Farming Systems looks beyond Uruguay

by Dave

A model that Gujarat Co-operative Milk Marketing Federation Ltd could consider replicating.

via NZ Herald:
Dairy farm operator NZ Farming Systems Uruguay continues to buy up land in the South American country, while eyeing opportunities across the border.

NZ Farming Systems was set up by PGG Wrightson to develop dairy farm operations in Uruguay and was floated on the stock exchange in December.

The company has bought another 4400ha of farmland in Uruguay during the current half-year, taking its total holding to 36,300ha.

Chairman Keith Smith said the cost of land was rising but the entry price was still low and the economics of development attractive.

The land purchased came at an average price of US$3700 (4692) a hectare.

PGG Wrightson group general manager financial services Michael Thomas said comparable land in New Zealand could cost between US$45,000 and US$50,0000 a hectare.