NZ Dairy Portfolio
Last updated 11 May 2020, by Impactyield.
Developed countries (203) / More developed regions (202) / More developed regions (North America, Asia & Oceania) (153) / New Zealand (1)
The NZ Dairy Portfolio invests in conventionally managed farms and transforms them into resilient, ecologically robust, certified organic production systems, generating long term investment out-performance. The principle investment focus of the fund is a) Ecological/organic farming activity, with a focus on dairy production; b) The conversion of farming activities from conventional to organic production, where global trends progressively favour the resilience and economics of organic farming (lower costs of production, less exposure to rising input expense, typically a premium price for organic produce); c) New Zealand agriculture, which offers compelling opportunties.
The investment case is based on: a) Incremental return and reduced risk offered by organic agriculture versus conventional production; b) Potential for current income and capital appreciation through 'change of use' via the purchase of land and subsequent change of activity, designed to achieve both higher current returns and land values; c) Experience of the manager with regard to these activities and specifically these activities within New Zealand; and d) A long-term (six year) premium paying fixed price organic milk supply agreement.
By bringing together a small group of extremely knowledgeable and experienced individuals, Agro-Ecological has made farmland available to investors who operate an Impact Investment driven approach . More information at www.agro-ecological.com
To generate financial performance through capital appreciation of land and the cash yield of farming operations. The major farming enterprise of focus is pastoral dairy (milk production) supported by beef, sheep, potentially mixed cropping and perennial systems (eg kiwifruit, apples etc.), amongst others. The target IRR range is 9%+ after fees, tax and carry (assuming 0% leverage).
of track record
the year funded
Key performance indicators
Asset manager: Agro-Ecological Investment Management
Product track record: Fund has 6 years of track record
Target IRR: 9%
Committed Capital: 0 NZD (New Zealand Dollar)
Target return category: Risk-adjusted market-rate of return
Fund domicile: New Zealand
Product status: Open - no committed capital
Style/Stage: Development, Value-Added
Inception year: 2017
Vintage year: 2017
Target region: Developed countries, More developed regions, More developed regions (North America, Asia & Oceania), New Zealand
Target close date: n.a.
Product term: 10 years
Assets under management: 300,000,000 NZD (New Zealand Dollar)
Investment size: Min: 0; Max: 0; Avg: 0
Currency of investments: NZD (New Zealand Dollar)
Currency for fund / product figures: NZD (New Zealand Dollar)
Fund investments to date: 0
Fund investments to date exited or repaid: 0
Management fee: 1.5%
Carried interest: 20%
Hurdle rate: 5%%
GIIN Investors' Council Investment: No
Limited Partners / Investors: n.a.
Limited Partner / Investor Type: Development Finance Institution (DFI), Endowments/Foundations, Family Office, Pension Funds, Other Institutional Investors
Phone number: +64 (0) 22 570 2887
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The fund invests in conventionally managed farmland which it then converts to certified organic management.
The International Federation of Organic Agriculture Movements (IFOAM) offers the following as part of its description of the environmental benefits of organic agriculture.
“Through its holistic nature, organic farming integrates wild biodiversity, agro-biodiversity and soil conservation, and takes low-intensity, extensive farming one step further by eliminating the use of chemical fertilizers, pesticides and genetically modified organisms (GMOs), which is not only an improvement for human health, but also for the fauna and flora associated with the farm and farm environment.
Organic farming enhances soil structures, conserves water and ensures the conservation and sustainable use of biodiversity.”
In addition we will be creating career pathways for young and talented local managers into ecological/organic farm management as well as participation in property ownership. This is a genuinely sustainable pathway that will otherwise not be available to them.
We have ambitions to expand our impact in to other jurisdictions such as Africa and Latin America.