Season's first kiwifruit China bound
Zespri's first charter shipment of the 2024 New Zealand kiwifruit season is on its way to Shanghai.
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.
Federated Farmers president Wayne Langford is claiming “some real success” on the 12 policy priorities it placed before the Coalition Government.
Federated Farmers is throwing its support behind the Fast-track Approvals Bill introduced by the Coalition Government to enable a fast-track decision-making process for infrastructure and development projects.
The latest report from ANZ isn’t good news for sheep farmers: lamb returns are forecast to remain low.
Divine table grapes that herald the start of a brand-new industry in Hawke’s Bay have been coming off vines in Maraekakaho.
In what appears to be a casualty of the downturn in the agricultural sector, a well-known machinery brand is now in the hands of liquidators and owing creditors $6.6 million.
One of New Zealand’s deepest breeder Jersey herds – known for its enduring connection through cattle with the UK’s longest reigning monarch, Queen Elizabeth II – will host its 75th anniversary celebration sale on-farm on April 22.