Strategy Overview
Investment Grade Dairy Portfolio
An opportunity to invest in an own, develop and operate portfolio of investment grade Dairy farming and infrastructure assets across Australia and New Zealand.
Delivering Uncorrelated Returns
The aim of the strategy is to deliver superior total returns uncorrelated to traditional markets via a combination of income from milk and livestock sales; land value appreciation and value add development.
A Positive Impact
The strategy will also focus on delivering a positive impact on the Environment and the Regional Communities in which the portfolio invests, all overseen by an independent Governance structure.
Why Dairy?
The dairy industry has a compelling structural imbalance that underpins long term return on investment.
- Increasing population, increasing consumption per capita combined with shrinking production provide favourable supply and demand dynamics
- The dairy industry has experienced a constant increase in demand for milk and dairy products, with SE Asia, Middle East and China key areas of demand growth
- There is a global supply deficit in milk looking out to 2030 and beyond of approximately 20 million tons of liquid milk supply^
- Dairy assets generate regular operating cashflow coupled with positive capital growth potential in the underlying land and water assets
- Agriculture assets, including dairy, play an important role in a portfolio with low correlation to traditional asset classes
- Scale enables productivity initiatives and carbon/methane reduction initiatives
Portfolio Assets
Seeking to develop a geographically diversified portfolio of investment grade Dairy assets within Australia and New Zealand
- Aggregations to be ‘owned & operated’ or ‘ developed and operated ’ and managed by Warakirri Asset Management
- Diversified across irrigation, rainfall, production system, access to feed markets, milk pool and processor location. Objective to target >50% irrigated portfolio.
- Optimized returns through strategic investments across the supply chain that complement the core farming assets
- Leveraging leading edge, science-based strategies in carbon reduction
- Regeneration of native vegetation – protection and management of sensitive areas to encourage regrowth and enhance biodiversity
- Renewables opportunities – dairy farming co-existing with renewable energy projects
Why Warakirri?
Warakirri’s agricultural capabilities have been developed from the learnings and experience of investing and managing agricultural assets for over 30 years. Experiences, both positive and negative, have shaped our investment philosophy and approach.
Leveraging from Warakirri’s extensive experience as Australasia’s largest milk producer, this new own and operate Dairies strategy is expected to deliver competitive risk-adjusted returns of over 10% per annum leveraging what we see as significant upside across both short- and long-term fundamentals from large-scale dairy operators such as ourselves.
Warakirri is an award winning leader in agricultural investment management, acquiring, developing and operating agricultural assets for some of the world’s largest pension funds, and with a track record of delivering competitive risk-adjusted returns.
The Warakirri Dairies strategy is available to domestic and offshore institutional investors only. For more information, please contact us on 1300 927 254 or contact@warakirri.com.au.
^ Source: Rabobank – Global Dairy Outlook Implications for 2030 and Beyond
This website is maintained by Warakirri Asset Management Limited (ABN 33 057 529 370) (Australian Financial Services Licence Holder No. 246782) and the information above provides general product information only and does not constitute financial advice as it does not take into account an individual’s personal circumstances and is not an offer or solicitation to enter into an agreement. Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested. Any forecasts, projections or other forward-looking statements contained in this document are examples only and may involve elements of subjective judgment and assumptions as to future events which, may or may not be correct or which may later change. There are usually differences between forecasts, projections and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material.