Friday, March 29, 2024

Market reset for West Coast dairy farms

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A big dairy farm for sale on the South Island’s West Coast shows prices changing to meet the market. The 438-hectare freehold farm in the Grey Valley, inland midway between Greymouth and Westport, dwarfs most other dairying units in the region. 
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Production history records for the property show that in the 2016-17 season the block milked 1200 cows producing 381,540 kilograms of milksolids.

The property is being sold by Bayleys Canterbury, with offers closing on March 1. 

Saleswoman Shari Ferguson said the vendor was seeking offers over $21,000 a hectare.

“Five years ago good-quality West Coast dairy farms were selling for between $28,000 and $30,000 a hectare,” Ferguson said.

“While some vendors still want those prices buyers have backed off, which is why this farm in the Grey Valley is priced to meet the market.

“Never has a farm with this scale been on the market at this value on the West Coast.

“It’s a really good opportunity for someone to pick up a farm of quality at a very good price.”

The substantial farm has a trio of four-bedroom houses including an owner’s homestead and with a two-bedroom worker’s cottage. Stock on the property can be bought at valuation in addition to the land, shares and support buildings.

Building infrastructure on the farm includes a 56-bale rotary shed with automatic cup removers and teat sprayer supported by a 600-cow feed pad and yard, an in-shed feeding system with twin head grain crusher fed by two large aluminum silo and irrigation via three centre pivots and K-Lines to about 310ha.

Effluent on the property is collected in two large ponds before being irrigated through a K-Line system. Further irrigation is delivered from two consented intakes out of the Grey River. In an average season the property is irrigated for 40-50 days.

Ferguson said the property was being sold with 616,173 Westland Milk Products shares. Bayleys had already received expressions of interest from sharemilkers looking to potentially become involved with any new owner on the block.

“In line with lower milksolid payouts the farm has run at lower than average stocking levels over the past three years. 

At its peak in the 2013-14 season it ran 1350 cows and produced 655,806 kilogrammes of solids.

“All predictions are that Westland Milk Products has turned the corner and that now is a great time to look at buying farms supplying the company.

“When milksolid payouts increase there is considerable upside to increase output from the property – which is situated on two large terrace plains enabling a highly efficient pivot irrigation scheme to keep grass production at very high levels.”

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