AUS
NZ
UK
CA
USA
IND
.jpg)
Summary
- 12 farms from Van Dairy sold to the Australian investment entity.
- The Company was previously facing environment-related issues.
- Tasmania appears to be the favoured region for dairy farming.
In a recent announcement, it has been found that Van Dairy, the Chinese acquired group of farms, has recently sold 12 of its assets in Tasmania, Australia. The same has been done after years of struggle in terms of business as well as concerns on whether or not, they are sustainable in their operations.
Image Source: Copyright © 2021 Kalkine Media
Also Read: Here’s How 3 Prominent NZX Dairy Stocks Are Performing - ATM, SML, FCG
What does the business entail?
This business was originally owned by New Zealand council before being acquired by a Chinese businessperson, Mr. Xianfeng Lu, back in 2016.
The deal has been struck at NZ$62.5M, according to which, the new owner would own 5K cows and primely located 2K hectares of land for dairy farming.
Mr. Lu revealed how investors from across the world had been interested in making this purchase. He further explained that that was an indication of how dairy farming in North-West Tasmania was gradually set to become a hub of the industry in the country.
Do Read: 5 NZX Stock Stories To Keep A Tab On Monday
Challenges faced So Far
The Company is said to have faced a plethora of problems in recent years, right from their board filing a mass resignation in the year 2018 to severe concerns about the management raised earlier in 2021.
Mr. Lu was of the view that the Company had kept its promise of giving 10% of the property to Australia through the sale.
Also Read: What can revive New Zealand Dairy Market in 2021?
What does the Future hold?
The new owners of the farms have said their prime focus was going to be on sustainable actions to protect the health and wellness of the animals on the farm together with environment friendly functioning to ensure less stress on the planet.
Kristi Keightley, Dairy Investments’ Manager, Prime Value Asset Management, said the company was looking to transform its new purchased assets. She further said that the discussions had been going on with the Circular Head Council, EPA Tasmania, and the dairy industry authority regarding the same.
Elizabeth Blackhurst, the alternative assets portfolio manager for Prime Value said that the region could offer the best results in terms of dairy farming if some key factors were taken care of. The place offers the best climate conditions with rainfall, which is consistent, and temperature, which is favourable.
Looking forward to building quality assets in the future, Prime Value Dairy Trusts are garnering a lot of investors’ attention.
A Quick Read: Dairy Companies Eye a Good 2021 due to their innovative strategies
