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TWO MAJOR horticultural industry organisations believe the takeover of Turners and Growers by German company BayWa will be good for growers.
“There’s been strong support for their investment into our sector,” says Pipfruit New Zealand chairman Ian Palmer.
BayWa representatives met a number of suppliers last November and they were able to get an understanding of the company’s philosophy, says Palmer.
“They are long-term investors in what they do... Everyone has seen the GPG (Guinness Peat Group) shareholding as an opportunistic shareholding – but not necessarily a long-term investment one.”
Meanwhile BayWa seem to get very involved with their investments and drive success, he notes.
“I hope that’s what we see come through in the purchase of Turners and Growers.”
BayWa this month gained Overseas Investment Office approval for the takeover following an agreement to take over GPG’s 63% shareholding last year. After an offer for further shares it controls about 73% of the fruitgrower and exporter stock, although a 10% acquisition by Scales Corporation blocked a full takeover.
Palmer says while BayWa is 60% owned by banks, those are cooperative banks which are used to working with a shareholding of people and are not just corporative driven.
“While they are obviously a company that’s been successful in what they’ve done, they bring an understanding that without the grower there is no business.”
This will be a change for the better for growers, he adds.
In a statement, BayWa says it intends to build close cooperation with New Zealand growers, and the purchase will enable it to become a global player in pipfruit.
“It offers some good opportunities into the Asian market for BayWa – there’s huge potential for growth in Asia – that’s where the growing economies are,” Palmer says.
“Europe is pretty flat, which is their traditional markets. I see this as being a very good partnership as we are counter-seasonal suppliers to each other.”
Horticulture New Zealand chief executive Peter Silcock says the sale of the GPG share of Turners and Growers to BayWa is extremely significant for New Zealand horticulture.
“We are extremely heartened by the comments made by BayWa, that they want to ensure good returns for growers,” he says.
Turners and Growers is New Zealand’s most integrated horticulture company and is one of the country’s largest exporters and domestic market wholesalers.
“It is good to see the company in the hands of a forward-thinking global business which appears to be well connected with produce markets and to agri-business globally,” adds Silcock.
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