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MyFarm launches dairy investment in mid Canterbury

Sunday 16 August 2008

MyFarm launches dairy investment in mid Canterbury

MyFarm says its latest investment offering is a response to very strong demand for dairy equity partnerships from investors seeking low risk, high return investments - in particular from farmers looking to expand their business.

The company has a conditional contract to purchase a large-scale 615 Ha property that includes four spray-irrigated dairy farms, 25kms south of Ashburton in the prime region of mid Canterbury.

MyFarm Director, Andrew Watters says this will be the third large property syndication by the company this year, with over $55million invested in MyFarm syndicates in the past eight months.

“Strong dairy commodity prices, falling interest rates and a falling NZ dollar are all factors that favour early-season investment in the dairy sector.”

MyFarm is proposing to form three syndicates from the mid Canterbury property: Westerfield (475 cows, first year conversion); Clackmae (1500 cows, two sheds, surplus irrigation water rights); and Eildon (350 cows).

Andrew Watters says it offers opportunities for all types of investor.

“For example – the new conversion, Westerfield is a simple two-person farm which will be very cheap to run and will suit investors wanting a smaller equity partnership. On the other hand, Clackmae has scale and surplus irrigation water rights with the potential for substantial business growth.”
Canterbury is one of the most productive dairying regions in New Zealand and Andrew Watters says these investment farms are all ideally set up to capture the benefits of farming in the region.

“Good farms with shallow water and economies of scale, can produce more than 1500 kgMS/ha very efficiently in Canterbury, which at current payouts can generate between $5000 and $6000/ha earnings before interest and tax.”

MyFarm™ will host a series of field days at the property and is seeking investor interest before the unconditional date of purchase 12 September. Syndicates will take over ownership 1 December 2008, meaning they will benefit from the high payout expected this season.

Earlier this month MyFarm completed its most recent syndicate in a 500ha dairy farm in South Western Victoria. The syndicate, Hines Dairy Partnership is now owned by New Zealand investors who invested $13.75million. Strong cash returns and the early season purchase were a major attraction of the Australian syndicate and Andrew Watters says the mid Canterbury property will also appeal to investors looking for solid cash returns and a strong growth outlook from this particular Canterbury investment.


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