Growers welcome Turners' move on Enza

By Hugh Stringleman

Friday 13th December 2002

Vegetable growers could benefit from increased export opportunities following the purchase of Enza by Turners & Growers, Vegetable and Potato Growers' Federation vice-president Russell Jordan says.

Turners & Growers' shareholders have voted to buy the apple marketer Enza for about $100 million by issuing 44.2 million new shares.

The main beneficiary will be listed investment company Guinness Peat Group which bought Enza from apple and pear growers earlier in the year, and also owned 46% of Turners & Growers, an unlisted company with a previous history of Turner family ownership.

GPG executive director Tony Gibbs proposed the latest moves and said Turners & Growers and Enza fitted together like a "horse and carriage." He is chairman of both companies and managing director is Michael Dossor.

GPG's takeover of Enza valued the former producer board at $72 million. The latest move will return a handsome profit when plans to seek a full board listing on the Stock Exchange for Turners & Growers and raise between $50 million and $100 million are actioned next year.

GPG now holds about 80% of the enlarged Turners & Growers, the largest fruit and vegetable wholesaler, which also owns the largest New Zealand tomato-growing company, Status. Another significant shareholder is Naboa, Ecuador's biggest banana exporter, plus about 700 growers as small shareholders. GPG plans to reduce its holding to less than 50% and Mr Dossor said he hoped suppliers would take up the new shares.

Mr Jordan, a herb grower from New Plymouth, said carrot and capsicum growers might be among the first to benefit from the greatly enlarged Turners & Growers export division. Its smaller export business pre-merger was not profitable, according to the 2002 annual report.

"This opens up export opportunities to Asia in particular for a whole range of vegetables that growers did not have before," he said.

Enza has a worldwide sales network, with representation in all the major pipfruit markets. It also manufactures and sells the Just Juice beverages. The Enza name and brands will be retained under Turners & Growers and Enza is expected to enter the domestic apple market.

Mr Jordan said growers often needed corporate assistance to expand production and attempt exporting. Corporate investment in growing, as Turners & Growers had done with Status, was a fact of life, he said. Mr Dossor said the enlarged company would be in a good position to help growers foster new export markets, and to ease Enza suppliers into domestic fruit marketing.

Nevertheless the president of Vegfed, Brian Gargiulo of Christchurch, declined to comment on the Turners & Growers moves on the grounds that he is a large tomato-growing competitor.

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