Dairy Market & Valuation | Kiwifruit Market
Dairy Market & Valuations
Values have remained relatively steady over 12 months, at around $40 - $50/kg milk solids.
The Dairy Industry is in a holding pattern recovering from the record low payout of $3.90 per kilogram of milk solids for the 2015/16 season.
There has been solid recovery to 6.75 per kilogram milk solids for 2017/18 season and a forecast at a similar level for the 2018/19 season.
The micro plasma bovis cattle disease is however providing a lot of uncertainty in the industry generally which may make farms more difficult to sell in the short term.
The most recent sales indicate going concern sales prices at around $50 - $60 per kg milk solids. Further analysis indicates land without buildings and title allowance of predominantly between $45,000 to $50,000 per hectare or $45 to $50 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 Orchard values have continued to strengthen on the back of record green (Hayward) payout levels, but more on 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 $350,000 - $450,000 per canopy hectare (including crop) with emphasis on orchard gate returns which can range predominantly from $50,000 - $80,000 per canopy hectare.
The mature gold orchard values indicate value between $900,000- $1,100,000 per canopy hectare (including crop). These are full good quality orchards with very good infrastructure.