Overseas investment decision for case 201520043 - Hammond Dairy Farm Limited

$8,844,000

The Applicant is ultimately, indirectly, owned by the Public Sector Pension Investment Board.

The Land is currently being used as a dairy farm. The Applicant intends to further develop the dairy farm and increase milk production. It will engage FarmRight to manage the land for that purpose.

The Applicant intends to invest in the farm so as to increase productivity. In particular, the Applicant intends to:

• reduce reliance on supplementary feed by transitioning to a pasture-based model;
• increase the herd size run on the farm;
• improve flow on the farm with a new automated dairy shed, new effluent system and upgraded farm layout; and
• carry out aggressive re-grassing of the milking platform.

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)(iii) – Increased export receipts
17(2)(a)(iv) – Added efficiency and productivity
17(2)(a)(v) – Additional investment for development purposes
17(2)(a)(vi) – Increased processing of primary products
17(2)(e) – Walking access
17(2)(f) – Offer to gift lakebed to the Crown

Overseas Investment Regulations 2005

28(a) – Consequential benefits
28(e) – Previous investments
28(g) – Enhance the viability of other investments