Scoop has an Ethical Paywall
Dairy Farm market buoyed by urban NZ
Dairy Farm market buoyed by urban NZ
An increasing number of urban New Zealanders are recognising the excellent returns achievable from carefully selected dairy farms.
In 2010 68 investors have invested $44million into 9 MyFarm syndicate investments. The farms include a large scale sheep station north of Taihape, four dairy farms in Canterbury and four in Southland.
MyFarm Director, Andrew Watters says good returns and quality farms available at reasonable prices are the key drivers behind investor demand for quality farm syndicate opportunities.
Dairying has been particularly rewarding given the quality of farms available at reduced values, cash returns of 7 – 10% and the excellent long term outlook with increased dairy demand from developing nations.
He says this has resulted in an active real estate market in select areas like Southland.
“The prevailing view is that the real estate market for dairy farms is on hold with plenty of farms for sale, few buyers about and a gap in price expectations. In fact in Southland during 2010 there were 17 farms sold totalling 3470 Ha for an estimated combined purchase price of $100.6 million.”
In 2009 and 2010 MyFarm’s investment base has enlarged from the discerning farmer investor more towards town and city based retired farmers, commercial property investors and ex-pat New Zealanders.
“These people are following the food story. They know this season’s $7.25 (per kg milk solids) payout is the second highest on record and they understand the global demographics that are driving high demand. They want a tangible investment that shares in the dairy industry’s success.”
MyFarm is currently promoting its first dairy conversion syndicate investment for 2011. Peaks Dairy is a 175 ha farm in north Canterbury. It is currently operating as a dairy support unit, but with ideal size and layout for conversion to dairy with a centre pivot irrigation system already in operation. Forecasted cash returns from this investment are 8% p.a.
MyFarm syndicate investments require minimum investment parcels of $250,000 from eligible investors.
ENDS
Business Canterbury: Urges Council To Cut Costs, Not Ambition For City
Wellington Airport: On Track For Net Zero Emissions By 2028
Landcare Research: ANZAC Gall Fly Release Promises Natural Solution To Weed Threat
NZ Anti-Vivisection Society: Auckland Rat Lovers Unite!
University of Canterbury: $1.35 Million Grant To Study Lion-like Jumping Spiders
Federated Farmers: Government Ends War On Farming
