Prices of farms down by 10-15pc

The dairy boom appears at an end.

Dairy farm prices have eased 10 to 15 per cent in recent weeks on the back of tumbling international product prices and concerns Fonterra may further lower this season's payout.

Some real estate companies have gone 10 weeks without completing a dairy farm sale, as vendors and purchasers stand off waiting for the market to find a new level.

Southern Wide Real Estate director Dallas Lucas said sales of dairy farms had now resumed, and he expected to complete some transactions in the next few days, with five offers under consideration for Southland dairy farms.

However, farms that in August were selling for $40 or more for every kilogram of milksolids produced were now fetching between $35 and $38 per kilogram.

To read the NZ Herald story click here

Posted: 8 Dec 2008

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