High Performance Manuka Plantations

Manuka Research Partnership Ltd – PGP Project

$2.7 M Manuka Plantation PGP Research Project with Ministry of Primary Industries

8 Year Timeline - 2011 to 2018

Massey University – Research Provider

Comvita providing Manuka Plants to the Project from its Plant Breeding Program

Program Objectives

To develop the necessary Manuka Plantation husbandry knowledge to enable productivity gains resulting in a 16-fold increase in market returns from Manuka honey by doubling each of:

Hives per ha

Manuka honey yield per hive

Manuka honey that meets medical grade

Land area in Manuka economically accessible to beekeepers

Net effect $1b Exports

The MRPL Co-investors

Comvita New Zealand Ltd

23,000 + hives, brand and distribution, ≈$100 M turnover

D and C Tweeddale

19,000+ hives ~ 60 Ha of Manuka plantation over 2 sites

Nukuhau Carbon Ltd

26 Ha planted at Rangitatau West

Arborex Industries – Te Awaiti station, Wairarapa

Landcorp

State Owned Enterprise operating 137 properties totalling 377,000 ha across the North and South Islands of NZ

The MRPL Co-investors

Hawkes Bay Regional Council

150 ha planted at Lake Tutira

Seeking to prove Manuka plantation as viable investment to encourage an alternative land use option

New Partner who has agreed in principle to join:

Te Tumu Paeroa

100,000 ha approx under Management

Including 30,000ha approx of marginal land

Manuka Plantation Deliverables for Land Owners

• Best Practice Seedling Propagation • Best Practice Plantation Establishment

• Assess Manuka Provenance & Hybrid Performance

• Build Flowering & Production Profile & Parameters

• Prove Financial Business Case to retire Marginal Land

• WORK IN PROGRESS – 4 YEAR REMAINING TIMELINE

Sample of Current Projects

1. Glasshouse & growth chamber studies on Manuka cultivars to examine influence of environmental factors on performance

2. Commercial field trials to understand best practice plantation establishment & management

3. Develop predictive tools to advise most suitable cultivars and best practice husbandry under particular plantation conditions

Programme so far > 2011-2013

From glasshouse

& plantations:

Major soil effects

Cultivar effects

Aspect and local effects

Variability creates

opportunity

Assess variability & exploit

Site 1 DHA in nectar

Early plantation success

Plantation manuka Plantation manuka theoretical harvest Local manuka 2012 Local manuka historical

Hives on ordinary site

Pasture

Pasture Kanuka

Kanuka Kanuka

Manuka

Mixed Manuka & Kanuka

Improved cultivars, extend flowering, increase value

Commercial Field Trials

Current Sites

30 sites totalling 745ha including 596ha Comvita Plantations

Sites targeted to provide a regional and environmental spread of field data

Intend Plantations to provide a showcase to regions >>> encouraging faster uptake

Map of Expanded PGP Field Trial Sites

Current Modelling

• Establishment costs of approximately $2,000 per ha

• Planting density of 1,100 stems per Ha (3m * 3m

spacings)

• 25 Year production life

• Floral Maturity in 6 years

Establishment at Tutira (HBRC)

• Summer-dry

• Exposed

• Range of seed

lines examined

• 1000 stems/ha

• 156ha

established

Establishment at Tutira (HBRC)

• Survival

95% in good summer

85% in bad summer

• Growth (height) ≈ 80cm 1st year ≈ 130cm 2nd year

• Flowering ≈ 100% for most

lines in 2nd year

Comvita Manuka Breeding Program

Commenced in 2006

Plant Variety Rights registered on Hybrids

Breeding of 2nd Generation Hybrids

underway

Manuka seedlings provided to MRPL

project which are being evaluated in

Glasshouse & Field Trials

A contrast, wild vs improved Manuka

Integrated Plantation & Apiary Management

Manuka plantation performance > 1st Leg

Conversion of nectar into honey > 2nd Leg

Understanding/optimising apiary performance > critical to value

Proving the Business Case is When “The Rubber Hits the Road”

KEY VARIABLES [AT MATURITY]NATURAL

MANUKA

WORSE

CASE? MID-CASE? BEST CASE?

HIVES PER HA 1.0 1.0 1.5 2.0

PRODUCTION PER HIVE (KG) 20 30 35 40

UMF HONEY VALUE PER KG $15.00 $20.00 $30.00 $40.00

APIARY REVENUE PER HA $300.00 $600.00 $1,575.00 $3,200.00

LANDOWNER REVENUE SHARE 15% 30% 30% 30%

LANDOWNER INCOME PER HA ** 45$ 180$ 473$ 960$

LANDOWNER INVESTMENT RETURN (MARGINAL IRR)??? 4.60% 16.70% 29.30%

PLANTATION MANUKA

• MRPL project is work in progress – 2018 completion

date

• Initial results are promising

• New generation of Manuka hybrids in the pipeline

• Comvita looking to expand its Plantation program

and are keen to talk to Owners wishing to retire land

• Consider “Trees for Bees” integration into planting

Take Home Messages

Plantation Manuka - Benefits to rural NZ

Commercialise alternative land use for marginal land in NZ

Macro environmental & economic benefit – Pure NZ Story

Flow-on benefits of wealth creation through honey industry

Capability development – new beekeepers & cadets