Friday, March 29, 2024

Investor targets kiwifruit and apples

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Investment group Craigmore Sustainables is adding a $38 million kiwifruit development project in Northland to its $52m apple orchard project in central Hawke’s Bay.
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The fund has bought a 137ha dairy farm at Kerikeri and will plant half of it in kiwifruit over the next three years, chief executive Che Charteris said.

Dairy farm operations will be phased out over that time. 

Riparian planting will protect waterways and provide corridors for wildlife movement.

The project will generate 10 times the benefits for the property by farming only half the land.

The investment has been approved by the Overseas Investment Office.

Northland is one of the best locations in New Zealand for horticulture and deserves a lot more attention by the sector, Charteris said.

The project will provide 29 full-time equivalent jobs. Post-harvest operations for the new orchard will be contracted out to specialist providers.

Craigmore has already started development of the Central Hawke’s Bay apple project on 130ha, with posts covering the first 22ha.

It has bought a 286ha farm with the balance of land, about 193ha, used for grazing.

In full production the orchard will create the equivalent of 79 full-time jobs and bring in about $21.1m in annual exports.

The fund earlier bought a 59ha block near Gisborne to be used initially as part of its squash and seed maize business in Poverty Bay, Charteris said. 

Eventually, it will also be developed as an apple orchard.

Craigmore raised $200m from international investors and has about $50m left to invest.

It is looking for minority investments in existing horticulture business to help it grow. The projects are likely to involve shareholdings below 25% of the business to avoid the need for OIO approvals. 

Sustainables is part of the Craigmore Farming Group controlled by South Canterbury farmer Forbes Elworthy, who spends a lot of his time in Britain.

According to OIO records the fund is owned about 30% by Hong Kong investors, 29% in Germany, 28.5% in Britain, 6.81% Finland, 3.5%  in the United States and the balance by other overseas investors, including Irish interests. 

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