Avocado Packing Agreement Trevelyan s

Transcription

1 Avocado Packing Agreement Trevelyan s

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3 Welcome 3 Performance Highlights 4-5 Our Operations 6-7 Respect our People Trevelyan s Key Staff 8 Work Smart Technical Support 9 Pre-Harvest & Harvest Export Requirements 11 Harvest 12 Agreement Conditions 13 Trevelyan s Charges 14 Conditions of Trade 15 Welcome to Trevelyan s We are renowned for putting growers needs first. The support we receive from the avocado industry as a result of that approach has helped us grow into the successful, trustworthy packhouse and cool storage company we are today. We work hard to pack and ship your fruit in optimal condition, and pride ourselves on helping avocado growers achieve top orchard gate returns (OGR). We believe open and transparent communication is vital to success, and we encourage our growers and staff to voice their opinions and give feedback wherever possible to help improve our performance. By collaborating and working together, we ensure our orchard management, picking, packing and cool storage processes are as streamlined and efficient as possible. We work alongside a range of growers from large corporates to small, privately-owned orchards and treat everyone equally. At Trevelyan s your fruit will be cared for in state-of-the-art facilities and you can expect our dedicated team to provide you with knowledgeable advice and professional services. We strive to be industry leaders and innovators and to be as open and honest as possible. We operate a single-site facility with five packhouses and 33 coolstores. We have invested heavily in new infrastructure with a new access road and nine lane optical grader installed due to growth in the kiwifruit division of our business. There is plenty of room for further growth, and with this growth comes a need for a sustainable future. From being profitable and having strong leadership, through to looking after our staff, business partners and resources, continuous improvement and sustainability are at the heart of what we do. We have implemented these initiatives to the benefit of our growers, staff, the wider community and overall business efficiency. New Zealand s avocado industry is poised to grow significantly in the coming years. We look forward to helping our growers enjoy a successful and prosperous future. 3

4 Trevelyan s Performance Highlights Started selling avocados online under the BayFarms brand Average fruit size Trevelyan s 22.8 Industry 23.8 Started discussion group in Tauranga to join Katikati & Eastern BOP We are pleased to provide you with the 2017 Trevelyan s Avocado Packing Agreement. Now is an exciting time to be part of New Zealand s avocado industry. Our fruit is highly sought after for its great taste, versatility and health benefits. Increased demand, both here and overseas, is generating unprecedented prices and the future looks bright for all involved. Highlights of the past 12 months include having Danni van der Heijden join the team. Danni came from NZ Avocado and has added much value to our business. Danni has been involved in generating fortnightly tech tips for our growers, producing new maps and comparative reports, amongst other tasks. We have started selling avocados online under the BayFarms brand. By dealing directly with consumers, we can reduce supply chain costs and offer a cheaper price while still returning more money to you, the grower. In August last year we started an avocado nursery to eliminate the lengthy wait for growers from the existing nurseries. Anne Partridge has led the development of the nursery, and we are preparing the first trees for sale in spring We also picked and packed 779,000 trays of avocados, our largest season ever. AVOCO did a fantastic job marketing the fruit, and orchard gate returns were over $26 per tray for large fruit. Looking ahead, our crop volumes are down for Values will once again no doubt be very strong. Biennial bearing continues to be an issue. Hopefully all the pruning that occurred in the autumn and winter of 2017 will alleviate some of that. Time will tell. In the meantime, please read through our packing agreement and if you have any questions please get back to me. We value your business and look forward to working with you again. Thanks Daniel Birnie Avocado Manager 4

5 Introduced fortnightly tech tips 900,000 Packed fruit for 200 export and local market growers 800, , , , , , , ,000 Local Trays Export Trays ** TRAYS PACKED (**est) Started the avocado nursery Danni van der Heijden joined the team 5

6 Our Operations What sets us apart is our commitment to work smart by embracing innovation and quality; respecting our people by fostering strong partnerships; and treading lightly by looking after our natural resources. Place Five export packhouses and 33 coolstores featuring modern technology are situated on the largest single site kiwifruit and avocado packing operation in New Zealand. Established in 1971, our site is spread over 20ha and includes extensive covered canopies to allow us to load out product in all weather conditions. Product Trevelyan s packs avocados for around 200 growers, from the Coromandel to the East Cape, including Hawke s Bay and Motiti Island. We pack 12 months of the year to supply export and domestic markets. People Trevelyan s employs around 150 permanent staff. We experience low staff turnover and are proud to have many long-serving employees. Trevelyan s unique single site means all senior management are hands on and are available to assist operations staff or their teams from the same location. Our management philosophy focuses on increasing value through every aspect of our business. Staff achieve this by using tools and improvement groups to understand their problems, then they solve them in a structured way creating a loop of continuous improvement. We are committed to sustainable business practices and encourage our staff to consider the economic, social and environmental aspects of their work. This approach encourages staff to continuously improve and implement new ideas. We have introduced these initiatives to the benefit of our growers, staff, customers the wider community and our environment. Health & Safety Trevelyan s goal of having a safe and healthy work environment is well embedded in our culture and the systems we have within our business. Everyone plays a role in health and safety and initiatives are led by our management team and monitored by our Health and Safety Manager and Health and Safety Committee. 6

7 200 GROWERS Partnerships Our avocados are marketed and exported through AVOCO a partnership company that supplies the bulk of the retail and wholesale export markets for avocados to Australia. The formation of AVOCO is designed to ensure a long-term sustainable future for the avocado industry, with higher returns and a focus on new market development. Trevelyan s growers will be able to export through either Primor or Southern Produce Limited (the two members of AVOCO). AVOCO brings back maximum value for growers from the marketplace. Ron Bailey sits on the AVOCO grower relationship committee and can be contacted on for any discussion. AVANZA Ltd is a joint venture marketing company by the AVOCO partners to market fruit into a number of other valuable Pacific rim markets including Australia, Japan, Korea, Thailand, Singapore, Malaysia and the USA. Food Safety NZGAP is a requirement for export to the retail markets in Australia. Trevelyan s growers can be accredited via NZGAP directly or via the AVOCO Food Safety and Sustainability Programme. The cost of this is to be borne by the grower. To meet food safety standards for local supply, growers are required to provide a Grower Food Safety Declaration that meets the Avocado Industry Council Food Safety Programme. This is required every season for every property that produces avocados. All growers must have a AIC PPIN or a Local market PPIN and comply with AVOCO/NZGAP standards. All growers who are audited to the AVOCO/NZGAP programme must be GAP compliant at all times and agree to comply with 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 AVOCO/NZGAP PMO quality system. The sanction procedure documentation must be filed in the growers individual GAP folders for reference if required. Trevelyan s holds annual workshops to help our growers become familiar with the programme and its contents, and to explain how to meet the required compliance aspects, including any changes from year to year. Local Market Trevelyan s packs avocados for the local market all year round which are then marketed and distributed under the BayFarms brand. The sale of fruit on the domestic market is an important component of overall grower returns. A copy of BayFarms Ltd s conditions of trade are included on page 15 of this document. BayFarms operates a fortnightly local market pool system based on the date of packing. To enable all proceeds and costs to be collected, the net proceeds are paid to the grower in one payment approximately 6 weeks after the pool is closed. Trevelyan s will maximise value for the grower for all grades of fruit (Class 1, Class 2, Class 3 and Processing) by using a variety of marketing channels. Example: Pack Period Payment date (approx.) Sept 1 to 15 Oct 31st Sept 16 to 30 Nov 15th bayfarms.net.nz 7

8 Trevelyan s Key Staff James Trevelyan > Managing Director Alister Hawkey > Executive Director Stephen Butler > General Manager Daniel Birnie > Avocado Manager Dr Jonathan Cutting > Orchard Productivity Manager Danni van der Heijden > Avocado Services John Lewitt > Operations Manager Christine Broad > Harvest Manager Raewyn Taite > Packhouse Manager Christine Draffin > Quality and Compliance Manager Lance Dodd > Domestic Produce Manager Kim Borowicz > Grower Payments Liz Espin > Lab Administrator Amrit Singh > EDI Manager Mike McCauley > Coostore Manager 8

9 Technical Support We are pleased to be able to offer a high level of technical support for our growers. Within our avocado team we have the experience, expertise and passion to assist you in producing large crops of good quality fruit. Fertiliser recommendations based on soil and leaf reports Fortnightly Technical Tips covering off recent AvoGreen results, orchard tasks and harvest information Regular field days and discussion groups Planting plans and budgets for new development blocks Orchard management options AvoGreen monitoring service Comparative reports Dry matter testing Quarterly newsletters Frost forecasts 9

10 AvoGreen Pest Monitoring Trevelyan s has an in-house team of AvoGreen monitors who are accredited with the AIC to carry out pest monitoring on your orchard. AvoGreen uses the principles of Integrated Pest Management (IPM), an internationally recognised approach, to ensure pesticides are used only when needed. All growers must be AvoGreen compliant for their crop to be exported. Orchard Management Trevelyan s Management Service Ltd (TMSL) is the orchard management division of Trevelyan s Pack & Cool Ltd. We can provide growers with a comprehensive range of onorchard services plus expert advice to help maximise productivity and minimise the stress involved in orchard management. This includes all on-orchard operations, budgeting, administration and assistance for compliance requirements. There are many options from partial to full orchard management. 10

11 Pre-Harvest & Harvest Export Requirements REQUIREMENT NOTES FREQUENCY REQUIRED AIC GROWER REGISTRATION $150 + GST before 15th August ($300 + GST thereafter). Complete online. Pre-harvest AIC phone CONTRACT WITH EXPORTER Sign & return to exporter. Pre-harvest MATURITY CLEARANCE If picking prior to 1 Oct (to be confirmed). Packhouse sample: x 10 fruit; Independent sample: x 20 fruit. Pre-harvest VALID GROWSAFE CERTIFICATE All sprays must be applied by a GROWSAFE-registered operator. Copy to Trevelyan s Pack and Cool Ltd. Pre-harvest SPRAY DIARY It is the grower s responsibility to ensure their spray diary is updated after every spray. Valid for 14 days from date of verification. Please ensure spray diary is current prior to harvest commencing. Trevelyan s will verify. Pre-harvest & update every 14 days when harvesting continuously GROWER FOOD SAFETY DECLARATION Complete copy attached and provide to Trevelyan s Pack and Cool Ltd. Pre-harvest RESIDUE TESTING Depending on market requirements and chemicals applied, a pre-harvest residue test may be required. Trevelyan s will confirm. Pre-harvest TREVELYAN S CONTRACT Complete copy attached and provide to Trevelyan s Pack and Cool Ltd. Pre-harvest TREVELYAN S AVOGREEN CONTRACT Complete copy attached and provide to Trevelyan s Pack and Cool Ltd (if monitored by Trevelyan s). Pre-harvest MAP OF ORCHARD Please confirm map of orchard and any changes. Pre-harvest THAILAND AGREEMENT Complete and return. Annually 11

12 Harvest Trevelyan s will manage the harvest, working with the exporter and growers to match exporter requirements (the flowplan into the market place) and to minimise onshore timelines. We ask that growers liaise directly with Trevelyan s as to when fruit can be harvested. Growers can pick their own fruit, or Trevelyan s can organise a picking contractor. Please contact Daniel to discuss harvest requirements. Bin Supply and Cards Our traceability system begins in the orchard, with bin cards attached to each and every bin of fruit with the following information recorded: orchard grower number, maturity area, block and harvest date. This ensures fruit can be easily traced back through our supply chain if necessary. Please staple the bin cards provided to the right-hand corner of the field bin with all details completed. Orchard Map and Maturity Sampling Trevelyan s will generate an accurate map of your orchard. All fruit supplied for both export and local market will require an independent Eurofins test prior to a clearance to pick being issued. Fruit Delivery Fruit needs to be delivered daily to Trevelyan s Pack and Cool Ltd to ensure fruit can be cooled before packing. We have on-site security/forklift drivers who will be available to unload your bins until 8pm, or later if pre-arranged. Clearance to Pick Growers must not pick without a current clearance to pick. Prior to picking please confirm with the packhouse that all documentation is in place and maturity requirements have been met. The full list of export requirements is set out on page 11. A clearance to pick must be issued prior to picking, and has to be re-issued every 14 days after we re-verify your spray diary. Delivery of bins from orchard to packhouse can be arranged through Trevelyan s. Brett Hutchings runs H2 contracting and can be contacted on Trevelyan s is not liable in the event your avocados are damaged as a result of hail, wind, frost, disease or any other event prior to picking or delivery to the packhouse. From the time the fruit is received into the packhouse to the time of loadout, the fruit will be subject to the food safety and quality systems of the packhouse. Spray Diary It is the grower s responsibility to ensure their spray diary is updated after each spray. It is also the grower s responsibility to make sure all withholding periods are adhered to and that fruit, when harvested, meets all food safety requirements. Growers agree that residue tests completed for the exporter by a third party will be shared with NZ Avocado. When fruit arrives in the packhouse a bin receipt form will be filled in by a packhouse representative as a record of all fruit received. The total number of bins tipped is checked against the total number of bins received on site. Orchard Health and Safety The grower is responsible for informing any contractor, or anyone coming onto their orchard, of any hazards. 12

13 Agreement Conditions Water Blasting We water blast all our avocados to remove any debris or surface deposits, to help them be pest free. This process enables us to provide the best quality avocados to market in a clean, healthy state for the consumer. Packing for Export The grower and Trevelyan s Pack and Cool Ltd agree to comply with the Export Marketing Strategy (EMS), and both parties will be registered with NZ Avocado as per the EMS requirements. Where the terms of this proposal conflict with those of the EMS, the terms of the EMS will prevail. Library Fruit Library trays will be collected for each PPIN and analysed in accordance with the EMS and Quality Manual. The loss of return for the fruit provided for library trays is to be borne by the grower. Results are available from AgFirst at or by contacting Trevelyan s Pack and Cool Ltd. Growers must provide consent to the packer and exporter when access to the library tray data pertaining to their PPIN is required for the customer. Grower Payments Payment for export trays is made direct to the grower from the exporter. See the exporter proposals for details of cash flow and pooling arrangements. Payment for BayFarms local market trays is via a fortnightly pool system based on the date of packing. The net proceeds are paid to the grower by BayFarms Ltd approximately six weeks after the pool is closed and settled. BayFarm oil payments will be divided into two pools over the season one from the start of the season to December and one from January until the end of that season s fruit (approximately July). Payment will be made when reconciliation is completed. Risk and Insurance The exporter will carry insurance cover from the time fruit leaves the coolstore until arrival in the marketplace. Trevelyan s Pack and Cool Ltd has Bailees Liability insurance cover while fruit is in our care to cover any loss or damage to fruit through negligence. 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. 13

14 Trevelyan s Charges Export Packing As per the AVOCO packaging schedule, a standard single layer tray (SLT) is charged at $1.70 per tray (up from $1.68), and export cool storage is charged at $0.59 per tray. Table 1 shows our packing charges which are based on the number of bins supplied in any one run and the total trays supplied over the season. Table 2 shows the packaging and cool storage charge as outlined in the AVOCO packaging schedule. Export packing charges will be paid to the packhouse by the exporter as a deduction from grower export returns. The grower will be charged at Table 1 EXPORT TRAYS SUPPLIED BINS SUPPLIED FOR ANY ONE PACK RUN 20 + bins bins 3-9 bins 1-2 bins $1.58 $1.73 $2.03 $ $1.73 $1.88 $2.18 $ $1.88 $2.03 $2.33 $ $2.03 $2.18 $2.48 $ $2.18 $2.33 $2.63 $ $2.48 $2.63 $2.78 $2.93 Table 2 FROM AVOCO PACKING SCHEDULE SLT $1.70 Export cool storage $0.59 So, for example, if you supply trays, in 20+ bin runs, the charge to pack will be: $1.58 packing $1.70 packaging $0.59 cool storage $3.87 per tray equivalent the base rate ($2.93), and the volume discount will be rebated at the end of the export season. The exporter pools (rather than individual growers) will be paying a packing differential to Trevelyan s Pack and Cool Ltd, which covers the cost of packing. Fruit picked over two consecutive days will be combined for the bin rebate. This year our packing price is increasing by $0.30 per tray. The reason for this is that in previous years AVOCO has charged 10% commission on FOB (Free on board), and then paid 10% of that commission to the AVOCO packhouses in the form of a rebate. Trevelyan s had passed this rebate through to growers in the form of a lower packing price. Recently the AVOCO board has decided that this rebate should be paid direct to the grower which requires us to change our packing price. The net effect to the grower is that the packing price is unchanged. Local Market Packing Base charge $3.40 per 5.5kg SLT equivalent (includes packing, packaging and cool storage). Freight to market will be charged at cost recovery. Local market packing and process handling charges will be paid to the packhouse by BayFarms Ltd as a deduction from grower local market returns. The pool will pay Trevelyan s Pack and Cool Ltd a packing differential depending on pack type. Fruit supplied for processing will incur a charge of $0.02 per kg. Transport $8.00 plus GST per bin. Minimum charge $150 plus GST in Te Puke. $ plus GST minimum charge past Bell Rd or Paengaroa roundabout. For areas past Tauranga Harbour Bridge and Matata a rate will be negotiated. AvoGreen Monitoring $26.00 per hour and $0.80 per km plus GST. AvoGreen is a requirement for export. 14

15 Conditions of Trade Conditions of trade between the grower and BayFarms Ltd for local market fruit. 1. The grower appoints BayFarms Ltd as their agent for the sale of avocados for local market. 2. Trevelyan s Pack and Cool Ltd will take Warehouseman s or Bailee Liability insurance cover while fruit is in their care to cover for the loss or damage to fruit through negligence. 3. BayFarms Ltd shall establish and maintain a grower pool account for local market which will accept all proceeds and will bear all expenses relating to fruit consignments. 4. All risks and charges relating to fruit sales as well as costs attributable shall be the responsibility of the grower. While BayFarms will take all reasonable care, it will not be responsible for the negligence or default of its agents. 5. The return to the grower by BayFarms Ltd from the sale of avocados is to be the net realisation after meeting all direct costs and charges. The commission retained by BayFarms Ltd is 4% to cover the cost of administration and services provided. 6. Deductions from local market receipts paid by BayFarms Ltd on growers behalf are: a) Direct costs and commissions payable by or to agents. b) Premiums on insurances arranged on your behalf. c) Freight and storage charges. d) Rental and freight charges for hire crates. e) Packing charges incurred at Trevelyan s Pack and Cool Ltd and other BayFarms approved packhouses. f) Any other direct costs necessarily incurred by BayFarms Ltd as the growers agent to achieve the sale of fruit. 7. Growers remain responsible for their fruit quality and any losses due to quality or internal breakdown are their responsibility. 8. In the event of a grower pool payment being overpaid BayFarms is entitled to seek repayment of such monies from the grower, to be repaid within 7 days. 15

16 310 No. 1 Road, R.D.2 Te Puke 3182 New Zealand Phone This report has been printed using certified sustainable paper and biodegradable vegetable based printing inks.