February 7, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

New Zealand Superannuation Fund is expanding its partnership with T&G Global through the acquisition of T&G’s 194-hectare Riwaka orchard in Nelson by FarmRight, the fund’s rural investment manager. 

“Over the past two years, we’ve developed a strong partnership with the NZ Super Fund, which is built off our shared growth strategies and the opportunity we see for Aotearoa New Zealand’s horticulture sector to generate long-term returns for the benefit of all,” said Gareth Edgecombe, CEO, T&G Global. 

T&G will continue to manage the orchard, which includes 33 hectares planted in premium Envy™ variety apples, until May 31, 2023, at which time the FarmRight team will assume control, and T&G’s permanent Riwaka team will join FarmRight. 

Jim Lee, CEO of FarmRight, said that investment plans for the site will act to further strengthen its presence in the Nelson region, with the proceeds going to help fund the superannuation of Kiwis into the future. 

“In the Nelson region, we already have a strong presence in the primary sector, with apple orchards and hops gardens,” said Lee. “The acquisition of T&G’s Riwaka orchard provides us with a further significant horticultural asset to invest in and grow.”

Lee continued, “In addition to planting more Envy™ on modern orcharding structures, we will build new purpose-built RSE accommodation and ground infrastructure, with our apple volumes contracted to go through T&G’s Nayland Road facility.”

For T&G, the sale builds upon its existing partnership with NZ Super fund and will serve to further fuel its growth strategy, according to Edgecombe.

“With projected consumer demand requiring an additional 600 million apples by 2030 (an additional 8 million tray carton equivalents), we’re re-developing and re-planting our own T&G orchards, and partnering with independent growers, Iwi and investors, including the NZ Super Fund, to increase supply through new plantings.”

This deal marks NZ Super’s third partnership with T&G, having previously acquired 80 hectares of orchards in key growing regions of Hawke’s Bay as part of transactions completed in November 2021 and July 2022. For the Riwaka site, redevelopment and investment plans include the further planting of additional  Envy™ trees.

“As with our previous transactions, it is part of our wealth-creation strategy of investing in high-performance agriculture and horticultural assets as part of our long-term portfolio, with the proceeds helping to fund the retirement needs of our fellow New Zealanders,” said Lee. 

“These plantings will contribute to the 200 hectares of new premium Envy™ plantings we have planned for the Nelson region and help us meet growing global demand for the brand,” added Edgecombe. “At the same time, the capital raised from the sale will be reinvested into our Envy™ growth strategy, including orcharding, post-harvest and marketing, and sales activities.”

Edgecombe continued, “Our premium Envy™ brand harnesses unique Kiwi intellectual property to produce a high-quality apple with an exceptional taste. In the 14 years since we first released it to local growers, we’ve developed it into a brand which customers and consumers around the world trust and seek out – and it’s on track to be a billion-dollar brand, with strong performance in key growth markets across Asia and North America.”

“We look forward to continuing to work closely with FarmRight and the NZ Super Fund team in helping build a strong, sustainable and value-creating horticultural sector for Aotearoa New Zealand.”

~ Lynda Kiernan-Stone is editor in chief 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 Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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