Seeka Limited (SEK) Earnings Call Transcript & Summary

Welcome, everybody. Welcome, ladies and gentlemen. Welcome, and thank you for joining us today. And we do appreciate you giving us your time for this, the 2022 Annual Shareholder Meeting. My name is Fred Hutchings, and I'm the Chair of Seeka. On behalf of your directors, the Chief Executive, our leadership team and all of our staff at Seeka, a warm welcome again to you, our shareholders, to our online meeting. This is our third online meeting, and I'm sure physical and online meetings will be a format of the future. We also welcome to our meeting Troy Florence and Rochelle Wilson, representing the company's auditors, PricewaterhouseCoopers; our legal advisers, Greg Horton and Jason Maddox of Harmos Horton Lusk, are also attending online; as is Marcus Wilkins and Jason Bywater of MacKenzie Elvin. We also have [ James Miller ] and [ Melissa Barnett ], representatives of the company's banking syndicate, Westpac New Zealand, Westpac Australia, ASB, the BNZ and Rabobank. And finally, Chris Brown of the New Zealand Shareholders' Association is also with us today. Now this is what we -- this is the format of what we will be doing today. This is our agenda. Firstly, I'll take time to introduce our directors to you. I will then advise of the proxies lodged for this meeting and how our shareholders attending online can ask questions and -- during the meeting and cast their votes. I will then give an opening address. And after that, Chief Executive, Michael Franks, will present his report on the company. And we'll then move to the formal part of the meeting, which will deal with the resolutions of general business. Firstly, an introduction of the directors. In the room, we have Marty Brick; John Burke; Robert Farron; and obviously myself, Fred Hutchings. Online, there's Cecilia Tarrant; Ashley Waugh; Mel, as we know him, Diaz. And you will be familiar with their profiles as they are all in our annual report. Also at the meeting today are Chief Executive, Michael Franks; Company Secretary and Seeka CFO, Stuart McKinstry; and a number of the senior exec team, Kate Bryant; Verena Cunningham; Kevin Halliday; Jim Smith; Paul Crone; Barry Penellum; and Jon van Popering. And having just mentioned their names, and I normally say my thanks at the end of the meeting as a group thanks, but having just mentioned their names, I would like to thank the Chief Executive and the exec team at this point. Because not only was 2021 a challenging year, but you will be all aware, for all the reasons that we know, 2022 is proving to be challenging as well. And the team have done an outstanding year -- an outstanding job over the last 18 months to get us through those challenges. I mentioned that we'll let you know about proxies. You can see there on the slide, the Chair, Peter Ratahi Cross, the New Zealand Shareholders' Association, and Michael Franks hold a number of proxies totaling 12,018,403. Where a proxy discretion has been given, the directors, the Chief Executive and myself as Chair will vote in favor of resolutions 1, 2, 3 and 5. In accordance with the NZX Listing Rules, as Chair, I cannot cast votes where I hold discretionary proxies for resolution 4 concerning director remuneration. Now this is an important slide for all you shareholders online. So I'll just take a little bit of time to help you manage your way through what you need to do online as it is an online meeting. And at the bottom of your screen, you will see boxes for voting and asking questions. Shareholders can cast their vote using the electronic voting card. You will need your shareholder or proxy code, which are on the proxy form you received either by e-mail or in the mail. If you require assistance, please refer to the virtual meeting online portal guide or contact the team at Link on 0800 200 2020 (sic) [ 0800 200 2020 ]. Voting is actually -- is now open, and you are able to update your vote at any time. And to close -- voting closes 5 minutes after the end of the meeting. Now we remind you of that again at the end of the meeting, by which time you will then make sure you have submitted your vote for it to be counted. Shareholders attending online can use the virtual meeting website to enter questions relating to the business of the meeting, and I encourage you to send this through as soon as possible if you have burning questions. Please note that only shareholders, proxy holders and shareholder company representatives may vote or ask questions. I'd now like to move to a commentary on the company's performance at a high level. A number -- Michael will give you some more flesh to the bone in a number of areas during his presentation. Did I forget Ratahi? Sorry, Ratahi, if I've missed you out. I've just been advised that I couldn't recognize Ratahi's face on the screen, and I forgot to mention him. But Ratahi, my apologies. As you can all well imagine, it has been a -- it was a challenging year, and it continues to be challenging, and you are all familiar with the reasons for that. So I won't spend a lot of time explaining why it's been challenging. But despite all the disruptions, and I've already mentioned and thanked management early for the job -- that they have done a fantastic job in terms of their commitment and leadership during this period. Our orchard division, our postharvest division, Seeka Australia, SeekaFresh and the VLS laboratory have all performed last year ahead of expectations, and Michael will expand on that. But if you look at the numbers, we generated record profits and an increased underlying earnings. Revenue was up at $310 million, EBITDA at $56.8 million, net profit before tax at $23.5 million, earnings per share at $0.43. We paid a dividend of $0.26. Now in '21, we also received some compensation for our Psa losses in 2010 and 2011 of $7.6 million. So that was received in the period. So that's clearly had an influence on the results for last year as well. We've set ourselves a strategy, which we've had for some time now is that -- which has been to increase our geographical diversity to minimize risk and exposure to one growing region or kiwifruit growing region and to obtain the benefits of greater economies of scale. And with hindsight, it's easy to see that, that was easy to say you get the benefits of economies of scale. But that has now clearly proven to be the case, to have that additional scale and achieving those benefits in terms of purchasing power and your attractiveness to labor and also to customers. And that meant last year was busy in terms of the acquisitions we did. We bought OPAC. We bought New Zealand Fruits in Gisborne. OPAC was Opotiki, and we also bought Orangewood in Kerikeri. So over the year, we integrated those businesses. The Gisborne one was integrated more in 2020, in this current year. And over time, they will be accretive to shareholders. You will have seen we've already released information on those acquisitions, but Michael will introduce you further to those businesses as part of his presentation. Labor disruption demands 2 things, in my view. You've got to be the employer of choice, but you've also got to be looking for opportunities for automation and make use of technology. And we've invested in technology this year that will help on-orchard efficiency, particularly with labor efficiency, will also help with our own planning in the packhouses as well in terms of having a greater understanding of the crop size so that we can plan accordingly. So we did that by buying into a company called Fruitometry, and we've taken a 26% shareholding in that company. An infrastructure company like our own needs a lot of cash, particularly in terms of needing to constantly invest in capital, constantly investing and refreshing the efficiency of our own plant, the need for cool stores, et cetera. And during the year, we put in place a new banking syndicate, which secures additional funding for our needs for greater capacity capability and also in terms of the growth that we have ambitions for. So that is led by Westpac New Zealand, and the other parties to that syndicate include Westpac Australia, ASB, the BNZ and Rabobank. We have invested in new businesses, but that doesn't mean to say that has diverted our investment into capacity planning. We have a huge infrastructure, which is constantly requiring reinvestment. And this year, again, we've spent $22 million in terms of one of our packhouses known as KKP and Transcool in terms of upgrade, particularly to plant and those -- in their packhouses. And that investment is driven to some extent by the fact that whilst we have talked about Pukenga, and we've prepared land for a new development and a new packhouse, we still wish before making decisions about that investment. And we want to drive more efficiency from our existing infrastructure, which will include upgrading our plant and improving its infrastructure or its efficiency. We need more information as well, and that includes greater information about the market pack mix and what we should be packing into. And we still have concerns about where in the supply chain cool stores should be built and used. They're an expensive cost. I think when I first joined the Board, it's about $10 a tray to build a cool store. Now I suspect it's getting close to $20. And the way fruit peaks and its maturity these days is -- the efficiency and the turnover in the cool stores is a pressing issue. For those that like numbers, this is a numbers slide. As you can see, our revenue at -- rounded up, $310 million, is up 23%. EBITDA at $56.8 million is up 32%, including, as I mentioned earlier, the kiwifruit claim settlement of $7.6 million. Net profit before tax is up 44% at $23.5 million, and net profit after tax is at $14.9 million. When you compare that to '20, the after-tax profit in '20 included a $5.6 million benefit from the changes to the tax rules that flowed through the deferred tax account. This slide is focusing on EBITDA. EBITDA is a good measure of cash generated by the business. As you can see, over the last 5 years, it's been trending up, a 19% cumulative annual growth rate which, in anyone's terms, I think people should be happy with. We've always had a deliberate strategy to improve our operating earnings, our underlying operating earnings, and this is demonstrating this. Some of those years include one-offs. In 2020, there were one-offs on sale and leaseback of assets. But there was also a significant COVID impact in that year as well, which they don't quite exactly offset, but they go some way to offsetting each other in 2020. So despite those one-offs, we're still seeing a trend, an upward trend in this underlying operating earnings. This slide is probably more of interest to shareholders in terms of it comes back to earnings per share and dividends. Last year, we paid a dividend of $0.26, then paid a early dividend in February of $0.13. And the net tangible assets are up to $5.71, up 10% on the previous year. I've already mentioned about buying our new businesses, and this -- I like this slide and that it gives you a sense of the greater regional presence that we have in New Zealand there, right down through that eastern side of the country, which is all ideal kiwifruit growing regions. One of the other key drivers to wanting to acquire into more kiwifruit business was to reinstate our share of the kiwifruit business in New Zealand, and this has certainly helped us with that objective. So we now have full service in all major North Island orcharding regions. We are very pleased with the experienced growers that we've -- that have joined our business as a consequence of those acquisitions. They're all delivering significant efficiencies and synergies as a consequence of the greater scale and also our ability to remove head office overhead. That's not our head office, by the way. That's head office of the businesses we acquired. It also gives us the capability to, from a labor point of view, in starting up early and retaining staff and being able to operate consistently once the season starts. And similarly, it's delivered more capacity at peak periods as well, too, so that we can transport fruit to where the capacity is. And the final point I wanted to make on this slide is that whilst we have invested in new businesses, we haven't stopped investing in our own core business. Automation, technology. It's a key -- let me start this again, put it this way. Labor is short, so technology needs to be able to give us the flexibility to redeploy the existing labor that we have. And this is why we're focusing on that. We're also conscious of the fact that technology comes at a cost, comes at a high cost, but it also comes with a greater level of depreciation because the nature of the technology means that the plants and the software needs to be upgraded more frequently than it has in the past. So you get a bigger depreciation charge with technology. So it's a fine balance between making the decision to use the technology to the fullest extent and managing the labor component. We're making sure we do this with our Australian business as well. On the employment side, this slide is about giving you a sense of actually how big Seeka is now. We have 770 permanent employees, and we have a seasonal labor force of 4,000 seasonal workers. So as you can imagine, on an annual basis, running up the staffing system to 4,000 people is a big job. But it's not just impacting on us. It's impacting on a number of industries throughout New Zealand. So there's plenty of competition to obtain local resource. And at certain times, there are severe shortages. Access to additional RSE workers in 2020 has been particularly helpful. And you can see there that we've been getting new recruits from Tonga, Samoa and the Vanuatu. And this year, we've got 850 RSEs in total. But that also brings issues as the issue of now that faces us is how do we accommodate them appropriately. So I hope that slide gives you a sense of the scale from an employment point of view and where we are employing them right throughout those regions. All public companies have a responsibility for ESG reporting. So E is the environment, S is the social, and G is governance. Now as a company, we've been reporting on our governance for some time now so that you would have been able to see that in the annual report. Our commentary on our governance, social and our environmental reporting is improving. But what I wanted to spend a little bit of time on, the environmental impact and the work that we're doing there. We're undertaking to publish by June, end of June this year, our carbon footprint. The base year of '19 has been done and calculated and verified. And in fact, we've published it as well. '20 and '21, the results have been calculated and are now being verified. And we plan to publish in June '22 what our carbon footprint is and what targets we'll be setting ourselves and how we may go about in reducing our footprint, as we all understand the environmental impact carbon appears to be having. So we're serious about working through that and making -- and being as transparent as we can be. I mentioned earlier that we've now got the funding and place that we need for investment opportunities and also to fund infrastructure expansion. What this slide is showing us is what the debt facility was at December '20 at $122 million, how it's been impacted by the acquisitions during the year. We've taken on some debt from OPAC of $21.9 million, $2.1 million with the acquisition of Orangewood, $2.6 million for the acquisition -- or the 26% acquisition of Fruitometry and other acquisitions of -- and other areas of investment of $3.4 million. So that's giving us a total debt of $113 million at the end of the year. It was drawn down. So we have available to us right at the end of December $77.4 million of available funding. What will that be used for? Well, at the end of December, our working capital funding is at a low point. So up -- the $46 million of that will be required for working capital through the year. And obviously, that's leaving another $30 million of available for CapEx and growth. So what the syndication has done is put us in a position where we're not having to constantly run to the bank to help finance acquisitions or growth that we wish to achieve. Now this is what I might call a summary slide, just to capture some of what you might see as the key achievements in the last 12 months or the 12 months to the period ended December. This is my last slide, and I'll be handing over to Michael, and he will be able to give you a much more eloquent summary of the company's performance than I can. But we have grown our kiwifruit business by 33%. We're very pleased with that outcome. So we're now sourcing our fruit right throughout the North Island orcharding regions. We've continued our investment in our central kiwifruit region, and we've talked about the investment in KKP alone. And our enlarged business is delivering synergies. Our retail business, as you can imagine, has really suffered the impact of COVID. But this has done an outstanding job in terms of increasing the range of produce and the customer base to which they're selling that produce. They suffered a bit this year because of the avocado market has been tough. We continue to invest in our Australian business, expanding the kiwifruit that we're growing and also being innovative in terms of using new, exciting varieties in other fruits, particularly in pears and nashis, which have been well received in the marketplace at this early point. We've been bold in terms of investing in ag tech and in automation, automation that will help us improve our sites, our supply chain management and also gives us the flexibility to multi-train staff so that they can do multiple jobs, whether that be in the orchard and in the packhouse -- or in the packhouse and on the orchard. We've always had an ambition of being an employer of choice. We have a dedicated team that helps us achieve that objective. We have a strong company-wide culture and vision, and we have active programs to recruit and retain seasonal labor. And the retention part of that is important, particularly with variable maturity at the beginning of the season. We've enlarged our funding with our syndicated banking facility. And we are very pleased in terms of when we went to the market, there was broad support from more banks than we needed to fund our business. And as I mentioned a little bit earlier, we are certainly progressing our sustainability initiatives, and we'll be improving and becoming a lot more transparent about our ESG responsibilities. So with those brief introductory comments, I'll now invite Michael to address you.

Thanks, Fred. [Foreign Language] My pleasure to talk to you and my warmest regards to each and every one of you on the call. In starting my presentation and my chance to update shareholders, firstly, I want to just take a moment to give a shout-out, a statement of appreciation from myself and from the company to our growers, to our contractors and to our staff. I would like to just point out, to make no bones about it, these 3 or 4 months we've just been through is the most difficult trading period we've been through in the company's history. It has been extremely difficult. We have had to cope with labor shortages. We've had a pandemic running through and ripping through the business. We've been devastated and decimated at times. And look -- and we had the pressure of asinine supply requirements to get fruit through to the market. And it's been very, very difficult. We have a call on the resilience of the company. Our people in this business, we've got assets, we've got partner equipment and cool stores, but it's the people in this company that make it special. They have dug deep. They have gone beyond what you might reasonably expect them to do. We have maintained good service, and we are up on the pace. And look, I just want to start by expressing my appreciation to each and every one of our growers and our contractors and our staff, to thank you for the efforts you've gone through in this most recent period because it has been something more than extraordinary. So thank you. And going through that period, I have to point out to you that we've done all things that we can do to make sure that our people are safe. We're in a pandemic. And so we've put in place an infectious diseases manual across the company. We've had RAT testing underway. We've had thermal scanning and temperature management at sites. We've got protective equipment in terms of face masks, cleaning, all sorts of things that you might expect and reasonably expect to have happen across the site. We've put screens up. We've done assessments across the business to see who was publicly facing and had to face the difficult decision about whether or not people had to be -- they had to have vaccinations in order to do their job, to be double vaxxed. We have a current vaccination. It was very difficult to put that in place, but required. And alongside that, we've got the normal safety issues that we face as a business. 75% of the injuries that we have in the company is -- are our wrists or our hands or our fingers or our arms. And so we've focused on that. We've made sure that we've got our permit to work processes right across the company as well as compliance. We have safety focus running right across the business, and our traffic management protocols have been huge. All of our sites have been restricted entry. People haven't been able to go on site unless you're essential there. 360, where we are based, Seeka 360, has been restricted for people to come on site as we have moved to allow people to work at home to make sure that we're safe and that we've been able to maintain service and maintain business operations. And largely, it's been successful. It hasn't been perfect. But largely, it's been successful. In terms of the results for last year in terms of our total recordable injury frequency rate, how many injuries do we have per 200,000 hours worked, our result for last year at 3.3 is better than target at 4.5. We have held the target at 4.5 for the current year because we're growing the business by 33%. And so therefore, it's sensible to have the target stay where it was as we cope with a bigger expanded business. We had no serious harm injuries in the company last year, and we have had none to date this year in spite of all the pressures that I've talked about. Our inspirational people target as a forward-looking target, not a lag indicator, but a forward indicator, it is measuring the number of safety meetings that we have within the business. And we are measuring the attendance at those meetings. So last year, we had 92% attendance, which is in itself very good when you consider the pressure that the business has been under. And so I applaud the effort in and around our safety and report it to you. Components of the business, the components of your business that you are shareholders in today are shown in these 4 panels here. The first is our orcharding business within New Zealand. In New Zealand, we grow kiwifruit, avocados and kiwiberries largely on leased and managed orchards. We only have a few owned orchards, which are either for sale or land bank. But mainly, it's leased and managed. We have a reasonable business in developing orchards, and we are a large kiwifruit grower, in fact, the largest in New Zealand. That part of our business is growing up to 20 million trays of kiwifruit. 11% of New Zealand's national supply is stewarded by that part of our business. In the postharvest segment, this is where the asset sits. This is the hotel for kiwifruit. We are arranging the harvest, the packing, the cool storage and the dispatch of product largely through Zespri in New Zealand, of course, kiwifruit, avocados and kiwiberry. 11 facilities, most of them modern, most of them with a modern-aged class. We have spent $118 million in this part of our business in the last 6 years. We are focused and have focused on automation. That's helped us well. We have the DNFC, the Delicious Nutritious Food Company, which is marketing innovative products around this side of our operations; Kiwi Crush; avocado oil; packing the kiwiberries. And we have an innovation and maintenance team that makes sure that the operations are running smoothly and that we have minimal disruption to production when we're underway. 26% of New Zealand's kiwifruit produce is processed through that part of our business. In terms of retail services, this is where we are connecting fruit to the market which is not supplied to Zespri. So within New Zealand, we are selling local market produce. We're importing produce to New Zealand, tropicals, bananas, papaya, pineapple. We're exporting kiwiberry, avocados and kiwifruit to Australia, avocados to Asia and to Australia and kiwiberries to Australia and Asia. And so this is a part of the world where we're connecting the supply chain from orchard to the consumer, and it's a growing part of our business. And in New Zealand, we're up against the big guys. And then the fourth part of our business is Seeka Australia, a very important component. Over in Australia, we own and lease orchards. We are the Australian -- largest Australian grower, kiwifruit grower. We grow kiwifruit, nashi, European pears, plums and now jujube dates. So very, very positive variety that we actually got ourselves into. We're the largest kiwifruit grower in Australia. But understand, that's about 100 hectares of Hayward kiwifruit in Australia and about 63 hectares in development. And we're integrated from orchard to market in Australia. In fact, in Australia, you can buy Seeka-branded produce on the shelf at retail every day of the year from either New Zealand produce or Australian produce that we've grown. We are exporting a small amount of produce from Australia to Asia and Europe. If I run through the segments in terms of a financial perspective, firstly, concentrating on our orchard business. This part of our business is headed up by the General Manager, Barry Penellum. He took the role from Simon Wells last September. I thank Simon for his service in the role prior to Barry, and Barry has taken the lead in this part of our business since September last year. $77.1 million in revenues, up 2%, reasonably flat orchard gate returns in this part of our world. $5.2 million EBITDA, slightly below the previous year at $5.4 million. Costs are growing -- are going up. Returns are staying stagnant. This part of our business will grow significantly with the acquisitions of Orangewood, OPAC and will grow when we invest into Gisborne with NZ Fruits. So there's a lot of money gone into growing the 2022 crop. In addition to that, we have 156 hectares of kiwifruit being developed in partnership with landowners, iwi and Kanoa, the new name for the previous provincial growth fund. There's about $18 million invested in that. So that will come into production and make us a financial return in future years. In FY '21, we handled -- we grew, sorry, 14.4 million of trays. Our estimate for the current year is 19 million trays of kiwifruit, excluding avocados and kiwiberries. So a reasonably sized business, ranging from Northland all the way out to Gisborne. In our postharvest business, the second segment, this is led by Paul Crone, similarly, a new general manager. He took over from Kevin Halliday last September. He's into his first harvest in the seat. A big part of our business, lots of moving parts, 11 packhouses across the upper half of North Island. $195.9 million in revenues, up 40%, reflecting revenue acquisitions and price increases. EBITDA up $61.6 million, up 47%, reflecting efficiency gains in volumes. 3.5 million trays was packed at OPAC post acquisition. So in this current year that we're now and moved on, the fruit that was packed prior to acquisition is now coming into the Seeka business. OPAC, that part of it, Orangewood and NZ Fruit will lift the postharvest volumes this year. And if you can see on the bottom right-hand side, somewhere it's expected between 47 million and 49 million trays. Look, we will be lucky to get to the top end of that. It will be somewhere around 47 million trays I would estimate at the moment. We haven't seen enough of the Haywood crop to really come to a conclusion about where it's sitting compared to estimate. And this part -- on the next panel, retail services. This is led by Verena Cunningham. This is a dynamic part of our business. Verena also looks after strategy, corporate strategy for the company. This is a moving part of our business. It's got traders. It's got a market floor in Auckland. It's got a distribution center in Christchurch. We're moving fruit through to customers, retail customers in New Zealand and overseas and a constant drive to deliver more money to the grower at the orchard gate from their efforts. $21.6 million in revenue is level with FY '20, and $2.3 million in EBITDA is below. Quite simply, we had a very, very soft avocado market, very, very soft avocado commissions, soft pricing in Australia. And so our revenue and EBITDA was down. And it was down by more than the $700,000 of EBITDA decline that you can see on the presentation in front of you. We have grown the business quite aggressively, but not enough to make up for and offset last year's soft avocado market and returns. Still a very good performance from that part of our business. And Australia, this part of our business is led by Jon van Popering. And look, he's a tower of strength, Jon. He's run that business largely through lockdowns, and he's been isolated and only supported remotely by New Zealand. He's led that business over there with the sales led by [ Cameron Carter ]. NZD 13.9 million in revenue was up 6%. $1.6 million in EBITDA compares unfavorably to $7.4 million, but the $7.4 million included a $6.2 million gain. So if you took that extraordinary gain out, we're ahead. We've got -- he's managed that business in spite of lockdowns and labor shortages in that part of the world and actually in that part of the world that has gone through COVID perhaps 6 months ahead of New Zealand. We've got 63 hectares of new orchards coming into production, around $11 million invested there. At some point, it will come and start making us return. We've got exciting new products there. In front of you on the screen is a red nashi fruit. The flesh is white. It looks very promising. The market indications is very positive from that. We've got new variety of kiwifruit in Australia, although in limited areas. And we've got jujube dates. And the jujube dates look to be absolutely fantastic as an innovation largely led by Jon, and we appreciate him for trailblazing in that part of the world. Jujube dates grow in a very harsh climate, which is what we've got in [indiscernible]. They don't take a lot of water, and the market looks very good. I was having a check at Costco this morning, and they told me that while they've got jujube dates on the shelf in their stores in Australia, it is the highest selling category of all produce categories. So that in itself is quite interesting. As I mentioned earlier, we have invested $108 million in our core postharvest plant and equipment in the last 6 years. We continued that drive with more efficiency, more automation. There's a lot of investment that goes in across the company and capital maintenance. Switchboards, safety, fire protection, guarding, safety, all of those sort of things, but there are big investments that the Board has approved that are underway or ordered within the current book. We have got the Transcool upgrade across the road here with Seeka 360, and those were 650,000 tray store plus pre-coolers. It can handle 2,432 pallets on a 5-high store. Ammonia glycol refrigerant is carbon neutral. We've got our robotics in that cool store. It's a $12 million project, slightly higher than what we thought it was going to as we had to do extra ground strengthening to make sure because it's next to a railway line and excludes a $600,000 impairment to the old store. That's ready to go online nearly immediately. We've got KKP MAF Roda 8-lane packline going in at KKP. It's a high-spec, highly automated MAF machine going in down the road. It can handle between 6,500 and 8,000 trays per hour with around 25% less labor. It's a $10 million project, but it's light. It's light because of shipping and shipping disruption around the world with COVID and war. We hope to have it packing this season. We expect it to pack in the next 2 or 3 weeks. $8 million for the machine, $2 million for the building. We have also had approved and has ordered a new upgrade for Oakside #3, a new presizer to go into that machine alongside a Compac Spectrim installation with ultra view, 22% labor reduction for the machine. It's 10% increase in fruit throughput. It's a $3.2 million capital project. It will be commissioned later this year for next year. And at NZ Fruits, as part of the acquisition already ordered is a new Compac robotic packing and stacking system, which actually we're quite keen to take a look at. So we're happy that it's actually been put there. It takes out between 15 and 20 labor units. It has a $4.2 million project cost. It will go in later this year to be commissioned for next year's packing. Understanding that NZ Fruits packs persimmons, citrus and kiwifruits, so we get more opportunity to get a payback from that installation. I'm conscious that we've undertaken a number of acquisitions last year. We've already profiled OPAC to you last year at the last touch-and-go in October with the stakeholder update. But I'm going to take the time to go through each of the acquisitions again, in case you didn't attend that last meeting or didn't know what we were doing. It seems to me that as we do these acquisitions from time to time, we've got to take the time and discipline to tell our shareholders about them. So firstly, to remind you, we purchased OPAC in May 2021. It's an Opotiki-based kiwifruit business, Opotiki Packing and Coolstorage, OPAC. It's an 8-lane -- sorry, 8 million tray kiwifruit packing operation. It's got 2 machines there, a big MAF, which is really, we're impressed by, and a smaller Compac, which goes well. It is an integrated kiwifruit orcharding and postharvest business. And we would say that it's got modern postharvest infrastructure. It's pretty good. Some things that we would do differently, but it's pretty good. It services Opotiki fruit along with fruit drawn down from Te Kaha in the East Coast and also drawing fruit from Gisborne. It's always done that. 70% of the fruit that is handled by that business is SunGold. Cost us $61 million. We've spent -- sorry, we issued new equity of $39 million and took over $29 million (sic) [ $22 million ] of existing debt from that business. We did an assessment, which we got it done out of house. The sustainable EBITDA for that business was assessed to be $6.5 million. And when combined with the synergies that we have delivered or could deliver, $8.6 million is our targeted EBITDA improvement from that business in total, $8.6 million. We bought that business mid-season, and we packed 3.5 million trays after we bought it. Of course, these things happen this way. After we bought OPAC and got underway, integrated it, made the staff changes with heavy lifting undertaken by the business, that region suffered a wind event in November and December 2021, which had a devastating effect on some orchards, perhaps impacting by 1.5 million to 2 million trays. So I point that out to you early on. But these investments aren't made on a 1-year-only payback. They are made back on a sustainable return. And so we've bought this business for the long term. It fits quite nicely within our regional geography. In November 2021, we purchased Orangewood. Orangewood is a smaller Kerikeri-based kiwifruit and avocado packing business. 2.3 million tray operation, it needed more investment. It was at capacity and has more fruit coming. At the same time, in Kerikeri, we've got a post-harvest installation that wasn't at capacity. We had significant opportunity to pack more fruit through that capacity. So the concept or the strategy behind this acquisition is that we'll take their fruit with the fruit that we get through the acquisition and put it through our own plant and infrastructure as much as possible and only run the Orangewood plant as we needed to. It's a good business. It services our loyal growers in Northland. It adds capacity and volume to our Kerikeri business. It cost us $6.8 million. We issued $3.4 million in new equity. We paid $1.3 million of our cash. We assumed $2.1 million of their debt, and we assumed a sustainable EBITDA of $2.1 million, which is a multiple of around 3. So I think we're pretty happy. But of course, that business needed to invest money and infrastructure. And if you think about it, we had already made that investment. So it's a way for us to get our payback faster. It's integrated and set into our business. That's all been done. Our business is running really well, very happy with the people who are transferred over and integrated into our company. And in fact, we held some positions open for them so that they could. Then more recently, we acquired NZ Fruits, Gisborne-based business, February 2022. Handled 2.2 million trays of kiwifruit, also packs persimmons and citrus. It's an integrated postharvest service. But although they don't have kiwifruit orcharding capability over there within that business at the moment, it is our intention to add it. There is strong growth in the region in Gisborne. There's lots of orchards coming on into production, and there is good demand for orcharding services like we produce. And in fact, we've actually hired someone into the business yesterday. He is coming back to the business to help us achieve that as part of what their business is doing. That's [ Tony Bill ]. Welcome back, [ Tony ]. And so we're very happy with how that will look strategically. $22 million investment included $9 million of new equity issued by Seeka, $9 million in cash, $4 million of their existing debt, sustainable EBITDA at $2 million before synergies and after synergies at $3.5 million. It's a higher multiple. So that overviews or that gives you an outline of the acquisitions that we completed last year all leading into this and gives you a feel for what we've now developed as part of the business. And Fred showed you the regional presence that we've got. So let me just bring you up to date with where we are today. So I started by talking about how challenging these last 3 or 4 months have been. So this is an update about the current harvest up until midnight last Sunday night. So we've had everything this year. We've had labor restrictions. We've had labor shortages. We've got no backpackers. We've been hellishly short of people. We've had weather that hasn't cooperated with us. We've had supply chain challenges. Sometimes I get accused for being too negative, but I would call it fast and loose decision-making, and I think that's fair. We've had to proactively manage the COVID situation, which has ripped through and decimated parts of our business at critical times, particularly around key staff. We've had a late machine commissioning. We had to open night shifts early. And actually, we've demanded more from our sites than reasonably than we ever have, and they have responded for us. And so I continue to express my appreciation to them but demand more. We have imposed tight disciplines around protocols for COVID, PPE. And we have encouraged people, made them work from home and then brought them back to the building, some of whom haven't appreciated that later move. Labor has been challenging. However, more recently, I have to pay compliments to immigration in New Zealand. Kate Bryant and I went and met with them. And actually, arrivals that we've been able to achieve more recently have eased a very, very acute situation. And labor supply now is a lot better. Well then, we've got the issues that you have when you've got a lot of RSEs floating around. I contrast that with Australia. We had a smooth harvest in Australia. This is not just about New Zealand, and Australia business has gone really well. Harvest has gone smoothly. They managed their way through COVID as well, pretty happy with how things look over there. I'd also make the point to you before I talk about the numbers that we've achieved record Haywood prices in Australia and record prices at export for Hayward green kiwifruit. So as at midnight last Sunday night, in terms of SunGold, we have packed 14.2 million trays with 28% of the industry, so slightly ahead of our market share at 26%; Haywood at 3.2 million trays, slightly behind our market share. Our market share will be 25%. We're at 24% there. So we would have picked it up by now. SunGold organic, 166,000 trays, behind industry share but only because of our maturity. So that's SunGold organic. In terms of Haywood organic, 104,000 trays with 32% of our industry -- close to industry market share. Sweet green, 35,000 trays all done and dusted, 24%. So it actually packed 17.7 million trays, on our way to something like 47 million, and we're right on our market share at 26%. So despite of all the challenges, all the issues that we might have thought we had, we're there or thereabouts, and I'm pretty satisfied with that. I will start -- sorry, I will end where I started, take this time to thank all the people in the company, all the people that work around us in New Zealand, our contracting community. And I'll take the time to thank our growers because I'm sure we've tested your patience on the way through. So thanks very much.

Thank you for that update, Michael. And I hope you've got a sense of some of the complexities and the difficulties that the team is managing this season and also got a sense of confidence that they've been doing that well. Now we're moving now to the more formal part of the meeting and dealing with the various resolutions that need to be put to the meeting. And as I'm part of the very first, resolution 1, I will hand over the chair to Marty Brick. Thanks, Marty.

Fred retires by rotation, and the Board recommends and supports his reelection. I invite Fred to address the meeting.

Thanks, Marty. So I've got a couple of minutes, and I probably won't take that long to explain to you why I'm standing for one final term on the Board. You will have seen that the Board is going through a refresh program. We ended up in the unusual situation or the unfortunate situation. We had a number of new directors join the Board at the same time. This is a complex business, and we've got 2 new directors on this year. We need to do a similar thing this term coming up as well. So I wanted to continue with that refresh of the Board and continue to play my hopes and wishes to hand the Board over to good team of directors for -- on behalf of shareholders. The other reason why I've noted down this, that I think my leadership skills and career experience still add value to this company. It is a long-term business. It has a strategy in place, and I'd like to continue to contribute to that strategy. You have also heard from -- in Michael's presentation that the senior leadership team is going through a refresh as well, and I'd like to spend -- like to help support their efforts. And the final observation I would make is that I do live locally, and I have time to do the role. And living locally is important in my view and that enables -- I have the time so that I can attend grower update sessions because the growers are, as we all know, an important component of this business. Without growers, we really don't have a business. But all growers or the majority of them, I should say, I shouldn't say all, majority of those growers are also shareholders. So I believe I'd like to make sure I have the time to listen to their views and make my presence available should they wish to have discussions with the Chair of the company. So with those few comments, I would now appreciate your continuing support for another term. Thank you.

Thank you, Fred. I put the resolution that Fred Hutchings be reelected as a director. Is there any discussion on this resolution? No discussion? Okay. No further discussion. I put the resolution that Fred be -- sorry, there appears to be no further discussion. I will now hand it back to Fred. Thank you.

Thanks, Marty, and thanks for not questioning me about the restanding. Resolution 2. Resolution 2 relates to the reelection of standing director, Robert Farron. Robert retires by rotation, and the Board recommends and supports his reelection. I invite Robert to address the meeting.

Hello, everyone. Yes, it is still me and need my photo upgraded a little bit. Thanks for the opportunity to address you all. It would be nicer to do this in person, but maybe next year. I've been told 3 minutes, so 30 years of corporate experience, I'll try and keep the time. I thought that, firstly, I'd share my thoughts with you as to what attracted me to the opportunity of joining the Seeka Board as an independent director, and then I'll cover off how I think I might be able to positively contribute to the governance of the company as it continues on its growth journey. Whenever I consider an executive or governance opportunity, I like to make sure that there's good alignment between myself and the company. And in particular, this includes purpose, values and culture, strategic position and direction, quality of management and Board. And I'm particularly interested in assisting growth-focused private sector companies operating in competitive industries. I like the high standards that Seeka has set for itself in terms of its brand value, select excellence. But I'm also conscious that it is the delivery of excellence every day that really counts for a trusted brand. Seeka has a proud track record of growth and is making great progress in building scale in its foundation business and resilience and capability across the group. In my view, Seeka is well managed and well governed. Nothing is broken, which is all great news for a new director. However, as the case -- as it is the case for all growth journeys, there is always more to consider, more to do and to improve on. So prior to accepting the offer to join the Board, I asked myself what relevant experience did I have to offer in return, given that I don't have specific industry experience. And the summary I came up with included the following: development and execution of successful corporate strategies through a number of economic cycles; disciplined and successful investment in long-life infrastructure assets in competitive markets, including over $1 billion of renewable energy projects during my time at Trustpower and Tilt Renewables, and this resulted in significant uplift in value to shareholders; risk assessment and risk management in relation to complex assets and trading activities; arrangement of significant corporate and project financing under a range of market conditions, including interaction with banks, retail and institutional investors over many years; senior leadership roles in publicly listed companies based in New Zealand and in Australia, which has provided me firsthand experience of how demanding such roles can be and the level of expectation and responsibility that is involved in managing other people's money. And in a personal capacity, I've been a direct investor in New Zealand and Australian equities for over 25 years now. So I think I bring a passion for investment and an investor's perspective to the table. In terms of personal approach, I favor developing collaborative working relationships while retaining the ability to challenge constructively when required. I have high expectations around performance, and shareholders can expect a professional, independent and pragmatic approach from me. So to conclude, I do believe that I have a base of relevant skills and experience to make a positive contribution as an independent director of Seeka and to ensure that the company is well positioned to successfully achieve its growth ambitions. I'm optimistic about Seeka's future prospects, and I look forward to shareholder support for my election as a director of your company. Thank you.

Thank you for introducing yourself to shareholders, Robert. So I put the resolution that Robert Farron be reelected as a director. Is there any discussion on this resolution? The team are shaking their head. So it appears there is no further discussion. I now move to resolution 3. Resolution 3 relates to the election of Stewart Moss. Stewart has been nominated and is standing for election as a director, and the Board recommends and supports his election. I invite Stewart to address the meeting.

Yes. Thanks for that, Fred. Just as a brief outline, I've been involved in kiwifruit since I moved to New Zealand from the U.K. 22 years ago. We initially moved to an orchard in Te Puke. And for around 5 years, I worked for Seeka during the packing season running a grader. This gave me a broad understanding of the handling and packing of the fruit. I was a member of NZKGI for several years, giving me an insight into the grower representation within the kiwifruit industry. I'm currently on the Seeka growers council and a member of the Seeka Audit Committee. In 2004, along with 3 Te Puke-based growers, we developed a block from a greenfield site. This is now a fully producing orchard with around half of the area enjoying [indiscernible]. I am grower focused and see it as important to have a grower on the Board to represent grower views around the boardroom table. I'm seeking support today to become a Board member and represent those grower views. Thanks for that. I didn't take all my 3 minutes. Thanks, Fred.

Thanks, Stewart. Thanks for introducing yourself to our shareholders. I put the resolution that Stewart Moss be elected as a director. Is there any discussion on this resolution? Team is shaking their head, telling me there's been no online questions. So there appears to be no further discussion. Now probably by the end -- by the time we get to the end of this one, I'll probably wish I wasn't the Chairman. But anyway, this is resolution 4, directors' remuneration. Resolution 4 relates to an $80,000 increase to the pool of funds available for the directors' remuneration. Specifically, the resolution reads that the pool of funds available for the remuneration of directors be increased by an amount of $80,000 per annum for a maximum of -- for a -- from a maximum, sorry, of $530,000 per annum to a maximum of $610,000 in each financial year payable to all directors taken together effective 1 January 2022. Seeka's policy has been to set an annual pool of payable to directors' fees in the midpoint range -- in the market midpoint range. Every 2 years, the Board seeks professional advice from Strategic Pay to pay directors' fees with the last increase approved directors last year in relation to the increase due in 2020, which we delayed due to the COVID lockdowns at that time. Captain Hindsight is a wise person, and that probably was a bad decision because it had meant it puts us effectively about 18 months behind the market. That increase was based on a Strategic Pay review undertaken for the 2020 financial review. Having reviewed Seeka's performance in 2021 and noting your business has continued to grow across the key metrics of market capitalization, revenue and total assets over the 2 years, the Board considered it appropriate to seek an increase in director fees from today and restore the timetable of the remuneration reviews. One thing I have learned from going through the review and refreshment process for directors is that the company needs to keep itself at the market levels to attract ideal younger director candidates because if we're not, the modern director, from my observation would be, is quite fee motivated because they understand the risks they're taking on. And for that reason alone, we need to be competitive. Otherwise, we have difficulty attracting people from what I consider a relatively small pool. So this is -- this slide is to give you an explanation of the Strategic Pay report and the Board recommendation. In January '22, the consultants Strategic Pay reviewed Seeka directors' remuneration and benchmarked Seeka against their database of more than 200 New Zealand private sector businesses. When benchmarking director remuneration, Strategic Pay considered the key metrics of '21 market capitalization, '21 revenue and '21 assets and the sector that we operate in, being the agri business sector. In the table, you can see the average director and Chair fees for each key metric. At the bottom is the proposed fee structure. If this resolution is passed, which is $70,000 for directors and $140,000 for the Chair, which are in the midpoint -- which are within the midpoint range of the surveyed samples. This final slide that I have is an explanation of the proposed pool allocation. And one of the things that we have taken the opportunity to is to recognize the time -- additional time directors spend on subcommittees of the Board, which we haven't done historically other than recognizing the Chair of the Audit and Risk Committee as requiring further remuneration. And the Chair of the Audit and Risk Committee historically has also been the Chair of our Due Diligence Committee in terms of any acquisitions that we've done. So as you can see from the acquisitions that we have been doing, he's been quite busy over the last 18 months. So resolution 4 proposes an $80,000 increase in the pool of directors' fees to $610,000. Board proposes to allocate $140,000 to the Chair, $85,000 to the Chair of the Audit and Risk Committee and $77,500 for the Chair of the Sustainability Committee and $70,000 to all other directors. In recognition of the demands, as I've mentioned, placed on directors, the proposal also includes a $7,500 fee -- subcommittee fee for members of the Audit Committee and $2,500 for members of the Sustainability and Remuneration Committees who are not chairs of those committees. The Chair's fee is an inclusive of all meeting fees. At the end of this meeting, the Board will revert to 7 directors. I put the pool of funds available for the remuneration of directors be increased by an amount of $80,000 per annum from a maximum of $350,000 -- sorry, $330,000 (sic) [ $530,000 ] per annum to a maximum of $610,000 in each financial year payable to all directors taken together effective 1 January 2022. Is there any discussion on the resolution? No, I'm getting headshaking there. That's -- I'm pleased to see that. As there appears to be no further discussion, I will move to resolution 5, which is the appointment of the auditors. Resolution 5 is to record the reappointment of PricewaterhouseCoopers as the auditors and to authorize the directors to fix the auditor's remuneration and expenses for the coming year. As PwC is automatically reappointed as auditors under the Companies Act, this resolution authorizes the Board to fix their fees and expenses for 2022. So I now put the formal resolution to record the reappointment of PricewaterhouseCoopers as auditor of the company and to authorize the directors to fix the remuneration and expenses of the auditor for the coming year. Is there any discussion on that resolution? No? More head shaking. There appears to be no discussion.

Right. This is time for questions that are relevant to the business of the meeting. Do we have any questions? So we -- headshaking, there are some questions. So Stuart, have you -- you've got those in front of you?

We do, Mr. Chairman. The first question is -- relates to Seeka Australia. It's from Chris Brown from the New Zealand Shareholders' Association. He asked, "What are some of the positive reasons for such a smooth Australian harvest versus New Zealand?"

All right. Michael, you've already given some commentary on that. Do you want to?

In Australia, firstly, because we're ahead of the COVID situation over there, so Jon has been able to sort of better organize his people around the varieties. I can do that from here, can't I? Yes. Yes. So he can better organize his people from around the varieties and what the market expects him to do so to flow through. And actually, he's done a really good job of marching his resources to actually meet the pressing demands of the market for each of the varieties he's going after. In our situation, we've got 11 packhouses to organize here in New Zealand. We also have to deal with Zespri, the marketer, who themselves wants us to pack fruit. You can see people wincing. It wants us to pack fruit in a certain order, which may actually not suit what the business needs to do in a pandemic and may not suit the pressures to be able to do things safely. So we have things like midnight cutoffs to earn certain premiums. So over here, it's been less smooth. It's been a little bit more difficult. I think to Zespri's defense, they haven't had to deal with a supplier that deal -- works in all the regions now, which we do. So there's going to be -- have to be some reconditioning of the supply chain processes, I think, as a result of the season and after the season.

Thank you, Michael.

Another question from -- this one also from Chris Brown from New Zealand Shareholders' Association. It relates to Slide 15, and he just really wanted confirmation that $3.4 million that it says other was not actually acquisitions. And if so, there was actually just other movements in the limit.

Stuart, I suspect you're the best person placed to answer that, aren't you, given that you put that slide together.

Yes. Chris, that's the -- that slide shows the movement in the facility limit, which increased from $122 million up to $190 million approximately. And it also showed the actual utilization of that limit, which increased from $83 million at December 2020 through to $113 million at 2021. In that movement, there were 3 things that we -- 3 businesses that we -- 2 we acquired and as said, we invested in. And that we acquired their debt with those acquisitions, that was OPAC and Orangewood. And then we had the Fruitometry investment of $2.6 million. The remaining $3.4 million just relates to general movements in our term loan facility around CapEx and general movements.

Thank you, Stuart. Hopefully, that's answered your question, Chris. Are there any more questions, Stuart?

There is. There was a question -- I'll just come to it, Mr. Chairman. A moment. Was there any consideration -- this is a question from [ Warren Coventry ]. "Was there any consideration given to paying a special dividend to shareholders following the receipt of the Psa claim refund?"

No. There wasn't specifically consideration given to that. But obviously, it did provide us with cash. And we also brought forward the February dividend to the 22nd of February, I think it was from memory. So in making that decision, there would -- we needed to make sure we had the cash we had available, and the Psa settlement claim would have helped with that. And also, because we were issuing shares to the Gisborne business, New Zealand Fruits, and with those shareholders as part of the -- access had effectively been paid out the retained earnings of the business, we didn't want them to participate in a Seeka dividend payment as well.

Thank you. Now I'll just check for other questions. I had a general comment from [ Carle van Kemp ] just basically asking around the annual reports, if they could see photographs of the directors in the future. There was also a question from [ Margaret Gordon ] and just questioning around automation and just some clarification, if they're just solidly to the packhouse or did it also include orchards and packing in specific.

Stuart, the first one was about photos of directors. I think we think we're all too ugly to have it in such a great report. But apart from that, we can take that on board. Stuart, the second question, I have struggled to hear you.

Relates to automation. And did that include automation in the orchards as well as automation in the postharvest?

Yes. That's -- the Fruitometry investment will help not necessarily directly with automation, but the ability to efficiently use labor in the orchards so that technology will be able to direct on-orchard activity to where it's needed. But if the question isn't related to automated packing technology, which I suspect there has been some publicity about that, the answer to that is no, because it's -- that is quite a -- as my understanding of how robots work, it's a very complex piece of technology to replicate the human arm and a robot that has the ability of movement and sensitivity and touch because kiwifruit don't like being squeezed too hard.

No other questions.

No further questions. Thanks, Stuart. Well, if there are no further questions, we should move to just remind you to go online and cast your vote if you have not already done so. You will have 5 minutes after the close of this meeting to submit and exercise your vote. [Voting]

So I'd just like to, before I close the meeting, acknowledge some retirements. I have 2 -- see, this might make my point about the attractiveness of directors in the annual report. But here's 2 that are -- 2 that are more attractive. This is John and Mel, who are both retiring today. John was the former CEO of Te Awanui Huka Pak, which was a company that was bought by Seeka probably 10 years ago, Michael, 11 years ago and joined the Board in 2012 when Huka Pak was amalgamated into Seeka. I, at a personal level, have appreciated John's contribution and his knowledge of the industry. And his valuation knowledge has been -- has made a fantastic contribution to the Board. And I thank John for that. Mel joined the Board when Farmind took a significant cornerstone stake in Seeka and at one stage, reaching close to 20% of the stock in the company. Mel has brought a Asian and international perspective to the fruit marketing business to our Board table, which we've been appreciative of over a number of years that Mel has been on the Board. And it's because of COVID and flight restrictions that it's now some time since Mel has been able to actually sit face-to-face in a meeting at the Board table. We've certainly made sure Mel had to get out of bed early in the morning. I think 3:00 every morning, he had to join our Board meetings, and we appreciate Mel's contribution. And I thank him on behalf of shareholders for that and wish him every success for the future. Now this handsome young man is Stuart McKinstry, our Chief Financial Officer. And Stuart is retiring at the end of the month after 16 years with the company. And in fact, the guide of the company through, if you run your eye down that, you'll see, and it's a nice reminder in many respects of activity and the growth that Seeka has experienced over that 16-year period. And Stuart has been a key participant in all that activity. I don't -- I won't read through them individually as I think you can all see those there. But the one I will pick out is that Stuart's contribution in terms of the Psa claim in respect of all growers that were part of that claim and also, obviously, Seeka as a grower as well. At a personal level, I'd like to express my thanks to Stuart in that he was the person that helped me understand the financials of this company. Seeka has numerous revenue streams, and there are a number of complexities to get your head around to fully understand the financial and the management accounts. And Stuart helped me with that. He's also, as the company secretary, has made sure I kept in accordance with the various protocols that we have and the policies that we have, and thank you. I appreciate all your help at a personal level in respect of keeping me in line. So thank you, Stuart, for your contribution to the company. It's been significant. I'd also like to thank the Board as a team and thank them also for the support they give me as their Chair throughout the year. It hasn't been easy meeting on Zoom. My observation with Zoom meetings is that they are good for getting the business done, but I'm not sure they contribute well to innovation or creative thinking. You need to be in the same room for that to happen. And so the sooner we can get back in the same room, the better. I'd like to thank management and staff again. Without their commitment, their flexibility, the modern word, which has probably become hectic now, is their ability to pivot. We've had people from head office working in packhouses. We've had people doing jobs all around the company that they never -- when they signed their employment contract, would have never seen those as part of their responsibility. But they certainly have in terms of their loyalty that they've shown for this company during this difficult period that Michael very eloquently explained to you. The staff have just been absolutely fantastic, and I thank them on behalf of the directors and shareholders. Growers and contractors, for your ongoing support. You're a key stakeholder in our business. You quite rightly put the pressure on us at all stages, and that pressure also helps management and the company respond to make sure it's meeting the needs of those stakeholders. Our customers and consumer -- and the end consumers. At the end of the day, we've got to produce a product that is high quality and people want to pay for and pay a premium. And that's a challenge, and it starts on the orchard. And it flows right through the supply chain, right to our customers who market it and ultimately to our consumers. We thank you for the interest you have in Seeka. And finally but not least, thank you to the shareholders. Your continuing in the company is important to us. We understand that we are stewarding your money that you've invested in Seeka, and I would just like to assure you that we take that part of our responsibility seriously. So this -- it's now exactly 4:00. You have 5 minutes from now to cast your vote. And with that final comment, I'll now draw the meeting to a close, and thank everybody for your attendance. Thank you for joining us and taking the time to get online and learn and hear more about the company. Thank you.