Fruitgrowers plan new joint-venture company

Press, 2 July 1985, Page 3

Fruitgrowers plan new joint-venture company

A new joint venture company, known as Fruitfed, Ltd, will probably be formed by the Fruitgrowers’ federation and the Apple and Pear Board.

The new company will handle the activities of the Federation’s trading and export divisions. Fruitfed is planned to have a capital base of $l4 million shared equally by the two organisations. Details of the proposed new company were announced jointly yesterday by Mr Peter Taylor, the federation’s president, and Mr Ken Kiddle, the board’s chairman.

Mr Taylor said the proposal would be put to growers for a decision at the federation’s national

conference in October. The new company would ensure that the fruitgrowing organisation remained in the hands of growers, said Mr Taylor. The recent rapid growth in horticulture was making it difficult for the federation to continue to give growers a good service, but the new company would give the industry a tremendous base to work from.

By joining forces both organisations would benefit from each other’s expertise. Mr Kiddle said the availability of other types of fruit would allow the board to broaden its base and have a bigger marketing push. The ability to offer a range of horticulture products in addition to pip-fruit

was a feature of the strategy of New Zealand’s main southern hemisphere competitions. The joint venture would not only provide pip-fruit growers with benefits from the rising value of the board’s half-share in the new company, but would enable both partners to use fully the horticulture industry’s resources and facilities. This would include greater use of the board’s coolstores and processing plants. Mr Alistair Malcolm, the federation’s Canterbury director, said the new company should result in a stronger marketing drive and improved results for export fruitgrowers in Canterbury.