Highly Successful New Zealand Dairy Farm in Brazil
In Jaborandi in the State of Bahia Farm in Brazil where the winters are mild, the summers are not too hot and they receive 1460 mm or rain per year within the months of October and April is one of the best producing dairy farms in the world.
For example they are currently producing 20’% more that the top dairy farms in New Zealand. Not a mean feat given New Zealand leads the world in grass feed milk production. What this group of New Zealand investors have found that this area has ideal conditions for grass feed milk production.
The altitude of around 900m above sea level and minimum temperatures in the winter of 15 C let them grow grass all year around meaning they don’t have to use silage as most other counties do.
All this means their costs of production are low giving them excellent profit margins.
Currently they have 3 Centre pivots with 600 cows on each one but have the capacity to expand this to 20 on the 5,500 has they have invested in. It the largest pastoral-based dairy farm in Brazil. The farm, which now covers 5,500 ha and holds 3,500 cows, was established in 2008 by former Fonterra executive Simon Wallace, with more than US$10 million in funding from one of New Zealand’s richest internet entrepreneurs, Sam Morgan. In 2010, the New Zealand-owned company opened a milk processing plant, which sells milk under the brand name Leitíssimo.
The company is in the process of a farm expansion that will triple the size of its farming operations.
Wallace sees no conflict between what his company is doing and his home country’s dairy export ambitions. “The value of Fonterra is not that milk is produced in New Zealand; it is that milk is produced in a lot of places and then traded around the world. New Zealand dairy farmers have a massive investment in a global business, not just a few dairy farms in New Zealand. We have done this since the start; it’s just that sometimes in the semantics and discussion that goes on we get a little bit protective or focused on the land holding.”
This operation is an excellent example of how Kiwi ingenuity and money can be a win win for Latin America countries.
Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Uruguay and Chile, providing expert advice on property acquisition and investment tours.
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