August 17, 2021

By Lynda Kiernan-Stone, Global AgInvesting Media

First, let’s meet Booster.

Based in Wellington, New Zealand, Booster is an independent financial services company in business since 1998. Among its offerings is the Booster KiwiSaver Scheme (with currently NZ$3 billion (US$2 billion) invested), a vehicle for retirement savings, and a range of different investment funds including a superannuation scheme, a Recognized Overseas Pension Scheme, its NZ Innovation Booster, and its Tahi fund.

Meaning “one” in Māori, Booster stated that Tahi reflects how “we’re all in it together, as one”. The Tahi fund is a special investment fund created to support privately owned, small-to-medium sized businesses in New Zealand. Focusing on “unlisted investments”, Tahi is a long-term partner, helping smooth out the transition as small companies grow into bigger ones.

With current investments of approximately NZ$100 million (US$69 million) across avocado orchards, wine, motorsports and financial services, Tahi has expanded its portfolio and has  made an investment of more than NZ$10 million (US$6.9 million) through its Tahi fund in Darling Group.

Created by Andrew Darling, Darling Group is a family-operated, vertically integrated grower and supplier of fresh New Zealand produce, both to domestic and international buyers. 

Its businesses include:

~ Just Avocados – the third largest avocado exporter in New Zealand.

~ Zeafruit – an avocado marketer to New Zealand’s retail outlets. 

~ JH Leavy & Co. – a Brisbane-based produce wholesaling, conditioning, and logistics company. 

~ And Avoworks – an avocado, kiwifruit, and blueberry orchard development service company. 

Darling Group also sources from a collective of owned or managed orchards, and works with third-party growers in not only New Zealand, but also Australia, Mexico, the U.S., Chile, and Peru. This network allows for the group to be a dependable supplier of high-quality produce on a year-round basis.

The New Zealand avocado market is currently in a position of strength and expansion. Containing 19 vitamins and nutrients, avocados are a natural fit with consumer shifts toward greater focus on health and wellness. The country is the ninth largest global avocado exporter, producing 2 percent of the world’s supply from more than 4,000 hectares of orchards, according to the New Zealand Horticulture Export Authority.

Industry-wide, New Zealand’s avocado growers reported returns of NZ$154 million (US$106.4 million) for the 2019/20 season, a NZ$10 million (US$6.9 million) jump year-on-year. Likewise, exports increased to 3.8 million 5.5-kilogram trays, a 26 percent increase year-on-year, and for the 2020/21 season, expectations are for exports to jump even further to 4.4 million trays. Domestically, New Zealand sold a record 70 million avocados, valued at more than NZ$50 million (US$34.5 million), during the 2019/20 season.

Duncan Wylie, general manager strategic development at Booster, told Good Returns, “When compared to others in the avocado industry, Darling Group’s model is unique and offers Booster the ability to invest across the produce supply chain. It’s an opportunity to invest in a New Zealand company doing what they do best and help them to grow.”

The capital from Booster’s investment will enable the Darling Group to further invest in its operational capabilities, its supply chain infrastructure, and to advance its development plans for New Zealand avocado orchards.

“Darling Group is a great fit for Booster,” said Allan Yeo, managing director, Booster. “This is the kind of innovative, inventive and growth minded thinking that embodies what we stand for and now our members can invest in this company that’s working really hard to literally grow New Zealand’s produce industry.” 

Yeo explained that Tahi is currently posting income of between 4-5 percent due to disruptions to supply chains connected to the global pandemic and efforts being undertaken to integrate its wine holdings – Awatere River Wine Company, Sileni Estates, and Waimea Estates. However, in the long-term, a target is set on achieving double-digit returns. 

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.