Ace Farming brings in US investor

26 Jun, 2017 01:25 PM
Comments
0
 
 Ace Farming founder and chief executive Jeremy Bayard.
These farms offer both value for money and scope for growth.
Ace Farming founder and chief executive Jeremy Bayard.

Australia's largest mainland dairy farmer, Ace Farming, has brought in a major US-based investor to buy up two huge dairy farms in southern NSW, giving the industry a big boost of confidence following a difficult period for farmers.

Ace Farming has spent more than $15 million purchasing Balboora Farm at Finley, NSW, as well as a large dairy farm at Blighty, NSW.

The company will take over management of more than 2000 milking cows.

Ace Farming founder and chief executive Jeremy Bayard, who has built the company into the largest dairy farming business on mainland Australia with a portfolio of more than 20 dairy farms, confirmed the two farm sales were proceeding.

"The acquisition of these farms is part of our ongoing investment strategy to buy quality farms for our investors where we see value for money," Mr Bayard said.

Jeremy Bayard established Ace Farming in 2007. He has built the company into the largest dairy farming business on mainland Australia.

"These farms offer both value for money and scope for growth," he said.

The deals come just as Dairy Australia released a report this month highlighting the difficult season experienced by many farmers in the southern export-focused states and how that had caused cash flow management challenges that hurt confidence and milk production.

Senior analyst John Droppert said confidence had dropped from 67 per cent in the National Dairy Farmer Survey in 2016 to 53 per cent in 2017 while profitability was at a three-year low.

However, a third of farmers are expecting to grow their herd size in the next year and two thirds anticipated their production would increase in the next three years. Input costs are also likely to improve.

Ace Farming Company, which kept a low profile as it grew, has been making farm acquisitions for European pension funds, US private equity funds and family offices.

Mr Bayard declined to comment on details of the US investor or pricing of the deals but said the long-term future for the dairy industry in Australia was changing for the better and that would attract further capital.

"A confluence of global events has weighed on the industry over the past 18 months, which has caused pain.

"Australia is now being forced to follow the other 'quasi free-market' major dairy exporting countries of New Zealand and the US, where the means of production at the farm level continues to be consolidated," Mr Bayard said.

"This does cause attrition, but it also creates opportunity."

"Ultimately it makes for more sustainable dairy farming businesses and a more profitable and competitive dairy industry."

AFR

POST A COMMENT


Screen name *
Email address *
Remember me?
Comment *
 
DATA driven quality performance indicators are helping Hans and Kerrin van Wees and Jakob Malmo to achieve high production from a pasture-based dairy system in Gippsland, Victoria. 
03 Apr 18 DATA driven quality performance indicators are helping Hans and Kerrin van Wees and Jakob Malmo to achieve high...
Seed is the most important input into any crop or pasture that is sown.03 Apr 18 Seed is the most important input into any crop or pasture that is sown.
light grey arrow
Amen! From start to finish - especially the "deafening silence". The number of times I've heard
light grey arrow
Miracle Whip changed to Mayo...I know it was bought out by Bega. It is no longer on the shelves.
light grey arrow
Received your email re Crozier Street, V/Harbor. As one of many residents in Rapid Drive,
Like a lot of dairyfarmers, Steven and Leanne Wieland's Boonah, Qld, business has grown in the past decade.13 Feb 18 Like a lot of dairyfarmers, Steven and Leanne Wieland's Boonah, Qld, business has grown in the past decade.
A Western Australian dairyfarmer says his simple effluent management system is the most cost-effective and labour efficient for his farm.
06 Feb 18 A Western Australian dairyfarmer says his simple effluent management system is the most cost-effective and labour...
Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition opportunities.25 Sep 16 Australian farm chemical manufacturer Nufarm has repaired its balance sheet and is now hunting for acquisition...
Monopoly market may confront cropping sector under mega-merger proposal.22 Sep 16 Monopoly market may confront cropping sector under mega-merger proposal.