Hawke’s Bay apple industry: Dutch firm buys 60ha orchard; two more orchards hit market

Hawke’s Bay apple orchards have been changing hands amid a shake-up to the industry, with the latest significant sale featuring a Dutch newcomer buying a 62-hectare Ongaonga block.

Hawke’s Bay is the apple-growing capital of New Zealand and produces about two-thirds of the country’s apples.

A trust associated with long-standing grower John Bostock, called BF Trust, recently sold a 62ha apple orchard on Swamp Rd in Ongaonga.

Dutch firm Van Lanschot Kempen bought that orchard through two subsidiary companies, managed by Fielding-based MyFarm Investments.

Toitū Te Whenua Land Information New Zealand’s Overseas Investment Office (OIO) granted approval for the Dutch buyer to make the property purchase.

The sale was worth $5.75 million, according to the OIO.

“The land is currently used as an apple orchard. The applicants will plant an additional 22 hectares of land in apples using a 2.5D planting method,” the OIO decision read.

“The main benefits to New Zealand are likely to include increased jobs, increased productivity, increased export receipts and capital expenditure.”

MyFarm chief executive Andrew Watters said this was Van Lanschot Kempen’s first purchase in Hawke’s Bay, but they had previously invested in cherries and kiwifruit elsewhere in New Zealand.

A Dutch firm has purchased a sizeable orchard in Central Hawke's Bay. Photo / Warren Buckland

He said the Ongaonga orchard was “a good property in a good location” and the previous owner had planned to upgrade the orchard, before Cyclone Gabrielle delayed the project.

Watters said the new owner would provide capital to make those improvements to the orchard.

Watters said the Government had an “ambitious target” to boost exports, including in horticulture and agriculture, and he believed a key way to meet the targets was through overseas capital investment.

“It is appropriate that there should be regulations on overseas people buying our farms and orchard lands, but we need to be much more welcoming and reasonable, that is our view.”

He said local staff would continue to operate the Ongaonga orchard.

Bostock has been contacted for comment.

It is the latest in a string of significant Hawke’s Bay apple orchard sales.

Mr Apple acquired 240ha of Hawke’s Bay orchards from Bostock Group in May, German-owned company Beehive Demetra bought 72ha of orchards in Twyford from Kiwi Crunch in July, and Craigmore Sustainables bought 186ha of orchards in Clive and Ongaonga from Scales Corp (which owns Mr Apple) in July.

Many Hawke’s Bay growers were hit hard by Cyclone Gabrielle in February 2023, and the region is still recovering from the floods.

More orchards hit market

Two other apple orchards have gone up for sale near Haumoana and Havelock North - a 12.4ha orchard on Te Aute Rd in Havelock North, which is a mix of apple trees and bare land, and a 24ha apple and peach orchard on Tennant Rd in Haumoana.

PGG Wrightson Real Estate is marketing the orchards.

Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.