Dairy Farms The Future of Investment

Those seeking an alternative form of investment could be pleasantly surprised to find out that investing in New Zealand’s dairy farms could be a very profitable venture. The world population is growing and so is food consumption and milk is a part of that. New Zealand’s shift from sheep to cows can be attributed to China’s changing consumers, helping make New Zealand the worlds largest milk supplier. China is New Zealand’s biggest trading partner and has had a rise of 45% year on year in 2013 to NZ$9.9 billion. White gold as milk is becoming known in New Zealand and its changing the face of the country.

Since 1980 the dairy herd has more than doubled to 6.5 million cows whilst the number of sheep has halved. At least 300,000 hectares of land has been transferred for dairy usage. The dairy industry is driving the boom in capital investment with NZ$1 billion in dairy plants under construction. Most notably New Zealand’s export of milk, butter and cheese hit a record NZ$13.4 billion, almost a third of the total exports in 2013. Chinese demand for dairy products will continue to be driven by urbanisation, a growing middle class and an ageing population while other developing Asian nations pick up a taste for milk.  A brief overview of this change can be seen below.


Seeing the change in Export dynamics, as China is at the top and will most likely be for the foreseeable future

The key to the future: sustainability

This then leads us to White Gold Investment Partners; they are looking for high net worth individuals to assist them in acquiring high quality, but under performing dairy farms in New Zealand. Then once that part is completed the process of bringing it to profitable and sustainable levels begins. From there it will all be about selling that produce to fulfil domestic and international orders.

For a project on this scale expected returns on a 10 year term could see as much as 8% ROI per annum, and with the potential for it to increase to 10% the longer the investment carries on for. For example if you invest £5 million into this dairy farm project, your looking to gain £400, 000 in profit per year which isn’t too bad for providing the world with milk.

They key component to take away from this is White Gold Investment’s approach of sustainability, what is sustainability? Sustainability is defined as a requirement of our generation to manage the resource base such that the average quality of life that we ensure ourselves can potentially be shared by all future generations. This is where White Gold excels, with their 4 key principles People, Animals, Practices and Assets (PAPA). They are committed to providing an excellent service that’s environmentally friendly and animal conscience, think of it like Hovis bread if you will “best of both”.

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