Kiwifruit orchards worth gold

Gold kiwifruit orchard are selling for more than $300,000 a hectare.

Orchard sales have soared in the Bay of Plenty and values are back to pre Psa levels for kiwifruit canopies but some growers are still doing it tough, an industry body says.

Figures from the Real Estate Institute of New Zealand show 98 horticulture farms were sold in 2014 compared to 50 in 2013 while the median sale price lifted from $162,349 to $200,792 over the same period.

Kiwifruit Growers Inc president Neil Treblico said kiwifruit orchards were fetching much more than that and while it was "fantastic for the Bay of Plenty" many carried debt.

"What I am hearing would suggest the actual sale price that growers are asking for is in excess of $250,000 per hectare for a green orchard that is producing well ... and over $300,000 for gold."

In May PGG Wrightson rural and lifestyle real estate agent Stan Robb told the Bay of Plenty Times several green orchards sold in excess of $300,000 per canopy hectare, with vendor expectations for a G3 orchard exceeding $400,000 per canopy hectare.

However, Mr Treblico said kiwifruit growers were in catch-up mode.

"There are growers that have been through a tough time with Psa and their financial situation has gone backwards. So they are in a situation where they still have to recover with quite a number catching up."

"Gold growers in particular have not had crop for a period of time ... people have incurred expenses without offsetting it off their income so those guys have to recover that."

However, overall optimism was high, Mr Treblico said, considering no one wanted to buy an orchard a couple of years ago.

"Across the industry as a whole growers are very confident about the future despite Psa."

Investors were also expressing interest along with young people, who tended to work in the industry to build equity, and farmers that wanted something less time intensive, he said.

Bayleys Country Bay of Plenty manger Simon Anderson said orchard sales had lifted 30 per cent in 2014 compared to 2013.

Confidence had returned especially in kiwifruit as experienced orchardists sought to increase their holdings, Mr Anderson said.

"It's looking very positive and a lack of orchards on the market is driving it and there is not a lot coming to satisfy that demand. "

"It's been positive and great for the Bay of Plenty and especially those orchardists that had a terrible time initially with the Psa outbreak, to have some confidence back now."

Avocado orchards were also faring well, he said.

"Any avocado orchards that we have had on the market have been really well looked at that is for sure."

REINZ rural spokesperson Brian Peacock said the kiwifruit industry "actually appears to be in pretty good solid heart at the moment."

"There does appear to be a recovery from Psa in the gold kiwifruit as well as the green and that is being conveyed through to sales activity and a renewed enthusiasm in the industry."