There has been a boom in cherry orchard expansions in Central Otago, driven by an increase in demand and high prices. 

Cherry revenue is forecast to increase 25 per cent to $100 million over the next four years and, according to a local horticulture investment company, a good number of locals are taking a leap of faith and investing in the burgeoning local cherry industry. 

Deep Creek Fruits NZ - established to develop two significant cherry developments in Central Otago - has successfully raised the capital required to begin its second phase of planting. 

The completion of the first tranche is the result of extensive interest from a range of New Zealand wholesale investors keen to take advantage of the exponential global demand for quality New Zealand cherries. 

Investors include the sheep and beef land owners of Lindis Peaks Station and Mt Pisa Station who approached Deep Creek Fruits' management company Hortinvest Limited with plans to diversify a portion of their land into horticultural use. 

Director and global sales marketing professional, Sharon Kirk, said the successful first tranche was the realisation of orchardist husband Ross Kirk's vision. 

Ross and Sharon Kirk have more than 30 years' experience in growing and marketing premium New Zealand fruit globally, and Hortinvest has existing and developing markets for its cherries throughout Asia, Europe and the United States. 

Ross Kirk, and his wife Sharon, have been working in the New Zealand fruit industry for over 30 years. 

The Kirks set up Hortinvest in 2016 to help investors tap into the lucrative cherry industry.

"Having the vision is one thing, realising it is another and we're extremely excited about the future for New Zealand cherries and the investors who stand to gain," Sharon said.

Stage 2 planting will see 25 hectares at Lindis Peaks and 72 hectares at Mt Pisa, in addition to 11 hectares planted at both locations last winter - a total of 119 hectares.

A board of directors, including chair Michael Ambrose, has been appointed to report to investors on the progress of the development. 

Michael is an experienced director, business consultant and chartered accountant.

Sharon said the developments had created jobs for two full-time employees during the planting phase and more were to follow in coming months. 

Positions would include orchard and administrative roles, she said.

"We expect to open the next capital raise in the near future. This will include an additional 45 hectares at Lindis Peaks. The final planting stage of planting will be completed in winter 2021," she said.

Ross Kirk designed this planting machine which has increased planting efficiencies. 

A key development implemented for stage 2 planting is the introduction of a machine which enables up to 6,000 trees a day to be planted - an increase on the previous record of 3,200 planted last year.

It was designed by project and orchard development manager, Ross Kirk, and purpose-built to his specifications by Brett Sheriff Engineering of Cromwell.

"With this significant piece of infrastructure onboard and our team trained in its use, we expect to increase its capability to 1,000 trees per hour, with the right soil conditions," Ross said.

When the orchards are fully mature in 2025, up to 500 pickers per 80 hectares would be required, he said.

A leading edge packhouse would be constructed in time for the first harvest and the first fruit will be exported to global markets in 2021-2022.

The industry currently produces about 2,500 tonnes of fruit a year and 75 percent of that is exported mostly to China. 

Sharon said New Zealand is poised to explore a number of emerging markets, including Vietnam, Thailand, USA and Europe, as well as potential markets in India and Indonesia which are yet to be tapped.

Sharon said, with the way demand is outstripping the supply, New Zealand could be marketing 10,000 tonnes per annum if it had enough producing cherry trees.

“The weather does play a part in the variation of export fruit available. One key event that can affect the production is frost [and] Hortinvest has deliberately gone to higher elevations to reduce the risk of frost.”

Much of the land set aside for the orchards on all three stations is on sloping, terraced sites between 380m-420m above sea level. 

“Our main point of difference is that all three are high up the mountains … to get away from frost which flows down to the lowest point. It doesn’t mean we won’t get frosts but we’d like to think it’s more manageable,” Sharon said.

The sustainability of these projects also appeals to investors, she said. 

“Sustainability is a key part of the business. There’s no point in doing this if you don’t believe it’s going to be a long-term thing.” 

Not only do these orchards provide economic diversification to the stations but they also employ precision irrigation and fertilisation methods, such as foliar feeding rather than traditional mass soil fertilisation, reducing the impact on the environment and making it more sustainable in the long-term, Sharon said. 

These methods are already employed  by Tarras Cherry Corp at its 40ha orchard, the largest cherry orchard under nets in Central Otago. 

TCC was formed two years ago with seven shareholders, including Hortinvest, all of whom either reside in the Upper Clutha or have homes here. Its cherry trees were planted in December 2018 and a few weeks ago the shareholders were invited to taste the first fruit.

“Just eating their own cherries for the first time and suddenly it’s [their investment is] real,” Sharon said. 

TCC will harvest its first commercial crop in December this year.

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