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Demand will rise for existing kiwifruit orchards as a result of Zespri granting its annual quota of new licences for the gold kiwifruit variety, claims a rural property salesman.
Stan Robb, of PGG Wrightson Real Estate, Te Puke, says demand for the licences has been keen.
“Zespri [says licences for] 700ha of gold kiwifruit and 50ha of organic gold have been issued for the 2019-20 growing season,” Robb says.
“With a total of 750ha of licences available, applications totalled 1848ha, so the offer was almost 2.5 times oversubscribed.”
About 54% of the allocated licences are for new developments. Growers paid a median price for the licences of $290,000+gst/ha.
“Many growers, in particular the larger ones, were planning to add to their current operations. But it appears that most of the new licences have gone to smaller developments,” Robb says.
“Those larger operators are growing green kiwifruit, planning to cut them over and graft the vines with the gold variety. Clearly, as they have not been granted licences, they will need to wait another 12 months to implement their plans and will likely bid higher to secure the 2020 licences.”
Premium orchards already growing gold kiwifruit are now selling for $1.2 million per canopy hectare, while high producing green kiwifruit properties are selling as high as $500,000 per canopy hectare.
Depending on locality, bare land blocks suitable for kiwifruit in Bay of Plenty are valued from $200,000 per hectare.
Robb says the unsatisfied demand for gold kiwifruit licences will hold the price for existing orchards.
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Horticultural prices are set to remain elevated this year, reflecting the balance between demand in key export markets and an increase in supply.
Fresh Carriers Co. Ltd (FCC) and Zespri have completed the first ever kiwifruit charter powered by a low-emissions fuel.
Kiwifruit marketer Zespri says its kiwifruit has now reached more than 100 million households globally.
Among the regular exhibitors at last month’s South Island Agricultural Field Days, the one that arguably takes the most intensive preparation every time is the PGG Wrightson Seeds site.
Two high producing Canterbury dairy farmers are moving to blended stockfeed supplements fed in-shed for a number of reasons, not the least of which is to boost protein levels, which they can’t achieve through pasture under the region’s nitrogen limit of 190kg/ha.
Buoyed by strong forecasts for milk prices and a renewed demand for dairy assets, the South Island rural real estate market has begun the year with positive momentum, according to Colliers.
The six young cattle breeders participating in the inaugural Holstein Friesian NZ young breeder development programme have completed their first event of the year.
New Zealand feed producers are being encouraged to boost staff training to maintain efficiency and product quality.
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