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Kiwifruit industry growth continues

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2021_05 Kiwifruit

Market update | May 2021

The 2021 harvest is well underway with predictions of a record crop of approximately 177 million trays, 18 million trays higher than the previous season. Most of the increase is the result of maturing Gold plantings along with the new Red production. Zespri reported a strong start to the season with Gold sales well ahead of volumes at the same time last year.

The forecast for the 2020/21 payment was updated upwards again in February reflecting continued positive momentum and returns exceeding the 2019/20 payment.

Zespri is keeping its license release programme unchanged and this year has released for tender 700 ha SunGold, 50 ha Organic Gold and 350 ha Zespri Red as planned, which are expected once again to be oversubscribed.

The successful winners of this year’s annual licence round were due to be confirmed and we understand there has been strong demand for both SunGold and Red licence areas and anecdotally it appears SunGold licence values will be higher than $500 thousand per hectare.

Agents report a shortage of listings and strong inquiry on properties brought to the market.

The overall volume of sales is down as orchard owners hold onto properties and enjoy the strong returns rather than realise the value to consider alternative investments. The lowered cost of capital and the performance of the kiwifruit sector has reflected lower investment yields which are consistent with the trends of other commercial investments in the current environment.

The prices paid continue to show an upward market trend reflecting the current demand along with a compression of the margins between immature and mature orchards that reduce the development margins in an environment of increasing licence costs.

 

For more historical data go to:

June 2020 Kiwifruit property commentary and sales map for Bay of Plenty

February 2020 Bay of Plenty Kiwifruit property market report

Rural property data series: Bay of Plenty Kiwifruit orchards


Follow the links to access more sales maps and market commentaries on dairy, sheep & beef, viticulture, arable and kiwifruit markets.

Kiwifruit Research serach tile v2

Kiwifruit industry growth continues

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Related Experts

Chris Boyd

Executive Director | Rural Valuation

Tauranga

Chris has 36 years valuation and consultancy experience across a wide variety of property related matters including compensation, financial reporting statutory compliance, acquisition and rural valuation. He previously held senior positions at both Valuation New Zealand and Quotable Value – where his primary focus was the Bay of Plenty and Waikato regions.

His client work for the firm since 2008 has covered a range of property types and issues including; agribusiness, horticultural ,  lifestyle and residential development land, forestry land valuations, Emission Trading Scheme issues, specialised asset valuations, valuations for financing, due dilligence tax compliance, trust formation, matrimonial disputes and compensation. In addition he has provided expert evidence in the High Court, District Court, Maori Land Court, Environment Court  and Land Valuation Tribunal.

Chris’s infrastructure sector experience has included valuation and advisory projects covering compensation for easement and right of way property interests acquired by Transpower and other leading New Zealand energy companies, for new transmission lines and infrastructure upgrades, and compensation assessments for Crown entities taking property under the Public Works Act 1981 for motorways and pipelines.

His forestry sector experience has encompassed numerous valuation and advisory engagements throughout the country – including advice in relation to devolution of the New Zealand Forestry Service in the late 1980s, land value and rental review assessments as part of Crown Forestry license protocols and Maori Land rental review requirements, various Treaty of Waitangi settlement awards and providing expert evidence.

Chris is based in our Tauranga office and offers our clients sound market advice founded on a comprehensive understanding of the specific sector dynamics and balanced by experience gained working on behalf of owners, regulators and adjudicators in both the public and private domain. He is involved in a number of practice areas including forestry, dairy, Kiwifruit Avocados, infrastructure and pastoral.

Chris is the immediate past chairman of the Tauranga branch of the Property Institute of New Zealand and is a member of  the Waikato No. 4 Land Valuation Tribunal and the Directors Institute of New Zealand.

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Brylie Gordon

Valuer

Tauranga

Brylie has begun her career with Colliers in Rural Valuation after completing a Bachelor of Land and Property Management at Lincoln University. After working with the Colliers Rural and Agribusiness Team as an intern, she has since joined the Tauranga Team upon Graduating. 

Originally from the Hauraki Plains, Brylie grew up on a property converted from sheep and beef to dry stock and forestry and has always been fond of the rural industry. Studying at Lincoln University helped further her knowledge in the rural sector allowing her to experience farming systems in the Canterbury Plains, and through the Prime Minsters Scholarship comparing these systems with the likes of farming and agribusiness practices in Brazil.

Brylie is working with Chris Boyd primarily in the Bay of Plenty and Waikato Regions with niche expertise in kiwifruit orchards and compensation valuations.

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