EastPack Limited is to spend $3million on the latest optical grading systems for its Katikati and Edgecumbe packhouse operations.

The Compac InVision grader software uses LED lighting technology to discard any kiwifruit that has external blemishes, shape disorders, cuts or punctures – all before they get to a team of graders.

Compac Regional Manager Craig Hart, Katikati kiwifruit grower Neil Magnus, EastPack Regional Operations Manager Kerry McCree and EastPack Site Manager – Marshall Road Bruce Youngman.

EastPack regional operations manager Kerry McCree says the new software will provide greater throughput of both green and gold kiwifruit, and result in overall efficiency gains.

'The optical grading system will segregate incoming fruit into various quality sets. Obvious Class 1 kiwifruit will be directly fed to the packing line by existing unstaffed packing tables, and non-Class 1 fruit will be removed without the need for human intervention.” The upgrade to the Marshall Road packhouse in Katikati, which EastPack acquired when the company merged with Satara in March this year, will also include a complete new bin tip system and an inline sanitiser. The upgrades at both sites will be in place for the start of the 2014 packing season.

The announcement of the $3million up-grade comes just days after EastPack made an unsuccessful take-over bid for Aerocool, a post-harvest company in which it has a small shareholding. Instead the majority of Aerocool shareholders voted for a merger with Apata Ltd.

EastPack Chief Executive Tony Hawken says EastPack's strong financial situation and the success of its 'growing excellence” programme enabled it to make ongoing capital investment, such as the Edgecumbe and Katikati upgrades.

'As a 100 per cent grower owned company with industry-leading orchard gate returns (OGR), our growers benefit directly from any financial gains in efficiency.

'We're really excited to deliver on our promise to our growers in Katikati that we would upgrade the packhouse following the merger. For our Katikati growers it's a bit like getting a shiny new tractor.”

Katikati kiwifruit grower Neil Magnus says EastPack's investment in new grading technology is an indication of the company's support of growth in the Katikati area.

'Having the latest technology and allowing room for expansion to handle new volume will see growers end up with a better result.”

The Kauri Point Road grower is pleased with the commitment EastPack is making to the Katikati area. 'In fact, they appear to be delivering more than what they initially proposed.”

EastPack is currently forecasting a $5.22 per tray OGR for Class 1 Green. This follows on from an industry leading 2012 Green OGR of $5.11.

In May, EastPack announced a $7.5million before tax profit (after paying 20 cents per tray rebate in June 2012), for the financial year ended December 31, 2012.

As well as the Edgecumbe and Katikati packhouses, EastPack has packhouse and coolstore operations in Opotiki, Te Puke and Whangarei.