Apata’s acquires a 33 per cent holding in marketer Primor

Comments Off | 06-30-2011

The Bay Of Plenty Times Tuesday reported that Apata and Primor, two major players in the New Zealand avocado industry, have formalized a 23-year long relationship through Apata’s acquisition of a 33 per cent holding in marketer Primor.

Apata chief executive Steve Low and Primor director John Carroll said the move was a logical one, given the extremely close ties the companies had shared for so long, said the Bay Of Plenty Times.

Primor handles the export of more than 30 per cent of New Zealand’s avocado crop and most is packed by Apata either at its Katikati or Whangarei facilities.

According to the Bay Of Plenty Times, the avocado industry is predicting its biggest harvest this coming season and Mr Low and Mr Carroll said it was vital the crop and markets be well managed to ensure the best returns for growers.

Mr Carroll reiterated that the decision (to accept the shareholding) was made not for financial reasons but because it made sense for the companies to work even more closely together.

As well as new shares, Apata has bought some from existing Primor shareholders, and that would provide a capital injection into Primor. But Mr Carroll said one of the greatest benefits to both companies would be having Apata directors on the Primor board, and Primor becoming more familiar with Apata’s wider business, said the Bay Of Plenty Times.

Apata buying into Primor not only gives the company a degree of security, but it achieves the same for customers and growers. Primor is now positioned to deliver the best product, information and supply possible to a wide range of world markets, he said.

Mr Low said it had become increasingly apparent and imperative during the past few seasons that Apata needed to have a stronger strategic focus to encourage more growth, said the report. According to Mr Low, the way forward for Apata was to invest in Primor.

The company is an extremely efficient and high-performing market business and has a well-developed network into key Australian and Asian markets, in addition to the New Zealand domestic market, he reiterated.

Primor Produce is a major New Zealand marketer and exporter of avocados to Australia, North America and Japan.

The Bay of Plenty Times noted that New Zealand avocado industry needed allegiances and stronger, seamless supply chains to help increase the value of exports.

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Posted in Agriculture New Zealand, Foreign Direct Investment/FDI New Zealand, General |

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