Normally as we head into the season we focus on the previous year and what improvements we have implemented for the season ahead. But the start of this harvest has presented us with a whole new environment to operate in.
We are extremely fortunate to be operating as an essential service during Covid-19 restrictions. This has presented a unique set of challenges for all industry participants. It is pleasing to see how quickly everyone – from the harvest teams through to the packhouse operations and growers – have responded and made necessary changes. Covid-19, combined with the Eurofins challenges at the start of the season, will certainly make this a harvest like no other. It is reassuring that we produce a healthy food that enjoys strong worldwide demand. This has been reinforced in the current uncertain environment with Zespri confirming demand for our fruit is still strong around the globe.
Looking back at 2019, we are pleased to see that the work put in to understanding harvest maturity decisions and the relationship with average % brix when fully ripe, proved successful. This allowed us to develop a far better approach to fruit inventory management. While this at times was difficult for growers and harvest contractors in terms of managing harvest, it ultimately resulted in a stunning result for growers.
For us to manage increasing G3 supply, we will continue to develop our bin storage programme. Changes we made to the tenting system last season improved outcomes, and for 2020 we plan to put more fruit into bin store as we move through the peak G3 harvest weeks.
Last year’s G3 license release was well over-subscribed and it does appear that industry participants remain keen to bid for license.
This year’s bidding process will be interesting as the market prices itself for those that missed out in the last round. The decision by Zespri to commercialise a red variety has been well received. Anyone interested in bidding for license is advised to review the commercial terms carefully.
A large amount of work has been put in to understanding labour requirements for the future, and we are pleased to see the industry is getting support from the Government by increasing RSE numbers. Whilst this season is presenting challenges around sourcing labour, with a large contingent of RSEs not being able to enter the country, there appears to be enough interest from New Zealanders to fill the gaps in the short term.
Packing rates for this year reflect increasing labour rates, and for G3 we are recognising the increased costs around innovation and investment to meet the demands of growing volume within the peak harvest window. We believe this pricing is reflective of the market. Please be assured that at all times we continue to focus on maximising the OGR back to you to offset the rising growing costs.
Thank you so much for entrusting Trevelyan’s with your fruit. If there is anything you would like to discuss or need clarified in this packing agreement, please call either of us. Best wishes for the harvest and take care of yourself and your families.
0276 488 878
0275 177 999
2019 Performance Results
2019 OGR forecast
2019 fruit loss
2019 Class 1 trays
EXCL NON STANDARD SUPPLY
2020 Class 1 trays
2020 Packing Terms
Please expand below to read the packing terms for 2020
Growers Will Receive
- A Packing Agreement with Trevelyan’s Pack and Cool Ltd (this document) and
- A 2020 Trevelyan Growers Ltd Agreement. This will be sent once the Zespri Supply Agreement is completed.
Growers will need to sign and comply with these agreements and return them to Trevelyan’s Pack and Cool Ltd.
- Fruit and Service payments will be from Zespri to Trevelyan Growers Ltd to the grower.
- Payment of each grower’s liability for packing, transport, cool storage, administration and all other agreed services of Trevelyan Growers Ltd will be made direct from Trevelyan Growers Ltd to Trevelyan’s Pack and Cool Ltd, from grower returns received from Zespri.
- Payment of each grower’s liability for logistics will be made direct from Trevelyan Growers Ltd from grower returns received from Zespri.
Packing Charges Class 1
Packing charges will be calculated by maturity area. Class 2 Green and Gold trays are not included in the reject charge.
|Base Rate 2020 @ 0% rejects||$1.33||$1.40||$2.15||$2.15|
|% REJECTS||CENTS PER %|
|0% to 5%||$0.01|
|5.1% to 10%||$0.02|
The picking system is to be controlled by Trevelyan’s Pack and Cool Ltd. Fruit is to be harvested after a clearance to pick is given by Trevelyan’s Pack and Cool Ltd. Trevelyan’s Pack and Cool Ltd will schedule the time of picking by mutual agreement with the grower. Packing of your kiwifruit will be at Trevelyan’s Pack and Cool Ltd’s absolute discretion. Timing may change due to weather or other factors.
Trevelyan’s Pack and Cool Ltd is not liable in the event your kiwifruit is damaged as a result of hail, frost, wind, disease or any other event prior to picking or packing.
Where Trevelyan’s arranges the picking contractor, the cost of picking is the grower’s responsibility and will be invoiced by Trevelyan’s to the grower (see chart 1).
A gate fee may be invoiced to the grower depending on orchard location, size of maturity area picked and the need to return to complete the harvest. To move machinery within the area from Matapihi to Otamarakau, the recommended fee is $150.00. Outside this area a gate fee may need to be negotiated with the harvest contractor.
Green and Gold Picking Bonus
The picking bonus for all varieties has been determined by Trevelyan Growers Ltd. This will be detailed in the 2020 Trevelyan Growers Ltd Agreement. The bonus is paid on achieving field audit criteria. Hayward bonus is $3.00/bin. G3 and G14 bonus is $4.00/bin.
G3 Low Explosive Fruit Incentive
This is an incentive for growers and picking contractors to provide G3 fruit to the packhouse that does not contain significant levels of explosive fruit. When the average explosive fruit per bin is less than 0.5 for the packrun an incentive will be paid of $0.08 per submitted Class 1 Standard Supply tray. This will be split evenly between the grower and picking contractor.
All harvest contractors must be Zespri registered.
|CHART 1: RECOMMENDED PICKING RATES|
|HAYWARD PICKING RATES||PERGOLA|
|Full Contract (Labour and all Machinery)||$38.95/bin|
|G3 AND G14||MACHINERY||LABOUR|
|Hourly Rate – Labour||$31.75/hour|
|Forklift + Driver||$1.75/bin +||$31.75/hour|
|Tractor and Trailer + Driver||$125.00/full day +|
$80.00/half day +
Contractors may negotiate a contract bin picking rate for G3 with growers if both parties are in agreement and Trevelyan’s has been duly notified. Trevelyan’s picking quality standards must be adhered to.
|CHART 2: TRANSPORT CHARGES|
|Te Puke Area (Matapihi to Otamarakau)||$6.20/bin|
|Te Puke – No 1 Road||$5.65/bin|
|Other Areas||as charged|
Bin cards will be pre-printed with grower number, variety, growing method and maturity area. Please take care to fill in the bin cards clearly and correctly with a permanent marker pen including:
- the pick date
- the block name
Transport of bins to and from the orchard will be a cost to the grower and is not included in the base packing rate (see chart 2).
Payment of all transport charges will be made to Trevelyan’s Pack and Cool Ltd by Trevelyan Growers Ltd on behalf of the grower.
KiwiStart will be:
- Growers with KiwiStart trays packed under FPP receive their KiwiStart payment directly.
- FPP for Gold3 is the period until the FPP demand cap closed 17 March
- For Hayward, trays will be paid as if they were FPP until TPCL are no longer able to clearly determine which grower should receive the payment i.e. until there are more clearances on a day than TGL has allocation to pack.
- All KiwiStart trays (for Gold3 and Hayward) packed after the time when TPCL are no longer able to clearly determine which grower should receive the payment will have their KiwiStart returns pooled – please refer to the TGL letter sent to all growers on 28 March for more information.
- Any equity issues will be resolved by Trevelyan Growers Ltd.
On receipt of fruit at the packhouse, Trevelyan’s Pack and Cool Ltd will at its discretion:
- cure fruit in bins before packing or
- store fruit in bins in a conventional buffer coolstore
Trevelyan’s Pack and Cool Ltd will:
- Provide skilled and capable staff in the packhouse.
- Pack fruit to the Zespri grade standard.
- Provide packout documentation to growers as soon as possible after packing. This report will reconcile Class 1, Class 2 and reject fruit to the total kilograms of fruit submitted.
- Pack fruit held in buffer storage as soon as possible at the completion of the harvest period.
- Be BRC compliant.
- Pack Class 2 fruit at the packhouse’s discretion.
- When packing fruit, comply with all relevant NZ laws, codes and standards.
Hayward/G14 reject rates are defined as:
|Fruit other than Class 1, size 18 to 42 count and Class 2 (kg)|
|Divided by total fruit handled (kg)|
G3 reject rates are defined as:
|Fruit other than:|
|Divided by total fruit handled (kg)|
Where the reject surcharge applies, it applies to all Class 1 trays packed. Eg: A Hayward crop with 12% rejects will be charged:
|Surcharge 0% to 5%||$0.05|
|Surcharge 5.1% to 10%||$0.10|
Reject surcharges will be charged at maturity level.
Pricing for packing is set on the charge for a base pack per variety. The pack category differential as specified in the 2020 Zespri Supply Agreement will be added to the base rate. This equalises the costs of packing different pack types. The cost of the differential charge is funded by Zespri payments.
|Base rate – $2.04 per tray equivalent plus differential|
|Base rate – $3.28 per tray equivalent plus differential|
The Class 2 rate is a fixed rate with no reject surcharge added. Packaging differential, if any, will be added.
Zespri GAP Compliance
All growers must have a ZIL grower number and comply with ZIL standards. All growers must be GAP compliant at all times and agree to comply with the GAP PMO documented procedures, policies and, where provided, technical advice.
If a grower becomes non-compliant they will go through the grower sanction process as set out by the Zespri GAP PMO quality system. The sanction procedure documentation must be filed in grower’s individual GAP folders for reference if required.
If any crops have an attribute that requires the packhouse to operate at a significantly slower than normal rate the grower will be contacted and an hourly rate may be charged to cover Trevelyan’s Pack and Cool Ltd’s costs.
Trevelyan’s Pack and Cool Ltd retains the right to refuse to pack a particular line of fruit.
Fruit Loss Packaging
All reusable packaging arising out of fruit loss will be purchased by Trevelyan’s Pack and Cool Ltd, at its discretion, at 75% of the new season price. Payment will be made to Trevelyan Growers Ltd.
The majority of clearance testing will be processed by the Trevelyan’s Pack and Cool laboratory. Eurofins had to stop testing due to significant operational issues and their inability to meet the essential business standards required for managing Covid-19. At this stage, we are unsure if charges will be applied. If so, they will be at cost and payment will be made by Trevelyan Growers Ltd on behalf of the grower and subsequently deducted from grower returns.
Payment of packing charges pursuant to this Packing Agreement will be made direct from Trevelyan Growers Ltd to Trevelyan’s Pack and Cool Ltd from returns received from Zespri which are payable to the grower.
The grower irrevocably authorises and directs Trevelyan Growers Ltd to pay Trevelyan’s Pack and Cool Ltd for all packing charges payable by the grower.
All prices quoted in this packing agreement are GST exclusive. GST will be added to all payments when made.
The responsibility for payments rests with Trevelyan Growers Ltd.
As a guide, the advance payments to growers from Trevelyan Growers Ltd will be:
- $0.50/tray equivalent within 21 days of submit.
- Payments for picking, transport, packing, cool storage and logistics are required to be paid before further payments are made to the grower. Trevelyan’s Pack and Cool Ltd may, at its discretion, defer some of these payments to provide cashflow to the grower. Further payments to growers will follow progress payments or as funds are received from Zespri.
Trevelyan’s prides itself on transparency and open communication with all its growers. Our intention is to continue providing orchard reports to give growers an objective view. We hope this level of service is beneficial to you.
Trevelyan’s Pack and Cool Ltd will not be liable for:
- Any loss of, or damage to, the grower’s fruit, except liability caused by any negligent act or omission by Trevelyan’s Pack and Cool Ltd.
- Failure to make fruit available for supply at any particular time or period except where Trevelyan’s Pack & Cool Ltd is proven to have been negligent.
- Breach of or failure to perform any of its obligations under this agreement, where such breach or failure is the result of a cause or causes beyond Trevelyan’s Pack and Cool Ltd’s reasonable control.
- Trevelyan’s Pack and Cool Ltd will ensure its personnel take all reasonable care when visiting a grower’s orchard and when handling grower’s fruit to minimise the risk of Psa spreading. Where all reasonable care has been taken, Trevelyan’s Pack and Cool Ltd, its agents and employees, will not be liable for any loss or damage suffered or incurred by a grower where such loss or damage is attributable to Psa.
- Covid-19: The Operator will exercise reasonable care and use all reasonable endeavours to mitigate the effect of the Covid-19 pandemic on its ability to provide services pursuant to this Agreement. Where all reasonable endeavours are taken, in the event the Operator incurs significant unforeseen costs as a direct result of Covid-19 the parties agree to meet and in good faith seek to agree on a plan to reimburse the Operator for such costs incurred in relation to the performance of services under this Agreement.
Terms defined or used in the 2020 Zespri Supply Agreement have the same meaning in this agreement. The 2020 Zespri Supply Agreement will be available for viewing at Trevelyan’s Pack and Cool Ltd or Zespri’s website canopy.zespri.com once completed.
Zespri Exclusive Supplier
The grower agrees they will supply all of the grower’s Class 1 kiwifruit, other than Class 1 kiwifruit sold in New Zealand, or exported from New Zealand for consumption in Australia, exclusively to Zespri Group Limited in 2020, as required by the 2020 Zespri Supply Agreement and the Enduring Funding Agreement. Trevelyan’s Pack and Cool Ltd agrees with the grower that it will not knowingly contract with any other grower that does not supply all of their Class 1 kiwifruit, other than Class 1 kiwifruit sold in New Zealand, or exported from New Zealand for consumption in Australia, exclusively to Zespri Group Limited in 2020, as required by the 2020 Zespri Supply Agreement.
Any disputes will be dealt with in the manner prescribed by the 2020 Trevelyan Growers Ltd Agreement for that type of dispute.
Please sign and return the Trevelyan’s Packing Agreement commitment form as soon as possible. If you’re not able to do this, please email your grower representative stating you consent to the terms of this Packing Agreement.
Trevelyan’s understands the 2020 harvest is far from normal due to Covid-19. Please be assured we intend to do an excellent job of packing your fruit. This year we can’t say ‘our doors are always open’ but we are only a phone call or email away.
We welcome your feedback and questions, and want to support you in any way we can through harvest.
2020 Industry Structure
Contracts and Parties
- THE PACKING AGREEMENT
Grower and Trevelyan’s Pack and Cool Ltd.
- 2020 TREVELYAN GROWERS LTD AGREEMENT
Grower and Trevelyan Growers Ltd. The grower has an agreement with Trevelyan Growers Ltd. Trevelyan Growers Ltd will act as an agent for the grower and will be governed by elected grower members each year. Trevelyan’s Pack and Cool Ltd will manage Trevelyan Growers Ltd on a day-to-day basis.
- 2020 COOL STORAGE AGREEMENT
Trevelyan Growers Ltd and Trevelyan’s Pack and Cool Ltd.
- 2020 ZESPRI SUPPLY AGREEMENT
Trevelyan Growers Ltd and Zespri. (Option A)
Trevelyan Growers Ltd (TGL)
Trevelyan Growers Ltd (TGL) is the grower supply entity which receives all growers’ funds and is governed by elected grower members each year. TGL is the registered supplier to Zespri® in the supply agreement. TGL is administered by Trevelyan’s Pack and Cool Ltd.
Grower/Chairman: Colin Olesen. Trevelyan’s Pack and Cool Ltd: Stephen Butler, Alister Hawkey and James Trevelyan. Growers: Simon Cook, Murray Cresswell, Kyle Howie, Mat Johnston, Terry Newlands, Jeff Roderick, Stacey Beer, Kaspar Beech – Associate Director and Steven Wright. Absent: Steven Wright and Murray Cresswell.