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info6408823
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Considering owning a farm in New Zealand - agribusiness.kiwi

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New Zealand .... generalized comment - stable government, population 5m, food for 90m, unlimited water, Ccean & green, pasture based farming systems, GM free, hormone free, Covid free, nuclear free. Considering owning a farm in New Zealand - agribusiness.kiwi.

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info6408823
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Re: Considering owning a farm in New Zealand - agribusiness.kiwi

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Many larger dairy and horticulture farms do use a high level of foreign labor - mainly the larger properties.

With the dairy farms we manage we use 50% sharemilkers - all New Zealanders. They own the cows and we share the expenses and income profit 50% each. Works very well. Currently returns around 4% on capital.   

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biopro1
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Re: Considering owning a farm in New Zealand - agribusiness.kiwi

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Please don't sell to Bill Gates.

southernfarminn
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Re: Considering owning a farm in New Zealand - agribusiness.kiwi

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we have a contract in New Zealand for sheep wool always great people there to deal with very nice love them 

Edd Gimenez 

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info6408823
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Re: Considering owning a farm in New Zealand - agribusiness.kiwi

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Thanks for your comment Edd - regards Mike 

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sw363535
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Re: Considering owning a farm in New Zealand - agribusiness.kiwi

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Does New Zealand use foreign labor on the farms?

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info6408823
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Re: Considering owning a farm in New Zealand - agribusiness.kiwi

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Many larger dairy and horticulture farms do use a high level of foreign labor - mainly the larger properties.

With the dairy farms we manage we use 50% sharemilkers - all New Zealanders. They own the cows and we share the expenses and income profit 50% each. Works very well. Currently returns around 4% on capital.   

View solution in original post

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sw363535
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Re: Considering owning a farm in New Zealand - agribusiness.kiwi

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So wages go down when profits go down....   Thats a good balance of value...

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info6408823
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Re: Considering owning a farm in New Zealand - agribusiness.kiwi

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That is correct although we would underwrite the sharemilker if the income got too low. Their return on capital is around 20%. Excellent business for them to grow equity. 

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sw363535
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Re: Considering owning a farm in New Zealand - agribusiness.kiwi

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Sounds tempting ...... question rises up.   Who do they market too.  And do they have profitable marketing options?

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info6408823
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Re: Considering owning a farm in New Zealand - agribusiness.kiwi

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We have several dairy companies we can supply. As farm owners we arrange that and give the sharemilker 50% of the income. We supply and hold shareholding in Fonterra which is a major world milk trader. Fonterra does the processing and marketing. We get paid for the milk which is comparable to other companies and get a dividend expected to be 5% of the share price in the next 12 months.