South Canterbury Dairy + Carbon
Overview
A Unique Opportunity in New Zealand’s Dairy Sector A well-established dryland dairy operation with support land, ideally situated just 5 minutes from Waimate, South Canterbury.
Currently milking 690 cows and partnered with Oceania Dairy Factory, this premium property showcases superior infrastructure throughout. The farm's comprehensive lane network, featuring two strategic underpasses, ensures seamless property management and optimal cow flow. At the heart of the operation is a high-capacity milking facility, designed for efficient milking sessions that minimize staff workload and maximize grazing time. Benefiting from above-average annual rainfall, the property is further secured by a 20L/sec consented irrigation take from an established well. Thoughtfully converted to dairy in 2008 by the current owners, who are now ready for retirement, this farm represents a rare opportunity in today's market. The combination of strategic location, proven infrastructure, and reliable water sources makes this property an compelling investment for serious dairy operators.
This investment offers strong targeted returns with an 9% IRR including potential upside from both cash returns and capital growth. This farm has been strategically selected for its ability to generate multiple revenue streams beyond dairy. By sequestering carbon, developing native hybrid forests, and exporting solar-generated electricity, the farm will capitalize on sustainability-driven income sources. Additionally, the farm carries $3.7M in tax losses, offering further financial efficiency.
Our plan:
✔ Buy out exiting shareholders
✔ Optimize capital structure, balancing debt and equity
✔ Implement high-value improvements, including regenerative farming, electrification, irrigation upgrades, and solar infrastructure
✔ Improve Investor Liquidity trough structure buyouts to improve on farm equity ownership.
This is a rare chance to invest in a future-proofed, diversified dairy operation with strong financial and environmental upside. New Zealand’s dairy industry remains a cornerstone of the economy, benefiting from rising global demand and premium export market and this opportunity represents an exciting way to benefit from rising global markets to drive investor returns.
Local Area:
Waimate
,
Canterbury
Waimate is a small town located in the South Island of New Zealand, situated in the southern Canterbury region, about 40 kilometers south of Timaru.
History
Waimate has a rich history that predates European settlement. Māori inhabited the area for centuries before European arrival, with the name "Waimate" deriving from Māori words that roughly translate to "slow-moving water." European settlement began in the 1850s, with the town formally established in the 1870s. The area was initially densely forested, and much of Waimate's early economic development was tied to timber milling. The famous "Waimate white pine" (kahikatea) was a valuable resource that drove early industry.
A significant figure in Waimate's history was Michael Studholme, who established one of the first large sheep stations in the area in 1854. His homestead, "Te Waimate," became an important landmark. By the late 19th century, as forests were cleared, Waimate transitioned to a predominantly agricultural economy. The introduction of refrigerated shipping in the 1880s allowed New Zealand farmers, including those in Waimate, to export meat and dairy products to Britain, transforming the local economy.
The town is also known for its historic connection to wallabies. In the late 19th century, Bennett's wallabies were introduced from Australia and have established a wild population in the area, becoming both a tourist attraction and occasionally an agricultural pest.
Funding Sustainable Farming
Soil health
Through adopting a variety of regenerative agriculture principles this property provides a unique opportunity to huge improvement in soil health. Namely the principles we will adopt are: Balance macro and micro nutrients, introduce carbon source (Bio char, humates), Multi species pastures, and reduction in synthetic fertilizer.
Native - Hybrid forestry
The hill block of this farm provides a great opportunity to plant for carbon, but we plan to do it for biodiversity too. A Redwood, native mix will be used to optimize bot the carbon mass through the redwoods but also provide biodiversity and habitat via the natives.
Solar + Batteries
By adding a 170kw of solar we get a reduction in roughly 24t CO2 production.
Why we like this deal
Turn-Key asset with strong cash flow:
The current acquisition price represents strong capital uplift and cashflow positive position for investors from launch at base value. Then with the added production bonuses by increasing irrigation, and changes in management practices to include regen principles we are optimistic about the available upside.
Multiple revenue streams:
This farm uniquely stood out to us for the ability to increase the carbon revenue by planting unproductive hill sides, along with gathering carbon revenue from the carbon sequestrated in the soil. There is also an option to export power to the grid generated by the solar and any arbitraging of the wholesale market.
Top tier operators:
We have a young family coming on a the first of June that have shown a high level of attention to detail and deep knowledge of farming systems with a proven track record.