AVOCADO PACKING AGREEMENT 2019-20 - Trevelyan's
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AVOCADO PACKING AGREEMENT 2019-20
2019 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 Pack and Cool Ltd 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 35 coolstores. Thanks to the growth in our kiwifruit division, we have been able to invest heavily in new infrastructure and systems technology, to ensure we are staying ahead of the game in this ever-changing and growing industry. There is plenty of room for further expansion, 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. 01 AVOCADO PACKING AGREEMENT 2019-20
2019
CONTENTS
PERFORMANCE RESULTS 3
OUR PLACE, OUR PEOPLE, OUR OPERATION 5
- Place 5
- Product 5
- People 5
- Health & Safety 5
- Partnerships 5
- Food Safety 6
- Local Market 6
RESPECT OUR PEOPLE - OUR TEAM 7
WORK SMART - TECHNICAL SUPPORT 8
- AvoGreen Pest Monitoring
®
- Orchard Management
PRE-HARVEST & HARVEST EXPORT
10
REQUIREMENTS
HARVEST REQUIREMENTS 11
- Bin Supply & Cards
- Orchard Map and Maturity Sampling
- Fruit Delivery
- Orchard Health and Safety
AGREEMENT CONDITIONS 12
- Water Blasting
- Packing for Export
- Library Fruit
- Grower Payments
- Risk and Insurance
TREVELYAN’S CHARGES 13
- Export Packing
- Local Market Packing
- Transport
- AvoGreen Monitoring
2019 CONDITIONS OF TRADE 14
TREVELYAN.CO.NZ 02
2018
PERFORMANCE
RESULTS
TREVELYAN’S AVOCADO
2013/14
Annual Trays $ 39,018
AVERAGE OGR/HA
2014/15
2015/16 $ 125,994
TOP OGR/HA
2016/17
92
2017/18
$ .09 PER
TRAY
2018/19
Paid for fruit packed in May 2019
2019/20
est
$ 4,866
0 100 200 300 400 500 600 700 800
‘000s TRAYS PACKED
KEY LOCAL MARKET EXPORT
PER BIN
Average payment
03 AVOCADO PACKING AGREEMENT 2019-2020
With another promising season on the horizon, we are
159 WHO SUPPLY
FRUIT TO
GROWERS TREVELYAN’S
pleased to provide you with the Trevelyan’s Avocado
Contract for 2019/20.
The 2018/19 season was another year riding the rollercoaster of growing
avocados and the crop was much higher than the previous year. At
Trevelyan’s, we packed 535,000 trays (local and export) – 208,000
114
more than the previous period – and this coming season we expect to
pack around 730,000 trays.
Last season started well enough, with considerable effort put into
Orchards suppling for preparing for export to China for the first time.
EXPORT MARKETS However, after a relatively dry spring, we had around 400mm of rain
through the four-week period leading up to Christmas. This resulted in
fruit quality issues in Australia, our main market, repacking of fruit and
45
loss of value. Fortunately, due to strong demand in the markets, growers
still received relatively high returns of around $20 per tray.
Post season, Trevelyan’s has been working collaboratively with AVOCO™
Orchards suppling for and the wider industry to try to better understand the various factors
LOCAL MARKETS that contribute to fruit quality. We know this is not an easy answer and
exploratory work is underway.
This coming season, demand is already looking strong, both locally and
offshore. The local market proved to be a success story, with some
stunning returns at various parts of the season. In 2011-12, the domestic
market was worth around $20m; this past season it is more than $50m.
We have adjusted some of our costs this season to take into account
labour and packaging cost increases. However, we have managed to keep
our base packing price the same and our cheapest pack price remains
$3.96 – still one of the best in the industry.
Each season we always seek to learn from the successes and challenges
we experience, to make every season the best it can be. Trevelyan’s has
a commitment to continuous improvement for the greater good of our
business and the industry at large, an ethos that is encapsulated in the
title Big Little Wins.
Thank you for choosing Trevelyan’s – we value your business and look
forward to working with you. Please have a read through our contract and
come back to myself, Jonathan or Katherine with any questions.
Daniel Birnie
Avocado Manager
TREVELYAN.CO.NZ 04
Our Place, Our People
OUR OPERATION
“What sets us apart is our commitment to work smart by embracing We are passionately committed to sustainable business practices and
innovation and quality, respecting our people by fostering strong encourage our staff to consider the economic, social and environmental
partnerships, and treading lightly by looking after our natural resources.” aspects of their work. This approach encourages staff to continuously
improve and implement new ideas.
PLACE We have introduced these initiatives to the benefit of our growers, staff,
Five export packhouses and 36 coolstores featuring modern technology customers, the wider community and our environment.
are situated on the largest single site kiwifruit and avocado packing
operation in New Zealand. HEALTH & SAFETY
Established in 1971, our site is spread over 20ha and includes extensive Trevelyan’s goal of having a safe and healthy work environment is well
covered canopies to allow us to load out product in all weather conditions. embedded in our culture and the systems we have within our business.
Everyone plays a role in health and safety. Initiatives are led by our
PRODUCT management team, and monitored by our Health and Safety Manager
and Health and Safety Committee.
Trevelyan’s packs avocados for around 160 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. PARTNERSHIPS
Our avocados are marketed and exported through the AVOCO™
PEOPLE Grower Relationship Committee – a partnership company that is the
largest exporter of avocados from New Zealand. The formation of
Trevelyan’s employs around 150 permanent staff. We experience low
AVOCO™ is designed to ensure a long-term sustainable future for
staff turnover and are proud to have many long-serving employees. As
the avocado industry, with higher returns and a focus on new market
a family owned and operated business, a supportive company culture is
development. Trevelyan’s growers will be able to export through either
important to us – a value we attribute to our high number of long-
Primor or Southern Produce Limited (the two members of AVOCO™ ).
standing employees and low staff turnover.
AVOCO™ brings back maximum value for growers from the
Trevelyan’s unique single site means all senior management are ‘hands
marketplace. Ron Bailey sits on the AVOCO™ grower relationship
on’ and are available to assist operations staff or their teams from the
committee and can be contacted on 07 573 7098 for any discussion.
same location.
AVANZA Ltd is a joint venture marketing company by the AVOCO™
Our management philosophy focuses on increasing value through every
partners to market fruit into a number of other valuable Pacific Rim
aspect of our business.
markets, including Australia, Japan, Korea, Thailand, Singapore,
Staff achieve this by using tools and improvement groups to understand Malaysia, US and China.
their problems, then they solve them in a structured way, creating a loop
of continuous improvement.
05 AVOCADO PACKING AGREEMENT 2019-20
FOOD SAFETY • A copy of BayFarms Ltd’s conditions of trade are included on page
14 of this document.
• All export growers must be Global GAP certified, either through the
AVOCO™ food safety programme, or through NZ GAP directly. • BayFarms operates a fortnightly local market pool system based on
The cost of this is to be borne by the grower. Growers must provide the date of packing.
a grower declaration of food safety that meets the NZ Avocado
• To enable all proceeds and costs to be collected, the net proceeds
Industry Council Food Safety Programme.
are paid to the grower in one payment approximately six weeks after
• All growers must have a PPIN assigned. All growers must be the pool is closed.
compliant to all food safety requirements at all times.
• Trevelyan’s will maximise value for the grower for all grades of fruit
• If a grower becomes non-compliant they will go through the grower (Class 1, Class 2, Class 3 and Processing) by using a variety of
sanction process. marketing channels.
• Trevelyan’s holds annual workshops to help our growers become
familiar with the programme and its contents, and to explain how to Example:
meet the requirements.
PACK PERIOD 1-15 SEPT 16-30 SEPT
• Trevelyan’s Pack and Cool Ltd will invoice growers direct for the food
safety audit.
Payment date (approx.) 31 Oct 15 Nov
LOCAL MARKET
Trevelyan’s packs avocados for the local market all year round, which are
then marketed and distributed under the BayFarms Ltd’s brand. The sale
of fruit on the domestic market is an important component of overall
grower returns.
TREVELYAN.CO.NZ 06
Respect Our People
OUR TEAM
MANAGING GENERAL EXECUTIVE
DIRECTOR MANAGER DIRECTOR
James Trevelyan Stephen Butler Alister Hawkey
Managing Director General Manager Executive Director
GROWER GROWER
INTERACTION INTERACTION
OPERATIONS TEAM TEAM
John Lewitt Daniel Birnie Kim Borowicz
Operations Manager Avocado Manager Grower Payments
GROWER
INTERACTION
COOLSTORAGE TEAM LABORATORY
Mike McCauley Jonathan Cutting Liz Espin
Coolstore Manager Avocado Technical Manager Lab Administrator
GROWER
INTERACTION
OPERATIONS TEAM LOCAL MARKET
Amrit Singh Katherine Bell Zara Marra
EDI Manager Avocado Services Marketing
GROWER
INTERACTION
OPERATIONS TEAM LABORATORY
Raewyn Taite Christine Broad Teei Fairburn
Packhouse Manager Harvest Manager AvoGreen coordinator
AVOCADO
SHED COMMITTEE
QUALITY LOCAL MARKET
Christine Draffin Ron Bailey - Chair, Te Puke
Lance Dodd
Quality and Compliance
Domestic Market Manager Brian Hunt - Opotiki
Manager
Brien James - Katikati
Wilson McGillivray - Katikati
Leigh Neilson - Tauriko
Kelsea Symes - Te Puke
Ashby Whitehead - Te Puna
Andrew Wylie - Te Puke
07 AVOCADO PACKING AGREEMENT 2019-20
Work Smart
TECHNICAL SUPPORT
We are pleased to be able to offer a high level of technical support AVOGREEN® PEST MONITORING
for our growers. Within our avocado team we have the experience,
Trevelyan’s has an in-house team of AvoGreen monitors who are
expertise and passion to assist you in producing large crops
accredited with New Zealand Avocado to carry out pest monitoring
of good quality fruit.
on your orchard. AvoGreen uses the principles of Integrated Pest
• Fertiliser recommendations based on soil and leaf reports Management (IPM), an internationally recognised approach, to ensure
pesticides are used only when needed. All growers must be AvoGreen
• Fortnightly Technical Tips covering off recent AvoGreen results,
compliant for their crop to be exported. Transport is only charged one
orchard tasks and harvest information
way between Trevelyan’s and the orchard (south of Tauranga), or one
• Regular field days and discussion groups way between our Te Puna office and the orchard (north of Tauranga).
• Planting plans and budgets for new development blocks
ORCHARD MANAGEMENT
• Orchard management options
Trevelyan’s Orchard Management is a division of Trevelyan’s Pack and
• AvoGreen monitoring service Cool Ltd. We can provide growers with a comprehensive range of on-
orchard services plus expert advice to help maximise productivity and
• Comparative reports
minimise the stress involved in orchard management. This includes all
• Dry matter testing on-orchard operations, budgeting, administration and assistance for
compliance requirements. There are many options, from partial to full
• Quarterly newsletters
orchard management.
• Frost forecasts
TREVELYAN.CO.NZ 08
09 AVOCADO PACKING AGREEMENT 2019-2020
Pre-Harvest & Harvest
EXPORT
REQUIREMENTS
FREQUENCY
REQUIREMENT NOTES
REQUIRED
Pre-harvest
New Zealand Avocado
$150 + GST before 12 August ($300 + GST thereafter). Complete online. New Zealand Avocado
Grower Registration
phone 07 571 6147
Contract with Exporter Sign & return to exporter. Pre-harvest
If picking prior to 1 Oct (to be confirmed).
Maturity Clearance Packhouse sample: x 10 fruit Pre-harvest
Independent sample: x 20 fruit.
Valid Growsafe Certificate All sprays must be applied by a Growsafe-registered operator. Pre-harvest
It is the grower’s responsibility to ensure their spray diary is updated
after every spray. Pre-harvest & update
Spray Diary every 14 days when
Valid for 14 days from date of verification. Please ensure spray diary harvesting continuously
is current prior to harvest commencing.
Grower Food Safety Declaration Complete copy attached and provide to Trevelyan’s Pack and Cool Ltd. Pre-harvest
Depending on market requirements and chemicals applied, a pre-harvest
Residue Testing Pre-harvest
residue test may be required to be provided to Trevelyan’s Pack and Cool Ltd.
Trevelyan’s Agreement Complete copy attached and provide to Trevelyan’s Pack and Cool Ltd. Pre-harvest
Complete copy attached and provide to Trevelyan’s Pack and Cool Ltd
Trevelyan’s AvoGreen Contract Pre-harvest
(if monitored by Trevelyan’s Pack and Cool Ltd).
Map of Orchard Please confirm map of orchard and any changes. Pre-harvest
GAP Audit Please call Trevelyan’s to arrange an audit Pre-harvest
Thailand Agreement Complete and return. Annually
China Agreement Complete and return. Annually
TREVELYAN.CO.NZ 10Harvest
REQUIREMENTS
CLEARANCE TO PICK
Growers must not pick without a current clearance to pick. Prior to
Trevelyan’s will manage the harvest, working with the exporter and
picking please confirm with the packhouse that all documentation is
grower to match exporter requirements (the flowplan into the market
in place and maturity requirements have been met.
place), and to minimise onshore timelines. Growers should liaise directly
with Trevelyan’s as to when fruit can be harvested. In terms of harvest, The full list of export requirements is set out on page 10.
the grower takes responsibility for meeting all exporter, Trevelyan’s and A clearance to pick must be issued prior to picking, and has
industry clearance to pick requirements including (but not limited to), to be re-issued every 14 days.
AvoGreen, spray diary compliance, GAP audits, residue testing and
maturity requirements.
Ultimately the grower takes responsibility for fruit quality in the market,
and the decision to harvest, as per Export Marketing Strategy (EMS) SPRAY DIARY
requirements. The grower (and/or harvest contractor) undertakes to It is the grower’s responsibility to ensure their spray diary is updated
always communicate with Trevelyan’s regarding their harvest. Harvest after each spray. It is also the grower’s responsibility to make sure all
decisions must be communicated with your grower services rep and/or withholding periods are adhered to and that fruit, when harvested,
our harvest coordinator. meets all food safety requirements.
Trevelyan’s role is to impartially manage the harvest, collectively and Growers agree that residue tests completed for the exporter by a
on behalf of all our growers, according to the EMS and exporter third party will be shared with NZ Avocado. Please update your
requirements and direction. Trevelyan’s meets the EMS requirements spray diary within 14 days of the spray application.
and we follow best practice. We encourage all our growers to do the
same. Our performance is continuously monitored by NZ Avocado and
AVOCO™ , and reviewed by the Trevelyan’s Avocado Shed Committee. FRUIT DELIVERY
Trevelyan’s undertakes to inform growers and will assist you in achieving Fruit needs to be delivered daily to Trevelyan’s Pack and Cool Ltd to
your requirements for harvest. Where necessary, we will inform you ensure fruit can be cooled before packing. We have on-site security/
about exporter changes during the season that affect your harvest. forklift drivers who will be available to unload your bins until 8pm, or
later if pre-arranged.
Growers can pick their own fruit or Trevelyan’s can arrange a
Delivery of bins from orchard to packhouse can be arranged through
contractor to pick.
Trevelyan’s. Brett Hutchings runs H2 Contracting and can be contacted
on 0274 946 655.
BIN SUPPLY & CARDS
Our traceability system begins in the orchard, with bin cards Trevelyan’s is not liable in the event your avocados are damaged as a
attached to each and every bin of fruit with the following information result of hail, wind, frost, disease or any other event prior to picking or
recorded: Orchard grower number, maturity area, block and harvest delivery to the packhouse.
date. This ensures fruit can be easily traced back through our supply From the time the fruit is received into the packhouse to the time
chain if necessary. of loadout, the fruit will be subject to the food safety and quality
systems of the packhouse. When fruit arrives in the packhouse a bin
Please staple the bin cards provided to the right-hand corner of the
receipt form will be filled in by a packhouse representative as a record
field bin with all details completed.
of all fruit received.
ORCHARD MAP AND MATURITY SAMPLING The total number of bins tipped is checked against the total number
of bins received on site.
Trevelyan’s will generate a 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, until such time as NZ Avocado ORCHARD HEALTH AND SAFETY
issues a dispensation. All results can be found on the Eurofins website, The grower is responsible for informing any contractor, or anyone
please call them on 07 549 1044 to arrange a password. coming onto their orchard, of any hazards.
11 AVOCADO PACKING AGREEMENT 2019-20Agreement
CONDITIONS
WATER BLASTING GROWER PAYMENTS
We water blast all our avocados to remove any debris or surface Payment for export trays is made direct to the grower from the
deposits, to help them be pest free. This process enables us to exporter. See the exporter proposals for details of cash flow and
provide the best quality avocados to market in a clean, healthy state pooling arrangements.
for the consumer.
Payment for BayFarms Ltd local market trays is via a fortnightly pool
system based on the date of packing.
PACKING FOR EXPORT
The net proceeds are paid to the grower by BayFarms Ltd approximately
The grower and Trevelyan’s Pack and Cool Ltd agree to comply with
six weeks after the pool is closed and settled.
the EMS, and both parties will be registered with NZ Avocado as per
the EMS requirements. BayFarms’ oil payments will be divided into two pools over the season
– one from the start of the season to December and one from January
Where the terms of this proposal conflict with those of the EMS,
until the end of that season’s fruit (approximately July). Payment will be
the terms of the EMS will prevail.
made when reconciliation is completed.
LIBRARY FRUIT Growers give Trevelyan’s Pack and Cool Ltd consent to access OGR
information from the exporter for reporting purposes.
Library trays will be collected for each PPIN and analysed in
accordance with the EMS and Quality Manual.
RISK AND INSURANCE
The loss of return for the fruit provided for library trays is to be
The exporter will carry insurance cover from the time fruit leaves
borne by the grower.
the coolstore until arrival in the marketplace.
Results will be emailed out to you by NZ Avocado.
Trevelyan’s Pack and Cool Ltd has Bailees Liability insurance
Growers must provide consent to the packer and exporter when cover while fruit is in our care to cover any loss or damage to fruit
access to the library tray data pertaining to their PPIN is required through negligence.
for the customer.
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.
TREVELYAN.CO.NZ 12Trevelyan’s
CHARGES
EXPORT PACKING AVOGREEN MONITORING
Table 1 shows our packing charges, which are based on the number $32 per hour and $0.95 per km +GST.
of bins picked over two consecutive days, and the total export trays
Transport is only charged one way between Trevelyan’s and the orchard
supplied over the season. This is an all-inclusive price of packing,
(south of Tauranga), or one way between our Te Puna office and the
packaging and cool storage.
orchard (north of Tauranga).
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 the base rate ($5.22), and the volume discount will be rebated at the Table 1:
end of the export season. The exporter pools (rather than individual
growers) will be paying a packing differential to Trevelyan’s Pack and EXPORT
31+ BINS 10-30 BINS 1-9 BINS
Cool Ltd which covers the cost of packing. TRAYS SUPPLIED
10,000+ $3.96 $4.45 $4.92
LOCAL MARKET PACKING
Base charge is $4.45 per 5.5kg SLT equivalent (includes packing, 5,000 – 9,999 $4.06 $4.55 $5.02
packaging and cool storage). Freight to market will be charged at
1,000 – 4,999 $4.16 $4.65 $5.12
costs recovery.
Fruit supplied for processing will incur a charge of $0.03 per kg. 0 – 999 $4.26 $4.75 $5.22
New packing rates for export and local market will apply from the first day of export packing.
TRANSPORT New rates for AvoGreen monitoring will apply from 1 November.
$8 +GST per bin.
Minimum charge $150 +GST in Te Puke.
$170 +GST minimum charge past Bell Rd or Paengaroa roundabout.
For areas past Tauranga Harbour Bridge and Matata a rate will be
negotiated.
13 AVOCADO PACKING AGREEMENT 2019-202019
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 6. Deductions from local market receipts paid by BayFarms Ltd on
avocados for local market. grower’s behalf are:
2. Trevelyan’s Pack and Cool Ltd will take Warehouseman’s or Bailee a) Direct costs and commissions payable by or to agents.
Liability insurance cover while fruit is in its care to cover any loss or b) Premiums on insurances arranged on your behalf.
damage to fruit through negligence.
c) Freight and storage charges.
3. BayFarms Ltd shall establish and maintain a grower pool account for d) Rental and freight charges for hire crates.
local market which will accept all proceeds and will bear all expenses
e) Packing charges incurred at Trevelyan’s Pack and Cool Ltd and
relating to fruit consignments.
other BayFarms’ approved packhouses.
4. All risks and charges relating to fruit sales as well as costs
f) Any other direct costs necessarily incurred by BayFarms Ltd as
attributable shall be the responsibility of the grower.
the grower’s agent to achieve the sale of fruit.
While BayFarms Ltd will take all reasonable care, it will not be
responsible for the negligence or default of its agents. 7. Growers remain responsible for their fruit quality and any losses due
to quality or internal breakdown are their responsibility.
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. 8. In the event of a grower pool payment being overpaid, BayFarms Ltd
The commission retained by BayFarms Ltd is 4% to cover the cost of is entitled to seek repayment of such monies from the grower, to be
administration and services provided. repaid within seven days.
TREVELYAN.CO.NZ 14310 No. 1 Road, R.D.2 Te Puke 3182 New Zealand Phone +64 7 573 0085 TREVELYAN.CO.NZ
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