October 5, 2010

New Zealand's investment office approves Big Sky Dairy Farms sale

The Overseas Investment Office of New Zealand has approved the sale of Big Sky Dairy Farms to Harvard University in the US.

The dairy farming operation in the Maniototo district in northern Otago was set up as a dairy farm conversion in 2001, milking a herd of 3000 cows. It was placed in receivership in 2007, but has continued operating.

Harvard University already has investments in New Zealand's primary sector, including another dairy farming operation in Otago. It is also the majority investor in Kaingaroa Timberlands, which has about 170,000 hectares of cutting rights to plantation forests in the central North Island.

The Big Sky Dairy Farms receiver, Murray Frost of Deloittes in Dunedin, says the sale to Harvard University includes all livestock, three rotary sheds, several houses, and 1600 hectares of farm land. He says the 22 staff working on the farm are expected to keep their jobs under the deal.

A sale price has not been made public. The Harvard University investment will be overseen by an Auckland-based firm, Franklin Rural Management.