Van Dairy Group farms sold to Prime Value Asset Management
Van Dairy Group, owned by a Chinese billionaire, has sold 11 of its farms in Tasmania. It comes after claims of animal welfare abuse and underpayment on the properties.
Fund manager Prime Value Asset Management has acquired 11 dairy farms in northwest Tasmania from the Chinese owned Van Dairy Group — one of the country’s biggest and oldest dairy farming businesses.
The Melbourne-based fund paid $62.5 million for the properties, which include 5000 cows and 2200 hectares of land at Circular Head.
The Van Dairy Group, owned by the Chinese billionaire Xianfeng Lu, has been investigated by government authorities after allegations of underpayment, work compliance breaches and claims of animal welfare abuse and overstock of cattle causing effluent systems to fail and damaging nearby waterways.
The Fair Work Ombudsman reportedly launched inquiries into the claims while the Environmental Protection Agency started its own investigation.
Prime Value’s portfolio manager Elizabeth Blackhurst said the Circular Head region of northwest Tasmania offers some of the best farmland in Australia.
“We also believe by focusing on our environmental and social responsibilities, and the
welfare of our animals, we can create a farming portfolio that delivers long term benefits to
the community and strong, consistent returns for our investors, many of which are self-
funded retirees and SMSFs,” Ms Blakchurst said.
Prime Value’s dairy investment manager Kirsti Keightley said the fund already manages a farm in Tasmania, near the purchased properties, so the acquisition made perfect sense.
“We’re excited by the potential of these farms and with a falling national herd and falling national milk production, we believe this is the right time to be expanding our portfolio,” Ms Keightley said.
“We have been in dialogue with the Tasmanian Dairy Industry Authority, EPA Tasmania and Circular Head Council and we look forward to working with them, the community and local businesses to transform these assets. We welcome new investors as we build our agricultural portfolio.”
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