Saturday, December 31, 2011

Dairy Farm Investment - Buying Into a Stable Industry

Dairy farm investment is a great option for investors as it is very popular and financially beneficial. It is usually arranged to make sure that best practice dairy farm management can be carried out by various equity managers on any given investment farm. The dairy industry makes up around a quarter of the export industry. Dissimilar to sheep which are mostly grown for their lamb and wool, cows are a much more lucrative option for the farming industry. They produce milk which is mostly used to manufacture things such as butter and cheese and a whole range of other food ingredients and nutritional products.

The importance and necessity of dairy farming makes it a good financial option because of its guaranteed demand. New Zealand heavily relies on the dairy industry for economic health and because there is enormous international demand for milk based products it is logical that so many investors are looking to this sector as an investment farm prospect. Dairy farms stand for a perfect financial opportunity for New Zealanders and overseas investors and over the past ten years the dairy farming industry has provided outstanding and stable returns and a secure asset.

Capital outlay on farms is usually decided by a cost benefit analysis and this is followed by a strategic shift to areas in technology and farming practices that enhance and ensure cow performance is top notch. Equity managers are a very important part to a business's viability and performance. They give stability to a business's performance as long term management steadiness provides for continuous knowledge and development. Such farms are founded and function in a way that will make certain that they perform at a sustainable intensity and meet all local and national regulations that are presently in place so investors know their assets are not in the wrong place.

The main production areas in New Zealand include: Waikato, Taranaki, Southland, Northland, Horowhenua, Manawatu and Westland. For those investors new to this agricultural industry, the milking season in New Zealand typically operates from 1 June to 31 May each year. New Zealander's herds mostly consist of Fresian and Fresian-cross cattle. The largest milk processing companies in NZ include: Fonterra, Tatua Co-operative Dairy Company, Westland Milk Products and Synlait.

New Zealand is one of the world's most competent and proficient dairy farming economies and has a large reputation for producing comprehensive international research, practices and products. There are over 13,000 farmers and between them they produce 1.25 billion kilograms of milk solids annually from around 3.5 million milking cows. This just goes to show why dairy farm investment is a lucrative option. If you are considering investing in the rural industry, then this sector is the perfect choice as it is forever improving and expanding. Find out more about this financial opportunity today.

Waibury Agricultural Investments owns and operates dairy farms and grazing-support farms situated predominantly in the North Canterbury region of New Zealand. Waibury secures on farm equity operators to increase the long-term productivity of these farms through prudent capital development if required. It maximises production, cash flow and expected payout and its resulting in increased capital value.

Find out more about our dairy farm investment opportunities here.

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