If we use the standard template of 6 tons of manuka foliage per hectare, this indicates that potentially, there is 720,000 tons of foliage available throughout the Northland region. Assuming 3 kg/lit of oil per ton of foliage, this equates to an oil stock of 2.16M kg/lit (2,160 tons). Assuming a farm gate price of NZ$300 per kg/lit and a three harvesting cycle, this would return $216,000,000 PA back to the whanau-on-the-whenua Grower-Producer members of the Co-Op, returning $5,400 per ha before harvesting costs which typically run at circa 20-30% of the farm gate price.
Estimated to have 108,000 ha of manuka/kanuka bushland. If we apply the same standard modelling template, this equates to potentially 648,000 tons of foliage to be harvested each year over a three year pruning cycle, delivering 648 kg/lit of oil delivering annual farm gate payments to Grower-Producers of $194M PA .
Let's just do some simple maths for the entire North Island of Aotearoa/NZ. Based on the reported 720k of manuka and kanuka bushland across the entire Island and using the same standard modelling, there is an estimated 4.32M tons of foliage "out there". Using a three year pruning cycle, this equates to 1.44M tons PA producing 4,32M kg/lit of oil returning $1.29B PA in farm gate payments to the grower-producer landowners.
50,000 ha of manuka foliage on a three year pruning cycle delivering 16,666 harvest-ready whenua PA
This will return NZ$178k PA in farm gate payments annually to each of our 500 Grower-Producer members.
From the sale of 300k of oil yielding US$2,200 per kg/lit through vale added products delivers NZ$1B in top line revenues
Incorporated in Aotearoa/NZ and registered under the New Zealand Cooperartive Companies Act 1996, MWCL is the local holding company for all operations. All landowning, Grower-Producer Member Shareholders own "Transacting Member" shares in the Co-OP and are participate in the Annual Farm Gate Price (AFGP) payment template under which they are paid for the whenua taonga they deliver to the gate under a 20 year (standard), Product Supply Agreement.
MOT is a wholly owned Affiliate (Subsidiary) of the Co-Op that was incorporated to provide harvesting support to Grower-Producer members (where required) and to provide and operate the oil extraction facility that produces the tikanga compliant manuka oil required for the in-house, proprietary "Tribal" skin, hair and body care range of consumer health and wellness products.
All of the skin care value adding product development is undertaken in Aotearoa/NZ through locally incorporated 177 East Ltd, a wholly owned subsidiary of "MWCL", the NZ Cooperative company. Oil produced and collected from GMS landowner members is purchased from the Co-Op based on the Annual farm Gate Price (AFGP) for the raw foliage.Profits from the skin care value adding are returned to GMS in the form of annual profit sharing over and above the AFGP payouts.
Hey, we want to get our story out to the world and let you all know what is happening east of the 177th meridian down in Aotearoa / NZ. We reckoned that the best way to do this is to put up newsletters that give the skinny as some folks say. Or as we say"Out-East" listen to our korero.