Major dairy farming portfolio placed on the market for sale

Media Release
5 .12.2016
Major dairy farming portfolio placed on the market for sale

One of New Zealand’s larger private-structured dairy farming operations – producing some $8.5 million worth of milk a year – has been placed on the market for sale.

The portfolio of Otago farms encompasses four stand-alone dairying operations located some 15 kilometres south-west of Oamaru. They are owned by Oamaru-based company Borst Holdings Ltd.

Combined, the 992 hectares of land produce a whopping 1,418,000 kilograms of milk solids annually from a herd of 3380 animals. The four operations within the portfolio are:
• Pleasant Creek Farm – a 321 hectare property split into 42 paddocks, milking 980 cows. The farm has five dwellings – including a five-bedroom executive style homestead, a four-bedroom manager’s residence, a second four- bedroom dwelling, and a trio of two-bedroom staff quarters in various configurations.
• Kauroo Flats Farm – a 225.4 hectare property split into 32 paddocks, milking 980 cows in an automated 70 bail rotary shed. The farm has three dwellings – including a four-bedroom homestead, a four-bedroom manager’s residence, and two adjoining one-bedroom flats.
• Kinloch Farm – a 247 hectare property split into 34 paddocks, consented to milk 700 cows in a 54 bail rotary shed built last year. The farm has three dwellings – including a three-bedroom homestead and two converted portacoms used for staff dwellings.
• Incholme Farm – a 197.4 hectare property split into 29 paddocks, milking 720 cows in a 46 aside herringbone shed. The farm has three dwellings – including a four-bedroom homestead, a three-bedroom residence, and a two-bedroom worker’s cottage.

The portfolio is being marketed for sale with Bayleys Canterbury through salespeople Kurt Snook and Noel May – with offers being taken until a December 15 deadline. Mr Snook said the farms could be bought individually, in any combination of entities, or as one entire portfolio.

“This collection is one of the largest private dairy farming portfolios to have come onto the market since the Crafar and McVitty portfolios some seven years ago,” he said.

Mr Snook said all farms were well maintained, and had substantial infrastructure buildings – such as calf-rearing sheds and shelters, lock-up barns, effluent pump sheds, and cattle yards. All four units had highly-developed cattle races to ensure easy access to the respective milking sheds.

Mr May said the Borst Holdings portfolio had been strategically built up over a number of years. However, a change in the vendor’s personal circumstances meant the farms were now being placed on the market for sale.

“The location of three of the farms is in immediate proximity to each other - allowing for a considerable operational cost-efficiencies. This ranges from staff cross-utilisation and rostering, through to maintenance scheduling and asset maintenance. The fourth farm is only a 30 minute drive,” he said.

“All of the properties are well irrigated – either pumping water from springs or with permits to draw water from the Kakanui River and its tributaries, or the Otekaieke River.

“These are highly productive units – all grow fodder beet enabling wintering for at least 80 percent of cows on the farms.

Kauroo Flats, Incholme and Pleasant Creek farms have supply contracts with Fonterra, and associated shareholdings, while Kinloch Farm has a supply contract to Oceania Dairy Ltd.

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