| 33 nzdairy “The corporate oversight of the five farms is very small because we have deliberately elected to have herd owning sharemilker expertise on our farms.” DAIRY PEOPLE » Dairy Farms NZ AgriMagic’s Angela Harvey and Lowcliffe Farms herd-owning sharemilker Jimmy Illingworth conducting a worm count and percolation test (for soil compaction) as part of an Ecosystem Health Check. • from page 31 Listing will give investors liquidity and obligations. That’s designed to protect retail investors who are deemed to not necessarily have the expertise to do the research and make those decisions. “The purpose of listing is to give investors liquidity so they can actually buy and sell their shares quite easily.” Listing on the NZX is also about making shares in Dairy Farms NZ available to investors who have smaller parcels of money to invest and like the idea of putting it in dairy farming. “To date the returns to our wholesale investors have been variable, based on the milk price. Our revenue comes purely from the milk we produce and whatever Fonterra or Synlait pay us for that milk. “Also we have Fonterra shares, so a return on those comes from whatever cash dividend has or hasn’t been paid over the last few years – and that has been a volatile journey. But the returns are markedly better with milk futures selling at over nine dollars for this year’s milk and up in the high eight dollars for next year’s milk. So that does provide much better returns.” With about fifty wholesale investors and a board of five Directors, DFNZ’s structure is very simple which allows a very light corporate overhead. From a farm owner’s perspective the business is operated by Craig, a CFO and an accounts assistant. “PWC do our annual audit, and our farms are revalued by Colliers Rural valuation. So we bring a lot of rigor to the business. “The corporate oversight of the five farms is very small because we have deliberately elected to have herd owning sharemilker expertise on our farms.” Scan to access our latest dairy property market research Rural & Agribusiness Valuation & Advisory Accelerating success. colliers.co.nz Rainer Irrigation – Proud to support Dairy Farms NZ New house plumbing and Drainlaying New bathrooms Supply and repair water pumps Supply and install fires Slow hotwater pressure to mains pressure New e uent fields Call any time 027 48 38 225 saunders1000@gmail.com A WIDE RANGE OF PLUMBING SOLUTIONS Three qualified Tradesmen Plumbers available
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