Giant organic dairy farm portfolio goes on market
The Aquila dairy portfolio, located in the southernmost part of the South Island and one of the largest organic dairy operations in the Southern Hemisphere, is for sale.
The portfolio has an amalgamated farm footprint of 2970ha and is milking a peak number of 5162 cows with five of the six farms having A2-bred herds.
In 2018 the farms were all certified organic to the EU standard and collectively became the largest single supplier of organic milk in New Zealand and one of the largest suppliers of organic grass-fed milk worldwide.
With five of the six farms having A2-bred herds, it is most likely the largest single supplier of certified organic A2 milk today.
The properties are spread across Edendale, Kaiwera, Otautau, Gore, Dipton and Orawia.
The largest farm, Glencairn, spans 1398ha and is located near Dipton. The other farms measure between 192ha and 458ha. Each farm is well improved with a highquality standard of infrastructure.
The forecast production for the portfolio for the 2023-24 season is just over 2 million kilograms of milk solids and is paid a substantial organic milk supply premium (plus a further A2 organic milk premium).
The existing supply contract with Open Country Dairy runs until 2027 creating opportunities for those interested in potentially converting these farms back to conventional dairy systems. Staff are well versed in organic management practices and considerable effort has been put into creating holistic and sustainable farm systems that are process-orientated, making them easy to manage and implement.
Being recognised as an organic farm relies on land inputs such as using natural fertiliser, animal wellbeing through taking an individualised approach to herd management, and providing development and training opportunities for staff.
Created on the principles of sustainability, these farms present an opportunity to own a significant slice of New Zealand’s dairy supply that is resilient to future environmental compliance and future-proofed for consumer preferences for sustainably sourced nutrition.
Colliers rural sales advisers Ruth Hodges and Mike Eyles are seeking expressions of interest on or before 4pm, Wednesday June 12.
Aquila Capital acquired the farms in 2011 and developing them into organic operations aligned with their investment strategy and long-term goals.
The portfolio is overseen by Aquila Sustainable Farming Ltd, Aquila Capital’s farm management company, with each dairy farm operating under a limited partnership model where the day-to-day operation is the responsibility of individual local farm managers and their on-farm teams.
Jessica Craig, general manager at Aquila Sustainable Farming, says the time is right to divest the portfolio and let the new owner take it to the next level.
“We have an excellent team who manage the properties, and this means if someone purchases the entire portfolio, they will acquire a turnkey asset with efficient systems in place,” Craig says.
“There are multiple ways the farms can be taken forward in the future and we think buyers will recognise the considerable work we have done and the benefits of organics for the dairy industry.”
There are 28 houses spread across the farms that serve as accommodation offerings for workers. Further infrastructure includes eight rotary and one herringbone shed.
Hodges, director of Colliers Rural & Agribusiness in Otago and Southland, says an ongoing capital investment programme means there is solid farm infrastructure across the portfolio as well as strong underlying ESG principles.
“The portfolio comes with wellestablished organic supply chain relationships to further enhance operational systems and risk management,” Hodges says. “The farms have been developed to get the best out of the land, animals, and people through strong sustainability fundamentals via its portfolio manager.”