Investing in New Zealand Dairy Farms
DFNZ provides qualified investors with an opportunity to have a direct investment in dairy farming in the best dairying regions of the country. The core business strategy is to purchase quality land and invest to address factors that are limiting productivity, including soil fertility, drainage, irrigation, buildings and management, while achieving environmental enhancement.
The Herd Owning (50/50) Sharemilker model is used to manage the farms to maximise alignment between farm owner (DFNZ) and farmer (Sharemilker). This model also streamlines DFNZ’s overhead structure and costs.
Industry Overview
Demand for dairy products is accelerating strongly, particularly in developing countries.
Global demand for dairy is expected to increase by 2.5% per annum to 2020, largely driven by increasing urbanisation and rising incomes in emerging markets (Deloitte 2017).
Asia (particularly China) leads this growth in demand, driven by Western eating patterns and rising living standards. NZ has numerous free-trade and preferential-trade agreements in this region.