New Zealand’s horticulture industry is gaining momentum. Export revenue rose +19% to $8.4 billion in the year to 30 June 2025, making it the second largest contributor to the country’s food and fibre sector, and this growth is expected to continue.

This means there’s no direct exposure to (or risk from) the farming operations, shielding our returns from commodity price volatility and production volume. Recessionary pressures are also accounted for with inflation-adjusted leases, which deliver consistent, inflation-protected, long-term returns for shareholders.

Another pillar of NZL’s investment strategy is its listed company structure. Investing in NZL gives you access to a diversified rural land portfolio, without the need for direct land ownership. NZL shares are traded on the NZX (via a broker, or Sharesies, etc.), offering liquidity and transparency alongside diversification by location, land type, and tenant. Investors benefit from professional management and efficient reporting, which stems from one set of financial statements, a cost-effective model that maximises shareholder value.

This structure has enabled NZL to expand into high-performing sectors such as horticulture, an area with strong fundamentals and growing demand. NZL entered the horticultural sector with the acquisition of two premium apple orchards, a 97-hectare block in Hawke’s Bay and a 126-hectare site in Central Otago. Operated by experienced tenants under long-term leases, these assets now contribute to 7.5% of NZL’s total lease income.

Horticultural properties are an attractive investment for many reasons. Lease yields typically sit around 8% per annum, compared to 5–6% p.a., for pastoral land. Meanwhile, the value appreciation of New Zealand horticulture land has grown at a compound annual rate of 8.3% p.a., since 1996, outperforming the rural land benchmark of 5.9% p.a. This performance is underpinned by the quality and scarcity of the land itself, which is categorised in New Zealand as Highly Productive Land (HPL).

HPL makes up around 15% of New Zealand’s land area, and as the country’s most fertile and versatile land, its intended use is for primary production. Between 2002 and 2019, the area of HPL converted by urban development increased by 54%. With New Zealand’s population forecast to reach 6 million by 2050, this trend will no doubt continue, driving the demand and value of HPL.

This trend is also seen on a global scale. The world's population is projected to rise 19% to 9.8 billion by 2050, and an expanding middle class is driving demand for fresh, premium food. Horticulture New Zealand forecasts the doubling of the value of horticulture to $12 billion by 2035, aligning with NZL’s investment thesis to grow export demand, support future income and capital growth for landowners.

At NZL, we believe in the power of productive land. Our approach is built on long-term value, environmental stewardship, and dependable returns. In horticulture, we see a sector that feeds New Zealand and the world, while offering investors a resilient, income-generating asset that grows in more ways than one.

Richard Milsom

Co-founder and Director, New Zealand Rural Land Company