Prices for gold ki­wifruit or­chards hit new record lev­els

A se­ries of gold ki­wifruit or­chards sold at new bench­mark prices re­cently.

The Orchardist - - News -

At the start of the sea­son, with fruit still not set let alone ready to har­vest, Bay of Plenty or­chards were sell­ing at higher prices than they did at the end of last sea­son, when pur­chasers were es­sen­tially buying a ready-to-har­vest crop as well as the or­chard, says a mar­keter of hor­ti­cul­ture prop­erty.

Stan Robb of PGG Wright­son Real Es­tate, Te Puke says re­cent sales ef­fec­tively rep­re­sented a $150,000 per canopy hectare leap in the price of pre­mium gold G3 ki­wifruit land in the past three months.

“In the past few days [mid Oc­to­ber] we have sold four Paen­garoa prop­er­ties, rang­ing from 3.54 to 6.78 hectares, at be­tween $1.05 mil­lion and $1.076 mil­lion per canopy hectare. Two sub­stan­tially larger prop­er­ties are set to change hands im­mi­nently at sim­i­lar prices, at or around the same $1 mil­lion per canopy hectare mark.

“Re­cent sales ef­fec­tively rep­re­sented a $150,000 per canopy hectare leap in the price of pre­mium gold G3 ki­wifruit land in the past three months.”

Stan Robb, PGG Wright­son Real Es­tate, Te Puke

“Al­though the first ki­wifruit or­chard sale of that level took place late last sea­son, that sale was with the crop still on the vine, whereas this sea­son’s fruit is months from setting, with plenty of work re­quired in the mean­time. Buy­ers at the end of last sea­son were buying fruit that they could then sell al­most straight away, at around $150,000 per hectare. That is not the case now, mean­ing these sales ac­tu­ally rep­re­sent a $150,000 in­crease in the price of the or­chards since June,” he said.

Ac­cord­ing to Stan Robb, de­mand for these prop­er­ties is such that they are on the mar­ket for days only.

“Since grow­ers came to grips with Psa in 2013, ki­wifruit or­chard prices have been on an up­ward tra­jec­tory that has shown no sign of abat­ing. Dur­ing the Psa cri­sis, which started in Novem­ber 2010, val­ues dropped sig­nif­i­cantly and it was vir­tu­ally im­pos­si­ble to sell an or­chard. By Oc­to­ber 2014, grow­ers had turned that around, con­fi­dence re­turned to the sec­tor and a good gold or­chard was worth $400,000 per canopy hectare. Then the $500,000 mark was broached at the end of that sea­son.

“De­spite ex­pec­ta­tions that such rises must even­tu­ally peak, val­ues have dou­bled over the past two years.

“Or­chardists buying these prop­er­ties can earn be­tween 10% and 15% re­turn on in­vest­ment per an­num, and with li­cences to grow the gold va­ri­ety re­stricted, the amounts paid for these prop­er­ties do have a ra­tio­nal ba­sis.”

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