T&G Global plans to scale up production of its branded apple offering Envy after selling some of its orchards to the New Zealand Superannuation Fund (NZ Super Fund).
The deal was struck up through NZ Super Fund’s rural investment manager, FarmRight, and covers 40ha of orchards in New Zealand's Hawke's Bay.
T&G has been contracted to provide orchard services and all post-harvest, export and marketing services for fruit grown on the properties – the Rosewood, Taylor and Trotter orchards.
T&G chief executive, Gareth Edgecombe, said the move frees up capital for the company’s global growth strategy with Envy.
“Global consumer demand for Envy is projected to increase five-fold by 2030, which means we need to source an additional 10m tray carton equivalents (TCEs) globally to meet the forecast 25m TCEs that will be needed by then,” said Edgecombe.
“With the NZ Super Fund’s focus, through its manager FarmRight, on creating long-term value by generating returns off the land, we can apply our world-class orcharding services and our global supply chain, marketing and sales expertise to deliver incredible apples to consumers, as well as strong grower returns.
“With Envy’s strong consumer preference, combined with the strength of the brand and its superior orcharding qualities, it means growers have the potential to make an attractive return on investment, once their orchards are at full maturity.”
FarmRight’s chief executive, Jim Lee, underlined Envy’s strong investment potential.
“Envy is a high-quality apple, with big potential, especially in China, Vietnam, Thailand and USA. This global demand, combined with a strong track record of returns, makes it a solid investment,” Lee explained.
“We’re really pleased to be partnering with the T&G team to help grow the brand, with the returns ultimately assisting the government meet the future cost of New Zealand’s superannuation.”