ORAUEA

Large scale dairy farm: 366 ha + 29 ha lease, milking 1100 cows, 54 bale rotary, one hour from Invercargill.
 

Good purchase price: $25,240/ha plus Fonterra shares; $28.21/kgMS including Fonterra shares.
 

Subdivision opportunity. This proposal allows for a second 54 bale rotary cowshed to be constructed in 2011 so the business can run two farms.

Strong returns: Forecast internal rate of return of 14.88% with an average 9.7% cash return.

Development plan:

The key item of development is to build a second 54 bale rotary cowshed on the eastern side of the Orauea river that divides the property. This would mean that Orauea would be run as two smaller separate farms milking between 530 and 600 cows each. In MyFarm's experience this can result in higher production; cost control efficiencies; and a 5-10% premium at the time of future sale.

OfferEquity capital of $9.75million is sought from, a minimum number of Eligible Persons (s5(2CC)) or those excepted as being members of the public as defined in s3(2)(a) of the Securities Act 1978.