The signing: Pipfruit NZ ceo Paul Browne (r) with chairman Phil Alison (l) and HortResearch ceo Paul McGilvary (c).

The signing: Pipfruit NZ ceo Paul Browne (r) with chairman Phil Alison (l) and HortResearch ceo Paul McGilvary (c).

In a world first for the apple industry, Pipfruit New Zealand and NZ crown research body HortResearch have announced a joint venture with Associated International Group of Nurseries (AIGN), based in the US and Apple & Pear Australia (Apal).

The jv is designed to gain a greater share of the global apple and pear market driven by future growth of New Zealand’s world leading breeding programme.

The bodies are forming a company to take apple varieties to the global market and further grow the New Zealand industry.

Signed on June 1, the agreement retains special provision for New Zealand growers who will have guaranteed access to new varieties on commercial terms set by the jv, which will appoint directors over the next four weeks and begin operating in July. Also because the breeding programme is in New Zealand, NZ growers will not face quarantine restrictions that apply to growers in other countries and so will be able to establish new varieties more quickly, in some cases up to five years ahead of others.

Pipfruit New Zealand holds the biggest share at 45 per cent of the company and will have four directors on the board. Apal will have two directors and a 33 per cent share-holding and AIGN 12 per cent and one director. HortResearch will also have one director and a 10 per cent share-holding.

The venture requires a combined capital of NZ$13m (£4.42m) over 10 years. PNZ, APAL and AIGN’s will be a financial investment and HR will contribute existing selected varieties. Projections indicate the joint venture could have potential turnover of NZ$200 million over the next 20 years. Turnover will be generated through licence fees, royalties and partnerships with producers and marketing organisations on a world scale.