What a difference 48 hours makes. There was unprecedented change in the New Zealand horticultural sector last week with BayWa launching a bid for Turners and Growers, and kiwifruit exporters, Satara and Seeka, announced a merger.

The ravage of PSA-v has forced post-harvest operators, Seeka and Satara, to look into merging in the face of massively reduced volumes.

Seeka chief executive Michael Franks says both companies have completed due diligence and have hammered out a proposed deal which has the support of both boards. 

Mr Franks says if 75 percent of Satara growers by class, endorse the deal when they vote on December 2, the new company will begin on January 1.

He says the merger will benefit all growers.

"Well look it gives the growers of both companies a far more secure future. In an environment where future volumes look like they’re coming down because of the impact of PSA.

"It means we’re able to concentrate fruit volumes to the most efficient facilities, restructure out facilities that are less efficient, and repay debt."

Under any deal, Satara shareholders would swap their shares for ones in Seeka. 

Late last week German fruit company, BayWa AG, announced it would be buying Guinness Peat Group’s stake in Turners and Growers and that it would also make a full takeover offer for the company.

Turners and Growers chief executive, Jeff Wesley, told Country 99TV the company must now follow the correct procedure and have the company independently valued.

"What has to happen now is that the offer is in at a certain price. The independent directors, of which we have two, go off and get independent advice on the value of the offer."

Mr Wesley says this process will take several weeks and then the company will advise shareholders on what it makes of the BayWa bid.

The deal is still subject to both German Federal Cartel Office and New Zealand’s Overseas Investment Office approval.

Horticulture New Zealand chief executive, Peter Silcock, says last week’s events may well reshape New Zealand’s horticultural landscape forever.

"You know the two announcements that we had last week in the horticulture industry are pretty significant for the industry - particularly with BayWa buying out GPG’s share in Turners in Growers, because Turners and Growers is such a significant company within the horticultural industry."

Mr Silcock says BayWa’s comments that it would focus on improving returns for growers would be welcomed in the tough current times.

However, Pipfruit NZ is warning that the country’s apple growers could come under more pressure from low cost overseas producers.

Pipfruit NZ chairman Ian Palmer says the Kiwi growers could lose the rights to valuable varieties such as Jazz and Pacific Queen if BayWa gets ownership of Turners and Growers.