Bay of Plenty kiwifruit and avocado post-harvest operator, Apata Limited, is increasing its operation by purchasing a cornerstone share in Auckland-based produce marketer Primor Produce Limited.

Apata CEO Steve Low says this move is certain to influence the avocado industry.

Primor director John Carroll and Apata CEO Steve Low.

'We now have complete integration between post-harvest and marketing services,” says Steve.

'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.”

Steve says the 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 re-evaluation and improvement to our harvesting logistics, and post harvest packing supply chain, while investing a sizeable amount of capital into those systems.”

Steve says 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, post-harvest perspective to ensure optimisation of our services.”

Steve says the way forward for Apata was to expand with investment 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.”

Steve says Apata 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 our growers.

'We will work closely with growers to target certain markets. In essence, we will send their fruit at just the right time and to the best location, resulting in optimum returns to the grower's pocket.”

As far as professional marketers go, Steve says Primor is connected with growers unlike some marketers that sit in an office and work from their desk.

'We won't need to introduce Primor employees to growers because they already know them – I expect this to be a very natural progression for everyone.”

Primor director John Carroll, who is also a director of the Avocado Industry Council, says he was impressed even as a young man by the way Apata operated.

'Back in the 1980s, when I worked in Te Puke, I visited packhouses in the Bay of Plenty area as part of my job,” says John.

'Myself and my colleagues found Apata staff to be uncomplicated yet professional and held a balanced view of their importance.

'They are still like that today. They do things accurately with a good attitude and not everyone is made that way.”

John says Apata was not the first to hold discussions with Primor regarding a financial partnership over the years.

'The fact that we have agreed to sell 33 percent of our shares says a lot about how much we value doing business with Apata and is a huge credit to them.

'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.

'This is us saying it is appropriate to continue doing business together while embracing opportunities we can both benefit from.

'Now feels the right time to change the shape of it.”

He also says the New Zealand avocado industry needs allegiances and stronger, seamless supply chains to help increase export.

'We handle over 30 percent of our national avocado crop, which is mostly packed at Apata.

'Our focus has been on the Australian market where we do substantial business with Coles Supermarkets.

'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.

'There are always new consumers coming into the market and existing consumers are finding more and more ways to use avocados.”

John says New Zealand can be a significant international player in its own right.

'Apata buying into us not only gives us a degree of security, but it achieves the same for customers and growers.

'We are positioned to deliver the best product, information and supply possible to a wide range of world markets.”