Unsecured creditors of MyFarm's Rākete Orchards Limited Partnership are unlikely to recover any funds as the business moves through voluntary administration toward liquidation, according to the first statutory report from administrators BDO.
Auckland-based administrators Rees Logan and George Bannerman were appointed in October 2025 after the partnership was deemed insolvent. BDO has recommended that the entity be placed into formal liquidation.
Rākete Orchards was established in 2017 as a partnership between MyFarm and Rockit Global. Under the structure, 55 hectares of land were leased and planted to Rockit apples across six orchards in three growing locations in Hawke's Bay. Total investment at establishment was $17.39 million, approximately US$10.6 million.
Total liabilities reported by the administrators stand at $12 million, or about US$7.3 million. Secured debt includes $4.4 million, about US$2.7 million, owed to BNZ. Unsecured liabilities comprise $716,000 to trade creditors, $3.349 million to unsecured loan note holders, and $3.553 million owed to the Rockit Apple Grower Trust.
The partnership's assets include 62 canopy hectares of Rockit apple orchards, with eight hectares owned and the remainder leased. Assets also include the 2026 harvest, Rockit apple licences, and a small shareholding in Rockit Global Ltd.
In a statement explaining the failure, directors pointed to the decline in Rockit's 2025 orchard gate returns from $1.30 to $1.55 per tube, containing five apples, down to $0.60 to $1.00 per tube. The reduction resulted in a reported revenue shortfall of $2.5 million, around US$1.5 million. The directors stated that bank support was withdrawn and Rockit Global was unable to provide financial support. Options to re-graft Rockit trees to alternative varieties were considered, but were not expected to generate sufficient cash flow to meet creditor obligations. Attempts to raise funds from MyFarm investors also failed.
Following their appointment, the administrators initiated a tender process for the sale of the orchards. Conditional sales agreements have been entered into, subject to lease assignments, with settlement scheduled after harvest. BDO noted that expected sale proceeds will not be sufficient to fully repay the secured creditor, meaning no distributions are anticipated for unsecured creditors.
Industry participants report that other Rockit growers in Hawke's Bay are taking a cautious approach, with decisions on future commitments expected after harvest. Growers are reported to require returns of at least $1.00 per tube to cover operating costs.
Rākete's failure follows other liquidity issues within the Rockit orchard segment. In November, Mana Orchards GP entered liquidation owing $6.65 million, around US$4.1 million, to BNZ, with reduced revenues cited as the primary cause. MyFarm continues to hold exposure to Rockit plantings of 20 hectares in Tairāwhiti and 13 hectares in Heretaunga, Hawke's Bay.
Source: FarmersWeekly
