East Otago couple diversify with forestry and luxury accomodation on-farm

Sheep and beef farmers Dave and Sarah Smith have diversified their farming business with forestry and tourism. Photo / Supplied

About four years ago, East Otago sheep and beef farmers Dave and Sarah Smith decided they wanted to diversify their income stream and saw an opportunity in forestry and tourism. Last month, their vision became a reality.

The couple farm 7000 stock units on Mt Watkins, a 1436ha property located about 15 minutes off State Highway 1, inland from Waikouaiti, and they lease a further 200ha nearby.

“Sheep and beef farming just isn’t getting any easier with all the regulations and compliance we have coming in and we wanted to set the business up for future generations,” Sarah Smith said.

The couple planted 270ha of Pinus radiata on their steep and unproductive land that was covered in gorse and slip-prone. After plenty of market research, they embarked on an ambitious plan and built an off-grid and remote luxury accommodation they have called Fallow Ridge Retreat.

The build was done by Dave’s brother Matt, a qualified carpenter. The brothers’ father Rex was also a carpenter. He died in 2019 before the retreat was started.

“We are so glad to have completed it. It was a complex build - Rex would be proud,” she said.

The site where the retreat is located is on a schist rock outcrop. Built inset to the hill, it was a challenging build right from the start.

“What was supposed to be a three-week jackhammer job to create the foundations ended up taking three months,” Smith said.

The off-grid, luxury accommodation known as Fallow Ridge Retreat has been built into the rocky outcrop. Photo / Supplied

Their perseverance has paid off and the retreat opened to bookings earlier this month.

Planning had been key, she said. The couple enjoyed the research side of the project and they stayed at two luxury retreats in the South Island.

“What we learned was that people wanted to go somewhere that was off-grid and felt remote. We had made plans for this project before Covid hit and we were a little worried that the market might have dropped away with no international tourists, but what we found was that these places were even busier as the high-end domestic market was looking for unique places to stay.”

Sarah, who has a commerce degree from Otago University, has been upskilling herself in social media to ensure the retreat becomes East Otago’s best-known secret.

“Marketing has come a long way since I studied it at university,” Smith said.

“I can’t believe the power of social media.”

She will run the entire operation, including responding to inquiries and taking bookings, preparing the food platters for guests and servicing the retreat.

“I will do it all myself, to begin with, and get a feel for the whole thing, and we can make changes as we go along and employ someone if we need to.”

With the build just complete and the business in its infancy, it is too soon to say what they would have done differently - but with luxury in mind, the couple knew no expense could be spared.

“The costs have turned out not too bad in the scheme of things. Matt could see the price rises coming in the building sector, so he got in early and pre-ordered a lot of materials. If we were looking to build it all over again now, it would be a very different story,” she said.

In time, with a mature stand of trees and a humming retreat, Mt Watkins would be a robust and sustainable business, Smith said.

“The forestry is growing well and is set to generate a good income from carbon sales and will offer succession opportunities for our three boys when the timber is harvested.”