Case Studies

 Longrow Pastoral

Longrow pastoral was a large scale sheep and beef farm converted to dairying in 1994.  The following year two neighbouring farms were purchased and a further two cowsheds (to make 3) were built.  The property was managed for profit, which included a change of management structure, before ultimate sale to one of the syndicate members in 2000.

South Hill End

South Hill End was a property bought from the Howard Patterson group of companies in December 2003 for $3.05 million.  The farm was an existing dairy farm of 200 Ha producing 150,000 kgMS.

The development plan was to crop and regrass approximately 30 Ha of cut over forest area and 10 Ha of peat, which had been partially developed.  The business plan identified target production of 208,000 kgMS by 2008/09.

For the season ending May 2006 the development is largely complete and production was 201,000 kgMS; a production level approximately two years ahead of target.  The following figure shows approximately 45% growth in shareholder equity in 30 months of ownership.

Dairy Brands

Dairy Brands was a publicly-listed company that purchased property in the early 1990s, converted it to dairying whilst employing 50/50 sharemilkers.  By the late 1990’s the company was failing having paid no dividends and the original 50 cent shares valued at 27 cps.

AGInvest sourced capital and took over the management of the Dairy Brands farms (12 dairy farms) in conjunction with a Joint Venture partner, Farmers Mutual.  After governance changes, the sale of a incidental asset and the replacement of 50/50 sharemilkers the Company paid its first dividend in 2001.  The opportunity came to sell the properties, which was effected, and shareholders received a capital buy-back at 74 cents per share, a gain of 138% p.a. for the period under AGInvest management.