As the largest industry in New Zealand, dairy farming is also one of the fastest growing industries in New Zealand. Finding a dairy farm for sale in New Zealand must be done in consultation with a group of professionals including an agribusiness manager, accountant and attorney. Many dairy owners and herd managers enter the dairy industry with aspirations of one day owning their own farm. It is also common for existing farm owners to buy neighboring or neighboring farms when they come to market to increase their own production – enabling them to increase the size of their herd, use the land for grazing or hire milk farmers to run the farm for example.
There are several 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 for is suitable for dairy. Pay particular attention to the following wilderness areas:
– Contour and terrain
Soil conditions
– Drainage, irrigation and water supply
Pasture type and growth rates (particularly important for milk production)
– Fences, races and gates
– Barns, yards, forage pits, forage pads
– Biosecurity (TB, pests, diseases and weeds)
dairy company
Farmers can supply their milk production to any of the following companies represented by the New Zealand Dairy Federation:
– Fonterra Cooperative Group Limited
Tatua Cooperative Dairy Company Ltd
– Westland Dairy Products – Fonterra Brands Ltd
– Goodman Fielder Ltd-Open Country Cheese Ltd
– Gisborne Milk Co-operative Ltd
stock
Many dairy farmers are looking for medium-sized cows that are fertile and easy to calve. There are a range of breeds and breeders of cattle in New Zealand that include the following:
– Holstein Frisian
– Jersey
– Ayrshire
– Guernsey
Swiss brown
– Muse Rain Isle
Buying a dairy farm for sale in New Zealand requires a significant investment of money – anywhere from $1-5 million or more. It is definitely not a way to adventure without thorough research and careful planning. Your investment plans will also be greatly influenced by banks’ willingness to lend, your ability to repay based on your production levels and your ability to finance day-to-day operations such as labour, inventory, feed and ground maintenance.
Keep up with market trends and keep in regular contact with your professional advisors when you find potential properties. Bear in mind the above points regarding land, dairy businesses and equity when it comes time to make an offer on a dairy farm for sale in New Zealand.