Northland iwi forestry trust expands into Kerikeri kiwifruit

Checking out the crop are, from left, Ngāti Hine Forestry Trust chairman Pita Tipene, Seeka senior orchard manager Denis Barker, trust chief executive Huhana Lyndon, trustee Hirini Henare, Northland Inc chief executive David Wilson and Far North Deputy Mayor Tania McInnes. Photo / Peter de Graaf

A Northland iwi has bought a fifth kiwifruit orchard as it continues to diversify from its forestry mainstay.

The handover of the 8ha orchard on State Highway 10, near Kerikeri, to Ngāti Hine Forestry Trust took place last week.

The orchard, which cost about $3 million and has been named Pukerau, will be leased back to its former owner, Te Puke-based kiwifruit firm Seeka.

On top of the lease, the trust will be paid a share of the profits from the lucrative gold kiwifruit crop.

The trust now owns five kiwifruit orchards totalling 44ha, 27ha of which is under kiwifruit canopy. The other four are off Kapiro Rd just north of Kerikeri.

Speaking at the handover, chairman Pita Tipene recalled how trustees were ''flabbergasted'' when the trust bought its first orchards in 2004.

Despite the vine disease Psa and ''a few speed bumps'' since then, the decision had paid off, he said.

Ngāti Hine Forestry Trust chairman Pita Tipene shares a hongi with Seeka investments manager Graham Cater. Photo / Peter de Graaf

Ngāti Hine Forestry Trust currently produced about 250,000 trays of kiwifruit a year, which would be boosted to 300,000 by the latest acquisition.

The trust owned the land, vines and infrastructure while Seeka would manage the orchard, harvest the crop and pack it at a new facility under construction on Waipapa Rd.

"But we also want to make sure we are building our own capacity and capability, and that means making it clear to Seeka we would like to see our own people employed over time, with the right training."

Tipene said the trust wanted to diversify its assets away from forestry.

"So we got into horticulture, housing, manuka honey … We didn't want to keep all our eggs in one basket."

The purchase was funded by a mix of the trust's own money – "we've been very frugal over the years" – and a partnership with Westpac bank.

Trust chief executive Huhana Lyndon said some people focused on Treaty settlements as if they were the be-all and end-all for Māori economic development.

"There's a lot of talk about Treaty settlements as if they're a silver bullet, but there's a lot of work going on already. As Ngāti Hine we're committed to supporting economic growth for the region and pleased to have this partnership with Seeka."

Ngāti Hine Forestry Trust chief executive Huhana Lyndon. Photo / Peter de Graaf

Seeka investment manager Graham Cater said the company acquired the orchard when it bought Turners & Growers in April this year.

However, Seeka had a different business model, preferring to work with partners who grew kiwifruit rather than owning land itself.

Seeka was currently spending close to $20 million on a major new packhouse on Waipapa Rd that was due to start operation at the end of February.

The company already had a partnership with Ngāti Hine through the trust's four other orchards, and had a cadetship programme offering training in horticulture through to management.

"That's a big focus for Ngāti Hine and we're keen to talk to them about that."

Ngāti Hine Forestry Trust's five orchards are a mix of green and gold kiwifruit. Pukerau is Zespri G3 (Sun Gold), which currently fetches $10.46 a tray; the trust is currently converting its 8ha Te Ara Kopeka orchard from green to gold.

Also at the handover were executives from regional development agency Northland Inc and Far North deputy mayor Tania McInnes.