Sale volumes of kiwifruit orchards peaked in 2003 driven by the market appetite for the developing 16A gold variety. Sales then generally reflected a downward trend from the mid-2000s to the market low of 2011-2012, which was driven by deteriorating market fundamentals, the Global Financial Crisis and the impact of PSA in the New Zealand market.
The recovery over the last seven years is unheralded in the history of New Zealand commercial kiwifruit production and is driven by market appetite for the improved gold G3 variety, a restructured and more efficient governing entity, as well as the improved standalone performance of the green variety combined with gold conversion potential.
Sales volume of the last two years contradicts the ongoing strength in the industry and reflects the lack of properties coming to the market, as owners chose to hold rather than sell due to current returns.
Anecdotally, it appears the majority of the transactions are by existing kiwifruit industry participants wishing to leverage industry knowledge and strong returns.
The sales map below is an analysis of recent kiwifruit transactions in the Bay of Plenty.