June 22, 2021
Investment firm acquires 2,200 hectares of dairy country in north-west Tasmania, Australia
Australian investment company Prime Value has recently paid $62.5 million for 2,200 hectares of dairy country, as well as around 4,000 milkers and 1,000 young cattle, to expand its holding in north-west Tasmania, Australia.
The land and cattle were sold by Chinese businessman Xianfeng Lu, who bought 19,000 hectares including the historic Woolnorth property in 2016 from the Van Diemen's Land Company. It allowed Lu to establish the Van Dairy operation, which said that the sale was part of its commitment to return 10% of its area to Australian ownership.
Prime Value manager of dairy investments Kirsti Keightley said the 11 farms purchased from Van Dairy were ideal additions to the company's initial dairy purchase in Tasmania made in July last year.
Prime Value opened its dairy portfolio by purchasing a farm in south-west Victoria in 2019, and added another in the same region last year.
Keightley said the company's model offered a boutique option for investors. She addedd that a dairy fund, which sits in Prime Value's alternative asset class, offered an investment option for employees wanting to build capital while working in the industry.
On its website, Prime Value said its dairy farms owned prior to the Van Dairy deal were milking 1,900 cows, estimated to produce more than 11 million litres of milk in 2019-20.
"We will supply milk to the domestic market for the foreseeable future, and we also intend to establish a dairy beef operation to rear the young bull calves from our breeding programme," it stated.
- Beef Central