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


NZ Farming Systems sells Uruguay farm land for US$53.7M

Olam’s NZ Farming Systems sells Uruguay farm land to local interests for US$53.7 million

April 28 (BusinessDesk) - NZ Farming Systems Uruguay, the South American dairy unit of Singapore-based Olam International, has sold some 7,771 hectares of farm land in Uruguay to local interests for about US$53.7 million in gross cash proceeds.

The transactions would free up cash “for redeployment into more value-accretive projects,” Olam said in a statement.

About 1,769 hectares in west Uruguay was sold to farming group Nalmer Sociedad Anonima, while retaining access for the next two years via a lease. It sold 6,002 hectares in the east to Galperin Group, and will lease the land back for 12 years with renewal by mutual consent.

Olam expects to book a pretax gain of about US$18 million once the transactions are completed in the fourth quarter, it said.

Olam moved to 100 percent ownership of Farming Systems in late 2012, having taken control the previous year. Farming Systems first listed on the NZX in 2007 with the aim of building a dairying business based on New Zealand farming techniques in the South American country, where land was comparatively cheap and the industry relatively undeveloped.

It was later caught by the global financial crisis, which dried up access to credit, while drought sapped production. Olam came to the rescue with debt assistance.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Science Awards: NZAS Celebrate NZ Scientific Achievements

The Marsden Medal is awarded for a lifetime of outstanding service to the cause or profession of science, in recognition of service rendered to the cause or profession of science in the widest connotation of the phrase. This year’s medal is awarded to Dr Mike Andrews. More>>


Court Rules: Affco 'Unlawfully' Locked Out Meat Workers

The note says the full court found for the plaintiffs, "that is that the defendant locked out the second plaintiffs unlawfully and that it breached s 32 of the Act by acting otherwise than in good faith towards the plaintiffs while collective bargaining was still going on." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news