South Pacific Seeds
Methven farmers, John and Stephanie McKay had no inkling of the future awaiting them when they made the decision to grow evening primrose and borage in the late eighties on their 340 hectare farm.
Back then John and Stephanie were attempting to gain a small part of their farming income from what was considered high risk specialist seed crops. Ironically Johns digression from more mainstream arable crops mimics much of the same journey arable farmers are being asked to make today to survive.
At $3000 gross per hectare, evening primrose proved an economically viable decision far removed from the commodity pricing of cereals and pasture grasses.
It was the April of 1991 when John was famously harvesting his evening primrose near the side of the road when MAF farm advisor David Montgomery happened by with a certain Australian seed merchant from a company called South Pacific Seeds.
It turned out that this seed merchant was very interested in Johns crop having seen nothing else like it around the district. David was duly asked to stop and a conversation commenced.
They say business is all about who you know. Just a month later John was approached by the Australian company and asked to grow hybrid radish and spinach trials.
Those trial paddocks by a company interested in forming a base in New Zealand led to returns that John describes as wildly ahead in economic terms. The spinach averaged $6000 gross per hectare virtually unheard of at that time.
The prospects for specialist vegetable seed in the area were beginning to unfold.
In 1993 John was asked to make the most important decision of his career when the Australian company asked him to help set up a specialist hybrid seed company at Methven.
With only a short time to make the decision John agreed to become managing director of South Pacific Seeds in Methven in 1993.
In the first year of operation, during the 1993/94 season, John began the companys journey and it was a small beginning - just seven crops grown of hybrid radish/spinach and Chinese cabbage within the Ashburton district.
John became the field officer/seed cleaner come jack of all trades, helped by two monthly visits from the Australian parent company.
John now believes the company would not have been successful as it is today if they werent able to utilise the contacts made available by the Australian company. Many within the Australian arm had worked for Yates, some for as long as 20 years, and had built up strong relationships and trust with customers around the world.
Customer relations have always been a vital part of the company.
The season was kind and yields were good good enough for the grower base to double the following year and again the following year and to continue growing to the 280-300 growers contracted in the past season.
By 1997 and following a year of processing about 70 seed crops from around the district in their home made seed cleaning plant South Pacific Seeds was ready to expand.
A bare paddock was duly bought just outside Methven and the first offices and seed cleaning shed were built in the 97/98 season. Two seed cleaners were installed.
In contrast to the days when John was the only field representative, nowadays 14 field representatives are the South Pacific Seeds face to growers, dispensing valuable advice on the 12 different vegetable seed crops grown in the district.
South Pacific Seeds has a very capable team. Every member of the team has made the most of the opportunity the growing company has been able to make. The McKays are very proud of the SPS staff including those on the home farm.
While radish is the main vegetable seed crop grown for the company Chinese cabbages, carrots, spinach and beet, cauliflower, onion, parsley and corn salad are also grown.
Most varieties are hybrids.
South Pacific Seeds represents a significant contribution to the local economy with 45 staff and 280-300 growers.
More importantly the specialist vegetable seed industry is providing a lifeline to struggling arable farmers who need to balance commodity cereal crops with some higher risk/higher returning crops such as radish and carrots.
Quality must never be compromised:
From the beginning South Pacific Seeds was unique in its objectives to focus on the vegetable seed export industry. Every seed is exported and that means a whole raft of quality processes have to be undertaken for individual markets.
South Pacific Seeds currently exports to Asia, Europe and the United States. The market for these areas remains strong because of New Zealands proximity in the Southern Hemisphere.
Traditional vegetable seed growing areas in the world belong to the Northern Hemisphere but the only place to gain the same quality seed during the off season is in Canterbury, New Zealand. Chile in South America is also a good Southern Hemisphere location but forest and hilly and pasture land in southern parts means seed production is not logistically possible there.
Tasmania in Australia also produces specialist vegetable seed but it is fair to say the Ashburton district in Canterbury provides the only viable long term seed source in the Southern Hemisphere.
While many might think the distance between Northern Hemisphere markets and New Zealand is too great economically South Pacific Seeds continue to prove it is a viable market away from traditional commodity returns.
That doesnt mean any seed can be exported. Johns key objective remains quality.
and all we need to do is produce quality with reliability at a reasonably competitive price, John said at a recent grains conference.
To meet quality demands South Pacific Seeds has employed experienced staff with an intimate knowledge of the crops grown and continues to invest in the best equipment available.
The seed that is exported to overseas market is vastly different to the seed brought in on the back of trucks following harvesting. Seed must be cleaned in a number of machines, separated, sometimes sized or colour graded before packing for export. And even export has stringent MAF requirements before shipping containers can leave the site.
That such an efficient operation can sprout from a small Mid Canterbury town shows the ability of farmers such as John McKay to add value to the arable industry.
But meeting quality demands is an ongoing process. When customers turn seed away because they dont like the colour, the size or the seed is out-crossed (not sufficient isolation) it gives you some idea of the complexities of running such a business. To run that economically from the other side of the world is a typical example of Kiwi business against the odds.
The specialist vegetable seed industry is just 1% of the worlds seed trade but is growing at 7% a year and the role of predominantly vegetarian nations particularly in Asia provide a seemingly infinite market to New Zealand.
We have a unique location. We have a suitable climate. We have the opportunity. We have to commit to making a high quality job.
At a time when processed vegetable crops are being cut back due to the affect of the high dollar and cereal prices continue to struggle, John is positive about the vegetable seed market over the next year.
While the dollar has changed weve tried not to reduce the farmers price. We have gained some price increases to make up for the exchange rate.
However, the industry is not a golden key for the struggling arable sector. John believes only 15% of the farm can be put into higher risk seed crops due mainly to isolation factors. Currently MAF and FAR operate a crucial computer global mapping programme that incorporates all seed companies so that vital isolation distances between neighbours are met and contamination of seed does not occur. This means it is unlikely that seed crops can ever be a large part of an arable farm. But he does acknowledge it is that 15% that is getting many cropping farmers through some tougher times.
John and Stephanie McKay have no plans to relax in the near future. They want to keep working on overseas opportunities and to continue educating farmers on the management of the specialist seed crops. They would also like to encourage farmers to consider investing in the industry by gathering groups of 3 or 4 to buy some equipment to better help produce the quality seeds required.
Today John has an excellent long term farm manager on his home farm. While he still lives on the farm he says he doesnt miss the day to day farming operation, but tries to help the farm team have a high standard of efficient operation and productivity.
A chance sighting on the side of the road has seen John travel to far away places, develop a crucial industry in Mid Canterbury and extend himself personally.
It is a success he and Stephanie could never have envisaged when they first grew evening primrose!
Back then John and Stephanie were attempting to gain a small part of their farming income from what was considered high risk specialist seed crops. Ironically Johns digression from more mainstream arable crops mimics much of the same journey arable farmers are being asked to make today to survive.
At $3000 gross per hectare, evening primrose proved an economically viable decision far removed from the commodity pricing of cereals and pasture grasses.
It was the April of 1991 when John was famously harvesting his evening primrose near the side of the road when MAF farm advisor David Montgomery happened by with a certain Australian seed merchant from a company called South Pacific Seeds.
It turned out that this seed merchant was very interested in Johns crop having seen nothing else like it around the district. David was duly asked to stop and a conversation commenced.
They say business is all about who you know. Just a month later John was approached by the Australian company and asked to grow hybrid radish and spinach trials.
Those trial paddocks by a company interested in forming a base in New Zealand led to returns that John describes as wildly ahead in economic terms. The spinach averaged $6000 gross per hectare virtually unheard of at that time.
The prospects for specialist vegetable seed in the area were beginning to unfold.
In 1993 John was asked to make the most important decision of his career when the Australian company asked him to help set up a specialist hybrid seed company at Methven.
With only a short time to make the decision John agreed to become managing director of South Pacific Seeds in Methven in 1993.
In the first year of operation, during the 1993/94 season, John began the companys journey and it was a small beginning - just seven crops grown of hybrid radish/spinach and Chinese cabbage within the Ashburton district.
John became the field officer/seed cleaner come jack of all trades, helped by two monthly visits from the Australian parent company.
John now believes the company would not have been successful as it is today if they werent able to utilise the contacts made available by the Australian company. Many within the Australian arm had worked for Yates, some for as long as 20 years, and had built up strong relationships and trust with customers around the world.
Customer relations have always been a vital part of the company.
The season was kind and yields were good good enough for the grower base to double the following year and again the following year and to continue growing to the 280-300 growers contracted in the past season.
By 1997 and following a year of processing about 70 seed crops from around the district in their home made seed cleaning plant South Pacific Seeds was ready to expand.
A bare paddock was duly bought just outside Methven and the first offices and seed cleaning shed were built in the 97/98 season. Two seed cleaners were installed.
In contrast to the days when John was the only field representative, nowadays 14 field representatives are the South Pacific Seeds face to growers, dispensing valuable advice on the 12 different vegetable seed crops grown in the district.
South Pacific Seeds has a very capable team. Every member of the team has made the most of the opportunity the growing company has been able to make. The McKays are very proud of the SPS staff including those on the home farm.
While radish is the main vegetable seed crop grown for the company Chinese cabbages, carrots, spinach and beet, cauliflower, onion, parsley and corn salad are also grown.
Most varieties are hybrids.
South Pacific Seeds represents a significant contribution to the local economy with 45 staff and 280-300 growers.
More importantly the specialist vegetable seed industry is providing a lifeline to struggling arable farmers who need to balance commodity cereal crops with some higher risk/higher returning crops such as radish and carrots.
Quality must never be compromised:
From the beginning South Pacific Seeds was unique in its objectives to focus on the vegetable seed export industry. Every seed is exported and that means a whole raft of quality processes have to be undertaken for individual markets.
South Pacific Seeds currently exports to Asia, Europe and the United States. The market for these areas remains strong because of New Zealands proximity in the Southern Hemisphere.
Traditional vegetable seed growing areas in the world belong to the Northern Hemisphere but the only place to gain the same quality seed during the off season is in Canterbury, New Zealand. Chile in South America is also a good Southern Hemisphere location but forest and hilly and pasture land in southern parts means seed production is not logistically possible there.
Tasmania in Australia also produces specialist vegetable seed but it is fair to say the Ashburton district in Canterbury provides the only viable long term seed source in the Southern Hemisphere.
While many might think the distance between Northern Hemisphere markets and New Zealand is too great economically South Pacific Seeds continue to prove it is a viable market away from traditional commodity returns.
That doesnt mean any seed can be exported. Johns key objective remains quality.
and all we need to do is produce quality with reliability at a reasonably competitive price, John said at a recent grains conference.
To meet quality demands South Pacific Seeds has employed experienced staff with an intimate knowledge of the crops grown and continues to invest in the best equipment available.
The seed that is exported to overseas market is vastly different to the seed brought in on the back of trucks following harvesting. Seed must be cleaned in a number of machines, separated, sometimes sized or colour graded before packing for export. And even export has stringent MAF requirements before shipping containers can leave the site.
That such an efficient operation can sprout from a small Mid Canterbury town shows the ability of farmers such as John McKay to add value to the arable industry.
But meeting quality demands is an ongoing process. When customers turn seed away because they dont like the colour, the size or the seed is out-crossed (not sufficient isolation) it gives you some idea of the complexities of running such a business. To run that economically from the other side of the world is a typical example of Kiwi business against the odds.
The specialist vegetable seed industry is just 1% of the worlds seed trade but is growing at 7% a year and the role of predominantly vegetarian nations particularly in Asia provide a seemingly infinite market to New Zealand.
We have a unique location. We have a suitable climate. We have the opportunity. We have to commit to making a high quality job.
At a time when processed vegetable crops are being cut back due to the affect of the high dollar and cereal prices continue to struggle, John is positive about the vegetable seed market over the next year.
While the dollar has changed weve tried not to reduce the farmers price. We have gained some price increases to make up for the exchange rate.
However, the industry is not a golden key for the struggling arable sector. John believes only 15% of the farm can be put into higher risk seed crops due mainly to isolation factors. Currently MAF and FAR operate a crucial computer global mapping programme that incorporates all seed companies so that vital isolation distances between neighbours are met and contamination of seed does not occur. This means it is unlikely that seed crops can ever be a large part of an arable farm. But he does acknowledge it is that 15% that is getting many cropping farmers through some tougher times.
John and Stephanie McKay have no plans to relax in the near future. They want to keep working on overseas opportunities and to continue educating farmers on the management of the specialist seed crops. They would also like to encourage farmers to consider investing in the industry by gathering groups of 3 or 4 to buy some equipment to better help produce the quality seeds required.
Today John has an excellent long term farm manager on his home farm. While he still lives on the farm he says he doesnt miss the day to day farming operation, but tries to help the farm team have a high standard of efficient operation and productivity.
A chance sighting on the side of the road has seen John travel to far away places, develop a crucial industry in Mid Canterbury and extend himself personally.
It is a success he and Stephanie could never have envisaged when they first grew evening primrose!