Exporter ready for Christmas frenzy
Scales Corporation doesn’t expect the coastal Kaikoura road route to be fixed for many months and is making alternative plans.
The fruit exporter’s freight division will transport cherries and apricots to export markets via the increasingly congested Lewis Pass route to Wellington and Auckland over the holiday period.
‘‘We airlift a lot of the stone fruit that comes from Central Otago. But there’s not enough air freight capacity out of Christchurch so we’ll be trucking the fruit to the North Island across Cook Straight and flying it out from Auckland airport,’’ managing director Andy Borland said.
‘‘Many of our clients are disrupted (by the earthquakedamaged Kaikoura highway). We’re keen to see the Kaikoura coastal route restored but we don’t anticipate it will be for many months.’’
Scales had a record year for its food division producing juices and pet food, and is also New Zealand’s largest apple grower and exporter.
During apple harvest the 500-strong workforce would rise to about 2500, Borland said.
‘‘Our strategy is to become the preferred supplier of apples within the Asian region.’’
One of the way Scales was achieving this was through the $20 million purchase of 83-hectare Hawkes Bay orchardist Longview, adding to the 1000ha already under management, he said.
Longview was recently recognised by the China Fruit Marketing Association as one of the top 10 brands of fruit imported into China during 2016, Borland said.
Among the shareholders who will benefit from higher forecast dividends is a Chinese state-owned company, China Resources, which bought a 15 per cent shareholding in Scales in March for $56m.
The record food division result plus the Longview purchase would boost annual profits for the 12 months ending December 31 to between $37m and $39m. This compares with previous forecasts of $29m and $34m.
Scales shares have risen from $2.23 to $3.49 a share during the year.