The Country 18/05/26: Dom Jones talks to Jamie Mackay

The Managing Director of Origin Capital Partners updates a very good Kiwifruit harvest season and offers investors the chance to get a slice of the action in this dynamic primary industry.  

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Dominic Jones joins us. He's the managing director of Origin
Capital Partners. Kiwi fruit growing syndigate mainly in the Bay
are plenty in Gisbon regions. Hey, dom I want to
talk about the Kiwi fruit gold harvest. Had a couple
of those for breakfast this morning, God's Own Food.

Speaker 2 (00:16):
Is it all finished yet, hey, Jamie, thanks for having
me on. Yep, the gold harvest has finished a phenomenal season. Really,
it will be record high yields pretty much in all regions.
I think in total it's finished up at about one
hundred and fifty six million trays, which is I think
pre season estimates for about one hundred and forty five,

(00:39):
So yeah, it'll be a record. And anyway, all the
fruits now tucked away and packed away, and Zespre is
starting to sell it in the market. Red's all finished,
TI all being packed, still being shipped, and I think
it's all been sold. And green is probably about a
third of the way through harvest.

Speaker 1 (00:54):
Well, Zespa rEFInd a home for all this extra fruit
this season.

Speaker 2 (00:59):
Well look grows in the business of growing fruit, This
frees in the business of selling fruit, So more fruit
has to be a good thing. They've got the fruits
and now they're going to have to go out and
sell it when we have difficult years. Doesn't tend to
be in anything on the market side. It's all more
local in supply chain and there's no issues in that regard.

(01:24):
I would say all the pack houses are bursting at
the seams at the call stores, which is exactly where
they want to be. Everyone builds a lot of expensive
kit so you want it to be used.

Speaker 1 (01:35):
To grow key we fruit, you need a license. How
expensive are they these days?

Speaker 2 (01:40):
Bloody expensive for a piece of paper. So every year
this free release a bit more license for their PBR varieties,
which is the gold in the red.

Speaker 1 (01:52):
Don't confuse me with acronyms here, don what's a PVR? Sorry?

Speaker 2 (01:56):
A PVR is a plant variety, right, It's a bit
like a patent. The owner of the patient. In this case,
Deesprix is the only one that's allowed to sell the fruit,
and only licensed growers can grow the fruit. So every
year's history hold an option and release more hectares of license.
They're releasing about four hundred hectares of gold a year,
which means we're growing the sun goals supplied by about

(02:18):
three or four percent this year. The four hundred hectares
went for an average price of six hundred and eighty
four thousand dollars per hectare. And they also released a
new red variety called Red eighty and that one blew
everyone's expectations out of the water. That went for about
four hundred and sixty thousand, which was amazing. It's a

(02:42):
new type of red. It basically has been grown at
very very low volumes. There's been a little bit of
trial in the market, but it's really early days. And
so the licensed price that both tells you a bit
about the confidence in the sector.

Speaker 1 (02:56):
And you said, those PVRs are plant varie rights have
been extended, what does that mean for growers?

Speaker 2 (03:03):
On Friday last week, Zespre and the government announced a
bill to extend how long you can have a variety
protected for so for example, the Sun Goal PVR in
New Zealand expires in twenty thirty nine. This bill, the
effect of that would push the expiry out to twenty
forty six, which which is a really good thing for

(03:24):
the industry. And it would apply to not just ZESPR PDRs.
There is other tvrs and other fruit varieties in New Zealand,
apples have plenty of them.

Speaker 1 (03:34):
For example, sounds like the Ministry of Commerce with their
radio FM frequencies, right HEO. You're in the business of
growing kiwifruit. You've got two funds already up and running.
I know a wee bit about them because I'm in
both of them. You're going to fundraise or you're currently
fundraising for a third. Why should I invest? Isn't key
We fruit land getting too expensive? Now? Has that ship

(03:57):
sailed dom?

Speaker 2 (04:00):
Look, it's going to be more expensive to buy an
orchard than it was three years ago. And three years
ago it was more expensive to buy an orchard than
twenty nineteen, and that was probably the case three years
before that. Kiwi fruit land and key fruit orchards over
time have increased in value, and that's because the profits
have increased and in an inflationary environment, that's what you
would expect. One of the reasons people buy land or

(04:22):
buy property is to protect against inflation, and key fruit
is a good example of that. In the end, you'd
invest with us because you want exposure to Kiwi fruit
without having to buy an orchard yourself for seven or
eight million dollars. And look our funds. We are Kiwi
fruit specialists. Our funds only invest in Kiwi fruit. What

(04:42):
that means is if the New Zealand Kiwi fruit industry
goes well, we'll do better than that. Equally, if it
goes poor, lease, so will our funds. So look, we're
away to have some exposure to Kiwi fruit. Most of
our investors are putting in two to five hundred grand
with us them some passive exposure to the sector without
having to go out and invest in an orchard, will

(05:04):
run an orchard themselves.

Speaker 1 (05:06):
So if you want to have a punt at key
with fruit and in the returns have been pretty good
in recent years, Let's be honest about it.

Speaker 2 (05:12):
Where do you go if you if you want to
learn more about our products, come on to our website
Origincapitalpartners dot co dot MD, fill out a form I
will I will then touch base of you, arrange time
to catch up either in person on the phone, and
we've got a whole bunch of materials that I can
share with you as well. We've kicked off the raising

(05:33):
for our third funds. Looks like there's plenty of plenty
of interests. Pretty confident it's going to be a decent
sized ray and it's likely therefore that will probably pull
pull the trigger on a couple of large dear Land
developments that we're working through at the moment. So yes,
if you if you want exposure to the sector, come
on to our website and and go from there.

Speaker 1 (05:55):
Origin Capital Partners, Dom Jones, the managing director, Key we've
fruit growing syndicate. Thanks for your time and good luck
getting the rest of that green off the vine and
on a ship and sold on the other side of
the world.

Speaker 2 (06:08):
Thank you, Jamie