Historic Tasmanian dairy Woolnorth hits market after failing to secure milk contract

The owner of one of Australia’s most historic dairy farms confirms he will sell up after failing to renew a deal. The details.

Dairy cows at Woolnorth. January 29 2024 Picture by Phillip Biggs

The remaining holdings of one of the largest and most historic farms in Australia has been put on the market after failing to renew a long-term milk supply arrangement this year- offering a “clean slate” for the potential buyer.

Van Dairy Limited Owner Xianfeng Lu said he was “honoured” to have been the owner and custodian of the important property.

“It is with disappointment that I will be placing our remaining landholdings of Woolnorth on the property market, in anticipation of the expiration of our long-term milk supply agreement,” he said in a statement.

The deal with Fonterra was reported to represent a loss of about 25 million litres of milk per year, leading to a cull of hundreds of cows.

Van Diemen's Land Company owner Lu Xianfeng at Woolnorth in 2015. Picture: Chris Crerar.

Mr Lu said it had been a “privilege” to make positive contributions to the Tasmanian community and to contribute to securing a “future” for the Tasmanian devil.

“Van Dairy has some of the last devil facial tumour disease-free populations, and we have always treated this responsibility with the utmost importance,” he said.

Dairy cows at Woolnorth. January 29 2024 Picture by Phillip Biggs

“In addition, we’ve employed hundreds of locals, invested tens of millions of dollars into our farm, and returned huge flow-on benefits to the local economy too.

“Now, it is time for Woolnorth to begin its next chapter in its history,” Mr Lu said.

Dairy cows at Woolnorth The historic dairy is now up for sale. Picture by Phillip Biggs

Woolnorth was established by the Van Diemen’s land company for sheep grazing in 1827 before being developed into pasture and then converted to dairy and dairy support.

At its peak, more than 14,000 cows were being milked across 13 dairies.

There are now eight dairies included in this sale.

According to the information memorandum prepared by Tony Maguire from Nutrien Harcourts Tasmania the downsizing means the prospective buyer has a “clean slate” to determine the future direction of the property.

The pastured land was converted into dairies and dairy support by New Zealand-based Tasman Agriculture, after it became the major shareholder in the mid ’90s.

Van Dairy bought the company under its previous name Moon Lake Investments in 2016 for $218m.

In 2021, 12 farms were sold to Prime Value, an asset manager based in Melbourne, for $62.5m. Later in the same year 6000ha in the Woolnorth area were sold to TRT Pastoral Group for more than $120m.

The promotional material for the sale highlights several enterprise opportunities and the tourism potential of the property – including a shipwreck beached on the property’s coastline and buildings dating back to the 1830s.

It said some of the quarters were used successfully in the past for guest accommodation – “a pursuit that will be re-established and expanded”.

There are seven homes, two workshops, a director’s lodge and numerous other homestead and dairy infrastructure on the property.

It also comes with a combined 10,3710ML water supply – which Nutrien says has “substantial” market possibilities for spring water and rain water.

The property is being offered as a whole or part purchase, with expressions of interest due to Nutrien Harcourts by Wednesday, June 12.

The potential buyer will have first right of refusal on the Van Diemen’s Land Company name and registration, grazing leases on both the Studland and Bluff wind farms, the original Duck River Butter factory and land among other assets.