MG Group to expand tomato production at Warkworth site
The co-operative plans to convert part of its capsicum glasshouse to tomatoes while continuing investment in energy efficiency and nationwide supply coverage.
NEW ZEALAND – Market Gardeners Limited, trading as the MG Group, will introduce tomato production at its Southern Paprika Limited (SPL) site in Warkworth as part of the next stage of its growth plan.
The change will convert five hectares of existing capsicum glasshouse into tomato production, with planting expected to start in late 2025.
“This is a considered investment, linked to our growth strategy and in line with our commitment to produce a broader range of hothouse products in the North Island,” said MG Group CEO Peter Hendry.
“Our investment complements our existing grower-suppliers and is closely tied to our broader strategic pillar of ‘securing supply’, which delivers benefits right across the supply chain. Our customers value the consistency and continuity that comes with a strong supply base, while for our grower-suppliers, MG’s platform provides a solid foundation to take their product to market.”
The Warkworth site currently has 26 hectares of covered production. While the shift to tomatoes will use some of that space, SPL will keep capsicum supply as a priority.
Measures are already in place to lift capsicum yields this year, with export volumes balanced to keep the local market well supplied. Over the next three years, a planned 10-hectare glasshouse expansion is set to raise capsicum output while allowing for more tomato production if demand grows.
The SPL site is also beginning a large-scale energy transition, moving from natural gas to a more sustainable energy source. The change will support the upcoming 10-hectare expansion, which will include advanced technology to improve productivity and reduce environmental impact.
“We’re growing our tomato footprint, but capsicums continue to remain a priority at SPL,” said SPL General Manager Blair Morris. “We’re committed to supporting both categories and delivering stable supply to our retail partners and MG wholesale markets.”
MG Group has also started planning for future expansion at its JS Ewers site in the South Island. The Nelson-based operation increased heating capacity in 2023 with a large biomass project.
This will allow for more production flexibility and support the co-operative’s goal of maintaining strong supply across both islands.
“MG is investing for the long-term,” said Hendry. “Our staged approach will ensure broad coverage and cornerstone supply across both islands, providing our grower-suppliers with a stronger market presence and customers with greater coordination and continuity of supply.”
Founded in 1923, MG Group works with hundreds of growers, operates nine temperature-controlled branches, and manages several subsidiary farms, including SPL, JS Ewers, and Kaipaki Berryfruits. The co-operative also partners with international brands such as Dole and Sunkist.
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