Bostock Group Ltd, a New Zealand family-owned horticultural enterprise with a legacy spanning 40 years, has agreed to the transfer of 240 hectares of orchards to Scales Corporation. This includes both the sale of land and transfer of leases, making a strategic move to unlock value while preserving its organic apple heritage. The orchards included varieties ideally suited to conventional apple production, so fit perfectly with Scales / Mr. Apple's business model.
According to John Bostock, Managing Director, Bostock Group Ltd. "Alongside this arrangement, Bostock Group has also sold its 50% shareholding in Profruit to existing partner Scales Corporation. Additionally, the company has sold some orchard land to other buyers as part of the same strategic process. This allows Bostock to focus on the core business of organic apple production on a scale that matches the company's valued international customers' market demand."
The operations with over 2,000 hectares including squash, onions, maize, wine grapes and remaining organic orchards will all be unaffected. Bostock New Zealand will remain the largest organic apple grower in the Southern Hemisphere. The company has not sold shares and remains wholly owned by John Bostock.
"I wish to personally reassure our USA customers that we will have sufficient organic apples of the standard varieties to meet the market demand. The main reduction in production is in varieties that were not destined for the USA market, primarily Dazzle. Of particular note is that supplies of organic Honey Crisp will be unaffected and in fact will continue to increase as new plantings come into production."
"Bostock export operations will continue, the company will have a fit for purpose organic apple business, which will allow the company to meet market demands and the independent conventional apple exports, squash exports and onion exports will remain very active. Bostock retains it's interest in Fruitcraft and IP including Dazzle and exciting new apple varieties. The company's overseas import operations in 6 countries will continue with business as usual. The company will continue servicing its loyal customers with premium NZ produce. Bostock New Zealand is contracted to supply organic maize for the organic chicken business in increasing volumes."
He expressed enthusiasm about the transfer of orchards, stating, "This represents an exciting chapter in our company's history. Including the sale of the Bostock Brothers chicken business, the transfer of Bostock orchards and businesses means total funds introduced to the business are in excess of $90 million. I am happy to say the Bostock group and family have fully recovered from Cyclone Gabrielle and are in a very strong position to expand the existing business and looking for exciting new opportunities."
For more information:
John Bostock
Bostock Group Ltd.
Email: [email protected]
www.bostock.nz