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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.

The Gateway Team – When You are Serious About Property

www.gatewaytosouthamerica.com

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Comments from our readers

4 Comments
  • 28/12/2013

    Hello Henry. If you ar interested in general dairy milk prices in Brazil look at our latest post which gives you the detail. http://goo.gl/obXV8c
    Keep in mind that the NZ dairy farm mentioned here is getting 15% more than these prices due to the fact they are producing higher grade milk than the normal market there. http://garethsworld.com/food/real-milk/

    GTSA
  • 28/12/2013

    whats the price of milk there milk dairies payout to the brazilian dairy farmer,thats encluding the protrint cheques if they mave it
    henry here in ontario

    henry sterenberg
  • 10/10/2013

    Hi Sharon I suggest you approach Leitíssimo direct and ask to talk to him. Kind Regards and good luck.

    GTSA
  • 10/10/2013

    hello my name is Sharon, I was wanting for simon to contact me, by phone or by email. We were at the dairy in Bahia march 2012, we are from Canada simon had given me contact info, but I missed placed it. I would really like to speak with him in person, I am in brazil have been since june in the state of goias my cell number is ( 64 ) 9605- 2481 and my email is lsdavatz0 @gmail .com looking forward to hearing from him thanks, Sharon

    sharon daciuk