Canadians are continuing to buy into New Zealand dairy farming with the purchase of a property in the Maniototo, Otago.
Last year a report by KPMG showed Canadian investors were the biggest foreign investors in New Zealand in 2014 with 22 per cent of total investment. Despite media attention over Chinese investment, they accounted for only 14 per cent.
The sale of the 918 hectare Maniototo farm to a Canadian government pension fund has been approved by the Overseas Investment Office (OIO).
The farm was bought by Appleton Dairy Farm Ltd, wholly owned by Canada’s Public Sector Pension Investment (PSP) Board.
As part of the deal, the OIO buyer had to set aside a 160 ha wetland, part of a feature called the Taieri Scroll Plain, which is a large wetland in the Maniototo and Styx Basins, in the upper reaches of the Taieri River, and described as “the only one of its kind in New Zealand”, by the Department of Conservation.
DOC Central Otago operations manager Mike Tubbs said DOC had been approached and recommended the protection of the wetland on the property.
“The OIO’s condition that the wetland be offered for public ownership is an excellent result and will allow this wetland to be protected in perpetuity,” Tubbs said.
The fourth longest river in New Zealand, the Taieri follows an s-shaped course from the Central Otago block mountains to the sea near Dunedin. The upper catchment is a mosaic of tussock grasslands, farmland, wetlands and bogs which help store water and release it slowly into the river, protecting fish, wildlife and cultural values, and water sources. The river is well known for a number of rare native fish species and is an important trout fishery.
PSP is one of Canada’s largest pension investment managers, with about C$116.8 billion (NZ$125.2b) of assets. It invests pension funds for Canada’s public service as well as its forces and the Royal Canadian Mounted Police.
Earlier this year the OIO gave approval for the PSP to buy two dairy farms near Oxford, North Canterbury, following an earlier September 2015 dairy farm purchase.
In 2014, the OIO approved PSP buying 18 commercial and retail properties for about $1b and it increased its holding in Kaingaroa Timberlands.
The sale price of the Maniototo farm at Puketoi Runs Road was withheld under the Official Information Act.
The OIO said the new buyer intended to continue dairy farming and would engage management company FarmRight to run the property. The milking platform would be increased, largely through “significant” investment in irrigation infrastructure, along with the herd size.
Source: Stuff
