The investment of a German company in Turners and Growers and the amalgamation of two Bay of Plenty kiwifruit post-harvest companies is a clear indication the horticulture industry is in a state of "unprecedented change", Horticulture New Zealand chief executive Peter Silcock says.
The sale of the Guinness Peat Group's share of Turners and Growers to BayWa AG, subject to approval from the Overseas Investment Office and the German Federal Cartel Office, was "extremely significant" for the industry.
It removed the uncertainty that had been lingering since the company was put on the market. It was heartening to hear BayWa wanted to ensure good returns for growers, Mr Silcock said.
Turners and Growers is one of New Zealand's largest exporters and the largest domestic market wholesaler.
It is also one of the country's largest growers of crops including apples, citrus, tomatoes and kiwifruit.
"It is good to see the company in the hands of a forward-thinking global business which appears to be well-connected with produce markets and to agri-business globally," Mr Silcock said.
The BayWa Group's business is concentrated on wholesale and retail trading, logistics and associated services. Its activities are divided into the operating segments of agriculture, building materials and energy.
Horticulture New Zealand believed that deal, and the amalgamation of kiwifruit companies Seeka and Satara, pending Satara's shareholders' approval, highlighted the ability of the industry to adapt, change and position itself for the future.
The kiwifruit bacterial disease Psa-V was affecting the entire kiwifruit industry and the amalgamation of those two entities was just part of the wider restructuring the industry was facing, Mr Silcock said.
"It is critical that the industry makes these changes quickly and retains the capacity and expertise that it needs for the future.
"Both these deals show a determination by those involved to maintain and improve grower returns, both now and into the future," he said.
How seriously Psa-V will affect the Bay of Plenty economy should be known by early next month, the Bay of Plenty Times reported. Kiwifruit Vine Health general manager John Burke said an impact assessment report would look at the effects on individual growers and the industry, as well as the wider economic and social effects.
The disease, first discovered in Te Puke in November last year, had by early this month infected vines in 689 orchards, mostly in Te Puke.
