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 should be done in consultation with a range of professionals including an agribusiness manager, an accountant and a lawyer. Many sharemilkers and herd managers get into the dairying industry with the aspirations of one day owning their own farms. It is also common for existing farm owners to purchase neighboring or nearby farms as they come onto the market to increase their own production – enabling them to increase their herd size, use the land for grazing or employ sharemilkers to manage the farm for example.
There are numerous points to take into account when looking for a dairy farm for sale in New Zealand. A few of these points include the land, dairy companies and stock.
Land
Ensure the land you are looking at is suitable to dairying. Pay particular attention to the following land based areas:
- Contour & topography
- Soil conditions
- Drainage, irrigation and water supply
- Pasture type and growth rates (especially important for milk production)
- Fences, races and gates
- Sheds, yards, silage pits, feed pads
- Bio security (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 Milk Co-operative Ltd
Stock
Many dairy farmers look for cows of medium size, which are fertile and experience easy calving. There is range of cattle breeds and breeders in New Zealand including the following:
- Holstein-Friesian
- Jersey
- Ayrshire
- Guernsey
- Brown Swiss
- Meuse Rhine Issel
Buying a dairy farm for sale in New Zealand requires a significant investment of money – anywhere between or above 1 – 5 million dollars. It is certainly not an avenue to venture into without thorough research and careful planning. Your investment plans will also be largely affected by your banks willingness to lend, your ability to make repayments based on your production levels and your ability to finance day-to-day operations such as labour, stock, feed and land maintenance.
Keep abreast of market trends and in regular contact with your professional advisors as you find potential properties. Take into account the above points regarding land, dairy companies and stock when it comes time to make an offer on a dairy farm for sale in New Zealand.
Bruce Spurdle started his Real Estate career in Te Kuiti, New Zealand, in 1969.
He now oversees 9 Real Estate offices across the central North Island of New Zealand. These are spread between the beautiful coastal town of Whitianga on the Coromandel Peninsula, down through the Waikato, and King Country to the ski-resort town of Ohakune on the southern side of Mount Ruapehu.
The 40 years in Real Estate has seen Bruce’s business expand in the number of offices operating, expand in the number of quality & knowledgeable salespeople employed and expand to cover every aspect of the real estate industry.
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Tags: agricultural business, dairy farming