High Performance Manuka Plantations PGP - FIEA€¦ · High Performance Manuka Plantations PGP “Should I e Planting Manuka for Honey ?” •Current Situation •The High Performance

“Should I Be Planting Manuka for Honey ?”Presentation to Forest Tech Conference, Nov 16, 2016Stephen Lee – Commercial Manager

High Performance Manuka Plantations PGP

“Should I Be Planting Manuka for Honey ?”

• Current Situation

• The High Performance Manuka Plantation PGP Programme

• Our Advice

Retail shelf price of select honey products in Sainsbury’s London (per kg)

Updated: New Zealand’s average

export price is US$18/kg, whereas

most of the other major honey

exporters are earning only US$2-

6/kg

Conclusion

• New Zealand honey gets a VERY SIGNIFICANT PREMIUM on the world market.

• With MANUKA HONEY BEING THE KEY DRIVER behind these increases

Why ?

• Manuka Honey is unique given its scientifically proven anti-bacterial and anti-inflammatory properties that are different to other types of honey.

• It can be used in :– As a Food Item or Food Ingredient– Ingredient in cosmetics– Natural Health Product– Medical grade pharmaceutical

• Naturally grown mānuka is unique to New Zealand and parts of Australia

The Future

How can this be attained when the stock of wild mānuka that generates our current honey is expected to decline over time ? ……. Plantation Mānuka ?

70 mil

1.2 Bil

0

200

400

600

800

1000

1200

1 2 3 4 5 6 7 8 9 10 11 12 13

Aspirational Growth - Manuka Honey Industry

In 2011 Manuka Research Partnership Ltd was formed by 6 shareholders comprising :

To prove Manuka plantation as viable investment to encourage an alternative land use option

High Performance Manuka Plantation PGP Programme

The programme set out

To prove the financial business case for mānuka plantation as a viable alternate land use on marginal land and to establish service and tools to assist landowners

with mānuka plantation establishment

Returns from 100 Hectare Block

$126,000

$1,793,800

-$500,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Cumulative Cash Flow Scenarios Yrs 1 - 25

Natural Low Medium High

Yr 7 Yr 16

Should I Invest Yet ?

• The research to answer all key questions to a landowner is still ongoing.

• But for those prepared to take a punt …we can help ..

Should I Invest Yet

Mānuka Farming NZ Ltd.’s strategy is built on 4 pillars :

• Proactive targeting of Landowners that meet size, location, and terrain criteria.

• Formation of strategic alliances enabling provision of full end to end service offering to customer from evaluation on land use to plantation establishment to supply arrangements with apiaries – and providing them with evaluation tools to assist landowners in their decision making.

• Formation of “Community of PGP Mānuka growers” to facilitate knowledge building, relationship building, and foster customer advocacy.

• Provision of Post Mānuka Planting Service aimed at minimising risk for landowner and increasing success rate of mānuka honey commercialisation.

I Welcome Any Questions …..

Thank you