As we head into the 2021 harvest, we look back on a year that changed the way we all live and work. It is incredible to think our industry came through 2020 so well, and that we enjoyed a strong selling season and record returns back to growers.
While we continue to operate under an uncertain environment due to COVID-19, we are all better prepared for any potential challenges that are thrown our way.
Taking into account the impact of COVID-19 and the subsequent failure of Eurofins, it is satisfying to see very low fruit loss levels experienced across all pools at Trevelyan’s during 2020. The Eurofins demise demonstrated that the industry required a more robust maturity clearance structure, and with Zespri’s new MCS up and running, it appears this is moving in the right direction. Unsurprisingly, there has been a few bumps in the road at the beginning of the season. But it is a testament to the team at Zespri and the work that has been done in less than 12 months to get this project off the ground.
With the restriction in RSE numbers and the lack of backpackers in the country, we have focused on our labour attraction strategy this year. To date our recruitment programmes targeting New Zealanders have been successful, but there is no hiding from the fact that there are less people available to work in the industry. The move to paying the living wage as the minimum is no doubt drawing staff from other industries. But it is only a matter of time before these other industries make the necessary changes. We will continue to innovate and build a labour force at Trevelyan’s that is fit for the future.
As we roll into a record volume year, we face a headwind of international shipping disruptions and uncertainty around container supply.
Zespri have been proactive in increasing the amount of early charter vessels and taking a level of pressure off container requirements. To that end, we are carefully monitoring our cool storage requirements and have committed to Zespri’s schedule of advanced shipping movement.
We are well-prepared for the G3 buffer store programme this season to guide us through the peak harvest weeks, and have added tents to Sheds 3 and 4 to increase our capacity to label fruit from coolstore. Harvest maturity of main pack and buffer storage product will be a focus for both the grower supply base and the post-harvest team, to ensure we maximise storage performance and results.
Packing and cool storage rates this season reflect the labour market and capital requirements for the business. The aim is to be fair in our pricing and ensure this is competitive against the market. As always, our focus for the business is to produce a result that maximises the OGR back to you.
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.
JAMES TREVELYAN – MANAGING DIRECTOR
STEPHEN BUTLER – GENERAL MANAGER
2020 Performance Results
2021 Packing Terms
Please expand below to read the packing terms for 2021
Growers Will Receive
- A Packing Agreement with Trevelyan’s Pack and Cool Ltd (this document) and
- A 2021 Trevelyan Growers Ltd Agreement.
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 2021 @ 0% rejects||$1.40||$1.47||$2.30||$2.30|
|% REJECTS||CENTS PER %|
|0% to 5%||$0.01|
|5.1% to 10%||$0.02|
Base Cool Storage
Base cool storage will be charged at $0.96 per tray loaded out.
Trevelyan’s Pack and Cool Ltd reserves the right to charge up to $0.10 per tray for any additional market requirements due to COVID-19. This would be negotiated with Trevelyan Growers Ltd.
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 issued 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 the absolute discretion of Trevelyan’s Pack and Cool Ltd. 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).
To move machinery within the area from Matapihi to Otamarakau, the recommended fee is a minimum of $150.00, or $30.00 per machinery unit. Outside this area a gate fee may be negotiated with Trevelyan’s.
Green and Gold Picking Bonus
The picking bonus for all varieties has been determined by Trevelyan Growers Ltd. This will be detailed in the 2021 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.
All harvest contractors must be Zespri registered.
|CHART 1: RECOMMENDED PICKING RATES|
|HAYWARD PICKING RATES||PERGOLA|
|Full Contract (Labour and all Machinery)||$42.20/bin|
|G3 AND G14||MACHINERY||LABOUR|
|Full Contract (Labour and all Machinery)||$52.00/bin||$52.00/bin|
Contractors may negotiate an hourly 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)||$6.40/bin|
|Te Puke – No 1 Road||$5.85/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.
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 details are as follows:
- Harvest order will be based on the day each grower decides they are ready to harvest. Where more growers decide to harvest on a day than there is ability to pack their fruit, then harvest will be based on the clearance time for each of those growers. This is subject to availability and weekly allocation.
- The clearance time comes from the independent labs and is not the time our lab issues a clearance.
- Subject to the terms of the 2021 Zespri Supply Agreement.
- Zespri gives only 24 hours’ notice when closing the KiwiStart demand cap. Therefore, some pooling of KiwiStart returns may be necessary for crops picked for KiwiStart that miss the demand cap cut off. 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 (kgs)|
|Divided by total fruit handled (kgs)|
G3 reject rates are defined as:
Fruit other than:
|Divided by total fruit handled (kgs)|
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 2021 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 packing rate – $2.20 per tray equivalent plus differential|
|Base packing rate – $3.54 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.
In 2021 Near Infra-Red (NIR) grading technology will be available. This technology allows us to extract some value from lines where fruit does not meet the Minimum Taste Standard (MTS). It works by predicting the dry matter of each fruit and segregating the population into high and low groups, to enable the high population to be above the required MTS.
To cover the costs of running the NIR equipment, 7 cents/tray will be charged over and above the base rate for any lines that require NIR grading. To avoid doubt, this extra charge will be applied to all Class 1 trays in the pack-run, not just the sizes that require NIR grading. The reject surcharge for low dry matter fruit will also apply.
Count size 39 SunGold will not be NIR graded.
Where there are more maturity areas requiring NIR grading than capacity to pack them, preference will be given to maturity areas that have potential to recover the largest proportion of their crop estimate.
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.
Independent Laboratory Charges
Growers pay for all clearance samples requested through the independent laboratory.
Samples will be charged at cost and payment for all charges will be made by Trevelyan Growers Ltd on behalf of the grower by way of deduction 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:
- $0.70/tray equivalent within 21 days of submit for HW (except size 42 which remains at $0.50).
- $0.50/tray equivalent within 21 days of submit for G14.
- $0.80/tray equivalent within 21 days of submit for G3.
- 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. Orchard reports are available on the grower portal as packing finishes for each orchard. 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 any biosecurity incursion. 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 any biosecurity incursion.
- COVID-19: Trevelyan’s Pack and Cool Ltd 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 Trevelyan’s Pack and Cool Ltd 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 Trevelyan’s Pack and Cool Ltd for such costs incurred in relation to the performance of services under this Agreement.
Terms defined or used in the 2021 Zespri Supply Agreement have the same meaning in this Agreement.
The 2021 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 2021, as required by the 2021 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 2021, as required by the 2021 Zespri Supply Agreement.
Any disputes will be dealt with in the manner prescribed by the 2021 Trevelyan Growers Ltd Agreement for that type of dispute.
Please scan, 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.
JAMES TREVELYAN – MANAGING DIRECTOR
STEPHEN BUTLER – GENERAL MANAGER
2021 Industry Structure
Contracts and Parties
- THE PACKING AGREEMENT
Grower and Trevelyan’s Pack and Cool Ltd.
- 2021 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.
- 2021 COOL STORAGE AGREEMENT
Trevelyan Growers Ltd and Trevelyan’s Pack and Cool Ltd.
- 2021 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, Steven Wright, Heather Hawkey (Associate Director), and Joga Singh (Associate Director). Absent: Alister Hawkey, Stacey Beer, Joga Singh.