EastPack Well Positioned for Continued Growth

EastPack Well Positioned for Continued Growth

Bay of Plenty kiwifruit post harvest operator, EastPack, is seeing the benefits of its ongoing infrastructure improvements, inventory management and packing line automation and roll out of LEAN manufacturing systems lifting quality, productivity and supply chain efficiencies on higher tray volumes.

The integrated company, which operates sites at Edgecumbe, Opotiki and Te Puke, picked packed and shipped to marketer, ZESPRI, 16.2 million trays of Green and Gold kiwifruit seven to 10 days earlier than last year and is poised to grow volumes and capacity another 10 per cent in 2010.

“We are in a good position to push forward with our expansion plans and intend to invest around another $7.5 million in the next year on infrastructure, automation and process improvements spread across all three sites to match larger capacity and quality needs,” said CEO Tony Hawken. “We see quality and profitability as inextricably linked.”

EastPack had a successful and efficient harvest, handling 10 million trays of Class I Green kiwifruit and 6.2 million trays of Class I Gold this season, a total of 500,000 trays more than 2008.

“We are pleased that we can demonstrate that we are continuing to improve our quality of service. Last year we delivered a creditable lift in earnings and profitability to our grower investors and upper quartile orchard gate returns to grower suppliers,” Mr Hawken said.

He said EastPack was also buoyed by ZESPRI indications of very promising 2009 season returns for Gold kiwifruit and fairly solid returns for Green kiwifruit although he acknowledged that some Green growers were under duress with rising costs and the impact of hail damage on their crop.

EastPack intended to provide a forecast to its grower suppliers of indicative 2009 end of season orchard gate returns from July and at the same time would give an updated financial outlook to shareholders.

“I can say that our operating and financial performance is on track at present and we will continue to be investing for growth,” Mr Hawken said.

“Our view is that the kiwifruit post harvest sector seems to be relatively well insulated from the negative impacts of recession and that the New Zealand kiwifruit industry has good prospects for sustainable growth. It has a record of innovation, world leading supply and marketing system and unified, grower-owned structure that works to our advantage in the markets where we have to compete against all other fruit or snacks.”

ENDS

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