Hortinvest launches extensive Lindis River cherry project
Hortinvest launches extensive Lindis River cherry project
New Zealand horticultural investment
company, Hortinvest Limited has released a $15.5 million
cherry orchard project at Central Otago to savvy investors
seeking a slice of the premium cherry pie.
The 80-hectare
Lindis River project near Cromwell is double that of
Hortinvest's first cherry orchard and significantly bigger
than most currently planted in the region. It is projected
to send between 18-20 tonnes per hectare to market in the
lucrative cherry season when it reaches full mature
production by 2025/2026.
Hortinvest project and orchard development manager, Ross Kirk, said the project would focus exclusively on cherries and encompass 53,000 trees, with a spread of proven varieties to lengthen the harvest period and capture the fast-moving Chinese New Year market globally and Christmas market domestically.
The project is Hortinvest's second cherry development since the company was founded in 2016 by seasoned horticulturalists Ross and Sharon Kirk in response to an unprecedented global demand for premium New Zealand cherries.
New Zealand exported more than 4,000 tonnes of cherries to key markets in Asia, Europe, the United States and the Middle East in the 2017/2018 season with Central Otago accounting for some 90 per cent.
"Hortinvest's point of difference is that as a fully integrated company, we source the land, purchase machinery, develop and manage the orchard, then pack, export and market our own fruit, using state-of-the-art orchard and packhouse systems," Mr Kirk said.
"There are no third parties clipping the ticket along the supply chain because we have the experience and skills ourselves to manage an orchard project from set-up to market.
"Therefore, all returns from the market go back to the orchard owners. For investors, this means the total cost of producing and marketing fruit is significantly lower than other horticulture investment models."Mr Kirk said Hortinvest projected an internal rate of return (IRR) of 25 per cent over the 10 year project.
Lindis River would deliver leading-edge orchard management practices including a single leader growing system to maximise yield, he said.
"The single leader system, in which trees grow naturally upwards into an apex, with central branches trained outwards, requires less trees per hectare yet achieves a better yield. Picking is more efficient and fruit quality is superior because the cherries are less exposed to the elements," he said.
The Lindis River project is one of two 80-hectare Hortinvest opportunities currently seeking investors in the Central Otago region, he said.
"Hortinvest has secured the land by collaborating with sheep and beef producers who are seeking to diversify their businesses and have recognised the potential in horticulture," Mr Kirk said.
With seasonal
labour a significant issue for New Zealand's fresh produce
industry, Hortinvest was also working on long-term plans to
develop temporary on-site accommodation for up to 500
pickers at its developments, he said.
Site
provides growing advantages
The natural elevation of the Lindis River project - up to 400 metres above sea level - meant the area was less prone to damaging frosts in the critical spring blossoming and fruit-set period between September and November, Mr Kirk said.
"There are various ways to fight frosts. Our preference for this region is to use windmills which pull warm air down and stop buds and flowers freezing. We have budgeted for up to eight windmills for this project."
"Lindis River is also set on gently sloping ground with access to a good local water scheme and proximity to arterial trucking routes."
Mr Kirk said now
that due diligence and extensive operational and capital
budgeting for Lindis River was complete, the project
Information Memorandum (IM) was available for prospective
investors.
Lindis River at a
glance:
An 80-hectare cherry orchard at
Cromwell, Central Otago.
Elevated site less susceptible
to frosts.
World-leading orchard practices and
technology implemented by experienced horticulturalists.
Single-leader growing system to be implemented.
Eight
windmills available to fight frost.
Non-retractable
bird nets to protect against birds and weather.
Shareholding in a state-of-the-art packhouse equipped with
high-tech systems and full traceability.
A team with
extensive growing, marketing (in both export and domestic
markets) and compliance knowledge.
Key investment features:
A share in a $15.5 million
cherry orchard development.
25 per cent IRR projected
for first 10 years.
Returns begin five years after
planting.
Minimum investment of $750,000 required
(spread over four years).
Project closes on March 31,
2019.
Hortinvest offers a complete
development and management package. Prospective investors
should contact the team via the Hortinvest
website.
Vist the Hortinvest
website>
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Located in Central Otago, New Zealand, Hortinvest Ltd is the leading consultant in New Zealand's emerging and highly profitable cherry and horticulture industry. Hortinvest employs world-leading orchard management and packhouse systems to produce and export premium New Zealand cherries.