South-west Victoria dairy farms attracting interest: HTW
There is confidence returning back to the marketplace in dairy regions within south-west Victoria, according to the valuation firm Herron Todd White (HTW).
It noted the regions had "been somewhat removed" from the continuing strong land values in grazing and cropping sectors experience by the majority of the state as a result of the milk price clawback during the 2016/17 season.
"However, on the back of farm gate prices opening higher than initially forecasted and the Murray Goulburn/Saputo transaction now finalised, there is likely to be strong demand for milk and a change in the current milk supply landscape present in the market."
HTW noted similar to other dairying locations throughout southern Australia, corporate interest is again on the rise after being relatively subdued for the previous 12-24 month period.
Enquiry and demand for well established dairy farms had increased with several corporate entities either acquiring or looking to acquire well-established dairy farms situated within close proximity to Cobden and Warrnambool.
"Although the demand has risen, institutional buyers are asset conscious and only well-improved farms are receiving this increased interest," valuer Benjamin Mugavin said.
Farms that are poorly presented or have obsolete dairy infrastructure are receiving little interest in the marketplace.
These are commonly being purchased by large neighbouring farmers wishing to expand, Mugavin explained
