Key Takeaways
- Ingka Investments has purchased 23,700ha of farmland for conversion to forestry and 18,600ha of existing forests in New Zealand.
- The company’s forestry holdings will consist of 30,000ha of production forests and 11,000ha of land set aside for biodiversity, conservation, and other environmental purposes.
- Ingka’s purchases require government approval, and the company has stated that it prefers to acquire existing forests that align with its long-term goals and values.
- The growth of forestry has sparked opposition from farming communities and groups, with some blaming it for the decline in pastoral farming.
- Ingka Group is owned by a foundation with a charitable purpose, ensuring its independence and long-term view, and the company aims to reach its climate targets without using carbon offsetting.
Introduction to Ingka’s Purchases
Ingka Investments, a subsidiary of the Ingka Group, has been actively purchasing large blocks of land in New Zealand for conversion to forestry. According to public records published by the Overseas Investment Office, the company has acquired 23,700ha of farmland and 18,600ha of existing forests, including the Greenheart Group forests. These purchases require government approval, and Ingka’s first application was approved in August 2021 for the $24.5 million purchase of the 5500 ha Wisp Hill Station near Owaka in the remote Catlins region of Otago.
Wisp Hill Station Purchase
The Wisp Hill Station purchase is a significant example of Ingka’s plans for its New Zealand forestry holdings. The station was a sheep and beef operation with a small 53ha existing forest, and Ingka planned to plant nearly 3000ha of pine over five years. The application stated that the remainder of the land would be unplanted, including native bush, potential regeneration land, buffer land, setbacks, riparian areas, high altitude land, and roads and tracks. This purchase is part of Ingka’s larger strategy to expand its forestry portfolio in New Zealand, with the company aiming to create a significant forestry presence in the country.
Farm-to-Forest Conversions and Opposition
The growth of forestry in New Zealand has sparked opposition from farming communities and groups, who blame the sector for the decline in pastoral farming. The farming lobby has long argued that the conversion of farmland to forestry is leading to a decline in the country’s agricultural sector. However, the forest sector maintains that these claims are exaggerated. In June 2025, a ‘farm-to-forest Ban’ bill passed its first reading in Parliament, highlighting the ongoing debate and controversy surrounding the issue. Despite this opposition, Ingka Investments remains committed to its forestry plans, with the company’s Forestland Country Manager, Kelvin Meredith, stating that Ingka is currently in a growth phase and continues to assess opportunities to expand its forest portfolio in New Zealand.
Ingka’s Future Plans and Values
When asked about Ingka’s future plans, Kelvin Meredith emphasized the company’s preference for acquiring existing forests that align with its long-term goals and values. Meredith also highlighted the unique ownership structure of the Ingka Group, which is owned by a foundation with a charitable purpose. This means that no one else owns the company’s assets, and there is no dividend paid to private shareholders. According to Meredith, this ownership structure ensures Ingka’s independence, long-term view, and purpose-driven approach, allowing the company to take a different approach to forestry than many others. Ingka’s aim is to reach its climate targets without the use of carbon offsetting, and the company does not participate in carbon farming or selling carbon credits.
Conclusion and Implications
The purchase of large blocks of land by Ingka Investments has significant implications for New Zealand’s forestry and agricultural sectors. As the company continues to expand its forestry portfolio, it is likely to face ongoing opposition from farming communities and groups. However, Ingka’s commitment to its long-term goals and values, as well as its unique ownership structure, sets it apart from other forestry companies. The company’s aim to reach its climate targets without using carbon offsetting is also a significant step towards a more sustainable future. As the debate surrounding farm-to-forest conversions continues, it is essential to consider the complex issues at play and the potential implications for New Zealand’s environment, economy, and communities.