Generations of New Zealanders have cut down manuka trees and clearances continue in many rural areas.
But that trend is reversing as manuka is increasingly prized for health and food benefits.
The growth has become evident over the past five years and the industry now boasts itself as a $250 million a year earner heading toward $1 billion.
Local iwi are getting in on the act and so are overseas investors.
New Zealand’s second-biggest company in the sector after NZX-listed Comvita
Manuka Health chief executive John Kippenberger
It was set up in 2006 by Kerry Paul and supported by several shareholders including private equity investors.
Two months ago Manuka Health was taken over by Pacific Health Group, which is owned by overseas investment funds managed by Pacific Equity Partners.
The consideration was listed by the Overseas Investment Office as valued at $110 million.
None of the players are saying whether this was satisfied in cash but the company has extensive physical assets at Te Awamatu plus offices in Auckland and elsewhere.
It exports to more than 45 countries.
The takeover also ushered in an executive shake up with founder Mr Kerry becoming a director and John Kippenberger being appointed the new chief executive to take the company to the next stage.
He is a former chief executive of Premier Beehive NZ and of the Australian meat & dairy business of George Weston Foods. He is also a board member of the NZ Food & Grocery Council, a role he has held since 2013.
Manuka Health owns some of its own hives as well as sourcing from various North Island suppliers.
Mr Kippenberger told NBR the harvest in the north this year has been affected by poor weather and demand is strong as a result.
“The accelerating growth over the past five years has partly been because of the recognition of manuka as an anti-bacterial agent and its health benefits.
“It’s also been happening at the same time as a lot of land use change with pine forests being felled, often for dairying, but that is changing in some places (Landcorp has announced downscaling of its dairy operations in favour of a range of other agricultural ventures including manuka honey production).
“There‘s also more recognition of its erosion management properties on hillsides and river edges.”
Manuka Health keeps a keen eye on research and development at the production end of the industry.
One of those at the production end is Mānuka Research Partnership, which has identified the opportunity to increase the supply of sought-after medical-grade mānuka honey.
Its shareholders include Landcorp (14%), Hawkes Bay Regional Council (14%), and other private investors, according to Companies Office records.
Manuka Research has launched a commercial arm called Mānuka Farming NZ.
Its newly appointed commercial manager Allan McPherson says his focus is establishing plantations into apiary areas.
He is exhorting hill country landowners to get their hands on high-performance mānuka seedlings that could see them reaping the benefits of what is expected to be a $1.2 billion industry by 2028.
Mānuka Farming provides a full package of services to landowners interested in establishing a mānuka plantation to diversify their businesses and at the same time protect erosion-prone land.
Mr McPherson says the latest high-performance seedlings are now able to be ordered for planting in 2017 and will enable economically viable honey production as early as 2020.
He says there was high demand for the first release of seedlings and he is confident the second release will also be sought after.
Manuka Farming opens more options to many would-be producers.
Comvita has a breeding programme but growers and producers may be locked into supply agreements, he says.
Landowners interested in establishing mānuka plantations to help address erosion are able to apply for funding through the Ministry for Primary Industries’ Afforestation Grant Scheme with applications open in April 2016 for planting in winter 2017.
Mr McPherson says Mānuka Farming NZ is set to become the pre-eminent supplier of genetically improved mānuka cultivars that have been field tested and matched to individual sites. Manuka Farming NZ also offers access to services for land environment planning, site appraisal, planting and husbandry, introduces landowners to apiarist partners and assists with funding applications.
“It’s important we provide a full range of services and support for landowners interested in the industry. We have cultivars that will suit a wide range of climates.”
Mr McPherson says more than 1000ha of trial sites throughout New Zealand have been testing a range of mānuka varieties, with 400ha being more closely monitored to gather knowledge of the plants’ performance in different environments. This includes establishment, growth, nectar production and quality, floral traits and apiary performance.
“It’s not just about providing an additional revenue stream but also minimising the risk of erosion and keeping sediment out of waterways.”
Mr McPherson will be promoting mānuka plantations at the Central District Field Days in Feilding on March 17-19 and the National Fieldays at Mystery Creek on June 15-18. The company has also launched a website .
Mr McPherson says there has been a lot of corporate activity in the industry in recent weeks.
In December 2015 South Island iwi Ngai Tahu bought 50% of Masterton honey firm Watson & Son, and a new chief executive is being sought in the aftermath of the deal.
Wellington-born apiarist Denis Watson set up the firm in 2004.
Some unconfirmed reports put the value of the half share at $40 million for the company, which gleans about $30 million a year in sales from 25,000 hives.
In 2008 the company won the Deloitte/Unlimited Fast 50 award for the fastest-growing business.
Another iwi player is East Coast’s Ngati Porou Miere Partnership owned by Ngati Porou landowners.
They have been coordinating efforts to supply apiarists in the area and want to recruit more property owners to the industry.
Proponents predict the manuka industry may become bigger than farming, forestry or fishing.
One thing is beyond doubt – manuka has natural advantages in its home territory and farmers who viewed it as little more than a scrubby form of firewood are thinking again.
Meanwhile, NZX-listed Comvita’s share price is an indication of sentiment – it has risen from $4 a year ago to $10 recently on the back of strong performance. The company expects to report a full year after-tax result ending March 2016 of $15-17 million, which would be up 46-65%, compared with the previous year.
Comvita claims to have approximately 50% of honey supply under direct ownership or control, with the balance of supply from long-term contractual and partnership arrangements.
Comvita was a pioneer of the development and use of medical grade Manuka honey and was the first to receive FDA approval (2007) and it is a partner of US wound care company Derma Sciences.
Comvita sells into more than 18 countries through a network of own branded retail locations, online, and to third-party outlets. It has 500 staff in New Zealand, Australia, Hong Kong, Japan, South Korea, the UK and the US.