28 JUNE 2011 - Apata

MOVING FORWARD WITH BUSINESS PARTNERSHIPS : Steve Low
From left: Steve Low Apata CEO with John Carroll,
director of Primor Produce Limited.
28 JUNE 2011
Our successful 23-year relationship with Auckland-based produce marketers, Primor Produce Limited, just
got stronger. On behalf of the Board of Directors I am pleased to announce Apata has purchased a 33
percent share in Primor.
We now have complete integration between post-harvest and marketing services. Many years ago our
focus was on kiwifruit and our avocado business developed because the avocado peak-season occurs
during our kiwifruit off-season. But it was our strong personal connection and inherently successful
business partnership with Primor that really helped get us to the next level and become the size we are
today.
Apata’s decision to invest was not made overnight but was carefully negotiated over a period of six months.
Strategically, we focus on providing a premium service to growers. So, over the past few years we ensured
continual reevaluation and improvement to our harvesting logistics, and post harvest packing supply chain,
while investing a sizeable amount of capital into those systems. But what became increasingly apparent
and imperative during the last few seasons is that Apata needed to have a stronger strategic focus to
encourage more growth.
Our principles in considering how to foster and grow
our avocado business were based on taking the
years of success we’ve experienced and figuring
out what we needed to do from an orchard, postharvest
perspective to ensure optimisation of our
services. The way forward for Apata was to invest
in Primor. The company is an extremely efficient
and high performing market business and has a well
developed network into key Australian and Asian
markets, in addition to the New Zealand domestic
market. It means we can share even more of our
successes with each other.
For us, this means we will gain a deeper
understanding of marketing strategies while
becoming more visible. While we are the largest
post-harvest avocado provider, we will not lose sight
of what is really important, which is you, our grower.
We will work closely with you to target certain
markets. In essence, we will send your fruit at just
the right time and to the best location, resulting in
optimum returns. As far as professional marketers
go, you will already know that Primor are very
connected with growers unlike some marketers that
sit in an office and work from their desk. I expect
this to be a very natural progression for everyone.

John Carroll, Primor director has said he was impressed even as a young man in the 1980s, by the way
Apata operated with high work ethics, integrity and professionalism. Apata were not the first to hold
discussions with Primor regarding a financial partnership over the years. John shared with me that
the fact Primor agreed to sell 33 percent of their shares, says a lot about how much they value doing
business with Apata and is a huge credit to us.
No one had to do this. Neither company is under financial stress. This is a simple evolution of what has
already been a successful, positive and simple relationship.
The New Zealand avocado industry needs allegiances and stronger, seamless supply chains to help
increase export. Primor handle over 30 percent of the New Zealand national avocado crop which is
mostly packed at Apata. Primor’s focus has been on the Australian market where they do substantial
business with Coles Supermarkets, and the beauty of supplying to Australia is that it is a high value
market on a world scale, right on New Zealand’s doorstep.
Because Australia is close, the fruit doesn’t have to travel far, and our natural supply window into that
market is right in the peak of their consumption time, which is their summer. And just like other parts
of the world, the Australian avocado market has continued to grow. It’s been a real success story
particularly in the past 10 to 15 years and there are always new consumers coming into the market and
existing consumers are finding more and more ways to use avocados. New Zealand can be a significant
international player in our own right.
Apata buying into Primor gives both parties not only a degree of security, but it achieves the same
for customers and growers. Together, Apata and Primor are positioned to deliver the best product,
information and supply possible to a wide range of world markets.
Apata and Oropi Management Services (OMS)
Our Primor acquisition closely follows another recent announcement whereby Apata purchased 50
percent of Tauranga-based orchard management services company, Oropi Management Services
(OMS).
In bringing the strengths of Apata and OMS together, we will be able to offer you, our growers, more
options. In fact, you are now able to access a wrap-around service. OMS is experienced in orchard
leasing and management of organic and conventional kiwifruit, which complements our post harvest
services.
OMS directors are Doug Voss, also former Zespri chairman, and Bruce MacDiamid. OMS is BioGrocertified
for organic kiwifruit, but they offer total management services for both organic and conventional
kiwifruit.
The high level of expertise between our companies means we can put our heads together and look after
everything a grower needs. For example, OMS can provide turn-key orchard management for growers,
or they can modify a plan for a grower who might want to do the work themselves. Apata can become
part of OMS management plan to include picking, packing, storing, and exporting grower fruit. OMS also
offers a comprehensive spray programme including fertiliser application.
Steve Low
Apata Chief Executive Officer

ON ORCHARD RESULTS: Bevan Bayne
After each harvest season there is a sea of data which is created and shared. What I would like to share
below is a couple of points that growers can use as a comparison to their own crop, or view as an item of
interest relative to the industry.
Rejects rates
A supportive growing season and significant thinning and grooming in green delivered the lowest reject
rates in the last four years (and possibly ever in Gold). Whanganui fruit was particularly good with reject
rates under 10 precent across several hundred thousand trays. Unfortunately, Whangarei district had high
reject rates resulting from a growing season which produced increased levels of water stain, proximity
mark, and in some cases sooty mould levels similar to Bay of Plenty in 2010.
AVE SIZE REJ RATE 2011 REJ RATE 2010
HWCK 33.79 15.5% 16.7%
GKCK 32.54 15.9% 21.3%
GKOB 34.68 20.3% 24%
HWOB 35.55 15.1% 18.1%
GL 31.49 19.3%
GA 28.45 12.3%
Yield
Apata growers mirrored the industry in producing record volumes this season providing Apata with its
largest submit volume ever. Over 9 million trays were submitted by Apata and its Satellite sites with this
increase coming 50/50 from new grower supply and increased yield.
tarys per hectare
13,000
12,000
11,000
10,000
9,000
8,000
7,000
6,000
Industry Figures supplied by ZESPRI Limited
Seasonal Production per hectare
2007 2008 2009 2010 2011
HAYWARD - CLASS 1 ONLY 7,731 8,175 7,985 7,675 8,584
GOLD - CLASS 1 ONLY 10,358 11,262 10,748 9,395 12,400

Taste
As has been written many times Apata gold growers produced fruit similar in taste band to the industry.
What is interesting is that the Apata green conventional supply is different than industry with significantly
more Y Band fruit. While this brought some challenge with more layered packaging in the pack house, it is
hoped this will support a positive shipping programme.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
GK1CK Taste Split
Industry APATA
TECHNICAL UPDATE : Wade Hunkin
Industry Figures supplied by ZESPRI Limited
Taste Split Comparison
Winter Pruning
The summer of 2010/11 is unlikely to have been as positive as the previous one, with respect to flower bud
initiation, and with a warm start to winter budbreak is likely to be poor. Most vines were cropped heavily
this harvest so there is an increased risk of low overall flower numbers in spring.
One response might be to increase overall bud numbers, but generally that will lead to problems later in
summer, when with Psa on the horizon we should be looking to minimise the number of wounds we create.
The key messages to come out of our recent round of field days are pretty straightforward and well known
to us all but remain worth repeating:
• Select strong wood that has been grown early and spent the summer out in the light
• Fill all the canopy area and pay attention to the area close to the leader
• Watch the bud spacing. Crowded areas will become a problem later
• Supervision and review of the job is a critical component
• Seal all saw cuts as a minimum and all large lopper cuts as a well if PSA risk is high
Y
T
R
M
100%
Scale was not a major issue for conventional growers this season; the widespread use of Movento has had
a positive effect. However, the need for continued action on crowns remains. As part of the pruning regime
look to target one large crown on each leader as these provide a perfect reservoir of over wintering scale.
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
HW1CK Taste Split
Industry APATA
Y
T
M

Winter Chill
We are already experiencing a warm wet winter with May and June being approximately two degrees warmer
than the same period last year. If this continues as predicted then:
• Leaves will be slow to drop
• Ground will remain wet and waterlogged for some soil types so avoid mulching when soils are
waterlogged
• Pruning will get late
• Budbreak will be delayed
Graphs of accumulated winter chill compared with previous years are normally published fortnightly during
July and August at http://www.hortnet.co.nz/news/2011/chilling.htm so the comparisons can be made year on
year. With average temperatures to date having been considerably higher than even last year we can expect
budbreak to be further delayed but by how much is difficult to predict - the simple models are likely to break
down at the extremes.
We will be holding a workshop in the first week of August to look at Hicane timing and approaches should the
weather become problematic.
Crop protection
We have been encouraged by the overall response to the call to apply protective copper sprays before Psa
symptoms appear. The majority of growers have looked to hasten the drop of leaves with copper sulphate,
have applied at least one protective copper since and are intending to make further applications around
pruning. Watch the timing around Hicane and allow four weeks between the last copper application and
Hicane.
The information you will all have received from KVH sets out the Rolls Royce programme. Your response
needs to be tailored to your level of risk so if your situation is high risk, as those in the Te Puke are
contending with, then you should be making every practical effort to fulfill that programme. Those more
remote could consider a reduced program but the leaf fall and spring components would be a minimum. We
can assist with tailoring your program if you need help.
Outside Te Puke Te Puke
Cleanup spray Cleanup spray
Copper after picking
Copper Sulphate to speed leaf drop Copper Sulphate to speed leaf drop
Copper at leaf fall Copper at leaffall x 2
Copper prior to pruning
Seal larger wounds Seal all wounds
Copper after pruning Copper after pruning
KVH expect to have recommendations for the spring period available shortly.
Getting complete spray coverage is a key component in a copper protection programme. If you applied
copper sulphate to drop leaves, how successful were you? In many cases we have observed that upper
leaves and leaves on row ends or outside rows have remained, suggesting coverage has been far from
complete. Have a close look at your sprayer setup and check spray is going where you need it. Investing in
some water sensitive paper and putting it in the canopy is a great way to check on how successful you (or
your contractor) is at getting the 100% coverage you need.
Other On Orchard reminders
• Mulch leaves to speed breakdown
• Winter pruning
• Lichen cleanup spays (lime sulphur or Graphic) can be applied after the leaves drop
• Organise base fertiliser requirements
• Carry out structure repairs
• Tighten wires to lift the low spots

OPERATIONAL UPDATE : Chris Kearns
Fruit Quality
Packing at all sites finished mid-June with record volumes being submitted. The overall grading table
reject rates were very good particularly in Gold in the Bay of Plenty.
Focus has now switched to inventory management of our fruit in store, with Gold due to be in store for four
weeks longer than ever before, and large volumes of green to ship during the course of the year. This is
going to be a huge challenge given the late maturity year we have experienced.
Already we are seeing worrying signs in both Green and Gold, particularly in regards to soft fruit and other
storage defects . CA packing starts at Apata Turntable Hill Road site this week, with a view to processing
fruit as quickly as possible in conjunction with our conventional inventory.
Apata Inventory at Week 25
Submit Shipped % Shipped Fruit Loss
Hayward 4,436,647 1,361,160 30.7 0.06
Hayward Organic 1,912,132 697,504 36.5 0.01
Gold 2,463,943 1,370,216 55.6 0.7
PSA SIGNAGE
We have secured a large stock of orchard Psa signs for Apata growers.
We will be distributing these as requried during our call cycles. You can also visit Apata Reception to
collect one.

Apata Contact Details
Apata Turntable Hill Road, RD2 Katikati Phone: 07 552 0911 Fax: 07 552 0666
Pyes Pa 83 Pyes Pa Road, RD3 Tauranga Phone: 07 543 1211 Fax: 07 543 0096
Northland 37 Southend Avenue, Whangarei Phone: 09 430 8003 Fax: 09 430 8006
Kiwifruit Services Contact Details
reception@apata.co.nz www.apata.co.nz
Kiwifruit Grower Services Manager GM Grower Services
Damian Young 027 500 8586 Bevan Bayne 027 511 6666
Grower Services Grower Services Coordinator
Neale Cameron 027 582 6364 Trina Hawkins 07 552 0512
Organic Category Manager Harvest Manager
Andrew Wood 027 475 1323 Piers Zajac-Wiggett 027 426 5548
Whangarei Growers Services Manager Communications Manager 07 552 0535
Louise Hailes 027 200 9954 Vivette Reid 021 102 6401
Technical Advice Grower Payments
Wade Hunkin 027 481 9905 Dinah Rutherford 07 552 0504
DISCLAIMER: The information contained in this publication is intended to be of a general nature and should be treated as a guide only. Apata
makes no warranty or representation as to the accuracy or completeness of the information, photographs or other published material in this
publication. In this publication, published material authored by a person other than Apata reflects the view of the author and not the view of
Apata. Apata shall not be liable to any person for loss, injury or damages arising from any person’s reliance on the published material.