T&G Global returns to profitability
Fresh produce grower and exporter T&G Global has overturned last year’s dismal performance by reporting a half year net profit of $1.7 million.
The sale saw T&G sell its 194 hectare Riwaka orchard, which currently has 33ha planted in the Envy apple variety T&G will continue to run the site until 31 May 2023, at which time FarmRight will take over full operations of the orchard when T&G's permanent Riwaka team members will join FarmRight.
T&G Global chief executive Gareth Edgecombe says the sale builds on the strong partnership formed with the NZ Super Fund and will help further fuel T&G growth strategy.
"Over the past two years, we've developed a strong partnership with the NZ Super Fund, which is built off our shared growth strategies and the opportunity we see for New Zealand's horticulture sector to generate long-term returns for the benefit of all," he explained. "In purchasing our Riwaka orchard, the NZ Super Fund plans to further redevelop and invest in the site, including planting additional Envy trees."
Edgecombe says these plantings will contribute to the 200ha of new premium Envy plantings T&G have planned for the Nelson region and help it meet growing global demand for the brand.
"In the 14 years since we first released Envy to local growers, we've developed it into a brand which customers and consumers around the world trust and seek out," he added. "It's on track to be a billion-dollar brand, with strong performance in key growth markets across Asia and North America."
Edgecombe says with projected consumer demand requiring an additional 600 million apples by 2030 (an additional 8 million tray carton equivalents), the company is re-developing and re-planting its own T&G orchards, as well as partnering with independent growers, iwi and investors, including the NZ Super Fund, to increase supply through new plantings.
"We look forward to continuing to work closely with FarmRight and the NZ Super Fund team in helping build a strong, sustainable and value-creating horticultural sector for Aotearoa New Zealand."
FarmRight chief executive Jim Lee says its investment plans for Riwaka will further strengthen the company's footprint in the Nelson region, with the proceeds helping fund the superannuation of Kiwis into the future.
"In the Nelson region, we already have a strong presence in the primary sector, with apple orchards and hops gardens. The acquisition of T&G's Riwaka orchard provides us with a further significant horticultural asset to invest in and grow."
This is the NZ Super Funds' third partnership with T&G, having previously acquired 80 hectares of orchards in Hawke's Bay.
