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$30 million kiwifruit partnership brings regional economic opportunities to life
Last week’s announcement of a $30 million Bay of Plenty kiwifruit orchard investment partnership will help bring some of the region’s significant economic growth potential to life, says Quayside Holdings Ltd chief executive officer, Scott Hamilton.
The partnership, between Quayside Holdings and Te Tumu Paeroa, involves the establishment of kiwifruit orchards on more than 90 hectares of underutilised Māori land spread throughout the Bay of Plenty and Gisborne regions over the next 18 months.
The development is the single largest investment in kiwifruit on Māori land to date.
Mr Hamilton says Te Tumu Paeroa and Quayside have developed a model to provide capital investment into underdeveloped Māori land.
The model allows full ownership of the orchards to transfer to land owners after achieving a targeted rate of return on capital invested. In the interim, the land will be leased by the investment partnership, which will build and operate the orchards.
Mr Hamilton says horticulture and Māori land utilisation were clearly identified as areas of opportunity in the Toi Moana Regional Growth Study, offering genuine commercial investment prospects that would ultimately lead to an improvement in Māori welfare.
In addition, the New Zealand Institute of Economic Research prepared an economic impact report which showed the investment partnership will boost GDP in the Bay of Plenty and Gisborne by expanding production capacity – creating more jobs and lifting real wages in both regions.
“Effective and efficient utilisation of Māori land, through the likes of kiwifruit development, represents one of the greatest opportunities for growth in the wider Bay of Plenty region. However, many hapu have not yet built the capital with which to develop their land.
“The partnership between Te Tumu Paeroa and Quayside provides this investment, enabling the land to be developed, investors to derive economic returns and optimised for the land holders future gain.
“Te Tumu Paeroa and Quayside co-invested into Opotiki Packing and Cool Storage Limited in December 2015 and share the same inter-generational approach to investment, with economic, regional, and land owners benefits being targeted. So it makes sense for us to work together on this programme.”
Friday, April 28, 2017