Craigmore Sustainables has acquired two apple orchards from Scales Corporation's Mr Apple New Zealand, marking a significant expansion in its horticultural investments. The purchased orchards, Te Papa in Central Hawke's Bay and Blyth in the Heretaunga Plains cover a total of 234 hectares. This acquisition will boost Craigmore's apple cultivation area to nearly 700 canopy hectares upon completion of development plans.
According to Craigmore's CEO, Che Charteris, this move is in line with the company's strategy to invest in sectors where New Zealand holds a competitive advantage, aiming to bolster the rural economy and communities. He highlighted the challenges facing New Zealand's apple sector, including the need for substantial capital to modernize orchards and shift towards higher-density planting and premium varieties.
Charteris emphasized the importance of attracting offshore capital that aligns with New Zealand values and is amenable to local control. As part of the agreement, Blyth Orchard will be leased back to Mr Apple until the end of the 2027 season. Additionally, Mr Apple will manage Te Papa orchard in the short term to facilitate the transition. The deal also includes a long-term arrangement for Mr Apple to handle the packing, storage, and marketing of fruit from both orchards.
Source: Farmers Weekly