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

 


Northland dairy farms selling out en-masse to out of towners

Northland dairy farms selling out en-masse to cash-rich ‘out-of-towners’



Selling Northland nationwide – the regions ‘cheap’ dairy farms are being snapped up by ‘out-of-town’ buyers from regions where their land is more highly valued.


The dynamics of dairy farming in Northland are undergoing the biggest shake-up the sector has seen in more than 50 years – with a wave of ‘out-of-towners’ coming into the region to take advantage of the comparatively cheap land on offer.

In the past 18 months, $20 million dollars of Northland dairy farms have been sold to Waikato, King Country, Taranaki, Canterbury, and Westland farmers moving into the province. The sales were brokered by real estate agency Bayleys – which is now looking to accelerate the trend this year.

Among the Northland dairy farming units which changed hands to ‘out-of-towners’ in the past year were:

• A 292 hectare Pouto dairy farm milking almost 600 cows which sold to Taranaki buyers for $3.7 million

• A 370 hectare Ruawai dairy farm producing 220,000 kilogrammes of milk solids bought by a Canterbury farmer for $7.3 million

• A 283 hectare mixed use beef and dairying unit at Matakohe bought by a Canterbury farmer for $2.7 million

• An 80 hectare Ruawai dairying unit sold to a Canterbury farmer for $2.8 million

• Whangarei and Maungaturoto farms sold to buyers from the Waikato

• A 425 hectare Aranga farm sold to a King Country buyer for $2. 7million

and

• A 285 hectare Dargaville dairying unit sold to a buyer from the West Coast of the South Island for $1.33 million

More than of half the properties which sold were taken on a national ‘roadshow’ by Bayleys last year – with copies of a portfolio showcasing the farms presented at seven industry seminars.

The company is now replicating the Northland Dairy Expo this spring – with expectations that an even greater number of the province’s farms will be bought by ‘out-of-towners’.

Bayleys’ Northland rural manager Tony Grindle said the company was looking to take more than a dozen Northland dairy farms on an expo’ designed to showcase the very best of Northland dairy units through a week-long road show encompassing Hamilton, New Plymouth, Palmerston North and Auckland.

“The motivation is simply about the economics of dairy farming – and the price of quality primary productive land in Northland compared to most other parts of the country,” Mr Grindle said.

“Last year we took 11 Northland dairy units on the roadshow... and all of those available sold.

So it was a proverbial ‘no brainer’ to do it again this year. The word is certainly out in the rural market about what we did.

“We’ve been out in the marketplace for a couple of months now talking about the roadshow, and we’ve noted a stronger interest and commitment from Northland farmers wanting to be a part of the campaign and promote their properties to buyers from these traditional dairying areas.

“With the support of Bayleys’ nationwide network, we are able to gain penetration into the more traditional dairy farming areas and ensure our vendors’ farms are put in front of quality prospective purchasers who may see a premium in the Northland land values.

“While traditional marketing of any productive rural units should of course start with canvassing the immediate locality, the dynamics for diary farming have changed significantly - meaning the potential buyer pool is now nationwide.”

Mr Grindle said that as a generalisation, most young Northland farmers wanting to get into the dairying sector simply didn’t have the comparable “financial muscle” being brought to the region by out-of-town buyers who were selling up their high-value units in New Zealand’s most productive pastoral zones.

Latest figures from the Real Estate Institute of New Zealand show the average cost per hectare of dairy farms in Northland was $15,555 per hectare. By comparison, the REINZ figures show the average cost per hectare of dairy farms in the Waikato was $49,000, while in Taranaki it was as high as $55,000 per hectare.

Mr Grindle said there were a number of reasons why Northland farmers had chosen now as a good time to exit the market – ranging from the drop in Fonterra’s forecast milk solids payout for the 2024/15 financial year, and a lack of succession planning for some ‘older’ farmers looking to retire, through to the second consecutive dry season for those in the western coastal region.

“As well as it just being the right time for those individuals and families that have been weighing up their options for the past few seasons,” he said.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news