The international produce auction site became within one month the dominant pricing factor in the export of Buttercup Squash cups to Japan and South Korea.
The market for this pumpkin-like vegetable with 30,000 tonnes per annum is limited, only a handful of New Zealand companies produce the bulk of the volume. On the procurement side, there is/was one party that dominates the market.
The vegetable auction was designed partly for this party to circumvent.
The first auctions were price wise unsuccessful, but brought new buyers to the market and gave more transparency.
The rest of the auctions gave good prices, the best prices of the year. The parties who did not participate in the auction also made good prices, and vegetable auction are the starting point of the spot market prices.