Kiwifruit orchard prices have plummeted 30 percent, with sales stalling in the prime growing region of Bay of Plenty. According to Te Puke-based PGG rural real estate consultant Stan Robb, there were virtually no buyers around, and sellers were still asking unrealistically high prices.
Zespri's recent poor performance, high interest rates and on-orchard costs - which have gone up 50 percent in the past year - are all impacting the market, Robb said. "There are very, very few buyers around. But… vendors' expectations are still up with where they were this time last year. I sold 18 orchards in 2 months last year, I think for a total of $150 million. And they averaged around about $1.8 million per canopy hectare for the gold, and $700,000 for green per hectare."
"Now, I would say you'd be lucky with $1.4m for gold, and maybe $450,000 for green. But there are no buyers out there at the moment and nothing's selling - very, very little is sold."