Prospects for New Zealand's horticulture sector have improved, with growers and packhouses reporting stronger returns after production drops of up to 50 percent two years ago. Last year's crop rebounded, and tier one orchards placed on the market are attracting strong interest.
Tim Gallagher of PGG Wrightson Real Estate, Te Puke, recently named REINZ 2024/25 Rural Salesperson of the Year, said demand is high. "Demand for properties that meet the premium criteria is insatiable. More than 50 groups of potential purchasers recently inspected a high-production block of green," he said.
Dave McLaren, kiwifruit property specialist with PGG Wrightson, said buyer enquiries are increasing. "As we approach this season's optimum selling stage, with the market showing its strongest momentum in years, a new wave of orchard and bare land listings is arriving on the market. While green orchards are rising in value, as ever gold is highly sought after, and even at higher values, some quality orchards are achieving double-digit percentage returns," he said.
According to Paul Wiltshier, Bay of Plenty Area Sales Manager for FruitFed Supplies, development of new orchards continues. "Large-scale kiwifruit development, contouring and planting land previously used for dairy or avocados, is occurring in the Te Puke area. These large new blocks, comprising up to 100 hectares of new plantings, will come to production in the next four to five years, delivering on the potential identified in Zespri's projected global market," he said.
At Zespri's annual licence auction in May, licences to plant 250 hectares of new gold vines sold for NZ$561,000 (US$335,000) per hectare, while licences to cut over 150 hectares of green for conversion to gold sold for NZ$454,000 (US$271,000) per hectare.
Gallagher noted that established orchardists remain active in the property market. "They are looking for A-grade production blocks growing green kiwifruit. Whereas in the past such orchards would have attracted interest for cutting over and grafting on gold kiwifruit, they are now rising in market value, changing hands at and above NZ$500,000 (US$298,000) per canopy hectare. Based on that NZ$500,000, investment in a top-producing Hayward orchard, doing 14,000 trays per hectare at NZ$8 (US$4.76), would return approximately 12 percent per annum after costs," he said.
McLaren said current listings include a 4.8-hectare Maketu, Te Puke block planted in gold and a 10-canopy-hectare gold Edgecumbe orchard. He also listed a 40-hectare parcel of land east of Te Puke for development.
Wiltshier noted that prospects for the coming year will be clearer later in spring. "By late October, the bulk of the work has been done, vines are pruned, canes tied down, fertiliser and sprays applied, flowering is finished, and we will be able to better ascertain how much fruit is on the vines," he said.
Source: PGG Wrightson Real Estate
