PKW Considers Horticulture to Enhance Business Diversity

With diversification a key emphasis of the Parininihi ki Waitotara (PKW) long-term strategy, the organisation’s governance and senior management teams recently visited Wakatū Incorporation to investigate potential future opportunities for business growth.

Based in Nelson and one of the largest private landowners in Te Tau Ihu region, Wakatū has a diverse portfolio with its main interests in horticulture including apples, berries, kiwifruit, pears and hops grown over 224 hectares. It markets its produce and other consumables under the Kono brand name.

“This trip was an excellent opportunity to catch up with our Te Tau Ihu whānau with whom we share a great deal of whakapapa due to the migration of many Ngāti Tama and Te Atiawa people down to Te Tau Ihu during the 1800s,” says CEO Warwick Tauwhare-George.

While Wakatū and PKW have different core businesses of dairy farming and horticulture, the two share a commonality in the challenge and opportunity of perpetual leases, the need to diversify and the desire to protect and grow assets for the benefit of future generations.

Diversification into horticulture meets PKW core strategic imperatives by creating employment opportunities as well as building a sustainable, balanced portfolio of investments.

“We wanted to kōrero with our Wakatū whānau because the horticulture sector offers the potential to deliver strong returns for our shareholders, taking into consideration our environmental, cultural and social drivers. Plus, collaboration is essential to enabling success.”

“Sharing opportunities and sharing experiences enables us all to grow and develop as Māori businesses, both domestically and offshore.”

Warwick adds, “We are exploring the opportunities horticulture offers us by considering the best path to follow. We want to work in partnership with those already experienced in the sector to gain the technical acumen we need and understand the marketplace — in essence to complete our horticulture apprenticeship.”

“There are, of course, challenges with any new venture. A new start-up operation would require considerable investment in both capital and people resources, plus the risk profile attached to new ventures is usually elevated. Inversely, we could purchase an established operation which would more than likely have a lower risk profile, but likely a higher entry point in terms of acquisition cost.”

The delegation visited a range of Wakatū operations, including an orchard, a packhouse and a juicing concern. They were also hosted by Julian Raine from Wai-West Horticulture, responsible for the Aunt Jean’s Dairy and Appleby’s Ice Cream brands, and Glen and Maree Holland, owners of Tasman Bay Berries.

“Everyone we met was very generous with their knowledge and we learned a great deal in a short period of time about areas that are relatively new to us,” says Warwick. “I was particularly struck with the sense of entrepreneurial spirit that was evident everywhere we went.”

“While dairy farming remains at the core of what we do as a business, this visit has enabled us all to progress our learning journey as we take further steps in a potential new direction for PKW and its shareholders.”

“Plus, diversification is essential to the future success of our business as we need to be wary of putting all our apples into one basket, if you’ll excuse the pun.”