Kiwifruit

We were pleased to secure the purchase of a 4.12ha Gold Kiwifruit Orchard in Te Teko for $3.950,000 including a three-bedroom house and other buildings and the harvested fruit, in May 2018. The Orchard was a strategic purchase by the Board to further diversify the Trust’s asset base and reduce its total exposure to Dairy. The Trust had been on the lookout for a while for a suitable Kiwifruit Orchard and the size and location of this orchard couldn’t have been better. The Orchard is a top performing orchard for the area and has produced Net Orchard Gate Returns for the past few years greater than the industry average. The outlook for Kiwifruit and especially Gold Kiwifruit is very positive and the Board is very proud of this purchase and in particular that the Orchard is located in our own rohe. The Orchard has been named Te Waiwhero, Gold. The Trust was also successful in purchasing the neighboring orchard comprising 2.92ha Green 0.55ha G3 Gold together with bare land of 8.0ha at 1890 SH30 Te Teko for $2.25 million in September 2020. The investment further diversifies the Trust's exposure from dairy into a sector that is at present performing extremely well.

The Orchards are currently managed by Prospa a subsidiary of East Pack under an Orchard Management Agreement to 30 June 2025. In addition Puke and Gina Ratema descendants of the Trust live and work on the orchard and in conjunction with Prospa ensure the orchards are heading in the right direction on behalf of our shareholders.