Once completed, processing capacity will double from 14,000 tonnes of fruit and vegetables to 28,000 tonnes a year.
Multi-national company Andros has gained overseas investment approval to buy a neighbouring block of land to support the existing site.
An application was made by Barker Fruit Processors under the Overseas Investment Act for about 14.5 hectares of land at Shaw Rd in South Canterbury’s Pleasant Valley for more than $1.4m.
Consent was granted for investment in the sensitive land by Land Information New Zealand (Linz).
Finishing touches are being made to the new factory at the existing site with the additional land to be used for irrigation, an experimental orchard and future-proofing the operation.
Chief executive Agnes Baekelandt said the new factory would support increased demand for Barker’s products and lead the way for business growth as the existing factory was at full capacity.
Modernising the site would improve the company’s health and safety and environmental practices, quality standards and processing performance.
“The new factory will replace the former one. The former one will be divided into a research and development hub, and be a first processing factory. First processing is the preserving of fresh fruit and vegetables. Our current dedicated workshop is too small and we want to significantly develop our local and regional sourcing.”
The new factory should be ready to start commissioning lines by the end of next month and likely producing by December. New staffing of 10 workers a year are expected to result from increased processing with automation lightening the workload.
Barker’s was founded by farmers Anthony and Gillian Barker who started making fruit wines more than 55 years ago with a majority stake sold in 2015 to Andros, which now has full ownership. Andros has a home factory in Biars, a small town in the French countryside.
The Geraldine operation produces branded jam, cordial and juices, chutney, savoury sauces and fruit toppings.
Ms Baekelandt said Barker’s was exporting about 2000 tonnes of products and Australia was its top export market.
“We will double in the next few years, and hopefully triple this figure within 10 years. Our key focus is currently South East Asia, Middle East and the United States.”
Export growth opportunities included a health-focus range called EveryDay + by Barker’s and its Squeezy Fruit Preserve range.
She said continuing to base the operation near Geraldine might not be the most logical “business” decision as it would be more straightforward to be close to a major city or a logistics hub, but it was the right thing to do.
The company saw its home base as an opportunity to be innovative and solve problems differently, she said.
“We believe that the value of a business lies in their people and their community. We would be nothing without our staff, their skills, their loyalty, and the culture they bring to the business. We want this investment to future proof their livelihood, and that of their children, for the next 30 years or more.”
She said the company would not build processing facilities on the additional land as it was for business innovation and sustainability, and irrigation purposes.
An experimental orchard would trial climate resilient crops to increase local sourcing of fruit. Regenerative farming would be explored to promote this with grower suppliers and Barker’s wants to work with local partners to advance land diversification research.
Other plans include long-term supply contracts and increasing local grower numbers as well as opening an academy or training centre for a new generation of growers.
“We prefer to focus our sourcing with local growers for who it is a core business. We process nearly all fruits that you can think of. Some already grow well locally such as blackcurrant, apricot, cherry, and we want to localise many others, hence our experimental project.”
In the decision summary Linz said the applicant wanted to buy the land to expand the capacity of its fruit and vegetable processing facility.
“To do this it requires additional wastewater discharge capacity. The main benefits to New Zealand are likely to be consequential through the development of the new facility which will see increased capital investment, productivity, exports and employment. The benefits derived from the land itself will be through increased capital expenditure.”
Consent was granted as the applicant met the investor test criteria and the investment was likely to benefit New Zealand.
tim.cronshaw@alliedmedia.co.nz
