Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


$35million invested in dairy farm syndicates

$35million invested in dairy farm syndicates

New Zealand investment in dairy farming will step up in 2013 after attracting strong interest in 2012, says the one of the country’s largest dairy farm managers MyFarm.

MyFarm Director Andrew Watters says: “The industry is entering a positive cycle in 2013, benefitting from rising global milk prices and greater investor focus on the sector.

“The successful $525 million capital raising by Fonterra in December highlighted the attractions of dairying, but at the same time revealed the complexities of investing in the sector in New Zealand. Only by investing in dairy farms can investors benefit from rising milk prices.”

In the year to December 2012 73 New Zealanders invested a total of $35 million in four new My Farm managed dairy farm syndicates and eight established dairy syndicates. This compares with $43.9 million in 2011, when 81 New Zealanders invested into 12 new dairy farm syndicates and 2010 when 68 investors invested $44 million into 9 new syndicates.

The lower number of new dairy farm syndicates compared to 2010 and 2011 reflected falling dairy commodity prices for the first half of the year and a lower milk price for most of the year.

“This year’s group of investors made their decisions based on the long term trend for higher dairy demand, rather than the anomaly of high supply from 2011/12.”

2012 also saw the successful launch of new investor partnerships that enable eligible investors to make smaller investments in MyFarm syndicates. More than 50 eligible investors have signed up for this $20,000 minimum investment option to date.

Mr Watters says Fonterra’s mid-December announcement of a $0.25/kgMS lift in payout will be followed by more global dairy price increases and an end of season payout above the current forecast of $5.90-6.00/kg MS.

In 2012 MyFarm syndicated to a good balance of new (52%) and repeat (42%) investors and also saw some US and European investors join syndicates alongside expat New Zealand investors.
Directors of recent syndicates have included the directors of listed companies, senior executives of multinationals; award winning dairy farmers, senior dairy industry executives, medical professionals, expat fund managers and sheep and beef farmers.

Mr Watters said in 2013 MyFarm is planning to develop a secondary market to enable retail investors to participate in MyFarm syndicates.

MyFarm is currently offering investment in a Southland dairy farm, which has 23% production upside and is nestled within a cluster of MyFarm managed properties.

ENDS

About MyFarm: (http://www.myfarm.co.nz)

In five years MyFarm has grown to become one of the largest dairy farm investment managers in New Zealand, rivalling Landcorp and Dairy Holdings. It has $500m of assets under its management (44 dairy farms, milking 31,600 cows). The company’s syndicates have attracted investment from nearly 300 high-net-worth investors.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news