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A Bite Of The Cherry Business

New Zealand cherries are a global success story, and now Kiwi investors can buy a piece of this growing horticultural industry.

18 October 2021

Content Partnership April 2021

New Zealand cherries consistently achieve the highest price per kilo on the world market, says chief executive and director of Deep Creek Fruits, Sharon Kirk.

That’s why Deep Creek Fruits NZ LP – a significant New Zealand cherry development – is expanding and looking for investors to take the company forward into an exciting future.

The company’s announced a second capital-raise to fund a new packhouse and expand its Central Otago orchards.

First Deep Creek cherry exports

Deep Creek Fruits chairman Michael Ambrose says the offer invites wholesale investors to buy partnership interests in the development, which will export cherries to global markets for the first time in 2021-22.

Once at full production, the development will be one of New Zealand’s largest cherry orchards under single ownership.

An Information Memorandum outlining the offer and associated financial details is now available for interested investors, in accordance with the Financial Markets Conduct Act 2013.

Partnership interests are being issued at $1.05.

“I see this as a part of a long-term strategy,” says Ambrose. “There’s a focus on making sure this is a sustainable business proposition to enhance investor returns and value.”

Kirk says it’s a rare chance for Kiwi investors to get into this highly profitable global export market.

New packhouse – and more land

With the capital, the company plans to buy and develop additional land for cherry production at Lindis Peaks, and set up the packhouse and export infrastructure.

Eighty-three hectares has now been planted at Mt Pisa and 36 hectares at Lindis Peaks, with additional land available to buy for development at Lindis Peaks.

The traditional sheep and beef landowners of the orchard sites at Lindis Peaks and Mt Pisa are among the investors behind Deep Creek Fruits.

The company was formed after the farmers decided they wanted to diversify away from sheep and beef farming into cherry production. They approached Hortinvest Management Limited to manage the development.

“The landowners were looking outside agriculture to generate potentially lucrative and long-term rewards for generations of their families to come,” says Sharon Kirk.

A board of directors represents shareholder interests in the entity. It’s made up of leading New Zealand legal, financial, and business executives with experience across a range of sectors, including agribusiness and export.

Managed by leading a leading Kiwi team

Hortinvest Management Limited – led by experienced horticulturalists Ross and Sharon Kirk – manages all the services for the developments, from the orchard to the exporting.

The Kirks have more than 30 years’ experience in growing and marketing premium New Zealand fruit internationally.

Hortinvest has existing and developing markets throughout Asia, Europe, and the United States.

Since the second major planting last winter, an irrigation system has been installed and nets are being constructed at both sites.

New roles

The developments are a good source of employment helping the economy. They’ve already generated 15 to 20 jobs during Stage 2 planting, says Kirk, and there are a range of fulltime positions, including orchard and administrative positions.

Up to 20 pickers will be needed for the first harvest, with numbers increasing up to 500 per 80 hectares by 2025.

Investing for the long-term

Investing in horticulture is ideal for investors seeking long-term gains, says Kirk.

This type of investment can span generations, because it can take several years for orchards to come into production and several more to them to reach peak production, she says.

“Deep Creek Fruits’ cherry varieties have been selected from the world’s most sought-after varieties – based on key attributes, such as taste, flavour and shelf life – and may change as even better varieties become available.

“We’re expanding to satisfy growing demand from our international customers seeking New Zealand’s best cherries for fresh eating and gift-giving, especially for Chinese New Year celebrations.”

Global demand is growing

Deep Creek Fruits NZ LP was set up in 2020 to develop cherry orchards in the Upper Clutha region of Central Otago on New Zealand’s South Island, to produce export-quality fruit for the world.

It’s become an exciting opportunity for investors keen to take advantage of a surging global demand for New Zealand cherries.

Its first premium quality cherries will be harvested and exported from December 2021 to February 2022, to target the growing global seasonal and Chinese New Year market.

Offer summary

  • Partnership interests offered: $1.05 NZ per partnership interest.
  • Minimum investment: $105,000.
  • Ideal investor: At least $250,000.
  • Return on Investment: Request an Information Memorandum at invest@deepcreekfruits.nz.

For more information, visit www.deepcreekfruits.nz.

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