Fresh Produce Trader Seeka Is Heading For A Major Financial Loss, On The Back Of Record Low Per Hectare Yields

Fresh produce trader Seeka is heading for a major financial loss, on the back of record low per hectare yields. Seeka is one of the country’s major kiwifruit packhouse operators, and packed just under 30 million trays this season, compared to 42m last year. The company informed the NZ Stock Exchange that its result for the full year to December 31, 2023 is likely to be a net loss before tax of between $20 million and $25 million. Chief executive Michael Franks says all growing regions experienced adverse weather events: a severe frost October last year, storm in January and February and wetter conditions during the pollination and throughout the growing season. Seeka is a seasonal business and expects to record a profit in the six months ended June 30. But Michael Franks says as a result of much lower kiwifruit yields than expected, inventory levels in cool stores are low and the company expects to record a loss in the second six months ending 31 December 2023. Michael Franks says the company is cutting costs and progressively reviewing and restructuring every business unit.