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Ebihara-san and Coop Kobe buyer, Yamaguchi-san inspect an organic promotion<br />

Korean Home Shopping Channel encourages sales<br />

volumes are small, the signs are encouraging for further growth in<br />

the New Year.”<br />

HIGH NZ DOLLAR DAMPENS GROWER RETURNS<br />

After reading the positive comments above you may begin to<br />

wonder why the performance is not refl ected in the growers’<br />

bottom line and Tom clearly points the fi nger in one direction, the<br />

exchange rate.<br />

“In 2007 the NZ dollar appreciated 15 per cent against the US and<br />

a whopping 20 per cent against the YEN over the 2006 season. It<br />

makes life very diffi cult when faced with that kind of movement.<br />

<strong>The</strong> organic category lost approximately 80 cents per tray due to<br />

the appreciating New Zealand dollar.”<br />

LOOKING TO THE FUTURE<br />

<strong>The</strong> 2007 season produced a large crop but there is additional<br />

organic volume coming on stream with at least 100 hectares in<br />

conversion to GREEN ORGANIC. Tom acknowledges that ZESPRI<br />

will need to continue to push market growth but he has a very<br />

profound message on how to manage this: “keep it simple”.<br />

“<strong>Organic</strong>s is a premium priced product. Delivering product in full,<br />

on time and specifi cation is even more important for this category.<br />

At the prices we command you cannot cut corners in organics.<br />

Retailers won’t stand for it. <strong>The</strong>y will opt for competitor products<br />

which offer better margins.”<br />

Tom cites robust certifi cation along with growing a good size product<br />

(average 35 or larger) and chasing tast,e as other important<br />

requirements for securing a strong, profi table, organic future.<br />

“Consumers remain nervous about product claims so don’t<br />

underestimate the importance of a water tight and genuine organic<br />

certifi cation system.”<br />

Finally, the organic category must keep an eye on the conversion<br />

product.<br />

“You can’t fl ood the market and expect the same premiums. Go for<br />

gentle growth and keep the market informed. <strong>The</strong> total organic<br />

market is growing, but it’s off a small base, just two per cent of<br />

global market share. <strong>The</strong> number one reason consumers don’t buy<br />

organics is price; we must continue to be realistic and ensure<br />

orderly growth with sensible premiums to match the future<br />

demand.”<br />

TOM’S DEPARTURE<br />

“<strong>Organic</strong>s to me is about people, passion and the product. It’s easy<br />

to enjoy your work when you are surrounded by positive, passionate<br />

people, as I have found both organic growers and customers to<br />

be.”<br />

“<strong>Organic</strong> growers are very keen to progress, trying new things all the<br />

time. I fi nd them very enthusiastic and that just rubs off on your<br />

own mood.”<br />

“Thanks very much to COKA Chairman Jim Matthews, and previous<br />

Chair Leo Whittle, to Tim Oliver and the rest of the COKA Exec and<br />

Advisory Group. <strong>Organic</strong> growers are really fortunate to have such<br />

committed people representing their category. To all of you, thank<br />

you, you have truly made my time at ZESPRI very enjoyable, it has<br />

been a privilege.”<br />

Editor’s note<br />

Tom leaves for pastures new after 16 years with ZESPRI. We wish<br />

him well in his future endeavours. ■<br />

Tom McLaughlin - At the Hamburg wholesale market<br />

NZ KIWIFRUIT JOURNAL JANUARY / FEBRUARY 2008<br />

41

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