The region’s award-winning land use diversification project, Branching Out, an initiative of Te Puna Umanga Venture Taranaki, has now completed Phase 2.

Phase 2 of the project was funded to progress a selection of ventures identified during Phase 1, that did not yet have a clear path to market in New Zealand or where there was scope to move beyond existing areas of production.  It focused on moving these ventures into practical validation - testing viability through on-the-ground growing trials across the region, while developing industry strategies, market validation reports, research, processing and infrastructure pathways, and investment frameworks to support commercialisation.

Highlights of Branching Out Phase 2:

• Successful multi-year crop trials for medicinal plants (ashwagandha and calendula), gin botanicals (liquorice and angelica), hemp fibre, crop rotations (garlic, kūmara, faba bean/oats) across multiple sites in Taranaki
• Industry strategy and market validation reports for medicinal plants, gin botanicals, hemp fibre, rotational crops, and hops
• Product development and quality testing, including compound analysis aligned with international standards for botanicals
• Secured $1million in funding to deliver pilot-scale processing infrastructure in-region, including a functional botanicals drying facility and pilot hemp fibre processor
• Development plans to support investors and growers - mapping infrastructure, indicative operating costs and profits, capital requirements, and route-to-market considerations
• Workforce training and extension activity involving WITT horticulture students, rangatahi trainees, and sector capability development including hempcrete construction courses
• Formalisation of the Functional Botanicals Taranaki Growers’ Collective to support coordinated scale-up

With these results and learnings in hand, Branching Out enters Phase 3, where the focus will be on progressing hemp fibre, sustainable crop rotations, and beyond trial scale and addressing the practical steps required for commercial supply. This includes refining agronomy, increasing production areas, and strengthening the value-chain components that connect crop from the paddock to market. The term ‘functional botanicals’ replaces ‘medicinal plants’ and ‘gin botanicals’, reflecting broader applications and revenue pathways across natural health, food and beverage, and fragrance sectors.

Hemp fibre for construction

Learnings and progress

Over the past three seasons, hemp has scaled up to 3.5 hectares of total growing trials across two sites, with further expansion planned for this growing season constrained by seed supply limitations.

To move from trial-scale crop production to practical fibre supply, the project secured Of this, $500,000 went towards establishing a pilot-scale hemp fibre processing unit as part of the Taranaki Hemp Hub, enabling hemp to be processed into usable construction inputs at meaningful volumes (up to about 640 tonnes per year, equivalent to roughly 90 hectares). Venture Taranaki has also received its first fibre orders, marking a clear shift as the project moves from proof-of-concept into commercial delivery.

A strategy has been developed centred on a hempboard ‘hero product’ - envisioned as a premier, value-added construction material manufactured in Taranaki for both the local and wider New Zealand building sector. A comprehensive Industry Development Strategy underpins this pathway and will be available soon.

In the near-term, the most immediate construction application - based on existing expertise and market interest - is hempcrete, a hemp hurd-and-binder material used for wall systems and insulation. Interest in hempcrete has been building locally and globally, with early demand coming through from homeowners and parts of the design and construction community that are looking for lower emissions building materials.

In partnership with Hemp Central and the Australian Hemp Masonry Co, Branching Out has held two training courses, helping 26 local construction professionals to use hempcrete with confidence within New Zealand’s building context.

Next steps

The next stage of work is focused on resolving the finer practical details that influence hempcrete’s broader and more consistent uptake. That includes expanding cultivar options following recent regulatory announcements to identify varieties better suited to our local growing conditions and aligned with specific end-product applications further de-risking material performance to unlock demand and continuing to build workforce capability in the construction sector to deliver hempcrete builds.

The project aims to have 90 hectares of production in place by 2028 and aims to generate further demand for hempcrete builds through market engagement and hempcrete construction training courses.

Further R&D is also proposed to validate the structural performance of a hempboard product. This is an area of interest for the project as a hemp fibreboard product could replace $45 million in imported fibreboard products, and open new export opportunities. We welcome collaboration with research institutions, manufacturers, construction partners, and investors interested in progressing this opportunity toward commercial readiness.

Sustainable crop rotations

Learnings and progress

Phase 2 trials across multiple sites indicate garlic and kūmara perform well in local conditions, and that winter-sown faba beans and forage oats can be integrated into diversified crop rotations - freeing pasture for higher-value summer vegetable production.

Branching Out garlic has been successfully sold locally in New Plymouth New World for a second year, and market validation work in Phase 2 highlighted demand drivers such as supply resilience, diversifying production locations, and opportunities linked to seasonal supply windows and extending New Zealand’s market window. There is potential to strengthen local supply chains, reduce reliance on imported ingredients, improve local food security, and capitalise on export market opportunity.

To receive a Branching Out Industry Development Plan for kūmara and associated rotational crops outlining agronomic learnings, indicative capital investment required, potential returns and development advice, please email [email protected].

Next steps

Phase 3 will demonstrate these rotations at a pre-commercial scale while continuing to secure supply commitments, and engagement with prospective growers. By 2028, the project aims to support production scaling to 5ha for garlic, 50ha for kūmara, and 50ha for faba bean and oats. A staged scale-up approach is being undertaken to de-risk market entry, validate customer commitment, and incorporate operational learnings associated with introducing a new crop at scale.

Functional botanicals

Learnings and progress

Gin botanicals, medicinal plants, and indigenous ingredients have been grouped as Functional Botanicals because they share similar growing systems, processing infrastructure, market positioning, and value-chain development pathways. All are high-value specialty crops requiring drying and quality assurance, targeting premium food, beverage, and wellness markets, and suited to a cooperative, cluster-based commercial model.

Phase 2 trials indicate that ashwagandha, angelica and liquorice are well suited to specific sites across Taranaki. Multi-year field trials have strengthened understanding of establishment methods, crop management, harvest timing, and post-harvest handling requirements.

Domestic engagement with gin distilleries and natural health product manufacturers has confirmed interest in high-quality, traceable New Zealand-grown botanicals, particularly where provenance and supply chain transparency are valued.

Locally grown functional botanicals could feasibly supply a $650m New Zealand natural healthcare market and $327b global market. The local gin export market alone exceeds $45.8 million, with 95%† of distillers surveyed indicating they would use New Zealand-grown botanicals. To receive a Branching Out Industry Development Plan for Functional Botanicals outlining agronomic learnings, indicative capital investment required, potential returns and development advice, please email [email protected].

Laboratory testing from the 2025 trial season has provided further technical validation of Taranaki-grown botanicals, showing that:

• Ashwagandha withanolide content can meet - and in some cases exceed - recognised industry quality standards.
• Liquorice glycyrrhizic acid levels are exceeding thresholds prior to full maturity.
• Angelica volatile compound and essential oil profiles are comparable to, and in some cases stronger than, imported alternatives.

As part of the Three Waters Better Off Grant Fund that the project received, $500,000 went to towards to establish a pilot-scale drying facility to support shared, high-quality drying capability in region - another crucial step in ensuring compliance and repeatable supply as production increases.

Finally, a coordinated grower structure has been formalised through the Functional Botanicals Taranaki Growers’ Collective, providing a mechanism for shared learning, aggregation, and staged scale-up. The structure is designed to enable additional landowners to participate as market demand increases.

Next steps

Phase 3 of the project will focus on expanding production while continuing to refine agronomy and reduce production costs, including further investigation of direct seeding, development of a seed production programme, and root quality optimisation. Achieving consistent bioactive compound levels at scale remains a priority, alongside validation of post-harvest processes.

Work will also continue on strengthening grower coordination, developing contracting arrangements, and securing forward supply commitments so that expansion is aligned with confirmed market demand.

Established horticulture pathways: Hops, avocados, and kiwifruit

Branching Out continues to support and investigate the adoption of large-scale horticultural pathways in Taranaki.

Around 1.6ha of hops are currently growing in Taranaki, with two growers supported to move from small trial plots into practical production and strengthen harvest and post-harvest capability. Early market validation has been realised with successful supply of fresh hops to local brewers. While inter-regional supply and export remain a longer-term play, growers have made significant investment as they look to future expansion. The Branching Out project produced a Hops Industry Report during Phase 2, providing advice to small and independent hop growers across the country looking to scale up from pilot scale plots to financially viable hop gardens.

Avocados are already established (around 80ha) with a pathway to scale as market demand strengthens, including land secured for expansion and a confirmed plan by the largest grower to establish a packhouse by 2028 with capacity to service up to 200 hectares of avocados or other permanent horticultural crops.

Kiwifruit is also established (around 26ha), with active investor interest and potential support mechanisms under consideration.

Looking ahead

In Phase 3, the project will look to extend its approach to support longer-term horticultural ventures with defined market potential, such as permanent horticulture and new specialty crops.

While some landowners have already joined pilot initiatives, others are actively seeking diversification options that align with their land, interests, and capacity. This presents an opportunity to identify additional ventures of regional relevance and to form new clusters of landowners and value chain stakeholders around these shared opportunities

About Branching Out

Branching Out is an award-winning land use diversification initiative led by Venture Taranaki to identify, validate, and scale high-value food and fibre opportunities for the region. By embedding product development, processing, market access and consumer trends into decision-making from the outset, the project aims to de-risk new ventures and build resilient, low-emissions value chains.

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