$25m price tag for Victorian dairy farms

An emerging dairy processor is selling a 900ha dairy aggregation, spanning four farms in northern Victoria. See the details.

Goulburn Valley Creamery is selling its 907ha Holstein Milk Group Portfolio of farms.

More than 900ha of highly improved and irrigated Victorian dairy farms have hit the market following seven years in the hands of an emerging dairy processor.

Goulburn Valley Creamery, headed up by chief executive Mancel Hickey, are selling four Goulburn Valley dairy farms located 15km (linear) from Kyabram.

Offered for sale by expressions of interest, either in one line or as separate properties, Goulburn Valley Creamery’s Holstein Milk Group Portfolio comprises a 361ha farm at 315 Fidge Rd, Undera, a 298ha farm at 490 Neal Rd, Undera, a 202ha farm at 385 Park Road, Undera and a 46ha hay farm at 1856 Davies Rd, St Germains.

Secure and reliable water, including 809ML of Goulburn Murray high reliability water shares, 403ML of Goulburn Murray low reliability water shares and high-flow and low-flow drainage diversion licences are also included in the portfolio.

Offers worth about $25 million are expected for the portfolio as a whole, which can milk up to 1750 cows.

Established in 2020, Goulburn Valley Creamery employs 80 staff at its Kyabram site where it has the capacity to process 100 million litres of milk each year.

Three of the properties were acquired in 2017 (315 Fidge Rd, 385 Park Rd and 1856 Davies Rd) with 490 Neal Rd acquired not long after.

During the tenure Goulburn Valley Creamery has invested significant capital in upgrades to the infrastructure and improvements to the operations of the farms.

“The Holstein Milk Group Portfolio represents an opportunity for an investor to acquire a large-scale dairy business in a well-regarded dairy region,” CBRE Agribusiness senior director James Beer said.

The Holstein Milk Group Portfolio can milk up to 1750 cows.

UNDERA
HOLSTEIN MILK GROUP PORTFOLIO
Property: dairy
Size: 907ha
Sale: expressions of interest
Price: about $25 million
Agent: CBRE Agribusiness
Contact: James Beer, 0416 859 565 and John Harrison 0404 335 267

At 385 Park Rd, Undera, 38ha of centre pivot irrigation is developed.

“The properties are secured by both surface and groundwater irrigation entitlements, as well as the ability to pump water during high and low flow events via drainage diversion licences.”

“The vendor is offering the enterprise for sale as a going concern, or alternatively individual properties can also be acquired, along with livestock, plant and equipment and feed on hand,” CBRE Agribusiness senior director John Harrison said.

“We expect there to be interest from a broad range of purchasers, including corporates, family farming groups and local buyers.”

Existing improvements across the portfolio include two undercover feed sheds, a 50-unit rotary dairy, a 30-unit swing over dairy, two calf sheds and several dwellings, machinery sheds and hay sheds.

At 315 Fidge Rd there is 221ha of flood irrigation and 110ha of dryland cropping and grazing land, while there is 265ha of flood irrigation at 490 Neal Rd.

At 385 Park Rd, there is 38ha of centre pivot irrigation and 134ha of fully automated flood irrigation, used for fodder production.

There is also the option to acquire livestock, plant and equipment and feed on hand.