The only dairy farming company listed on the Australian Securities Exchange (ASX) has entered conditional agreements to buy three more farms in the state’s South West, which will double its milk production capabilities.
The three properties are close to Australian Dairy Farms Group’s (AHF) existing four farms, and together have a price tag of $16 million for the land, improvements and livestock.
The company has already raised $15.7m for the purchases at Brucknell, Elingamit and Nirranda, via institutional and retail investors, from both Australia and overseas. It aims to raise an additional $2m by offering discounted shares to existing shareholders with a registered address in Australia and New Zealand.
AHF director Adrian Rowley said the acquisitions were transformational for the company. The expansion will double AHF’s annual milk production to 20m litres, which will make it one of the top milk producers by volume in the South West, which enjoyed high rainfall and good infrastructure.
“We continue to see strong interest in our dairy aggregation strategy, as investors continue to focus on global food security and growth in demand for Australian dairy products from Asian countries,” Mr Rowley said.
He said the company was continuing to strive to a 50m litre annual production target.
He was pleased to announce that major Australian and New Zealand investors had recently bought shares in the company, and said he would like to encourage more domestic investment.
By Laura Griffen
Source: Australian Dairy Farmer