers for the past five to six years and we’ve retained customer loyalty by always ensuring they have the supply they need regardless of some pretty testing trading conditions.”

Primor became the biggest avocado exporter with 34 per cent of the export crop, equivalent to 760,000 trays, in 2009-10. Importantly, Primor contributed 46 per cent of the total volume NZ sent to the softer yet strategic markets of Japan and the USA. The bulk of the remainder was exported to the well established Australian customer base.

"With the final March 31 payment to growers, the partnership achieved average net orchard gate returns of an impressive $20.80 across all sizes. As other exporters look to finalise their seasonal pools, it will become clear just how strong these returns are,” Mr Carroll said.

He attributed good planning, growers’ commitment to quality, consistent supply throughout the season, individualised marketing, relationship management, attention to detail and preparedness to invest in nurturing markets as key contributors to the very strong results and for attracting a larger share of the export crop.

"Our long held vision is to continually strengthen our supply and marketing chain to provide truly excellent quality and value adding services to suppliers and customers and that also promote export growth for the New Zealand industry.  We've got the expertise, capacity and investment onshore and in the marketplace to handle bigger volumes and optimise the returns. It’s been a bonus to have come this far in growing exports for good returns, but the real value will be realised when we hit the large volumes our industry is surely capable of producing." 

Todd Muller said that Apata had a very competitive and attractive offer for growers in 2010-11, and also made it really easy to switch over. 

“Our results are standouts not just financially and operationally over one season but we can show there is lasting value in building a sustainable and profitable export industry for the long term,” Mr Muller said.  “Our growers tell us they like the way we work together from orchard through to market and see the value we return from this co-ordinated approach.”

19 November 2008 - Apata Pioneer Passes Away

The Apata Board, Executive and employees are shocked and saddened today at the news of the passing of kiwifruit grower Brian Earp. Our thoughts and condolences are with Brian’s family at this sad time.

Brian Earp was one of the founders of Apata in 1983, and was the inaugural Chairman. Brian served 17 years on the Board, and was the force behind building Apata into what it is today.

Apata Chairman Dave Goodwin has praised Brian’s massive contribution to the New Zealand Kiwifruit Industry.

“Brian has always been a passionate supporter of our industry and its focus on quality – driving the standards of growing, harvesting and packing of kiwifruit upwards,” said Dave.

“He has made a massive contribution to both our company and the New Zealand kiwifruit industry – he is one of our true pioneers.”

Apata CEO Todd Muller has paid tribute to Brian’s tenacious focus on quality and excellence.

“Brian’s values and commitment to excellence is the cornerstone of our company’s vision and goals today,” said Todd.

“It is because of Brian that we are where we are today as a company – and we are very proud of that fact.”   

Brian is the son of kiwifruit pioneers Roly and Irene Earp. Roly was the first Chairman of the New Zealand Kiwifruit Authority, serving as Chairman from 1978 – 1984. The Earp family has been instrumental in building New Zealand kiwifruit into a billion dollar export industry.

4 September 2008 - Apata AGM Focused on Operational Excellence

At Apata’s Annual General Meeting, held in Tauranga yesterday, Chairman Dave Goodwin highlighted Apata’s outstanding operational performance and best ever profitability result for 2007/08.

With a 27% increase in kiwifruit volume, 40% increase in avocado export volume, positive orchard gate returns and fruit loss well under the industry average, Apata’s full year results signal a focus on delivering powerful results for Apata growers, while much of the industry turns inwards and slows, waiting for signs of recovery.

“Apata’s reputation for operational excellence is achieved by focusing on delivering powerful results in inventory management, quality delivery to market and healthy grower returns,” said Mr Goodwin. 

“The strong financial results presented here are especially satisfying when we consider the significant structural changes the Company has been undertaking.”

Chief Executive Todd Muller updated shareholders on Apata’s comprehensive strategic review, which was implemented in 2007.

“Board and senior management have forged ahead with organisational, structural and performance-related initiatives, which has focused on investment in people and systems,” said Mr Muller.

“This has resulted in a strong operational performance for 2007/08, from which we will build to achieve tomorrow’s business reality. Our industry will be market led, our supply chain will consolidate, and Apata will be one of the leaders of New Zealand’s kiwifruit and avocado industries by maintaining our quality service delivery platform, with a focus on growing a business that delivers real value to growers and marketers,” said Mr Muller.

Mr Muller presented Apata’s targeted growth plans to shareholders, which includes continuing 10% compound growth each year and capital expenditure on coolstores, canopy space and equipment at Apata’s Turntable road site.

Kiwifruit Highlights for 2007/08

- 27% increase in volume compared to 2006/07
- Excellent fruit loss performance in kiwifruit, well under the industry average: 2.11% for Gold, 4.45% for Green and 0.92% for Organic
- Positive orchard gate returns of $4.34 for Gold, $3.24 for Green and $5.20 for Organic
- 50% supply of national Organic crop
- High ‘taste’ profiles, demonstrating Apata growers’ commitment to delivering quality fruit to the markets 

Avocado Highlights for 2007/08
- Increase of 40% export volume compared to the industry average of 10%
- Market share of 25%, a 4% increase on 2006/07
- Industry best orchard gate returns for avocados

Supported by 232 growers and 274 shareholders, Apata Limited is one of New Zealand’s leading kiwifruit and avocado suppliers. During 2007/08 Apata supplied 7.2 million trays of class 1 kiwifruit to ZESPRI International Ltd, and 1.3 million trays of avocados (25% market share) through its exclusive relationship with marketing partner Primor.

30 July 2008 - Record Net Profit a Result of Strong Volume Growth and Productivity

Apata Limited today announced a record net profit (before rebates and tax) of $2,622,529 for the year ended 31 March 2008, a 6 percent increase on 2006/07.

Fully shared growers will receive a gross return of 46.66 cents per share including rebate of 5 cents per tray, providing an investment yield of 22.8%. The positive results are a reflection of Apata’s reputation for operational excellence, focused on delivering powerful results in inventory management, quality delivery to market and healthy grower returns.

Kiwifruit Highlights for 2007/08

- 27% increase in volume compared to 2006/07
- Excellent fruit loss performance in kiwifruit, well under the industry average: 2.11% for Gold, 4.45% for Green and 0.92% for Organic
- Positive orchard gate returns of $4.34 for Gold, $3.24 for Green and $5.20 for Organic
- 50% supply of national Organic crop
- High ‘taste’ profiles, demonstrating Apata growers’ commitment to delivering quality fruit to the markets 

Avocado Highlights for 2007/08
- Increase of 40% export volume compared to the industry average of 10%
- Market share of 25%, a 4% increase on 2006/07
- Industry best orchard gate returns for avocados

Chairman Dave Goodwin credits Apata’s people and processes, and in particular its growers and shareholders, for its strong performance in 2007/08.

“While much of the industry turns inwards and slows, waiting for signs of recovery, Apata holds the strong view that its future success is reliant on forward-planning, investment and innovation,” said Mr Goodwin. 

Apata’s forward-planning started with the company-wide strategic review that CEO Todd Muller implemented during 2007. The strategic review assessed all aspects of the Company’s functions, resulting in clarity of vision and a clear path forward.

The appointment of former ZESPRI CEO Tony Marks to the Apata Board of Directors is a key investment in the critical governance and management skills the Apata Board knows are vital to drive Apata’s planned positive growth. Apata Limited is one of New Zealand’s leading kiwifruit and avocado suppliers.

During 2007/08 Apata supplied 7.2 million trays of class 1 kiwifruit to ZESPRI International Ltd, and 1.3 million trays of avocados (25% market share) through its exclusive relationship with marketing partner Primor. 

Apata’s Annual General Meeting will be held on Wednesday 3 September at Fahy’s Motor Inn Greerton, starting at 2.30pm.