$40 million DMS kiwifruit packhouse hires local for expansion

DMS chief executive Derek Masters (left) and DMS Pukepack site manager Dave Pharo on the site of the new development. Photo / Supplied

A $40 million kiwifruit packhouse in Te Puke is a "big economic victory" for the area's economy with local businesses jumping on board to bring the infrastructure to life.

The packhouse was also evidence of the continuous growth and strength of kiwifruit in the town, a Te Puke leader believes.

DMS Progrowers Ltd is doubling the size of its local operation with construction already under way on a new 5400 sq m packhouse and four new cool stores at the company's Te Matai Rd site.

DMS chief executive Derek Masters confirms Te Puke businesses and contractors will be used for most of the expansion project.

"It's important to look after your own. Te Puke builders, plumbers, electricians, refrigeration specialists, earthmovers, lighting, fire systems, concrete and panelling supplies, along with utility and services installation and other professionals and trades, will be used in all cases.

"We strongly believe in keeping things local and supporting the businesses that are based right here in Te Puke."

Aerial view of the new packhouse development under way at DMS. Photo / Supplied

DMS purchased a 7.5ha site from an immediate neighbour last year and rezoned the land for post-harvest activities. Over the past few months, Te Puke company JMC Earthworks has excavated 35,000 cu m of dirt to help construct a flat building platform for the new packhouse.

Te Puke businesses whose involvement is already confirmed include Shawn Williamson Builders for the construction of the four cool stores, and Orr Refrigeration for the bin store and cool store refrigeration plants.

Orr Refrigeration owner Quintin Orr said the contract was supporting five of his fulltime local workers and their families, plus more who would be contracted to help complete the work.

"We'll probably have another six to eight staff working out there as well - it's a massive job.

"For me, it means the continuation of employment of all my guys, which keeps them around the area."

Shawn Williamson, director of Shawn Williamson Builders, said eight of his 35 workers would be used over the four months to build the project.

Being a local himself, he was a fan of supporting the businesses. In fact, Shawn had worked with DMS over the past 22 years.

Tenders for the lead packhouse and bin store building contract are now open.

Te Puke Economic Development Group managing director Mark Boyle said the build was a high-value proposition for Te Puke orchards post harvest, and local employment.

Plus the short-term benefit thanks to the construction of the build was again a "significant boost to the local economy".

Boyle believed the district was heading towards a billion-dollar-a-year export industry.

"This is further evidence of the continuing growth and the strength of the kiwifruit industry. The resulting growth in the crop and post-harvest activity is a very strong economic output."

Consistent employment in the town and a boost to the local economy was a short-to -medium-term win, he said. DMS' consistency within the local economy with employment and post-harvest activity was critical for the town, Boyle said.

"Local construction building the packhouses is a big economic victory for when they are building it."

Western Bay of Plenty Mayor Garry Webber was appreciative of the work DMS was doing for rural communities.

"Any operation that employs people in our rural towns has to be given every opportunity to succeed.

"We are really appreciative of the efforts of DMS in creating another opportunity like this in our district. It really is of help to the wider community."

DMS is the first post-harvest company since 2018 to build a completely new packhouse in the Bay of Plenty.

"The industry is growing a significant amount of fruit – estimated at 178 million trays this year – and that is only going to increase as more greenfield developments and Gold conversions come on stream.

"Packhouses around the Bay are already working 24 hours a day, seven days a week, during the limited Gold harvest window. Investing in more automation is important but eventually, you just need more physical space.

"This is a big thing for us, and a big thing for the town."

DMS packs 14 million trays of kiwifruit between its two sites at Te Puna and Te Puke. Once the new packhouse is completed, the company will have doubled its packing capacity at Te Puke to about 12 million trays a year, increasing overall packing capacity to 20 million trays company wide.

New Zealand Kiwifruit Growers Incorporated chief executive Colin Bond said sales of kiwifruit returned $417 million in direct payments to the Te Puke community in 2020.

"Post-harvest operations play a critical role in the kiwifruit industry and development in this area as a response to industry growth will help to support economic returns not only to growers but the regional communities where the kiwifruit is grown."

DMS Pukepack site manager Dave Pharo said the new development would have a temperature and humidity-controlled bin store that will jointly feed both the old packhouse and the new one.

"The second packhouse shed will naturally require additional staff to operate – so that's a lot of new jobs for local residents as well.

"The new facilities will all be operational prior to the start of next season in March 2022," Pharo said.