July 23, 2008

Strong Interest in Aussie Farm Buy

The Feilding-based farm syndication company MyFarm says there has been strong interest in investing in an Australian dairy farm and support unit in western Victoria.

MyFarm says it has a conditional offer in for the farm for $13.5million, but it is looking to raise the money before it buys the property.

It is a 386ha dairy farm and 120ha support unit.

The company says at this stage it looks like it will be over- subscribed. And at least a dozen prospective investors are going to Australia later this week for a field day on the farm.

Director Andrew Watters says: "The property has 1100 cows producing more than 500kg MS/cow and very good quality management in the existing staff."

He says dairying in the region is experiencing rapid growth due to its ideal climate.

Mr Watters says average farm production in western Victoria increased 7 percent in 2007 and confidence is high.

"Current milk price forecasts in Australia for 2008/09 are about A$6.50/kgMS (NZ$8.12/kg MS) and costs are similar to New Zealand.

"There is not the same requirement to buy dairy company shares and the capital cost of land is lower at about $22,200/ha," he says.

(c) 2008 Evening Standard; Palmerston North, New Zealand. Provided by ProQuest Information and Learning. All rights Reserved.