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Reliable water supply and cheaper land have attracted growers looking to diversify to Canterbury, a horticulture supply firm says.
FruitFed Supplies' Canterbury regional manager Blair Murdoch said the increase in horticulture had been noticeable.
"There certainly is more demand here in Canterbury and one of the main drivers for that is the reliability of our water and the amount of flat land that we have.
"There are a few companies putting in apples and grapes and there are some bigger corporates starting to move into Canterbury as well."
Murdoch said some companies are even moving their whole production lines, including packhouses and processing factories, to Canterbury.
Growers were finding land was cheaper in Canterbury compared to Hawkes Bay and Marlborough, he said.
"Cyclone Gabrielle, which caused huge damage to crops last year, has shown people they need to spread their risk geographically.
"That's part of the decision process of some of the guys that are moving down here, they don't want to have all their eggs in one basket."
Murdoch said the biggest drawback for Canterbury was the lack of supporting infrastructure.
"We don't have the packhouses yet, there are a few vegetable processing companies here doing potatoes so those who are growing fruit are sending it up to Nelson for packing.
The infrastructure would come with time and as more people invested and started growing in Canterbury, he said