Concerns after second largest apple grower and exporter Kiwi Crunch enters voluntary administration

Major apple grower and exporter Kiwi Crunch Hawke's Bay has entered voluntary administration, alongside several other associated companies.

According to its website it managed 450 hectares of fruit-growing land across multiple orchards in Hawke's Bay and Central Otago.

Wade Steven Glass was the director of Kiwi Crunch Hawke's Bay, along with Kiwi Crunch Exports Ltd, Kiwi Crunch Orchards Ltd, Kiwi Crunch Farms Ltd, Kiwi Crunch Nurseries Ltd, and KC IP Ltd which were also in voluntary administration.

Kiwi Crunch Hawke's Bay was the sole shareholder of Hastings-based Crasborn Fresh Harvest Ltd which was placed in liquidation last week by order of the High Court in Auckland - reportedly in relation to $19m in unpaid taxes and penalties owed to Inland Revenue.

Hawke's Bay Fruitgrowers' Association president Brydon Nisbet said he didn't know how many people would be affected but there were concerns about job losses.

He said it came off the back of the difficult Covid-pandemic and post-Cyclone Gabrielle which many growers were still recovering from.

"It's never nice when companies go into liquidation or receivership and it just means there's often job losses and families that are affected.

"It's hard now days with the increasing cost of labour and compliance, and also the uncertainty of export returns all make it an industry that's not easy to navigate so it's just really unfortunate that this has happened."

Nisbet said the industry was still doing well though with positive signs after a successful apple harvest this year.

"There's new players coming on board, a lot of great new varieties that are getting planted, companies are expanding, new coolstores are getting bought, new packsheds are getting developed... there's a lot of orchards getting bought and taken up for new leases with new companies getting involved. At the same time there's companies saying it's time to move on.

"The fruit growing industry is still in a good place."

Ecovis director Gareth Russel Hoole was appointed voluntary administrator of Kiwi Crunch Hawke's Bay.

Leon Bowker or Kristal Pihama of KPMG have been appointed the liquidators for Crasborn Fresh Harvest Ltd but said they were in the early stage of the process and could not yet comment publicly.

Their first report is expected in about a month time.