Ann: GENERAL: SEK: Seeka's provides its approach to the...

• Release Date: 06/10/14 08:30
• Summary: GENERAL: SEK: Seeka's provides its approach to the Kiwifruit Claim
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					SEK
06/10/2014 08:30
GENERAL

REL: 0830 HRS Seeka Kiwifruit Industries Limited

GENERAL: SEK: Seeka's provides its approach to the Kiwifruit Claim

Seeka's approach to the Kiwifruit Claim

This week a group of kiwifruit growers announced a proposal to take a  class
action against the Ministry for Primary Industries in respect of the
kiwifruit vine disease Psa's arrival in New Zealand. They are seeking an
indication of support from growers who may wish to join in a class action.
All growers are well aware of the devastating impact Psa-V had, and continues
to have, on our industry.

Seeka has deliberately not commented on this activity. We have listened to
the ensuing debate and taken some time to consider our position. Recently we
have become aware of inaccurate statements regarding Seeka circulating in the
Industry and for this reason we have decided to state our position.

The kiwifruit industry suffered widespread devastation from the incursion of
Psa V. Whilst parts of the Industry are in recovery, there are growers still
suffering its effects and regions outside the Bay of Plenty where Psa V is
only now taking its toll. Many growers have incurred significant financial
losses in addition to emotional and psychological stress. Throughout this
time Seeka has offered help and support to its growers when they, along with
the rest of the Industry, were facing complete uncertainty as to their future
livelihoods. It is difficult to describe the effects of such stress on
individuals, families, businesses and indeed our small communities. While the
Industry now looks more positive, unfortunately the potential for further Psa
devastation remains.

Seeka, as New Zealand's largest kiwifruit grower, has been significantly
impacted by the effects of the disease. The financial costs to Seeka are
conservatively estimated to exceed $45m.  We proactively took steps to manage
costs and indeed reduced permanent staff numbers by 40% in preparation for
worst case scenarios. We are still working our way out of the effects of the
disease and its impact on the Company. None of this was easy on the Company,
its growers, stakeholders and people. Not everything Seeka did during this
time was perfect.  It was inevitable that some mistakes were made when the
Company and the Industry were operating under severe pressure with inadequate
information.   It is only recently that we are seeing indications that some
growers are beginning to emerge from this very difficult period.

In New Zealand, we correctly live in a regulated society where often our
actions or inaction results in a response, often from the Government. In
orcharding we are faced with ever-evolving employment regulations, audits,
penalties for safety incidents or breaches of safety protocols and numerous
other examples of regulations that affect our lives every day. If we breach
such regulations or fail to comply then quite rightly we suffer the
consequence. This is summed up in the word "accountability".

Having fully considered the financial and human impacts  on Seeka and its
people of the alleged biosecurity breach and the loss of wealth by our
shareholders; Seeka has taken the decision to join  the class action. Seeka
considers the right place for the issue to be considered is in the Courts
rather than under the vines. It should be litigated and judged by those
appropriate to determine such matters. Our justice system exists for that
purpose. Seeka has seen the legal opinions both for and against and offers no
opinion on their merits other than to say, in our opinion; there is merit in
having them tested.  Seeka respects the rights of every grower to make their
own decision in relation to this matter and offers no guidance to any grower.

Seeka rejects any argument that such action or its involvement will put the
single point of marketing [single desk] of the kiwifruit industry at risk.
The Government has on a number of occasions outlined its responsible policy
that so long as growers support the single desk then the Government will
leave the desk settled. This remains the case and there is no softening of
our support for the single desk. The single desk is not involved in this
action. We understand the group of growers seeking support for this action
considers it to be a matter of accountability and compensation.

As a grower and post-harvest company, Seeka has carefully considered its
position and taken a decision to join the class action.

Michael Franks
Chief Executive
Seeka Kiwifruit Industries Limited
021356516
End CA:00256086 For:SEK    Type:GENERAL    Time:2014-10-06 08:30:31