Council regulatory and planning manager Milan Hautler said it was a chance to use land the council was required to own.
"We thought 'well let's diversify a little bit and make use of areas of land where it's considered difficult to harvest pines' so council is investing in that as a joint operation with Comvita.
"There's not much else that can be done other than keep it in pines. There are areas where most of it is quite accessible for harvesting but there are some areas that are difficult.
"It seemed like an ideal opportunity to trial these manuka seedlings."
A contractor is expected to begin harvesting pine trees to clear space for the manuka early this month.
The manuka seedlings will be planted in May or June and it will take about three years for the trees to become established and for any honey to be produced, Mr Hautler says.
Unique manuka factor (UMF) honey has strong antiseptic and healing properties and is recognised by the United States Food and Drug Administration (FDA).
It has significant export potential and demands high prices.