Turning nearly 90 hectares of underutilised and unproductive land into multimillion dollar grower businesses takes more than just investment capital. Our land development team has laid the groundwork for success by identifying 10 blocks of land that are prime for conversion into high-performing kiwifruit orchards. Over the past three years, we’ve successfully piloted the process to identify suitable land, engage with owners and trustees, and build and establish orchards. Now we’re rolling it out further.

The planned initial investment of $30 million dollars will build 10 kiwifruit orchards in Bay of Plenty and Gisborne that will transfer to the owners after achieving a targeted rate of return on capital invested. We’ve already agreed on the business case, brought on an equity partner, started to form limited liability partnerships to govern the orchards, and secured licences to initially plant 25 hectares of Zespri SunGold (G3) in the most recent bidding round.

Our unique Poutama engagement process is giving owners and trustees full information to make informed decisions about how they want to make the most of their land. Through a structured series of hui, modelling governance that protects Māori land, we’re working with the owners and trustees of each block, building their confidence and ensuring that they are central to decision making.

We have a proven track record in this approach. This year, we completed the build of two new orchards: one on Omaio 39 and one on Te Uretureture on Matakana Island. After working through the Poutama process with owners we agreed to plant approximately 9 hectares of SunGold (G3) and Hayward kiwifruit across the two blocks. The vines have been planted and the orchards are well on their way to being established. We expect the first harvest to take place in 2018.

Phillip Albert, one of the 85 owners of Omaio 39, says that it has been a marvellous journey for the owners. “Te Tumu Paeroa has taught us a hell of a lot about how to get these things together.” 

The benefits of this programme are more than just financial. We’re enabling owners to reconnect with their whenua and supporting them to achieve their long-term aspirations for their land.

We’ve seen this in action on Matakana Island. As part of the redevelopment of Te Uretureture, owners have set up a Māori reservation to restore historic pā sites and established an urupā.

Te Uretureture trustee and land owner Jason Murray says, “You’ve got to have a balanced approach to economics no matter how you use the land… It’s our role to whakatika that and return the land to its former glory, and help balance nature and economics.”

The outlook is good for this development. The investment capital has been confirmed, and by 2021 we expect our kiwifruit mobilisation programme to be adding $28.9 million a year to New Zealand’s economy.

Jamie Tuuta, Māori Trustee, says, “Owners usually contract out the land to businesses who have access to capital and can reap the financial rewards for taking the entrepreneurial risk. Māori land owners are missing out. Our programme addresses that, putting businesses in the hands of land owners.

“A core part of our programme is building the capability of land owners to successfully govern the business when it comes time to transfer ownership to them. We want to see Māori land owners involved in the whole process – developing skills and hands-on experience in running kiwifruit orchards on the ground as well as in the boardroom.”