United States investors were the largest investors in our dairy land during 2013-2014, analysis by KPMG has revealed.
In the report on Overseas Investment in New Zealand’s Dairy Land, KPMG has analysed Foreign Direct Investment (FID) decisions by the Overseas Investment Office (OIO) for the 2013-2014 period.
It shows that the US was the largest investor in dairy land during that two-year period – accounting for 56% of the freehold hectares sold, and 26% of the consideration paid.
Justin Ensor, KPMG Deal Advisory Partner, says this highlights a common misconception about offshore investment in our dairy farms.
“There is a widespread perception that it’s a thin market – comprised of Chinese and Hong Kong investors - who are buying New Zealand dairy land. In reality, though, the market has a broad base of investors.”
China accounted for only one of the 24 transactions for dairy land approved by the Overseas Investment Office (OIO). That was the major acquisition of Synlait Farms, which accounted for 12.0% of hectares sold, and 21.3% of consideration paid.
Earlier this year, the Government rejected an $88 million bid from Pure 100 Farm Ltd - a subsidiary of Chinese-owned Shanghai Pengxin – because the benefits to New Zealand were not “substantial and identifiable.”
© 2020 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.