The 60 hectare farm sold at auction for $5.8 million, equating to $97,000/ha including dairy company shares. It is believed to be a record price for a New Zealand dairy farm.
The property, at Waitoa, 10km north-east of Morrinsville was close to the Tatua Dairy Co-operative.
PGG Wrightson real estate agent Peter Lissington said the auction attracted considerable local interest.
“Between 40 and 50 people attended, with strong interest from other farmers, particularly those supplying Tatua, as well as the banking fraternity.
“This part of the Waikato is recognised as having some of the most desirable rural property in the country, and the farm on offer is an excellent example of that.
“While we have seen one or two sales in the past equating to about $75,000/hectare, this one, reaching $97,000/ha, is unprecedented. As the sale included shares in Tatua Dairy Co-operative and the entitlements the company’s farmers need to supply it with milk, when those are deducted, it still equates to about $80,000/ha for the land and buildings,” he said.
Producing 85,000 kg of milksolids last year, the farm was on target to exceed that this season, from a herd of 200 Jersey cows. A local farmer was the successful purchaser.
Lissington believed the high price could encourage others to bring farms to the market.
“There is never a shortage of buyers for high-quality farms and, despite short-term challenges for dairy farmers around the payout, current demand is particularly strong, as this sale indicates. Medium- and long-term prospects for the sector have kept interest in acquiring rural property buoyant. This sale could encourage other farmers to bring rural property to the market. Those who do are unlikely to be disappointed,” he said.
