Taste for our kiwifruit improves

• Published date: 20 April 2024
• Publication title: Weekend Herald

Colliers’ Rural Valuation team has released a detailed report outlining the history and current state of the kiwifruit property market in New Zealand

Valuers Chris Boyd and Brylie Gordon applied a discounted cashflow approach to their valuation analysis allowing a forward-looking approach to valuation, as a secondary approach to direct market comparison.

The report notes that peak market conditions occurred in late 2021 and early 2022. However, sales activity and values have since declined, owing to the weather, cost pressures and economic backdrop.

The poor growing conditions resulted in a reduced 2023 harvest, but the industry has experienced stronger return prices per tray off the back of low supply.

Forecasts from within the sector suggest that improved crop volumes are predicted for 2024.

Boyd, executive director of rural and agribusiness valuation and advisory services at Colliers, says orchards that transacted in late 2022 and early 2023 sold for lower prices compared to the market peak.

“Orchard owners that don’t need to sell, unless otherwise motivated, have ridden out the slower period, and as a result, higher quality orchards have not generally come to the market.

“The orchards that did transact tended to be smaller, mixed properties with lifestyle attributes,” Boyd says.

A disjoint in value expectations between vendors and purchasers has contributed to low sales volumes with purchasers offering lower levels than vendors were willing to accept, with some vendors’ expectations of price still sitting at levels paid in the market peak.

“Market appetite is starting to improve with fuller crops hanging on the vines for the 2024 harvest. Optimism levels are beginning to...