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Birchwood Packhouse
Limited is a niche post harvest operator which provides
orchard management services, packing and coolstorage
facilities to the kiwifruit and avocado industry.
Located in Katikati, the company was incorporated in
1987 with just four foundation shareholders.
In 1992, due to a downturn
in the kiwifruit industry, and in response to clients’
requests, the company took over the management of some
orchards on a share cropping basis. In 1994 the company
reviewed its structure due to the fact that three of the
four original shareholders had sold their orchards and
relinquished their interest in the industry. So as to
ensure continuity of market share and production levels,
Birchwood was purchased by its grower clients. Two
grower directors were added to the Board - and the
company was subsequently registered as a cooperative in
1997. It now packs in excess of one
million trays of export kiwifruit.
As part
of Birchwood’s strategic planning, the directors
recognised the company had reached a watershed in its
development. In response to this, and the
developments within the industry, it sought out a
cornerstone investor shareholder – DMS Progrowers Ltd, a
successful industry leader. Shareholders approved DMS
taking a 25% share in their company in October 2007 –
and the injection of capital has assisted with
extensions and upgrades to the existing facility, and
the construction of a new state-of-the-art 400,000 t/e
coolstore.
The new
Board consists of two DMS members, three Birchwood
cooperative members and an independent chairman. This
has brought a high level of expertise and knowledge to
the business - and confidence for the future.
Strong
partnerships between Birchwood and its client growers
are essential to maximise returns. Focus has been on
developing a total service from skilled orchard
management through to communication, modern packhouse
systems and coolstore facilities.
As a
co-operative, Birchwood provides the best opportunity
for its growers into the future – together with
transparency in an industry which is becoming
increasingly complex. Orchard gate returns currently
achieved demand the post harvest business offers the
best possible price for its services – and grower
shareholders stand to add to their returns by way of
rebates on packing and efficiencies achieved by a lean
management team. Birchwood is well positioned to meet
any challenges that may arise in the future.
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