N E W S $30M INVESTMENT IN KIWIFRUIT WILL BOOST MAORI ECONOMY Te Tumu Paeroa, in partnership with Quayside Holdings, has announced a $30m investment programme to build 10 kiwifruit orchards on Mãori land in the Bay of Plenty and Gisborne over the next 18 months. www.foodtechnology.co.nz 5 The single largest kiwifruit investment ever made on Mãori land, more than 90ha of semi- and unproductive land will be converted into successful grower businesses for the long-term benefit of owners and their community. Te Tumu Paeroa - an independent, professional trustee organisation providing services to Mãori land owners - has developed a unique model to establish new enterprises on Mãori land. The model allows full ownership of the orchards transferred to land owners by 2030, after achieving a targeted rate of return on capital invested. In the interim, the land will be leased and Te Tumu Paeroa will build and operate the high-performing businesses, carrying the financial risk. Mãori trustee and chief executive officer of Te Tumu Paeroa Jamie Tuuta says the programme allows landowners to participate in developing a successful kiwifruit orchard on their land and see the ownership of the business transferred to them, creating a legacy for following generations. “A core part of our programme is building the capability of land owners to successfully govern the business when it comes time to transfer ownership to them,” Tuuta says. “We want to see Mãori land owners involved in the whole process — developing skills and hands-on experience in running kiwifruit orchards on the ground as well as in the boardroom.” By 2030, based on today’s return, the orchards are expected to generate more than $80,000 per hectare per annum, by growing a mixture of premium Gold kiwifruit and traditional Green kiwifruit. In the 2015/16 season the average return for Green kiwifruit was a record $56,673 per hectare. “It’s difficult for Mãori land owners to develop businesses on their land unless they have access to capital from other means, because many don’t want to use the land as security on a loan,” Tuuta says. “As a result, owners usually contract out the land to businesses who do have access to capital and can reap the financial rewards for taking the entrepreneurial risk. Mãori land owners are missing out. Our programme addresses that, putting businesses in the hands of land owners.” Te Tumu Paeroa has successfully piloted the approach, building two new orchards in the Bay of Plenty over the past three years. More than 9ha of kiwifruit vines were planted in 2016 and the first fruit will be harvested from the orchards next year. The properties are managed by professional kiwifruit management companies Southern Cross Horticulture and OPAC. “The benefits of this programme are more than just financial,” Tuuta says. “It will enable owners to reconnect with their whenua and support them to achieve their long-term aspirations for their land. For example, as part of the redevelopment of their land and the building of the orchard, owners of Whai Orchards, established on Te Uretureture Matakana, have set up a Mãori reservation to restore historic pã sites and established an urupã (cemetery). Kiwifruit is a thriving industry with a very positive, long-term growth projectory. It’s also a fruit which growers can delegate the services for production and marketing to others, which is critical for owners who are not kiwifruit growers already.” Ten blocks of land have been identified in the Bay of Plenty and Gisborne that have the characteristics that would make a successful kiwifruit orchard, including a suitable climate, high quality soils, flat land and access to water and supporting services. Te Tumu Paeroa is currently engaging with trustees and land owners to ensure they have the knowledge needed to make an informed decision about participating in the programme. “We expect to be able to name the land blocks in a few months’ time when building is set to begin.” Te Tumu Paeroa manages 100,000ha of Mãori land, 2000 trusts and more than $100m in client funds on behalf of 85,000 owners. Quayside is the investment arm of the Bay of Plenty Regional Council established in 1991.
FT-May17-eMag
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