Zespri hits major milestone
Kiwifruit marketer Zespri says its kiwifruit has now reached more than 100 million households globally.
Low interest rates are driving record enquiries for cash yielding real assets, says the rural syndicate property investor MyFarm Investments.
Within three days of the Reserve Bank of NZ cutting the OCR by 0.5% to a record 1%, the company had 60 investors take up its offering of two SunGold kiwifruit orchards ($8.2 million), it says.
MyFarm chief executive Andrew Watters says in contrast to many other cash yielding investments, the Bay of Plenty kiwifruit offer was expected to generate average returns of 9% over the next five years.
“Investors are seeking cash yield, they are seeking investment diversity to spread risk and they like the market-led focus of Zespri and the sector’s record of innovation.”
The company recently withdrew a diversified horticultural offer, Kakariki Fund Ltd, from the market. It was seeking $40m but raised only $30m.
Watters says despite its disappointment, the company sees a clear mandate to offer investors direct investments in single real assets.
“It seems investors love the touch and feel of a specific investment, be that a kiwifruit orchard, cherry orchard or hop garden.”
MyFarm is now seeking to raise $22.5m for its second large scale hop garden development in Nelson. Wairua Hop Garden Ltd partnership is a 175ha dairy farm on the Motueka River due for conversion in the next two years.
The company expects to distribute cash after 2.5 years, building to 14% p.a. It also expects tax benefits.
Its management partner Hop Revolution is targeting global craft brewers wanting the tastes and aromas of NZ bred hops. Other institutional investors, including NZ Super, are also investing in Nelson hop gardens, Watters says.
“They’re eager to gain exposure to NZ hops and the premiums the US craft brewers will pay for them,” he said.
On the edge of the hot, dry Takapau plains, Norm and Del Atkins have cultivated a small but exceptional herd of 60 Holstein Friesian cows within their mixed breed herd of 360 dairy cows.
The DairyNZ board and management are currently trying to determine whether, and to what degree, their farmer levy payers will support any increase in their levy contributions.
Milk production is up nationally, despite drought conditions beginning to bite in some districts, according to the latest update from Fonterra.
Dry conditions are widespread but worse in some places, with rain and drought affecting farms just a few kilometres away.
The Government's plan to merge the seven crown institutes presents exciting possibilities for plant technology company Grasslanz Technology, says chief executive Megan Skiffington.
Agribusiness leader Rob Hewett is the new chair of listed carpet maker Bremworth.
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