Seeka files insurance claim for kiwifruit ruined after fire

Seeka has ordered another 9000 of the plastic bins. Photo / NZME.

NZX-listed Seeka Kiwifruit has submitted a multi-million dollar insurance claim for fruit losses attributable to the fire that severely damaged its Oakside packing facility in Te Puke in March.

Seeka had already lodged claims in June to its insurers for material damage to buildings and equipment, and for losses due to business interruption.

Those claims had been accepted and were being quantified and finalised, chief executive Michael Franks said.

The new claim, under its marine cargo cover on the fruit, results from an extensive investigation into the cause of losses that resulted from unexpectedly high rates of fruit ripening for some of the "Hayward" green kiwifruit packed by Seeka.

While Seeka did not lose any fruit in the fire, its field bins were affected by smoke damage.

They were swabbed down after the fire, the company said, but remained contaminated when they were used in the harvest, affecting the keeping quality of the fruit.

Gold (G3) fruit handled by Seeka during the same period, which had been stored in the new plastic bins the company has been introducing, were unaffected.

Seeka has ordered another 9000 of the plastic bins.

"We have strong supporting scientific documentation and have been advised by our experts that we have a very robust claim," Franks said in a statement.

"The insurance adjuster understands our growers' concerns and has advised he will let us know next week the timing of their decision on whether to accept the claim," he said.

The decision was expected before Christmas, he said.

Chairman Fred Hutchings said the uncertainty over the outcome of the insurance claims had caused Seeka to last week widen its August full year profit forecast, from an increase of 30-40 per cent to 10-40 per cent on last year's $3.2 million after tax.

"We had an excellent six months to June 2015," he said.

"We have been very conservative in our revised forecast. The final profit will be determined by the insurance outcomes, but our fundamental positive outlook remains unaffected by the challenges created by the Oakside fire."

Seeka shares last traded at $3.34 and have gained 16 per cent over the last year.