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Orchard productivity remains a key driver in orchard profi tability.
Orchard owners on aging T-bar orchards are severely limited in
their ability to achieve rewarding yields. Long-time orchardist Dick
Sayer says while it made good economic sense to convert his T bar
orchard to pergola, he was reluctant to outlay the capital while
margins are so tight.
“I’d often done the fi gures, and it all made sense to upgrade my
orchard. The problem is while margins are low, as a grower you’re
very reluctant to spend so much money on your orchard,” says
Dick.
“I discussed the problem with Seeka’s rep Al Riley, and he suggested
Seeka might be able to initially fund the conversion. As a grower,
that almost sounded to good to be true.”
Seeka undertook a feasibility study looking at the cost versus the
benefi ts of converting the orchard to pergola. They obtained two
quotes for the work, with Dick also obtaining an independent
quote.
“Seeka’s work confi rmed my calculations that the improved
productivity would pay for itself. They then offered to assist funding
the conversion using a deferred payment facility in return for a term
supply commitment.
“We made the decision to proceed with the conversion, and
adjusted our summer prune to ensure there would be enough
wood to span the pergolas once the conversion was complete. As
an early KiwiStart orchard we had the fruit off by 31 March, and the
conversion was well underway by mid April, with work fi nished
before the winter rains set in.
“Canopy coverage is excellent. I’m now able to do a bud count and
I’m expecting a signifi cant lift in yields this season.”
Traditionally Dick’s orchard achieved about 7000 trays a hectare
with good KiwiStart payments contributing to consistently high
orchard gate returns. After the conversion, Dick is forecasting yields
should grow about 20 percent to 8500 trays per hectare, which will
make a signifi cant contribution to the bottom line.
“A higher yield is only one of the benefi ts,” says Dick.
“The old structures were tired and starting to break down. The other
problem was getting labour, particularly pickers to work on T-bars.
2005 was a warm one
Funding Orchard Conversions
Katikati orchardist Dick Sayer inspecting his new pergola system.
During the conversion we also managed to selectively remove
shelter belts. The orchard is currently being re mapped and I expect
canopy hectares which used to stand at 5.6 hectares to almost
reach six hectares.
“The improved yields will more than cover the repayments. The
total cost was $135,000 and with Seeka’s assistance I am able
spread payment over a fi ve year term.
“With the current high interest rates, this facility represents a
considerable investment by Seeka in my orchard. It comes at no
cost, only the obligation to supply Seeka Growers Limited for a set
number of years,” he says.
Seeka’s client relationship manager Al Riley says it’s a win-win
situation for the grower and Seeka.
“Dick gets a signifi cant lift in his yields, which as a Kiwistart grower
will mean a considerable lift in orchard profi tability. Higher yields
also benefi ts Seeka because we will be able to pack more fruit. It
also strengthens that essential relationship between grower and
packhouse. As a packer we realise that helping our growers earn
more makes good business sense,” says Al. ■