Tuesday, March 28, 2023

Gunn Agri scoop up avocado orchard after smashing harvest

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Avocado orchard
Photo: Australian Property Journal

Fund manager Gunn Agri Partners has picked up an avocado orchard in northern NSW, looking ahead to higher retail prices for the popular fruit after this year’s massive harvest.

The group has paid $11 million for the orchard despite avocado prices plunge from as much as $4 to just $1 each this year as strong seasonal conditions in Western Australia particularly created a bumper crop.

The Mountain Top Avocado Orchard, close to Nimbin in northern NSW was bought from Barry and Vickie Kuhnell. The 117-hectare property has over 14,000 Hass trees – most of which are fruit-bearing.

Struck on a walk-in, walk-out basis, the deal included this year’s crop.

Gunn Agri bought the asset for a European institution with a mandate to invest in permanent Australian crops assets.

Central Queensland cattle farmers Dan and Bec Radel have just paid $4,170,000 at an online auction for the Kirkaldy avocado orchard on the Sunshine Coast. The 60-hectare property has 4,356 Hass trees.

According to Avocados Australia, Australia’s national harvest is expected to hit 120,000 tonnes this financial year.

That represents a 200% increase on the 2010 period, when the harvest tallied 39,600 tonnes.

The industry body estimates just 4% of nation’s avocados were exported in the 2021 financial year. Most headed to Malaysia, Singapore and Hong Kong.

Strong month-on-month price increases for most commodities saw Australian agribusiness industry conditions rise to record levels in August, and key drivers are expected to hold out to the December quarter. Australia’s agricultural production is tipped to reach a record gross value of $73.0 billion in 2021-22, breaking the $70 billion mark for the first time in history.


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