John Bostock, owner of Bostock Group. Photo / Warren Buckland
John Bostock, owner of Bostock Group. Photo / Warren Buckland
The apple industry in Hawke’s Bay has undergone a shake-up with a large sale completed between two major players.
Bostock Group, one of the country’s leading growers, announced on Wednesday it had sold 240ha of its orchards in Hawke’s Bay to rival apple grower Mr Apple NZ, ownedby the Scales Corporation.
Bostock Group had a mix of owned and leased land across that 240ha (114ha owned and 126ha leased) which will be transferred to Mr Apple.
The sale is worth $47.5 million and includes Bostock’s 50 per cent share in Profruit, a premium juice supplier.
John Bostock, owner of Bostock Group, at an event in Hastings promoting ethical farming with the NZ Symphony Orchestra. Photo / Warren Buckland
However, Bostock Group owner and founder John Bostock told Hawke’s Bay Today he was not looking at selling any further apple orchards “at this stage”, following the significant sale to Mr Apple and the smaller sales to other buyers.
“The goal [in this 240ha sale] is two or threefold,” Bostock said.
“Firstly, to have full recovery from the cyclone, we will be fully recovered and cashed up and ready for business and to take exciting opportunities as they come.
“Secondly, is the organic [apple] market has been under pressure with the cost-of-living crisis and by reducing the volume we think we can improve [our] returns.”
Bostock did not say exactly what he planned to invest in with the cash flow raised, other than “exciting opportunities”.
He said Mr Apple was a great company which he had worked alongside for decades.
He said the orchards sold to Mr Apple were all around Hawke’s Bay and “there are plenty of Bostock orchards left”.
Bostock started his company in the 1980s with his late wife which has since expanded into a horticulture empire.
“Including the [recent] sale of the Bostock Brothers chicken business, the transfer of Bostock orchards and businesses means total funds introduced to the business are in excess of $90m.”
Bostock also said, in a statement, that any staff moving between the growers “will find themselves well at home at Mr Apple”.
Andy Borland, managing director of the Scales Corporation, said it was a good purchase.
“Scales and Mr Apple have worked closely with John Bostock and his team over multiple decades and expect to continue to work closely together to collectively grow the industry.
“Bostock orchards are renowned for their premium quality produce.”
Mr Apple announced at the same time as the purchase that it was putting up for sale its Blyth and Te Papa orchards, covering about 186ha.
A Scales Corporation statement said that sale was part of a strategy “to improve Mr Apple’s margins”.
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.
