Blue chip potential

Investing in greenfield dairy farms offers superior commercial opportunities than existing dairy farming ventures.

The Greenscopes Dairies model combines expert management systems with latest technologies to maximise dividends across the farm and downstream manufacturing.

 

 Our competitive edge:

  • An attractive, functioning farming asset with new infrastructure and technology
  • A dairy farming system designed for cost-efficient, consistent production of quality milk
    • We shortlist farmland highly suitable for dairying, eg greenfield sites (the financial returns do not depend on purchasing undervalued land or distressed assets)
    • We implement Standard Operating Procedures created from the knowledge base of the owners and make good use of dairy-related technology
    • The system is pasture-based for high quality dairy product and cost efficiency
    • Optimal herd size to produce large volumes of milk (560,000 to 840,000 litres per farm) while achieving economies of scale and being straightforward to run
    • The system does not suffer the downsides of high input systems & intensification
  • A management team that puts the client first

    • Management Fees are based on the operational returns of the established farm business
  • Fully managed by a highly experienced team
    • A ‘hands on’ team that focuses on getting things done right to maximise the outcomes
    • We oversee the main risks and opportunities of dairy farming, eg: Feed costs and availability; People; and Milk price
  •  Maintaining profitability under a range of seasonal conditions and market prices
    • Including higher feed costs or lower milk prices experienced in the past 6 years
    • Based on realistic, conservative financial modelling
    • Ongoing profitability does not rely on upward trends in milk prices
    • Profitability benefits, but does not depend, on economies of scale for servicing & procurement
    • Competitive Return on Assets (eg 75% of investment represented in land, livestock and machinery and 25% in infrastructure)

 Corporate Farms – Typical investment

$12-15M (for a 1000 cow farm)

  • New, modern, efficient asset designed for the next 20 years, not the last 20 years
  • No headaches: smooth management that over time consistently achieves production goals
  • Risks around feed, people and milk price are well managed

 

Investing with confidence

Financial Returns

  • Range of RoA modelled for a greenfield 1000-cow farm purchased 2015 and starting production in 2016-17, based on costs and milk prices from our farm at Walcha.
  • Internal Rate of Return 10-13% (including development years).

Case Study

Dairy in Australia

There has never been a better time to invest in the Australian Dairy Industry.

 

  • Positive government support
  • Strong domestic and international markets for milk
  • Affordable land suitable for dairying is available
  • Pasture-based dairying is attractive to consumers from environmental and animal welfare perspectives