DFNZ was established as a pure dairy farming investment vehicle to allow investors the opportunity to access a combination of cash-on-cash returns and the potential capital growth afforded by the sector.
There is a finite amount of suitable land for low cost dairy production, which supports the potential for earnings and capital growth.
Whilst initially set up with a mixture of NZ and offshore equity, the long-term vision is to be mostly NZ-owned.
DFNZ owns seven high quality dairy farms and leases one block.
As a matter of priority DFNZ plans to list on the NZX. To achieve a successful listing the company needs to have a larger equity base than it currently has. Directors are actively pursuing a range of alternative strategies to enlarge the company.
DFNZ targets the acquisition of farms in some of the most favourable dairy producing areas in the world: Canterbury, Otago and Southland.
These areas demonstrate the following key characteristics:
- Highly productive pastoral regions, typically growing more grass;
- Least variability in production due to climatic and / or irrigation resources; and
- Established and proven regions with significant dairy infrastructure.