Look north for prime avocado investment
The opportunity has arisen to invest in one of the country’s most productive avocado orchard operations, offering investors good immediate returns and positive prospects of longer-term growth in future fruit volumes.
The Broadhurst portfolio in the Far North is located in the heart of the region’s rapidly developing avocado industry and has laid the template for the region’s latest, and future, avocado development.
Bayleys salesperson Alan Kerr says Broadhurst has tipped the conventional avocado growing model on its head, and the result is an orchard capable of producing two and a half times the industry’s per hectare average yield.
“There is a combination of ideal soils, good water supply and of course the Northland climate which makes the region capable of producing some of the highest avocado yields in the world.
“Broadhurst takes those assets a step further, with higher tree density, good fertility management and exceptional attention to detail, to deliver on both quantity and quality,” he says.
Consisting of 25ha of avocado canopy of which around half are mature trees, further potential for expansion exists. Younger trees are due to reach full maturity in the coming five years across the five titled Broadhurst portfolio properties.
Kerr says much of the orchard’s success is attributable to its namesake, Ian Broadhurst, who is recognised as a leading light in the industry for his innovation and management ability.
The key change was to plant an orchard with a high density of smaller, more compact trees. The mature plantings on Broadhurst are growing 28 tonnes of fruit a hectare, against an industry average of only 11.5 tonnes.
Better light penetration, spray coverage and reduced health and safety risks at picking time also result from the smaller tree profile.
“Delivering higher yields per hectare results in lower costs per tray of fruit harvested. Over 20 per cent of the canopy area produced a net profit in excess of $100,000 per hectare last season,” says Kerr.
Broadhurst’s profit prospects are reinforced by a positive outlook for New Zealand’s avocado export industry.
Last season the industry reported a record production level, with 5.1 million trays exported. Northland’s role in the fruit’s future is also growing, with proven cropping capability and reliability meaning it will soon eclipse the Bay of Plenty as the country’s main growing region.
Broadhurst is for sale by tender, closing 4pm August 26, unless sold prior.