Dairy Brands To Auction Two Farm Properties

News Release 6th October 2000

DAIRY BRANDS TO AUCTION TWO FARM PROPERTIES

Agribusiness company, Dairy Brands NZ Limited has announced plans to sell two of its 14 farms by public auction from 22-24 November.

Proceeds from the sale of ‘Murrayfields’, in North Canterbury, and ‘Pukeuri’, in North Otago will be re-invested into growing the profitability of the company’s 12 remaining farms, seven are located in Canterbury and five in North Otago.

“Funds raised from the sales of the Murrayfield and Pukeuri farms will be re-invested into converting more suitable properties into ‘company farms’, where Dairy Brands owns land, stock and machinery and employs farm managers,” according to Peter Jensen, chairman of Dairy Brands NZ Limited.

“We plan to improve profitability by continuing to invest in our properties to allow optimum performance. Dairy Brands will continue to investigate further land investment opportunities that are consistant with our consolidation stategy. The timing and extent of changes will depend on a number of factors, including the time taken to sell the Murrayfield and Pukeuri farms, stock prices and NZDG share requirements.”

Dairy Brands NZ Ltd announced a positive operating profit for the year ended 31 May 2000 of $119,000 following earlier successive losses.

A profit of approximately $1.5 million is forecast for the 2000/2001 financial year following the full implementation of new farm management systems including production monitoring, feed planning, the management of supplementary feed, and on-farm supervision.
“Over the last three years, three farms have been successfully converted to company-managed operations. The conversion programme will ensure that Dairy Brands captures the revenue from production, increasing our return on investment and profitability”.

“The sale of the Murrayfields and Pukeuri farms is consistent with Dairy Brand’s policy over the last few years of developing its role as a farmer and not just a property owner through the conversion of its farms from 50/50 sharemilking contracts to company-owned and managed operations”.

“Dairy Brands’ vision is to be an efficient large-scale farmer, running a profitable and sustainable farming business,” Mr Jensen said.

ENDS

For further information, please contact:
Peter Jensen Telephone: 07 543 1061
Chairman 025 972 551
Dairy Brands NZ Limited

Dairy Brands New Zealand Limited
68 The Square, FMG House
PO Box 1943
Palmerston North, New Zealand
Telephone+64 6 351 8907
Fax +64 6 356 4138
Email corporate@dairybrands.co.nz

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