TOMATOES! TOMATOES!! MG Group Fires Up the Glasshouse for a Red-Hot Future

In a bold move worthy of a chef’s kiss, Kiwi-based, MG Group is putting its weight and five hectares of glasshouse real estate behind the humble yet heroic tomato. Up in Warkworth, North of Auckland, the co-op’s sprawling SPL site, best known for pumping out capsicums by the crate-load, is about to get a makeover. And not just any makeover, think of it as a long-term love letter to local tomato lovers, with seedlings expected in the soil before the end of the year.

Source: MG Groups - SPL Glasshouse operation at Warkworth, North of Auckland

This is definitely a tomato power play. MG Group isn’t just tossing a few vines into a corner; they’re signalling a serious commitment to food security, domestic supply, and year-round freshness in a market that’s increasingly volatile. The glasshouse conversion comes as New Zealand’s covered tomato sector continues to ride a high wire of strong demand and narrow margins. With more than 120 hectares under cover and over a thousand Kiwis employed in the trade, tomatoes remain one of the country’s most in-demand crops, raking in more than NZD 130 million annually and keeping produce aisles looking ripe and ready.

But it’s not all sunshine and solariums. Local growers have been bruised by price drops caused by oversupply, with some even questioning the viability of sticking with tomatoes at all. Exports have also withered, from over 3,000 tonnes in 2019 to barely 900 tonnes last year—largely destined for Japan, New Caledonia, and Fiji. The result? A tight domestic market, dominated by hothouse-grown produce feeling the squeeze from rising costs and shrinking returns.

Meanwhile, just offshore, a red tide is rising. The Asia-Pacific region currently devours nearly 40% of the global tomato market, a juicy USD 72 billion slice of the global pie. Projections put the sector on a steady climb to USD 304 billion by 2034. That’s a lot of passata.

Source: PFN Ai Archives - Depiction of tomato harvesting inside a greenhouse

Regional forecasts peg Asia-Pacific’s own tomato market value at nearly USD 90 billion by the mid-2030s, with volume tipped to cross 100 million tonnes. Even the seed market is sprouting, worth over USD 400 million this year and growing at nearly six percent annually. Controlled-environment agriculture is clearly having a moment.

MG’s Warkworth glasshouses, acquired with the SPL brand back in 2023, aren’t just infrastructure. They’re leverage. The 27-hectare site, already pumping out 7 million kilos of capsicums a year, will now double as an engine for tomato innovation. It’s a hedge against market shocks, a statement of domestic confidence, and a reminder that co-ops still know how to play the long game.

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