Two companies which pack kiwifruit for export, are asking their growers to agree to a merger, as the PSA vine disease reduces fruit supply and the high dollar reduces returns.
Growers who supply both Satara and Eastpak will vote on Friday on the proposed merger which could lead to a rationalisation of both companies' assets, if 75% of growers from both organisations vote in favour.
Both Satara and Eastpak argue a merger will reduce costs and create a more efficient operation for the benefit of growers.
The two companies had considered amalgamating several years ago, but set it aside so they could assess the impact of PSA.
Two years ago, Satara's growers rejected a proposed merger with Seeka, another kiwifruit post harvest operator.
Satara chairman Hendrik Pieters said the impact of PSA on the volume of kiwifruit means overcapacity at packing facilities.
The merger would see fruit being packed at the most efficient sites, while the least efficient sites would be closed.
