Section of Southern Paprika Limited glasshouses will be converted to help secure supply for New Zealand customers
Market Gardeners, trading as the MG Group, has announced plans to introduce tomato production at its SPL (Southern Paprika Limited) site in Warkworth as part of the next phase of the co-operative’s growth strategy.
This move is part of a broader investment in MG Group’s growing operations and is aimed at supporting long-term supply certainty for New Zealand customers.
The expansion will see five hectares of existing capsicum glasshouse at SPL, which has a total of 26ha of covered production, converted to tomato production, with the first plantings scheduled for late 2025.
“This is a considered investment, linked to our growth strategy and in line with our commitment to produce a broader range of hothouse products in the North Island,” said MG Group CEO, Peter Hendry.
“Our investment complements our existing grower-suppliers and is closely tied to our broader strategic pillar of ‘securing supply’, which delivers benefits right across the supply chain. Our customers value the consistency and continuity that comes with a strong supply base, while for our grower-suppliers, MG’s platform provides a solid foundation to take their product to market.”
The decision to grow tomatoes at SPL is part of a larger staged investment programme. This includes a large-scale energy transition project at the Warkworth site, with a move away from natural gas to a more sustainable energy source.
This opens the door for further expansion, with an additional 10ha of new glasshouse space planned to be completed over the next three years. It will also feature advanced technology to improve productivity and sustainability.
While some existing space will shift to tomatoes, the SPL team said it remains focused on capsicum supply. Initiatives to enhance yields this year and export volumes have already commenced and will be carefully balanced to ensure strong availability for the domestic market. Over the next three years, the new 10ha expansion is expected to lift overall capsicum volume and create the capacity to expand tomato production as the market allows.
“We’re growing our tomato footprint, but capsicums continue to remain a priority at SPL,” said SPL general manager, Blair Morris. “We’re committed to supporting both categories and delivering stable supply to our retail partners and MG wholesale markets.”
The MG Group has also confirmed that planning has started for future expansion at its JS Ewers site in the South Island, where heating capacity was boosted in 2023 through the commissioning of a large-scale biomass project.
“MG is investing for the long-term,” said Peter Hendry. “Our staged approach will ensure broad coverage and cornerstone supply across both islands, providing our grower-suppliers with a stronger market presence and customers with greater coordination and continuity of supply.”
