Dairy Market & Valuation   |   Kiwifruit Market

 

Dairy Market & Valuations

(January 2017)

Values have remained relatively steady over 12 months, at around $40 - $50/kg milk solids.

The Dairy Industry is in a holding pattern presently with value levels appearing to hold despite the significant reduction in payment level.

The 2015/16 season showed further drop to $4.30.  Most farmers (without debt) will be operating at a loss at this level.  The forecast for 2016/2017 season is $6.0/kgms.  There is currently a lot of volatility in world dairy commodity prices, but there are signs that global supply and demand for dairy products is rebalancing after a period of over supply and stock piling.

The most recent sales indicate going concern sales prices at around $45 - $50 per kg milk solids.  Further analysis indicates land without buildings and title allowance of predominantly between $35,000 to $40,000 per hectare or $35 to $40 per kg milk solids.

The size, standard of improvements, location and soil types are key factors in determining saleability and value.  The subdivision potential and house site allowances provide additional value over and above the productive base and also reflect a degree of liquidity of security.

 
Kiwifruit Market

(January 2017)

Kiwifruit Orchard values have continued to strengthen on the back of record green (Hayward) payout levels ($5.23 2013/14; reducing to $4.35 per tray 2016, although forecasting around $5.0/tray for 2017 crop based on low volumes.  There continues to be confidence in the new gold (G3) variety with good productivity and tolerance to the disease, Psa.

Green value levels now predominantly in a range of $300,000 - $425,000 per canopy hectare (including crop) with emphasis on orchard gate returns which can range predominantly from $40,000 - $70,000 per canopy hectare.

Gold orchard values vary dependant on canopy cover (age from grafting).  The few sales at near full canopy indicate value between $750,000- $825,000 per canopy hectare (including crop).  Presently it appears there is further strengthening in gold orchards.

 

 

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