The New Zealand government has forecast cherry revenue to increase 25 per cent to $100 million over the next four years and, according to a local horticulture investment company, a good number of Wanaka locals are considering taking a leap of faith and investing in the burgeoning local cherry industry.

Hortinvest, a local company created by Albert Town residents Sharon and Ross Kirk, held an investors’ seminar in Wanaka last month for anyone interested in a long-term investment in two new orchards being developed, one in Tarras, the other near Cromwell. 

Around 30 locals attended the seminar and appreciated the opportunity to be a part of a local, sustainable industry with the long-term potential for high returns, Sharon said.

Following in the footsteps of the Tarras Cherry Corp (TCC), which has developed 40ha of cherries on Ardgour Station, near Tarras, both new orchards are being developed in the high country at Lindis Peak Station and Mt Pisa Station.

Sharon said there are several factors which appear to be driving the local interest but one of the key elements is that the projects are based nearby. “It’s local and it’s exciting - that’s what spinning their wheels.” 

“Wanaka is one of those places where you have a lot of people who have come here to retire, or they run a business here, and they’re looking to invest in what they consider to be ‘a local thing’”, she said.

Hortinvest’s Sharon and Ross Kirk.

With the success of the TCC orchard to its credit, Hortinvest was approached by the landowners of both stations who wished to diversify their traditional sheep and beef farming businesses and provide a sustainable crop. 

Utilising a small portion of the stations, both $15.1M projects got underway last year when 7,250 trees were planted over 10ha on each property and, with further investment, a total of 53,000 trees will be planted.

These new large orchards are deliberately pushing the boundaries established by traditional Central Otago cherry growers. A regular Central Otago cherry orchard is between 3-10ha in size with a few as large as 25-30ha, Sharon said.

At 80ha each, both these orchards are huge in comparison, promoting an economy of scale and encouraging the cherry industry to expand and diversify its markets.

The industry currently produces about 2,500 tonnes of fruit a year and 75 per cent of that is exported mostly to China. Sharon, who brings years of experience in international marketing of horticulture products, said New Zealand is poised to explore a number of emerging markets, including Vietnam, Thailand, USA and Europe, as well as potential markets in India and Indonesia which are yet to be tapped.

With the way demand is outstripping the supply, New Zealand could be marketing 10,000 tonnes per annum if it had enough producing cherry trees, she said. 

“The weather does play a part in the variation of export fruit available. One key event that can affect the production is frost [and] Hortinvest has deliberately gone to higher elevations to reduce the risk of frost.”

Much of the land set aside for the orchards on all three stations is on sloping, terraced sites between 380m-420m above sea level. “Our main point of difference is that all three are high up the mountains … to get away from frost which flows down to the lowest point. It doesn’t mean we won’t get frosts but we’d like to think it’s more manageable,” Sharon said.

Ten hectares of cherry trees have already been planted at the new Lindis River orchard on Lindis Peak Station.

The sustainability of these projects also appeals to investors, she said. “Sustainability is a key part of the business. There’s no point in doing this if you don’t believe it’s going to be a long-term thing.” 

Not only do these orchards provide economic diversification to the stations but they also employ precision irrigation and fertilisation methods, such as foliar feeding rather than traditional mass soil fertilisation, reducing the impact on the environment and making it more sustainable in the long-term, Sharon said. 

These methods are already employed by Tarras Cherry Corp at its 40ha orchard, the largest cherry orchard under nets in Central Otago. TCC was formed two years ago with seven shareholders, including Hortinvest, all of whom either reside in the Upper Clutha or have homes here. Its cherry trees were planted in December 2018 and a few weeks ago the shareholders were invited to taste the first fruit.

“Just eating their own cherries for the first time and suddenly it’s [their investment is] real,” Sharon said. 

TCC will harvest its first commercial crop in December this year.

PHOTOS: Hortinvest