Wednesday, 25 May 2016 13:55

Kiwifruit orchard values soar

Written by  Pam Tipa
Kiwifruit orchard values are going through the roof on the back of a revamped sector. Kiwifruit orchard values are going through the roof on the back of a revamped sector.

Orchard values are going through the roof compared even with pre-Psa levels, says Zespri chief operating officer Simon Limmer.

He says the vine killing disease Psa impacted growers' balance sheets significantly, but the banks were flexible in working through Psa issues with growers.

"Most growers were able to survive Psa and see their orchard values not only recover but increase significantly. Land values in kiwifruit country are through the roof, particularly the Gold but even the Green.

"The kiwifruit industry is attracting a lot of attention in the primary sector compared to what's going on with other primary industries."

Orchard gate returns are about $65,000/ha on average across the whole industry. That's compared to about $30,000 in the 2005-06 period.

Limmer adds that Gold3 has been a big driver of the shift, so has greater productivity overall, particularly in Green.

The Green on average is forecast to maintain on average $50,000/ha; the cost per hectare has risen significantly in the last few years from about $20,000 to $25,000 - $30,000/ha.

Psa forced growers to be more vigilant and more proactive in protecting their crops. But productivity has also grown.

Gold is delivering $100,000 - $130,000/ha in yield and market price. On-orchard costs are $30,000 - $35,000/ha and productivity is higher.

The value of a Gold orchard is said to be about $600,000/ha (from about $450,000/ha pre Psa) and Green is about $400,000/ha (from about $250,000/ha).

More like this

Featured

Carrfields invests in new Ashburton R&D hub

The Ashburton-based Carrfields Group continues to show commitment to future growth and in the agricultural sector with its latest investment, the recently acquired 'Spring Farm' adjacent to State Highway 1, Winslow, just south of Ashburton.

Elite sheep dogs to go head-to-head at Ashburton A&P Show

A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.

National

Tributes paid to Jim Bolger

Dignitaries from  all walks of life – the governor general,  politicians past and present, Maoridom- including the Maori Queen, church…

Machinery & Products

» Latest Print Issues Online

The Hound

Red faced

OPINION: The Greens have taken the high moral ground on the Palestine issue and been leading political agitators in related…

Cold comfort

One of the most galling aspects of the tariffs whacked on our farm exports to the US is the fact…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter