A shake-up of the apple industry appears to be continuing in Hawke’s Bay, with a newcomer buying 72 hectares of orchards near Hastings.
The region grows about two-thirds of the country’s apples and this year there have been significant sales of orchards across the region, which is href="https://www.nzherald.co.nz/hawkes-bay-today/news/hawkes-bay-apple-and-grape-picking-season-wraps-up-how-growers-fared/YNMQFXO5ZREKXKYHV6FYBOJQZU/" target="_blank">still recovering from Cyclone Gabrielle in February 2023.
Most recently, German-owned company Beehive Demetra Ltd has purchased 72ha of apple orchards on Hill Rd in Twyford from established grower Kiwi Crunch.
Toitū Te Whenua Land Information NZ granted permission for that purchase to go ahead as an overseas investment.
The sale, for an undisclosed amount, is yet to settle and Beehive Demetra has been operating since last year.
“[Beehive Demetra] is a subsidiary of German company Munich Re. It was formed to invest in horticultural assets in New Zealand,” an overseas investment decision said.
“[Beehive Demetra] will upgrade the orchard and re-plant more profitable apple varieties.”
Craigmore, which provides governance and management services for Beehive Demetra, chief executive Che Charteris said the sale was Beehive Demetra’s first purchase in Hawke’s Bay.
He said Beehive Demetra wanted to develop more permanent crops in New Zealand but it was too early to say whether they would continue to expand in Hawke’s Bay.
He said the apple sector in Hawke’s Bay was “pretty sore” at the moment given the impact of the cyclone and increased costs with inflation.
However, he said “There are always opportunities if you take a long-term view”.
A German-owned company has bought 72ha of apple orchards near Hastings. Photo / NZME
“It is an amazing region, it just has a lack of capital and, with everything everyone has had to deal with over the past few years, it just needs a bit of love or else industries shrink. So it is really important we all get behind [the horticulture industry].”
As for the recent purchase, he said Beehive Demetra wanted to increase the number of stems per hectare, by adapting the orchard structure and re-planting.
Its parent company, Munich Re, is a German insurance company.
Kiwi Crunch has been approached for comment about the sale. It has over 100 permanent employees in Hawke’s Bay and was formerly known as Freshmax, but was rebranded in 2022 after changing owners.
Kiwi Crunch also sold another 97ha of apple orchards near Twyford in February, to NZ Rural Land Company, but leased back those orchards for the next 30 years.
Meanwhile, in May, Mr Apple acquired 240ha of Hawke’s Bay apple orchards from another major grower Bostock Group (including 114 hectares of owned land and 126 hectares of leased land).
At the time, Bostock Group announced it had also sold smaller orchards to other buyers but “nothing in comparison” to the sale to Mr Apple.
Mr Apple (part of Scales Corporation) put two apple orchards up for sale following that transaction, including a 110-ha orchard in Clive and a 123-ha orchard and land package in Ongaonga.
Those orchards and properties remain on the market and will not sell before Friday, when offers close through real estate company Colliers.
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.
