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Posted in Business

Dairy Farms For Sale In New Zealand – Useful Points To Consider

As New Zealand’s largest industry, dairy farming is also one of New Zealand’s fastest growing industries. Finding a dairy farm for sale in New Zealand requires consultation with a variety of professionals, including an agribusiness manager, accountant and lawyer. Many sharecroppers and herd managers enter the dairy industry with the aspiration of one day owning their own farms. It is also common for existing farm owners to purchase neighboring or nearby farms as they come on the market to increase their own production, allowing them to increase their herd size, use the land for grazing, or employ shared milkers to run the farm, for example.

There are numerous points to consider when looking for a dairy farm for sale in New Zealand. Some of these points include land, dairy companies, and stocks.

Land

Make sure the land you are looking at is suitable for dairy farming. Pay special attention to the following land areas:

– Contour and topography

– Soil conditions

– Drainage, irrigation and water supply

– Pasture type and growth rates (especially important for milk production)

– Fences, runs and gates

– Sheds, patios, silage pits, feed pads

– Biosecurity (TB status, pests, diseases and weeds)

dairy company

Farmers can supply their milk production to any of the following companies represented by The Dairy Companies Association of New Zealand:

– Fonterra Co-operative Group Ltd

– Tatua Co-operative Dairy Company Ltd

– Westland Milk Products-Fonterra Brands (NZ) Ltd

– Goodman Fielder Ltd – Open Country Cheese Ltd

– Gisborne Dairy Cooperative Ltd.

Stock

Many dairy farmers look for medium-sized cows that are fertile and have easy calving. There are a variety of cattle breeds and breeders in New Zealand, including the following:

-Holstein-Friesian

-Sweater

-ayrshire

– Guernsey

-Brown Swiss

– Mosa Rhine Issel

Buying a dairy farm for sale in New Zealand requires a significant investment of money, anywhere from $1 million to $5 million or more. It is certainly not an avenue to venture into without extensive research and careful planning. Their investment plans will also be greatly affected by their banks’ willingness to lend, their ability to repay based on their production levels, and their ability to finance day-to-day operations such as labor, inventory, food, and land maintenance.

Stay on top of market trends and stay in regular contact with your professional advisers as you find potential properties. Keep the above points in mind regarding land, dairy companies and shares when it comes time to make an offer for the sale of a New Zealand dairy farm.

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