EastPack is forecasting a $15.8 million profit before interest, tax and rebates for the financial year ending December 31.

EastPack is the largest grower owned kiwifruit post harvest cooperative and this increase is up 42 per cent on the 2010 financial year.

Growers will receive a 30 cents per tray rebate on all trays packed in 2011 – of which 10 cents has already been paid and the remaining 20 cents will be paid in December. EastPack also expects to pay investor shareholders a significant dividend.

This is due to be announced in January.

EastPack chairman Ray Sharp is pleased with the forecast results and the strength of the company's balance sheet.

'We are 100 per cent grower owned, so all profits are returned to our growers – our owners.

'We know this is important to growers and one of the many reasons our growers are loyal and committed to EastPack.

'I attribute EastPack's profit increase and strong financial position to EastPack's operational improvements and efficiencies through our growing excellence LEAN manufacturing processes and supported by a 27 per cent increase in tray volume in 2011.”

Ray says EastPack staff are committed to quality and have worked hard to drive efficiencies across all areas of the business.

'We have delivered a sustained reduction in fruit loss over time with fruit loss for Green and Gold in 2011 lower than the industry average.”

EastPack paid off $4 million of term debt in 2011, thereby reducing term debt to $14 million or 65 cents per tray compared to $1.05 per tray in 2010.

Ray is confident EastPack's strong financial position will enable the company to ride out the impact of Psa and volume decreases that are likely to occur as a result.

'Our growers know we are doing what we can to support them – financially, technically and emotionally – during these tough, uncertain times with Psa.”

EastPack is offering new and existing growers a 20 cent per tray reduction in packing costs for 2012 and a 20 cent cash rebate in 2012.

The company has also announced it will not be charging for Class II reject fruit (both Green and Gold).

'The decision not to charge for Class II rejects is effectively offering growers a further reduction in packing costs.

'Using 2011 data, this will reduce the equivalent packing rate (including packaging) for 2012 to just $1.16 per tray for Green and $1.66 per tray for Gold – certainly one of the best deals in the industry.

'We are continually acquiring new growers and they tell us that being a grower owned cooperative is one of the compelling reasons they chose EastPack – that and the fact that our continuing strong financial performance has enabled us to consistently return some of the highest orchard gate returns in the industry to our growers year on year.”