By Lynda Kiernan, Global AgInvesting Media

New Zealand veteran horticulturalists Ross and Sharon Kirk have created Deep Creek Fruits NZ – a new platform under which is being consolidated two cherry orchard projects (Mt. Pisa and Lindis River) underway in Central Otago, New Zealand. Both projects are to be managed by leading New Zealand horticultural consultant Hortinvest. 

Sharon Kirk, who is director of Deep Creek Fruits and is also marketing and sales manager of Hortinvest, noted that wholesale investors looking to capitalize upon a strong and profitable export market have until July 16 to acquire an ownership stake in Deep Creek.

“Summerfruit NZ predicts a 40 per cent dollar value growth in New Zealand cherry exports over the next 20 years,” noted Kirk.

“New Zealand’s cherry industry has demonstrated strong long-term growth, driven by our key competitive advantages such as the ideal climate and conditions, proximity to, and free trade agreements with markets in Asia,” she continued. “New Zealand’s reputation for producing premium quality cherries, perceived globally as a luxury product, enables it to receive the highest price per tonne in global markets.” 

Founded in Central Otago, New Zealand, in 2016 by horticulturalists Ross and Sharon Kirk, HortInvest is a leading consultant and investor in New Zealand’s cherry and horticultural industries.

Over recent years, HortInvest has launched multiple cherry investment projects, each with an investment of between NZ$12 – $16 million (US$8-10.4 million), and has been looking for investors along the way.

“New Zealand’s cherry industry has demonstrated strong long-term growth, driven by New Zealand’s key competitive advantages such as the ideal climate and conditions, proximity to, and free trade agreements with Asia,” Ross Kirk told Fresh Fruit Portal in 2018. 

“As a Southern Hemisphere cherry producer, the New Zealand industry is not competing with produce from the Northern Hemisphere.”

The global fresh cherry market is expected to expand at a CAGR of 5.5 percent over the period between 2017 and 2022 to reach a value of US$5.2 billion, according to research conducted by Transparency Market Research (TMR).

A key driver of this growth is an increased interest from consumers in avoiding processed foods and preservatives in their diet.

“The rising awareness among consumers regarding the harmful effects of chemicals and preservatives, used for food preservation, has surfaced as the key factor behind the significant growth of the global market for fresh cherries,” said a TMR analyst. “People, nowadays, are preferring fresh fruits and vegetables for consumption, which is influencing the demand for fresh cherries, considerably,” stated TMR in a recent release announcing its findings.

Geographically however, growth in cherry consumption will be most notable in emerging countries, with market analysts believing that Asia will represent the strongest growth for fresh fruits, including cherries, apples, pears, and kiwifruit.

Another driver behind the expected growth for the global cherry market is the increased use of the fruit in other products such as ice cream, alcoholic beverages, salads, and jellies, finds MarketWatch. As a rich source of iron, protein, calcium, vitamins A and C, and carotenoids, cherries can play a role in reducing cholesterol, and aiding in weight loss and controlling blood sugar.

Riding this wave is New Zealand, which has seen its cherry export sales quadruple to reach exports of 4,000 tons in 2017-18  – 90 percent of which were grown in the Central Otago region. And this momentum is not expected to slow, as Summerfruit NZ forecasts the dollar value of these exports to grow by 40 percent over the coming two decades.

The Kirks stated that the capital raised would be used to acquire up to 164 hectares (405 acres) of land to develop into cherry orchards – capitalizing upon an investment opportunity after the current landowners decided to diversify from sheep and beef into cherry production, based on global demand metrics. 

“The landowners have taken a big-picture view to collaborate and consolidate these projects,” said Kirk. “Investors will benefit from economies of scale to be achieved through the combined orchard development and the sharing of risk.”

Stage one saw 12 hectares planted at each location last winter, and stage two of the development scheme, which is scheduled to continue this winter, will result in 83 hectares planted at the Mt. Pisa location, and 36 hectares planted at the Lindis River location, with further planting in the pipeline for the Lindis River location next year. Once completed, both development projects will have a total 58,000 trees planted. 

Deep Creek expects to be shipping its first cherry harvest from these orchards in the summer 2021/2022 season between December to February to align with the Chinese New Year demand. However, before harvest occurs, a cutting-edge packhouse will be constructed, and Southern Fruit International LP has been established (and owned) by Deep Creek Fruits to provide packhouse and export services to the endeavor.

 

 –Lynda Kiernan is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, and HighQuest Group’s Oilseed & Grain News. She is also a contributor to the GAI Gazette. She can be reached at lkiernan@globalaginvesting.com.