A guide to unlocking income and freedom…
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Do you enjoy your orchard investment but can’t commit to all of the day-to-day duties of maintaining a commercial avocado orchard? Let the experts help you! With multiple options available, Avoworks can tailor a package that incorporates as little or a much as you need.
Avoworks currently leases a combined 48ha and manages a further combined 160 hectares – many growers have entrusted their land and crop to Avoworks. What’s in it for us? We get to do more of what we love – growing awesome crops of avocados!
If you’d like to know more about how leasing works, read the following guide which covers all of the details to help get you started…
If you identify with any of the following then it’s time to consider leasing your avocado orchard to Avoworks…
- The current economic environment has provided you with uncertainty and you would like to have a guaranteed income from your orchard with little to no risk.
- You enjoy your orchard ownership/investment but do not have the time to dedicate to this business.
- You would like the freedom of not being “tied” to the property.
- You are unable to continue with the physical labour demands of owning and managing your orchard but still would like to gain an income from it.
- You are moving or spending a period overseas but still wish to retain ownership of your orchard.
- You are struggling to sell your orchard – leasing can be a bridge to help you move on and then revisit selling when market conditions are more favourable.
What is a lease?
Leasing is essentially renting your orchard to a tenant or in this case Avoworks (Darling Horticultural Services Limited) who will run the day-to-day operations of your orchard. Lease options vary in terms of your income and this can be negotiated. Below are some examples:
- Monthly lease payment for per hectare lease value
- Profit share lease agreement
- Mix of both
In more detail…
The orchard owner acknowledges that Avoworks has the exclusive right under the lease to grow, harvest and remove all crop during the lease. Avoworks will also determine who will pack and market the crop. Avoworks typically offers 5-10 year leases.
The lease terms and each parties’ individual obligations are contained in Avoworks’ professional contract which both parties negotiate and agree to.
Benefits of leasing your avocado orchard to Avoworks:
Things you will need to continue doing on your orchard while it is under a lease agreement…
Not a whole lot! Your orchard’s dedicated orchard manager will arrange the day-to-day activities and taking care of the business end also. However, there is a little admin you need to continue as comes with owning an orchard asset:
- Invoice Avoworks monthly for the ground rental of your land involved in the lease.
- Pay all outgoings in respect of the property including rates, mortgage payments, building insurance.
- Maintain some of the key infrastructure on the property such as water consents, access to water, and orchard accessways (Avoworks will contribute 50% to orchard accessway maintenance).
Our commitment to you
- It is our responsibility to care for your orchard which we will do using normal horticultural practices (in line with the NZ Avocado Industry Grower’s Manual) – including pruning and nutrition applications at key points in the growth cycle of the avocado tree. We will also optimise harvest timing to reduce stress on trees and maximise return cropping.
- We work closely with our post-harvest partners Just Avocados and Darling Group to ensure we are getting the best outcomes for the crop.
- If entering into a profit share lease agreement, a profit and loss statement will be produced and worked through each year with you to demonstrate the expenses and income related to the orchard and crop.
Peace of mind
Our criteria
To make a lease opportunity worthwhile for you and for us we will only lease orchards that meet the following criteria:
- Orchard is in Bay of Plenty or the Far North.
- Orchard size is a minimum of 3 canopy hectares.
- Orchard consists of Hass variety of avocados.
- Avoworks makes a positive assessment of the orchard at first meeting.
Step-by-step to starting a lease arrangement with Avoworks:
Meet some of the Avoworks team:
An insight into what working with us looks like…
Start your leasing journey with Avoworks today – contact Nathan for a chat and to arrange a no obligation orchard visit (027 278 7714) or send us a message below…
* All terms explained on this webpage are for informational purposes only and do not form any part of an individual lease contract with DHS.
