Kiwifruit

Packing Agreement
Trevelyans 2015

2015 Trevelyans
Packing Agreement
We are pleased to provide you with the 2015
Trevelyans Packing Agreement. You will notice a
few changes to the packing agreement this year. We
have decided to trim the content down to focus on
packing terms and conditions, with an annual report
style document to follow shortly which covers a
wide range of activities and initiatives at Trevelyans.
At the conclusion of the 2014 harvest we
immediately turned our focus to investment in the
handling capacity of our site, and commissioned the
building of:
2 new coolstores
extensions to stores 16, 17, and 18
making changes to Line 1 to have the ability to
pack G3.
Pre-Christmas we felt that the required infrastructure
was in place, but it was soon apparent in January
that we would require further static coolstorage
capacity to manage forecast increased yields in
both Green and Gold crops. This has moved us to
build 2 further coolstores, with a projected total
capital spend of $7 million for the season. As we
near the commencement of harvest for 2015 we are
facing a record packing season of over 12 million
trays. With a projected volume increase of 50% this
year at Trevelyans it is imperative that we invest in
ensuring all areas are covered so that we continue to
be leaders in terms of low fruit loss and top quartile
Orchard Gate Returns (OGRs) back to our growers.

We find ourselves in a position of having to

increase our packing prices this season. The major
components of this increase are packaging and
labour costs which have had significant movements.
Packaging and labour accounts for around 85%
of our packing cost structure so we are extremely
sensitive to fluctuations in these cost centres. Also
there is a small increase in the pack rate to recover
lost margin over the past few years that came
about in an extremely competitive environment
with industry volume reduced through Psa. The
margin recovery is to move towards a break-even
position for providing packing services. We always
aim to keep our packing charges competitive in the
marketplace, and believe that the pricing for 2015
still reflects this. Ultimately, the most important
result is that you receive industry leading OGRs
which is the best indicator of how well Trevelyans is
performing for all its growers.
Change to Pack Differentials
What you pay for packing is a combination of base
rate plus packing differential. Until this season the
base rate for packing has been based on the cost
of packing a modular bulk green conventional pack
(ENMB). A differential is then set by Zespri from this
base pack to cater for all other pack configurations
and varieties, with Zespri funding this through their
payments system to post harvest operators. This
ensures the costs of packing are equalised for all
facilities regardless of the mix of packs they process.

What this means is that we have to alter the Gold

and Sweet Green base rates to account for this
change in Zespris differential model. It is
important to realise this change has no impact
on your OGR. The change is that some of the
differential payment is now charged by Trevelyans
rather than by Zespri as a deduction off fruit value.
The effect of this is shown in the packing price table
later in this document.
Zespri will also be paying a differential to post
harvest for coolstorage and indirect packing costs
this season. These are two areas which have been
omitted from the standard cost models to date.
Now, all the costs of different pack types are fully
recognised through to delivery to the wharf onshore.
This is reflected as a decrease in our packing
charges, with Zespri deducting the cost off fruit
value. Like the change to the differential for base
pack per variety, this change has no impact on
your OGR.
Gold3 and Gold9 weight bands
Zespri has changed the weight bands for Gold3 and
Gold9 fruit to make them the same as the weight
bands used for Hayward. For growers, this means
orchard trays/ha are likely to decrease (it will take
more fruit to make up a tray equivalent). However, it
would be expected that, over time, the gross return
per tray would increase to make up for this.

Zespri has calculated that the impact on the tray

equivalents produced is a reduction of 10.4%. The
effect on this for Trevelyans is that we still have to
handle the same amount of fruit i.e. we still process
the same number of bins on site but for less tray
equivalents per bin, thus we will need to make an
adjustment to G3 and G9 packing prices to account
for the reduction in tray equivalents packed. The
increase for G3 is $0.30/te and G9 is $0.31/te.
Summary
In conclusion, packing price changes this season are
a combination of cost increases across all varieties
as well as industry changes to the pack differential
model and gold weightbands unit of measure. These
changes are all detailed in the packing terms later in
this document. In relation to the industry changes,
Trevelyans has made the decision to follow the
Industry information Sheet from Zespri which covers
the pricing impact on post harvest charges.

TREVELYANS PACK AND COOL LTD

PACKING AGREEMENT 2015

For 2015 the industry has agreed with Zespri to set a

base pack type for each variety. For all Gold varieties
it will be a modular loose box (ENML) and for Sweet
Green it will be a modular transit box (ENMT). For
Hayward conventional and Hayward organic the
base pack will stay as a modular bulk (ENMB).

Talk to us anytime
If there is anything in this packing agreement you
would like to discuss further, please do not hesitate
to call either James or myself directly. We value
your input and look forward to helping make your
business as productive as possible. All the best for
your harvest, and thank you for your support.
James Trevelyan
0276 488 878

Stephen Butler
0275 177 999

Contents
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
2014 Performance Results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2015 Industry Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2015 Trevelyans Packing Terms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Staff Representation at Trevelyans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2015 Packing Commitment Form (loose leaf)

TREVELYANS PACK AND COOL LTD

PACKING AGREEMENT 2015

TREVELYANS ANNUAL KIWIFRUIT VOLUME

HWCK

Class 1 Million Trays Packed

COMPANY
PERFORMANCE

2014
Performance Results
HWOB

G14CK

GKCK

GKOB

G3CK

G3OB

12

**12.1

**12.4

2015

2016

10
8

7.7

8.4

8.1

7.7
6.4

6
4
2
0
2010

2011

2012

2013

2014

**2015/2016 Estimated Volumes

FINAL FRUIT LOSS FOR 2014 HARVEST

DECEMBER 2014 OGR FORECASTS

Industry FL %

Trevelyans

$8.00

7.0

$7.50

6.0

$7.00

5.0

Percent Fruit Loss

$6.50
$6.00
$5.50

2.0

$12.00
$11.00
$10.00
$9.00
$8.00
$7.00
$6.00
$5.00
G3CK G3OB G9CK G9OB GKCK GKOB
Fruit Group

B
O
W

K
H

H
W

14

B
G

9O

K
9C

B
G

O
K

K
C
K

$13.00

0.0

Trevelyans

Fruit Group
Industry

3O

G14CK

HWOB

HWCK

OGR ($/Tray)

3.0

1.0

$5.00

Trevelyans FL %

4.0

G
3C

OGR ($/Tray)

Industry

INDUSTRY
STRUCTURE

2015
Industry Structure

TREVELYAN GROWERS LTD

TREVELYANS PACK & COOL LTD

TREVELYANS PACK AND COOL LTD

PACKING AGREEMENT 2015

ZESPRI

GROWER
In the above diagram the Registered Supplier is Trevelyan Growers Ltd.

Contracts and Parties

1. The Packing Agreement
Grower and Trevelyans Pack and Cool Ltd.
2. Grower and Supplier Agreement
Grower and Trevelyan Growers Ltd.
The Grower has an agreement with Trevelyan
Growers Ltd. Trevelyan Growers Ltd will act as
an agent for the grower and will be governed by

elected grower members each year. Trevelyans

Pack and Cool Ltd will manage Trevelyan
Growers Ltd on a day-to-day basis.
3. 2015 Coolstorage Agreement
Trevelyan Growers Ltd and Trevelyans Pack
and Cool Ltd.
4. 2015 Zespri Supply Agreement
Trevelyan Growers Ltd and Zespri. (Option A)

TREVELYNS
PACKING TERMS

Trevelyans
Packing Terms 2015

TREVELYANS PACK AND COOL LTD

PACKING AGREEMENT 2015

Growers will receive:

Money Flow

1. A Packing Agreement with Trevelyans Pack and

Cool Ltd and

Payment for fruit and service costs will be from

Zespri to Trevelyan Growers Ltd to the Grower.

2. A Grower and Supplier Agreement with Trevelyan

Growers Ltd. This will be sent once the Zespri
Supply Agreement is completed.

Payment of each growers liability for packing,

transport, coolstorage and administration of
Trevelyan Growers Ltd will be made direct
from Trevelyan Growers Ltd to Trevelyans Pack
and Cool Ltd, from grower returns received
from Zespri.

Growers will need to sign and comply with these

agreements and return them to Trevelyans Pack and
Cool Ltd.

Payment of each growers liability for logistics

will be made direct from Trevelyan Growers Ltd
from grower returns received from Zespri.

Trevelyan Growers Ltd will organise the other

agreements on the Growers behalf.

Packing Charges (Class 1)

Packing charges will be calculated by individual grower KPIN number. There is no charge for Green Class 2 rejects.
Fruit Group

HW

HW OB

GA

HE

GL

GK

Increases due to cost increases and margin recovery

Base Rate 2014

$1.23

$1.23

$1.33

$1.43

$1.43

$1.63

Cost increases
(packaging & labour)

$0.06

$0.06

$0.07

$0.08

$0.08

$0.09

Margin recovery

$0.06

$0.06

$0.06

$0.06

$0.06

$0.06

$1.35

$1.35

$1.46

$1.57

$1.57

$1.78

$0.31

$0.48

$0.44

$0.45

Base Rate before

industry adjustments

Industry Adjustments (per Zespri industry information sheet)

Pack differential adjustment
Gold weightband change
Standard cost model change
- Coolstorage
- Indirect pack costs
Base Rate for 2015 @ 0% rejects
Reject Surcharges 2015

$0.30

$0.31

($0.11)

($0.05)

($0.12)

($0.10)

($0.04)

($0.22)

$1.24

$1.30

$1.95

$1.95

$2.28

$2.01

All varieties

0% to 10%

$0.01 cents per % rejects

10.1% to 15%

$0.02 cents per % rejects

15.1% +

$0.03 cents per % rejects

Green and Gold Picking Bonus

The picking system is to be controlled by

Trevelyans Pack and Cool Ltd. Fruit is to be
harvested after a clearance to pick is given by
Trevelyans Pack and Cool Ltd. Trevelyans Pack
and Cool Ltd will schedule the time of picking by
mutual agreement with the grower. Packing of your
kiwifruit will be at Trevelyans Pack and Cool Ltds
absolute discretion. Timing may change due to
weather or other factors.

This season the picking bonus for all varieties will

be determined in March 2015 by Trevelyan Growers
Ltd. This will be detailed in the Grower and Supplier
Agreement.

The cost of picking is the growers responsibility

and is paid directly to the picking contractor by the
grower. The prices for picking may differ between
picking contractors and growers should agree
terms with their allocated picking contractor before
picking commences.
Picking contractors have requested security for
payment if the grower fails to pay the picking
contractor within 21 days, for a reasonable job
completed. This security will be by payment of the
individual growers invoiced amount from funds held
for the grower by Trevelyan Growers Ltd.
Recommended Picking Rates
Hayward Picking Rates

Pergola

T-Bar

Full Contract (Labour

and all Machinery)

$30.40/bin

by
negotiation

Hort 16A and

New Variety

Machinery

Labour

Hourly Rate - Labour

Forklift + Driver
Tractor and Trailer
+ Driver

$23.00/hour
$1.50/bin +

$23.00/hour

$95.00/full day +
$50.00/half day +

$23.00/hour

A gate fee may be invoiced to the grower

depending on orchard location, size of maturity
area picked and the need to return to complete
the harvest. To move machinery within the area
from Matapihi to Otamarakau, the recommended
fee is $150.00. Outside this area a gate fee will
need to be negotiated with the harvest contractor.
Because of the additional hygiene requirements
presented by Psa, harvest contractors may charge
a recommended hygiene fee of $25.00 per unit
(tractor and bin trailer).

Bin Cards
Bin cards will be pre-printed with grower number,
variety, growing method and maturity area.
Please take care to fill in the bin cards clearly and
correctly with a permanent marker pen including:
the pick date
the block number

Transport
Transport of bins to and from the orchard will be a
cost to the grower and is not included in the base
packing rate.

TREVELYANS PACK AND COOL LTD

PACKING AGREEMENT 2015

Trevelyans Pack and Cool Ltd is not liable in the

event your kiwifruit is damaged as a result of hail,
frost, wind, disease or any other event prior to
picking or packing.

TREVELYNS
PACKING TERMS

Picking

Transport Charges:
Te Puke Area
(Matapihi to Otamarakau)

$5.30/bin

Te Puke-No 1 Road

$4.80/bin

Other Areas

as charged

Payment of all transport charges will be made to

Trevelyans Pack and Cool Ltd by Trevelyan Growers
Ltd on behalf of the grower.

KiwiStart
KiwiStart will be:
picked in order of clearance
subject to availability and weekly allocation
subject to the terms of the 2015 Zespri
Supply Agreement
Zespri gives only 24 hours notice when closing
the KiwiStart demand cap. Therefore, some
pooling of KiwiStart returns will be necessary for
crops picked for KiwiStart that miss the demand
cap cut off. Any equity issues will be resolved by
Trevelyan Growers Ltd.

TREVELYNS TERMS
AND CONDITIONS
TREVELYANS PACK AND COOL LTD
PACKING AGREEMENT 2015

Packing

Reject Surcharge

On receipt of fruit at the packhouse, Trevelyans Pack

and Cool Ltd will at its discretion:

Where the reject surcharge applies, it applies to all

a. cure fruit in bins before packing or

rejects will be charged:

b. store fruit in bins in a conventional buffer coolstore

Base Rate

$1.24

Surcharge

$0.10

Trevelyans Pack and Cool Ltd will:

0% to 10%

10.1% to 15%

$0.10

1. Provide skilled and capable staff in the packhouse.

15.1%+

$0.03

2. Pack fruit to the Zespri grade standard.

Packing charge / tray

3. Provide packout documentation to growers

as soon as possible after packing. This report
will reconcile Class 1 and reject fruit to the total
kilograms of fruit submitted.

Differential

4. Pack fruit held in buffer storage as soon as

possible at the completion of the harvest period.
5. Welcome growers to the packhouse to view the
packing of their fruit.
6. Be BRC compliant.
7. Pack Class 2 fruit at the packhouses discretion.
8. When packing fruit comply with all relevant NZ
laws, codes and standards.

Reject Rates
Hayward/G14 Reject rates are defined as:
Fruit other than Class 1, size 18 to 46*
count & Class 2 (kg)
divided by Total fruit handled (kg)
* 46 count Hayward/G14 & Class 2 are excluded from rejects
as long as an opportunity to export is available.

G3, G9, Hort 16A Reject rates are defined as:

Fruit other than Class 1, size 14 to 42**
count (kg)
divided by Total fruit handled (kg)
** 42 count Hort 16A is excluded from rejects as long as an
opportunity to export is available

Class 1 trays packed. Eg: A Hayward crop with 16%

$1.47

Pricing for packing is set on the charge for a base

pack per variety. The pack category differential as
specified in the 2015 Zespri Supply Agreement will
be added to the base rate. This equalises the costs
of packing different pack types. The cost of the
differential charge is funded by Zespri payments.

Class 2
Hayward
Base Rate
$1.74 per tray equivalent plus differential
G14, G3, G9, Hort 16A
Base Rate
$2.78 per tray equivalent plus differential
The Class 2 rate is a fixed rate with no reject
surcharge added. Packaging differential, if any, will
be added.

All growers must have a ZIL grower number and

Payment of packing charges pursuant to this

comply with ZIL standards. All growers must be

Packing Agreement will be made direct from

GAP compliant at all times and agree to comply

Trevelyan Growers Ltd to Trevelyans Pack and Cool

with the GAP PMO documented procedures,

Ltd from returns received from Zespri which are

policies and where provided, technical advice.

payable to the grower.

If a grower becomes non-compliant they will go

The grower irrevocably authorises and directs

through the grower sanction process as set out by

Trevelyan Growers Ltd to pay Trevelyans Pack

the ZESPRI GAP PMO quality system. The sanction

and Cool Ltd for all packing charges payable by

procedure documentation must be filed in growers

the grower.

individual GAP folders for reference if required.

Pests/Stains/Punctures/Other

GST
All prices quoted in this packing agreement are

If any crops have an attribute that requires the

GST exclusive. GST will be added to all payments

packhouse to operate at a significantly slower than

when made.

normal rate the grower will be contacted and an

hourly rate will be charged to cover Trevelyans

Submit Payment

Pack and Cool Ltds costs.

The responsibility for payments rests with

Trevelyans Pack and Cool Ltd retains the right to

Trevelyan Growers Ltd. As a guide, the forecast

refuse to pack a particular line of fruit.

advance payments to growers from Trevelyan

Fruit Loss Packaging

$0.50 cents / tray equivalent within 21 days of

All reusable packaging arising out of fruit loss will

be purchased by Trevelyans Pack and Cool Ltd,
at its discretion, at 75% of the new season price.
Payment will be made to Trevelyan Growers Ltd.

Growers Ltd will be:

submit.
Payments for picking, transport, packing,
coolstorage and logistics are required to be
paid before further payments are made to the

Independent Laboratory Charges

grower. Trevelyans Pack and Cool Ltd may, at

Growers pay for all clearance samples requested

provide cashflow to the grower. Further payments

through the independent laboratory.

Samples will be charged at cost and payment for
all charges will be made to Trevelyan Growers Ltd
on behalf of the grower by way of deduction from
grower returns. To date, these costs are unavailable
from the Independent Laboratory.

TREVELYNS
PACKING TERMS

Payment

TREVELYANS PACK AND COOL LTD

PACKING AGREEMENT 2015

Zespri Gap Compliance

its discretion, defer some of these payments to

to growers will follow progress payments or as
funds are received from Zespri.

Orchard Reports
Trevelyans prides itself on transparency and open
communication with all its growers. Our intention
is to continue providing orchard reports to give
growers an objective view. We hope this level of
service is beneficial to you.

TREVELYNS TERMS
AND CONDITIONS

Risk
Trevelyans Pack and Cool Ltd will not be liable for:
1. Any loss of or damage to the growers fruit,
except liability caused by any negligent act or
omission by Trevelyans Pack and Cool Ltd.

TREVELYANS PACK AND COOL LTD

PACKING AGREEMENT 2015

2. Failure to make fruit available for supply at any

particular time or period except where Trevelyans
Pack & Cool Ltd is proven to have been negligent.
3. Breach of or failure to perform any of its obligations
under this agreement, where such breach or failure
is the result of a cause or causes beyond Trevelyans
Pack and Cool Ltds reasonable control.
4. Trevelyans Pack and Cool Ltd will ensure its
personnel take all reasonable care when visiting
a growers orchard and when handling growers
fruit to minimise the risk of Psa spreading.
Where all reasonable care has been taken,
Trevelyans Pack and Cool Ltd, its agents and
employees, will not be liable for any loss or
damage suffered or incurred by a grower where
such loss or damage is attributable to Psa.

Industry Terms
Terms defined or used in the 2015 Zespri Supply
Agreement have the same meaning in this agreement.
The 2015 Zespri Supply Agreement will be available
for viewing at Trevelyans Pack and Cool Ltd or Zespris
website www.zespricanopy.com once completed.

Zespri Exclusive Supplier

The grower agrees they will supply all of the
growers Class 1 kiwifruit, other than Class 1 kiwifruit

Dispute Procedure
Any disputes will be dealt with in the manner
prescribed by the 2015 Grower and Supplier
Agreement for that type of dispute.

To Complete
The Trevelyan Packing Agreement commitment form
needs to be signed and completed by the grower.
A stamped, addressed envelope is included for
your convenience.
We at Trevelyans would like to take the opportunity
to wish you a successful and prosperous harvest.
Yours sincerely

sold in New Zealand, or exported from New Zealand

for consumption in Australia, exclusively to Zespri
Group Limited in 2015, as required by the 2015
Zespri Supply Agreement and the Enhanced Three
Year Rolling Grower Contract. Trevelyans Pack and
Cool Ltd agrees with the grower that it will not

James Trevelyan
Managing Director

knowingly contract with any other grower that does

not supply all of their Class 1 kiwifruit, other than
Class 1 kiwifruit sold in New Zealand, or exported
from New Zealand for consumption in Australia,
exclusively to Zespri Group Limited in 2015, as
required by the 2015 Zespri Supply Agreement.
10

Stephen Butler
General Manager

STAFF
REPRESENTATION
TREVELYANS PACK AND COOL LTD
PACKING AGREEMENT 2015

Staff Representation
at Trevelyans

James Trevelyan

Stephen Butler

Alister Hawkey

Debbie Robinson

John Lewitt

Phil Allison

Ash Lee

Daniel Birnie

Yvonne Smythe

Dave Parsons

Cody Bent

Christine Draffin

Diana Anderson

Jodi Johnstone

Mike McCauley

Darold Krull

Paula Ross

Ann Vercoe

Rachel Walling

Managing Director

Operations Manager

Kiwifruit Grower
Liaison

Inventory & Harvest

Manager

Financial Controller

General Manager

Technical Manager

Kiwifruit Grower
Liaison

Human Resources

EDI Manager

Executive Director

Grower Liaison Manager

Kiwifruit Grower
Liaison

Coolstore Manager

Directors

Trevelyan Growers Ltd is the Supplier to Zespri for

growers packing at Trevelyans Pack and Cool Ltd.

Colin Olesen
Robin Ellison
Ian Schultz
Steve Wright
Simon Cook
Peter Puchner
Jeff Roderick
Terry Newlands
Mat Johnston
Alister Hawkey
James Trevelyan
Stephen Butler

Their mandate is to provide governance and

direction for Trevelyan Growers Ltd as per the
Grower and Supplier Agreement between Trevelyan
Growers Ltd and each grower, as well as the 2015
Zespri Supply Agreement between Zespri and
Trevelyan Growers Ltd. Elections are held each year
and the directors are as follows:

Avocado Manager

Quality & Compliance

Manager

Chief Engineer

Grower Payments

Trevelyan Growers Ltd

The directors of Trevelyan Growers Ltd hold regular

meetings during the year.

Supply Manager

Chairman
Grower
Grower
Grower
Grower
Grower
Grower
Grower
Grower
Trevelyans Pack and Cool Ltd
Trevelyans Pack and Cool Ltd
Trevelyans Pack and Cool Ltd
11

310 No. 1 Road, R.D.2

Te Puke, 3182
Phone (07) 573 0085
www.trevelyan.co.nz

This report has been printed using certified sustainable paper and biodegradable vegetable based printing inks.