Overseas investment decision for case 201020116 - Aquila AgrarINVEST Investitions GmbH, D/S Neuseeland Milchfarm Investitions GmbH and Alceda Star S.A.

Ota Creek Farm is currently used as a dairy farm. Ota Dairies Limited Partnership proposes to continue the existing dairy farm operation. The Partnership proposes to improve the farm's productive capacity by constructing a new cow shed and by changing management practices which will see improved milk solid production per cow.

The Aquila Group seeks to create value for its investors by identifying farms that are below peak market prices, or are not being well farmed or managed, or are capable of expansion or growth, with the potential to increase profitability, production growth and improved management. The Applicant states that it is interested in a genuine return on its investments by adding value through additional capital expenditure, sound farming practices and good management.

The overseas investment transaction has satisfied the criteria in section 16 of the Overseas Investment Act 2005. The 'substantial and identifiable benefit to New Zealand' criteria were satisfied by particular reference to the following factors:

Overseas Investment Act 2005
17(2)(a)(i) – Creation/Retention of jobs
17(2)(a)(iii) – Increased export receipts
17(2)(a)(iv) – Added market competition/productivity
17(2)(a)(v) – Additional investment for development purposes
17(2)(a)(vi) – Increased processing of primary products