New Zealand kiwifruit post-harvest group EastPack has posted a 22 per cent growth in profit for the 2010 financial year, attributed to increased efficiency and capacity.
Grower-owned EastPack, the second largest kiwifruit post-harvest operator in New Zealand, said profits before tax and rebates for the 2010 financial year hit NZ$10.5m (US$8.14m), as compared to NZ$8.8m (US$6.82m) the year before.
Company chairman Ray Sharp said the results were a result of the increased efficiency brought about by EastPack’s adoption of LEAN Manufacturing processes, as well as an increase in post-harvest capacity.
“Three years ago we made a strategic decision to invest in the world class LEAN Manufacturing processes, and each year since we have seen improved efficiencies and a reduction in waste, which in turn has helped us to maximise our financial performance and returns to our grower shareholders,” he said.
The 2010 results have bumped EastPack’s kiwifruit grower rebates from NZ$0.25 per tray to NZ$0.30 per tray, which the company says gives it the highest orchard gate return in the industry for both green and gold varieties.
EastPack’s capacity has grown from 16.8m Class 1 trays of kiwifruit last year to a forecast 19m trays this year, set against Zespri’s overall forecast of around 100m trays for the 2011 New Zealand season.
The company is also investing NZ$6m (US$4.7m) in new coolstores and fruit handling equipment, including two new coolstore facilities in Te Puke and Edgecumbe, on top of the NZ$9m spent on equipment by EastPack last year.
