Towards the end of autumn harvesting for kiwifruit, apples, hops and avocados, he says the challenges are diverse but the margins and rewards are sufficient to continue.
“Yes, there are some clouds on the horizon, but clouds bring rain,” Watters said.
Two large MyFarm hop syndicated properties near Motueka were not in the path of hailstorms that hammered hop gardens, kiwifruit and apple orchards, vineyards and tunnel houses in the Nelson province on Boxing Day.
Hop growers estimate the industry will harvest only 40-60% of their expected volumes this season.
Watters says yields on the two 100ha-plus properties, called Tapawera and Wairua, planted and managed by partners Hop Revolution, were above estimates for all but one of the varieties grown.
“If you were hit by hail that was devastating but if not, then it has been quite a good year,” he said.
Labour shortages were evident throughout the Hawke’s Bay apple harvest and some lower value crops will remain on the tree because they are marginally economic to pick.
“Everyone is making do, but we wouldn’t want another year with these shortages of labour, that’s for sure,” he said.
Watters says prospective bidders for SunGold kiwifruit licences are keeping their cards close to their chests and he expects that successful bids will be higher than last year’s $400,000/ha.
“The margins that can be obtained on SunGold means there will be a strong demand for licences,” he said.
When the proposed Kakariki Fund for horticulture in 2019 attracted only $30 million worth of investors instead of the $40m to $100m targeted, three planned developments went ahead as standalone syndicates.
These are the Otamarakau gold kiwifruit orchard, the Wairua hop garden and another Rockit apple orchard.
Kakariki Fund has been wound up and the name removed from the Companies Register.
Although 2020 was an extraordinary year, MyFarm put together $185m of horticultural and commercial property investments with funding from 800 people, about half of whom were repeat investors, varying according to the type of proposal.
Among investment offers under way this year are a 1000ha manuka planting with Comvita and two SunGold kiwifruit orchards.
Watters says MyFarm would look at more close-planting avocados, green kiwifruit and more manuka.
He would not rule out a return to dairy syndicates, where MyFarm began 30 years ago, now that five good milk price seasons have helped farmers and investors recover from two loss-making seasons.
“Horticulture has got many good aspects and probably easier from an environmental perspective,” he said.
The Te Arai Gold Partnership offer at Muriwai, near Gisborne, is for a total of $13.24m to be raised and $9.9m borrowed from the bank.
Partnering with post-harvest operator Apata, MyFarm has an offer to buy 28ha of suitable land for a 20ha SunGold covered orchard, conditional on licences being obtained this year and next.
Total development, including Zespri licence, is expected to cost just over $1m/ha and the promoters have forecast around $200,000/ha crop revenue at full production.
