Avocado supplier in liquidation takes oil company Olivado to court

It's been a tough few years for some avocado growers. Photo / Michael Craig

An avocado supply company has applied to put an oil producer into liquidation.

A liquidator said tough times in recent years made business impossible for some in the avocado industry.

Far North Avocado Suppliers Limited, in liquidation itself, has applied to have Olivado Limited liquidated at the Whangārei High Court next month.

Olivado was established in 2000. Its shareholder and one of its directors is film producer Gary Hannam, whose credits include Vigil and The World’s Fastest Indian.

Olivado products include almond, avocado, coconut, macadamia and olive oil.

According to a previous Herald report, Olivado had an unsuccessful expansion to Queensland, then went to Kenya, where investor Alan Mountfort was shot in the early 2000s.

Kaitāia-based avocado packer Far North Avocado Suppliers Limited operated an avocado pack house in Northland.

Liquidator Garry Whimp told the Herald Olivado owed the suppliers some money but did not say how much.

“The whole industry’s experienced problems. Cash flow’s been squeezed. It’s a supply-and-demand sort of situation.”

He said people involved in the avocado companies were doing the best they could.

Workers from Vanuatu help with the harvest at a Northland avocado farm in 2023. Photo / Michael Craig

In 2020, avocados were New Zealand’s fifth-most valuable horticultural export group, Viva magazine reported.

But in 2021, export values dipped 61% due to a wet harvest, weakening Australian demand and shipping issues.

And in 2023, a glut of avocados was blamed on key export market Australia growing more of its own fruit.

Last week, New Zealand Avocado marketing and communications manager Matthew Ball told SunLive the current season looked promising.

But that might be too late for some. Avocado prices had plummeted over the past five years, Whimp said.

“They haven’t done a lot wrong. We’re the liquidators and we’ve demanded payment from Olivado. We are just working through it, as liquidators do.”

He said the Olivado director, meaning Hannam, was in Europe and had been co-operative. Whimp hoped the debts could be repaid without liquidating Olivado.

“We’d prefer not to liquidate,” he said, but had obligations to people owed money.

He said Far North Avocado Suppliers Limited had no employees currently.

“The assets have been auctioned now.”

Whimp said Far North Avocado Suppliers directors had faced a stressful few years.

“These are tough times. We feel for the directors... They’re good people.”

Hannam has been approached for comment.

Supermarket operator Foodstuffs on Friday told the Herald Olivado products were available in many of its stores.

“In the South Island, there are 14 different Olivado products on offer at 17 New World stores.

“In the North Island, New World stores have sold nine different types of Olivado products in the last 13 weeks.”

A report on Far North Avocado Suppliers from liquidators Blacklock Rose in October said the avocado packer had assets of $316,110.25, with liabilities yet to be confirmed.

The only creditor identified in that report was Inland Revenue.

“It got into difficulty as a result of non-payment of debt,” the liquidators’ report at that time added.

Olivado grew after chef Chris Nathan advertised in the Herald for people to invest in his Kerikeri operation.

Nathan today confirmed he had no ties with Olivado and had not for many years.

By late 2009, Nathan had joined forces with rival avocado oil company AvoHealth.

“I’m now involved with Optimum, which is a new oil company.”