$70.3m land and buildings independent valuation ($73.9m total fixed assets)
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.
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.
Strategies implemented on our farms to improve profitability.
Removing excess water from the soil profile reduces the risk of soil structure damage and encourages increased grass growth and yields.
Per-paddock soil tests enable the use of targeted fertiliser blends to maximise grass growth and mimimise costs.
Pasture Quality Management
Disciplined pasture management maximizes grass growth, reducing waste and the need to bring in extra feed. The set-up of stand-off areas reduces damage to wet soils.
Sourcing reliable water and adopting improved technology to improve productive and environmental outcomes.
Buy/Lease Adjoining Land
Allows greater utilisation of owned infrastructure e.g. more cows through our cowshed with minimal capital investment.
Investing in housing, milking plant and sheds ensures DFNZ attracts the best sharemilkers, providing key tools to maximize milk quality, including human and animal welfare.
Investing in Dairy
DFNZ was established as a pure dairy farming investment vehicle to allow investors the opportunity to access a combination of cash-on-cash returns and the potential capital growth afforded by the sector.