July 31, 2009

New Zealand Farming Systems Uruguay, managed and part-owned by PGG Wrightson (PGW), is getting back on track with its expansion plan.

The company had been forced to slow down its dairy farm conversion programme and reduce stock numbers earlier in the year due to a severe drought and international commodity cash.

But the company has now picked up the pace, completing a US$30 million bond offer in Uruguay that was well over-subscribed, being strongly supported by government pension funds and the insurance authority.

The farm development programme is regarded by the Uruguayan government as nationally important, according to PGW financial services group manager Michael Thomas.

The bond issue will provide the company with funding for another five milking sheds, along with irrigation and power supply.

NZ Farm Systems Uruguay plans to run about 50,000 stock on 36,000 hectares when the development programme finished in about two years, Thomas said.