Cranberry farm sold to DWC for $2

Development West Coast is about to take full ownership of Cranberries NZ Ltd, paying the grand total of $2 for a 50% stake owned by the original founders of the company, Roger Brough and Mark Lawler, of Nelson. DWC chief executive John Chang told a media conference today that the trust, after investing over $2.5 million in the experimental Westport operation, had called in its loans. The founders were unable to repay the loan and had each agreed to offer their share of the company to DWC for just $1. Initially, DWC injected $1.2m in the project, backed that up with a further $240,000, and then in 2007 injected a further $1.5m into the venture, becoming a 50% shareholder. In March 2007 eight people were employed on the farm, at Fairdown, and 12 to 15 people were needed during the cranberry harvest. The founders predicted the farm would eventually employ between 80-100 but as of today it had just one employee. DWC said today it planned to use the farm in the future as a model for other prospective cranberry growers, with the ultimate aim of achieving an annual West Coast harvest of 100 tonnes. The change of ownership is to be completed by September 1.