by Lynda Kiernan
New Zealand Cherry Corp., the operator of the country’s largest netted cherry orchard at 32 hectares (79 acres), announced it is undertaking a significant investment at its Cromwell site.
The company, which harvests up to 800 tons of cherries annually and exports to 10 countries, announced it has acquired a 244 hectare (603 acre) parcel adjacent to its existing farm. The land will enable the company to double the size of its cherry orchard and increase its seasonal workers from 500 to between 700 and 800. In support of this goal, plans include building worker accommodations on 4 hectares (10 acres) of the land.
“Our investment in the expansion of valuable productive land for cherries supports the booming local cherry industry,” said Paul Croft, director, NA Cherry Corp. “It enables us to employ approximately 200-300 more seasonal workers and create more local job opportunities.”
The Sweet Spot
The global fresh cherry market is expected to expand at a CAGR of 5.5 percent over the period between 2017 and 2022 to reach a value of US$5.2 billion, according to research conducted by Transparency Market Research (TMR).
A key driver of this growth is an increased interest from consumers in avoiding processed foods and preservatives in their diet.
“The rising awareness among consumers regarding the harmful effects of chemicals and preservatives, used for food preservation, has surfaced as the key factor behind the significant growth of the global market for fresh cherries,” said a TMR analyst. “People, nowadays, are preferring fresh fruits and vegetables for consumption, which is influencing the demand for fresh cherries, considerably,” stated TMR in a recent release announcing its findings.
Geographically however, growth in cherry consumption will be most notable in emerging countries, with market analysts believing that Asia will represent the strongest growth for fresh fruits, including cherries, apples, pears, and kiwifruit.
Another driver behind the expected growth for the global cherry market is the increased use of the fruit in other products such as ice cream, alcoholic beverages, salads, and jellies, finds MarketWatch. As a rich source of iron, protein, calcium, vitamins A and C, and carotenoids, cherries can play a role in reducing cholesterol, and aiding in weight loss and controlling blood sugar.
Riding this wave is New Zealand, which has seen its cherry export sales quadruple to reach exports of 4,000 tons in 2017-18 – 90 percent of which were grown in the Central Otago region. And this momentum is not expected to slow, as Summerfruit NZ forecasts the dollar value of these exports to grow by 40 percent over the coming two decades.
HortInvest
Founded in Central Otago, New Zealand, in 2016 by horticulturalists Ross and Sharon Kirk, HortInvest is a leading consultant and investor in New Zealand’s cherry and horticultural industries.
Over the past two years HortInvest has launched three separate cherry investment projects, each with an investment of between NZ$12 – $16 million (US$8-10.4 million), and has been looking for investors along the way.
“New Zealand’s cherry industry has demonstrated strong long-term growth, driven by New Zealand’s key competitive advantages such as the ideal climate and conditions, proximity to, and free trade agreements with Asia,” Ross Kirk told Fresh Fruit Portal.
“As a Southern Hemisphere cherry producer, the New Zealand industry is not competing with produce from the Northern Hemisphere.”
It takes three years after planting for an initial cherry harvest, but once established, an orchard of mature cherry trees can yield between 18 and 20 tons per hectare.
HortInvest’s first project, the Tarras Cherry Corp, operates on 40 hectares (99 acres) of land, and is expected to see its first harvest during the Southern Hemisphere summer of 2020-21.
HortInvest’s second project, the Lindis River development, on the Lindis Peaks station, is another 80-hectare operation in Central Otego. The third project was just announced by HortInvset in May of this year, and is located on 80 hectares of the Mt. Pisa sheep and beef station run by the MacMillan family.
”This type of diversification is not a decision we made lightly but we investigated it thoroughly and are excited about the future,” Shane MacMillan, manager of Mt. Pisa, told Rural Life.
”Cherry orchards are grown all around us and we know cherries from Central Otago deliver high returns on the global market.”
– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com
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