Melbourne investment company Prime Value has purchased 11 dairy farms from Van Dairy Limited (VDL), the biggest dairy farm conglomerate in Australia.
The purchase of the north-west Tasmanian properties, including about 4000 cows and young stock on 2100 hectares, from Chinese businessman Lu Xianfeng follows controversy around slipping standards on VDL’s 23 farms.
Most of the board governing the Van Dairy properties resigned in 2018 over differences in opinion.
The 11 farms were purchased for an undisclosed amount by Prime Value — but guesses can be made considering Mr Lu spent $280 million to acquire VDL in 2016 (then called Van Diemen’s Land Company).
The 11 farms will be added to Prime Value’s small portfolio of large-scale dairy farms in south-west Victoria and north-west Tasmania.
Prime Value Dairy Trusts portfolio manager Elizabeth Blackhurst said the group was attracted to the Circular Head region because it offered some of the best farmland in the nation.
“We also believe by focusing on our environmental and social responsibilities, and the welfare of our animals, we can create a farming portfolio that delivers long term benefits to the community and strong, consistent returns for our investors, many of which are self-funded retirees and SMSFs (self-managed super funds),” Ms Blackhurst said.
Prime Value lists its objectives as acquiring water-secure properties for pasture-based farming and absorbing dairies geared for climate change.
“Inexpensive and plentiful water is the key to successful dairy farming,” the company’s website said.
“To meet this requirement for water, our farming assets will be strategically located in the high rainfall regions of south-west Victoria and Tasmania.”
Prime Value’s existing Tarkine Farm comprises 327ha, of which 311ha is grazing land with 55ha of irrigation.
The dairy has a 60-unit rotary system with automatic cup removers, automatic teat spray and autodrafting.
Source: dairynewsaustralia.com.au
