Produce company T&G Global has announced it will pour in millions of dollars to expand its apples business to meet growing consumer demand.
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The company will invest $100 million into a new automated packhouse and has committed millions more to orchard redevelopment across Hawke's Bay and Nelson.
The announcement comes after T&G downgraded its full-year profit expectations in October, due to persistent labour shortages and rising shipping costs.
T&G, which is one of New Zealand's largest apple growers and marketers, said its premium Envy apple was on track to be a billion-dollar brand.
The new packhouse, adjacent to its Whakatu East site in Hawke's Bay, will be one of the largest in the southern hemisphere, the company said.
Chief executive Gareth Edgecombe said independent forecasting showed an additional 1.9 billion Envy apples would be needed by 2030 to meet consumer demand.
"The multi-million-dollar investment we are announcing today clearly demonstrates T&G's commitment to expanding its premium apples' category well into the future to create value for our growers, consumers and shareholders," he said.
"Further investment in new orchard automation equipment, including eight new picking platforms and 10 Hydraladas ahead of the 2022 picking season, will also enable greater labour efficiencies and improved health and safety, not only during picking, but across a range of orchard activities."
The company said it was also working with other large-scale investors on opportunities to capitalise on growth, such as iwi and the New Zealand Super Fund through its investment manager FarmRight, which recently purchased 40 hectares of T&G's orchards.
"The fact key partners such as NZ Super Fund are realising the strong investment opportunity and potential demonstrates the strength of our strategy and future direction," Edgecombe said.
"Most importantly, the expansion programme we're delivering has kaitiakitanga at its heart, with a focus on the care and guardianship of our people, our land, our natural resources and our produce."