Craigmore Sustainables purchases two orchards from Mr Apple

Craigmore Sustainables is boosting its investment in the horticulture sector with the purchase of two apple orchards owned by Scales Corporation subsidiary Mr Apple New Zealand Limited.

Te Papa orchard in Central Hawke’s Bay and Blyth orchard in the Heretaunga Plains have a combined title area of 234 hectares and will increase Craigmore’s apple portfolio to almost 700 canopy hectares once development is completed.

Che Charteris, Craigmore chief executive, says the opportunity to expand Craigmore’s apple footprint aligns with the company’s strategy to help reinvigorate the rural economy and communities by investing in sectors in which New Zealand has a long-term comparative advantage.

“New Zealand’s apple sector is facing a very difficult period and requires significant amounts of new capital to transition 30-50 year old orchards into modern properties with a greater density of trees per hectare and into new, premium varieties.

“In a country with such limited pools of domestic capital, it is crucial we find sources of offshore capital that share our values and are willing to be subject to the control of New Zealanders who are closer to the impacts of any investment.”

Blyth orchard will be leased back to Mr Apple until the end of the 2027 season and Mr Apple will provide management services for Te Papa orchard over the near-term to assist with the orchard transition.

As part of the transaction, applicable fruit from both orchards will be supplied to Mr Apple for packing, storage, and marketing under a long-term agreement.

While most of Craigmore’s capital comes from Europe, the capital is very passive as it often comes through partnerships that put control over governance and management in hands of Craigmore, which is a New Zealand business on a mission to grow the best of Aotearoa.