A new processing model developed by one of New Zealand’s largest apple exporters has reduced the time between harvest and packing.
Mr Apple, a subsidiary of NZX-listed agribusiness group Scales Corporation, is New Zealand’s largest vertically integrated apple grower, packer and exporter.
The model was created and trialled at a new 7,000m2 smart logistics facility in Hawke's Bay, which processes around 3,000 apple bins daily and is set to help increase global demand for new and emerging premium varietals where visual appearance, firmness and internal condition are critical to growing high-value export returns.
The NZD 24m coolstore will also anchor a new wholesale property investment fund aiming to grow a diversified portfolio of properties across infrastructure, healthcare, manufacturing and office and retail sectors to NZD one billion within five years.
Michael Caccioppoli, head of coolstores, logistics and engineering (post-harvest) for Mr Apple, said the company exports 79 percent of its fruit each year to more than 33 countries.
He said that many markets, particularly in Asia and the Middle East, have strict standards around firmness, colour and sugar levels. Delays in cooling or packing can impact the condition of fruit on arrival.
In 2024, 72 percent of Mr Apple’s exports were premium varieties such as Dazzle, Posy, and NZ Queen. The company aims to increase that ratio to 75 to 80 percent by 2027 as consumer demand in key offshore markets continues to grow.
“The new system lets us move fruit from the orchard into the coolstore and through to the packhouse 25 percent faster than before. This turnaround speed directly supports export quality, and by shortening the time from picking to cooling we are able to preserve internal fruit integrity,” said Caccioppoli.
“That means apples are fresher when they hit the ships. It improves shelf life, reduces quality complaints and lifts the eating experience for millions of consumers around the world - which is critical as we establish markets for new varieties.”
The Hawke's Bay site incorporates a range of smart design elements to maximise efficiency and sustainability. Shorter row depths allow for quicker bin access and faster turnaround, significantly reducing handling time and labour input.
The building layout has been optimised to support a continuous flow of product from arrival to dispatch, avoiding bottlenecks common in older facilities.
Despite its scale and high daily throughput, the operation is managed by a team of just eight staff. Advanced automation and system integration allow the team to monitor and control environmental variables with precision, helping maintain consistent product quality.
“With this facility, we have considered the size of the rooms and the volume of warm fruit we put into the coolstore, so the temperature matches refrigeration capacity perfectly. This allows us to reduce CO² levels within the room.”
Caccioppoli added that the benefits go beyond speed. The system helps protect margins and reduce risk in a volatile global freight market.
The facility’s performance is also expected to support investor confidence. It will be the initial asset in a new property investment fund managed by Erskine Owen, which aims to reach NZD one billion in diversified property holdings within five years.
Alan Henderson, Erskine Owen director, said the coolstore reflects the type of high-performing export-aligned infrastructure the PIE Fund will seek. The Fund’s broader strategy includes acquiring energy-efficient, ESG-compliant assets across both metropolitan and regional centres.
“We’re moving away from the single-property syndicate model. This fund is targeted at wholesale investors, with a long-term growth and diversification strategy that is intended to spread investment risk across sectors and locations. We aim to have NZD 200 million in assets within 12 to 18 months and increase that to a billion dollars within four years after that,” said Henderson.
“The capital raise is underway for the Groome Place coolstore and is expected to attract high demand given the quality of the asset, which says a lot about investor appetite for export-aligned infrastructure with strong tenant covenants. It reinforces our view that there is a real demand for high-quality, income-generating assets in this sector.”
Henderson added that this site was chosen as the Fund’s foundation investment because it ticked all the boxes. It is a core industrial logistics facility, under a long-term lease to a globally competitive exporter, located in a region that is vital to New Zealand’s agri-economy.
“We’re focused on assets that help drive New Zealand’s global competitiveness and that we believe will perform well in both stable and volatile markets. These are the kinds of buildings that don’t go out of fashion, that provide reliable income, and that help sectors like horticulture and agribusiness perform at the highest level.”
The coolstore has been leased by Mr Apple on a 20-year triple net lease term and will be held within the new Erskine Owen Veritas Property Fund.
