MG Group Signals Long-Term Investment in Local Hothouse Production

Market Gardeners Limited, trading as the MG Group, announced the next phase of its growth strategy, which includes plans to introduce tomato production at its SPL site in Warkworth. This move is part of a broader investment in the co-operative’s growing operations and is aimed at supporting long-term supply certainty for New Zealand customers.

The expansion will see five hectares of existing capsicum glasshouse at SPL, which has a total of 26 hectares of covered production, converted to tomato production, with the first plantings scheduled for 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,” says 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 decision to grow tomatoes at SPL is part of a larger staged investment programme. This includes a large-scale energy transition project at the Warkworth site, with a move away from natural gas to a more sustainable energy source. This opens the door for further expansion, with an additional 10 hectares of new glasshouse space planned to be completed over the next three years. It will also feature advanced technology to improve productivity and sustainability.|

While some existing space will shift to tomatoes, the SPL team remains focused on capsicum supply. Initiatives are already underway to enhance yields this year, and export volumes will be carefully balanced to ensure strong availability for the domestic market. Over the next three years, the new 10-hectare expansion is expected to lift overall capsicum volume, while also creating the capacity to expand tomato production as the market allows.

“We’re growing our tomato footprint, but capsicums continue to remain a priority at SPL,” says SPL General Manager, Blair Morris. “We’re committed to supporting both categories and delivering stable supply to our retail partners and MG wholesale markets.”
The MG Group has also confirmed that planning has started for future expansion at its JS Ewers site in the South Island, where heating capacity was boosted in 2023 through the commissioning of a large-scale biomass project.

“MG is investing for the long-term,” says Peter 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.”

Additional Information: 

Market Gardeners Limited, trading as the MG Group
Established in 1923, Market Gardeners Limited, trading as the MG Group, is a grower co-operative and leading fresh produce business, servicing the entire market with a full range of fruit and vegetables through a network of nine large temperature-controlled branches, along with two MG Direct branches. The co-operative partners with hundreds of growers (many of which are shareholders), along with retail and food service customers. The MG Group is also involved in a number of complementary businesses, including IP and exporting, and is the New Zealand partner for large international brands, including Dole and Sunkist. Also involved in farming, the MG Group wholly owns SPL, JS Ewers and Kaipaki Berryfruits.

SPL
Located in Warkworth, just north of Auckland, Southern Paprika Limited (today known as SPL) is New Zealand’s largest single-site glasshouse operation and one of the country’s leading producers of hothouse vegetables. It operates 26 hectares of modern glasshouses on an 86-hectare site, growing primarily capsicums, alongside a smaller volume of snacking cucumbers. In 2023, SPL became a wholly owned subsidiary of Market Gardeners Limited (MG Group).

JS Ewers
Located on the Waimea Plains near Nelson, JS Ewers is one of New Zealand’s most established and respected market gardening operations. With more than 50 years of growing experience, the business has been managed by the MG Group since 2012. JS Ewers operates 13 hectares of modern hothouses producing tomatoes, capsicums and eggplants, along with a five-hectare undercover berry growing operation and 250 hectares of outdoor cropping dedicated to a wide range of green vegetables. In 2023, JS Ewers completed the installation of a state-of-the-art Biomass Energy Centre, to support a more sustainable, low-emissions future for the farm.