Sharechat Logo

Zespri tasty while Enza is bruised

By Aimee McClinchy

Friday 11th August 2000

Text too small?
MOVER: Zespri finally goes one-up on its crunchy cousin
Confident kiwifruit growers are sitting tight on their Zespri shares and planting more orchards than the industry has seen in years.

Their certainty contrasts with apple and pear growers who sold shares in their marketer, Enza, to corporate raiders at an average share price of $1.50.

In the kiwifruit industry only 13 trades of small bundles of shares have been made since Zespri's corporatisation on April 1.

The trades have ranged from $5.01 in May - Zespri itself did not set a value at time of corporatisation - to a bundle of 2400 shares on Monday which changed hands at $3.40.

Zespri Group said a small amount had also been privately transferred and was attributed to changes in ownership of land for new planting areas and house construction.

When it corporatised, Zespri predicted up to 10% of growers would immediately sell out, particularly a "religious" group who did not vote for the new structure and wanted to export for themselves.

"It's an exciting time from a grower perspective," said Tony de Farias, managing director of one of the country's largest kiwifruit operations, Seeka Kiwifruit Industries.

He said grower confidence was being fed by counter-season export markets and demand for kiwifruit "outstripping planting."

He said most growers were sitting on their shares as "most would be taking the view that we have not been able to get a real feeling of what the shares are worth - most growers feel they would rather hang in and wait."

Mr de Farias believes there are more plantings in the Bay of Plenty region than there have been in the past five to 10 years.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar headed for 1.3% weekly gain on expectations of a Fed rate cut
RBNZ knock-back gives Resolution chance to low-ball AMP - Jarden
Rail hubs may not boost Napier Port log trade
O'Connor looks to overhaul Biosecurity Act, improve animal tracing
Denton Morrell undefended at liquidation hearing
Contact steam to heat Norske Skog pellet business secured
Air NZ to amend booking engine after lawyer’s complaint
Ross McEwan to take helm at NAB
KPMG says bank capital proposals will wreck havoc on dairy farmers
Mild weather saps Vector's June-qtr volumes

IRG See IRG research reports