Invest in premium New Zealand cherries

Invest in premium New Zealand cherries


Sponsored by Hortinvest

Global demand drives cherry investment growth

New Zealand's lucrative cherry industry is experiencing unprecedented global demand and fetching the highest price per tonne on global markets   ̶  presenting an exciting opportunity for investors seeking to enter the horticulture space.

Horticultural investment specialist, Hortinvest Limited, is leveraging off this demand, and its extensive cherry growing and export experience, to offer opportunities in two significant cherry projects in the Central Otago region.

Renowned for producing New Zealand's best cherries, Central Otago accounts for some 90 per cent of export sales. The region's abundant land, water and soil resources offer significant potential for future horticulture developments in a sector where new international markets such as India, Vietnam, Indonesia, Europe and the United States are opening.

New Zealand's key competitive advantages include the ideal climate and conditions, proximity to, and free trade agreements with Asia. As a Southern Hemisphere producer with an air-freight advantage over its biggest competitor, Chile, New Zealand is uniquely positioned to satisfy Asia's voracious Chinese New Year appetite.

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What does Hortinvest offer?

Founded in 2016 by experienced horticulturalists, Ross and Sharon Kirk, Hortinvest offers investors the chance to buy into two $15.5 million, 80-hectare cherry orchard projects at Lindis River and Mt Pisa.  Planting begins this winter and the first harvest is on target for 2021/2022.

Under its vertically integrated grower-packer-shipper-model, Hortinvest retains all services in-house including sourcing land, establishing and managing high-tech orchards and packhouses, and marketing and exporting produce. This key point of difference means no link in the supply chain is outsourced.

Hortinvest has collaborated with sheep and beef producers to secure land for both projects and additional adjacent land is available for expansion or future horticultural projects.

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Above: Experienced horticulturalists, Ross and Sharon Kirk, of Hortinvest.

What about returns?

For a minimum investment of $100,000 and cash calls spread over four years,  Lindis River and Mt Pisa are projected to return between 34 and 59 per cent at peak mature production with an internal rate of return of between 20.8 and 25 per cent in the first 10 years.

Hortinvest presents financial scenarios based on harvest volumes of 12, 15 and 18 tonnes per hectare. Yield is expected to peak at 18-20 tonnes per hectare as trees mature.

Managing the risk

Project and orchard development manager Ross Kirk says there is no such thing as an 'average year' and there are many variables in any horticultural development.

"We can only control what happens in the orchard on a daily basis, and what happens at harvest and export time," he says.

To mitigate weather variables, Hortinvest has selected elevated sites and a spread of proven varieties. It will also install frost-fighting windmills and non-retractable bird nets to warm and protect the crop.

Investment options

Hortinvest offers various investment options  ̶  commit for the long term (seven to 10 years), come in at various intervals and take a capital gain early in the production phase or trade shares at certain intervals via online exchange platform, Syndex.

Next step

Investors have until May 31 to express interest in Lindis River and Mt Pisa at which time a 10 per cent deposit is required. Hortinvest offers assistance with applications as required.

To request an Information Memorandum visit the Hortinvest website on www.hortinvest.nz or email invest@hortinvest.nz

Located in Central Otago, New Zealand, Hortinvest Ltd is the leading consultant in New Zealand's emerging and highly profitable cherry and horticulture industry. Hortinvest employs world-leading orchard management and packhouse systems to produce and export premium New Zealand cherries.

Published 8 April 2019

This article does not contain any financial advice and has not taken into account any particular person’s circumstances. Before relying on it, we recommend you speak with a financial adviser.  This story reflects the views of the contributor only. Content comes from sources that we consider are accurate, but we do not guarantee that the content is accurate.


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