Craigmore Sustainables, a New Zealand-based investment entity specializing in horticulture, forestry, and farming, projects its horticulture business assets to expand from $400 million to $650-$700 million within the next 18 months. This growth trajectory is attributed to additional plantings on existing properties, particularly in kiwifruit, apples, and grapes, complemented by new land acquisitions yet to be disclosed. Forbes Elworthy, the company's chair, highlighted New Zealand's competitive edge and robust markets in these sectors.
The 2023 Impact and Sustainability Report by Craigmore, released last November, showcases over $1 billion in total assets across its diversified portfolio, encompassing 60 properties and employing 229 individuals directly. Horticulture commands a 37% share of this capital investment, focusing on the conversion of bare land into modern orchards featuring new structures and IP-protected varieties, necessitating a long-term investment perspective.
Expansion across 15 sites in key regions including Northland, Bay of Plenty, Gisborne, Hawke's Bay, Nelson, and Marlborough is underway, as reported by horticulture general manager Con Williams. The previous fiscal year saw the planting of 860,000 apple trees, 140,000 kiwifruit vines, and 491,000 grapevines on former pastoral land. With orchards now nearing full production, older sites are appreciating in value, enhancing asset returns.
Craigmore's investment focus remains on orchard development and management, partnering with entities like Seeka and Trevelyans for packing and branding, to leverage their expertise. The company's foreign investors meet Overseas Investment Office criteria, contributing to employment growth in disadvantaged communities, boosting exports, and promoting sustainable development.
Approximately 25% of Craigmore's kiwifruit orchards are certified organic, aligning with investor preferences for sustainability and higher fruit prices. The company is a significant producer of New Zealand's organic gold kiwifruit, benefiting from premium orchard gate returns.
Source: farmersweekly.co.nz