More beef and sheep farms are being converted into forest plantations following a flurry of overseas investment approvals, according to Te Whenua Land Information New Zealand. It comes after Kate Acland, chair of Beef + Lamb NZ last week, warned of a surge of farms being converted to forestry months before new rules go into effect.
Now, the NZ-based Timaru Herald reports that Kauri Forestry LP, a New Zealand limited partnership established by Christchurch-based Craigmore Sustainables Group with 69% Swiss and 31% German ownership, has been busy buying beef and sheep farms.
According to local reports, Kauri Forestry LP bought 496 hectares at Pukehuia Rd, Arapohue, in the Kaipara district, from Keith, Craig, and Nigel Gravatt, trustees of Maungarata Farms Trust. At the same time, it bought a large-scale hill country station 65km south of Napier, comprising 1518 hectares at Kairakau Rd, Elsthorpe. Again, the land was mainly used for sheep and beef grazing, with 28 hectares planted with poplars, softwood, and Indigenous trees.
The company had also been given a “standing consent” under a “Special Forestry Test,” allowing overseas investors with a proven track record to make forestry investments without needing prior approval for each transaction for 10,000 hectares of land in up to 40 transactions by June 12, 2027. A requirement was that the Overseas Investment Office (OIO) had to be advised after each purchase.
Kauri Forestry LP advised, under this standing consent, that it has bought 216 hectares at Haumanga Rd, Broadwood, for $4.5m from Nelly Forests Ltd Partnership and intends to continue using the land for forestry. In another standing consent, Kauri Forestry LP advised it had made a second acquisition of 449.6 hectares at 1819 Mataraua Rd, Otaua, Far North District, from Tukurua Forest Ltd Partnership for $9.2m and would continue to use the land for forestry.
IKEA’s parent company has been busy buying up NZ forests
Last year, Radio New Zealand (RNZ) reported that Ingka Investments had been given approval for 25 sales in New Zealand covering 23,495 hectares, while one application is awaiting a decision. On its website, it said buying land in New Zealand, the US, Romania, and the Baltic states was part of its long-term commitment to responsible forest management.
“Wood is an essential part of the IKEA identity. We invest in forestland because we believe we can play an important role in supplying wood from more sustainable sources for our everyday lives.”
Some of the more prominent sales include Huiarua Station and Matanui Station in the Gisborne region with a combined area of just over 6000 hectares.
Ingka Investments paid $88 million for the two farms, which were planted into rotational forestry until 2026.
An Ingka Investments spokesperson said while the company did not have a specific land acquisition target, it did intend to make further investments.
“We are committed to being in Aotearoa New Zealand for many years and are taking a long-term approach to our planning.
“Our goal is to protect and support forest resources for generations to come, we want to create long-term employment opportunities, support local biodiversity through the protected parts of our forests, and help to sequester GHGs through the growth of our trees and through the soil of the protected parts of our forests.”
The company said it had a small management team based in Tauranga that oversees all Ingka Investments properties, and it also worked with forest management companies Forest 360, Logic Forest Solutions, IFS Growth, and Southern Forests.
“Our general approach is to invest in areas of resilience and sustainability that also offer returns. These are long-term investments spanning across decades in a material that is a significant part of the IKEA identity. In Aotearoa New Zealand, we have invested in both afforestation projects and existing forestland.”
“However, we do not participate in any type of carbon farming. We do not intend to sell carbon credits as part of our routine business practices and we are not currently engaged in carbon offsetting.”
