Scales purchases Bostock assets
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Scales Corporation, the owners of the country’s largest apple packing and marketing business, has reported an improved half year result.
For six months ending June 30, the company made a net profit of $33.3 million, up 15% on the previous year.
Despite challenges, Scale’s horticulture division delivered underlying gross earnings of $38m, $1m better than 2020.
Scales owns the Mr Apple business, New Zealand’s largest grower, packer and marketer of apples. It grows apples on more than 1,100 hectares of orchards in the Hawke’s Bay.
Mr Apple’s total halfyear export volumes are forecast to be 3.6 million tray carton equivalents (TCEs), a drop of 300,000 TCEs.
Scales managing director Andy Borland says the horticulture division delivered a very strong performance – despite being impacted by a shortage of skilled RSE workers together with ongoing disruptions in global markets and supply chains.
He says volumes were affected by inclement weather in the key growing season. However, higher pricing offset these lower volumes – as well as the increased labour and shipping costs that were incurred.
“We are cognisant of the need to focus on increasing labour cost and availability issues and, accordingly, are pleased to note that we have commenced a 10-year strategy to improve efficiency and returns through automation. The first step of this journey was the development of our new Whakatu coolstore, which has already delivered a number of efficiencies this year.”
Scales’ other business divisions include food ingredients and logistics.
Borland says the strategic value of Scales Logistics is significant.
“During a period of global supply chain issues, together with a domestic shortage of refrigerated containers, Scales Logistics ensured all its horticulture customers were able to ship their 2021 harvests. This expertise provides a significant strategic advantage to the group.”
Full-Year Guidance
The solid half-year results have helped Scales Corporation upgrade its full year net profit guidance to be between $32 million and $37 million.
Scales chair Tim Goodacre says the company still anticipates disruptions to domestic and international operations, including labour availability, global markets and supply chains due to the ripple effects of Covid-19.
“This can be evidenced by the current lockdown in New Zealand,” he says. “However, we believe our diversified focus will go some way to mitigate these issues.”
Goodacre adds that the company is aware that it cannot operate during lockdowns without its team, “and their health and safety will continue to be our foremost priority”.
Alliance Group has secured greater access for chilled beef exports to China, following approval for two of its processing plants to supply the market.
The countdown is on to be one of the most anticipated events in the sheep and beef industry, the East Coast Farming Expo.
Applications for the 2025 intake of Rabobank's Farm Managers Programme (FMP) and Executive Development Programme (EDP) are now open.
Dean Smith has been in the role of CEO of Summerfruit NZ for about four months, having succeeded Kate Hellstrom at the end of September.
Beef + Lamb NZ wants farmers to complete a survey that will shed light on the financial toll of facial eczema (FE) at the farm level.
New Zealand cherry exports may be headed for a record year in terms of volume, says Summerfruit NZ chief executive Dean Smith.
OPINION: Ruth Richardson, architect of the 1991 ‘Mother of all Budgets’ and the economic reforms dubbed ‘Ruthanasia’, added her two…
OPINION: Why do vegans and others opposed to eating meat try to convince others that a plant based diet is…