EastPack is to reduce its 2011 packing charges by 20 cents per tray for 2012 in a bid to assist in reducing costs facing kiwifruit growers.

The post-harvest operator also intends to pay growers a 20 cents per tray rebate in June 2012.

This announcement follows Zespri's reduced per tray returns forecast for this year's crop.

Eastpack chairman Ray Sharp says they want to help growers who will suffer financial stress as a result of the reduced fruit returns and the potential impact of Psa.

'The move has been made possible through efficiency gains made by EastPack in its packing and coolstorage operating through its growing excellence LEAN manufacturing and plant improvements.

'As a grower owned company we are following our tradition of helping our growers during difficult times and passing back some gains made by the improved performance.”

Ray says EastPack is particularly concerned for Green kiwifruit growers who are facing a forecast 60 cents per tray reduction in payout for their 2011 crop.

'EastPack's announcement will assure growers of 40 cents improvement to their cashflows early in the 2012 season and help them carry the expenditure necessary to put the following year's crop ‘on the vines'.

'EastPack's modern plant and facilities mean that with the expected decline in fruit volumes due to the effects of Psa vine deaths, no capital expansion will be needed. Hence the need for capital call on transactor shares also disappears.”

He says there will be no deduction from the rebate in 2012 for transactor share capital so growers will receive the full benefit of the rebate in cash when they most need it.

EastPack expects it will be able to take on new growers to take the place of lost production due to Psa.

'This will be on a first come first served basis, only until capacity is filled.

'New growers committing to EastPack and wanting to receive the transactor share rebate will only have to pay $1000 to be entitled to the 2012 rebate entitlement.”

Ray says EastPack's performance has enabled it to consistently return to its growers some of the highest Orchard Gate Returns (OGR) in the industry.

'The packing price reduction should enhance this position.

'EastPack's strong financial position and size.

'We packed a record 21.4m Class 1 export trays in 2011, has enabled it to fund research and laboratory facilities, together with Seeka, to urgently seek a Psa solution and assist in management of Psa on orchards.”