News

Gerry’s dairy for sale

By Dairy News

ADMINISTRATORS FOR Coomboona Holdings are putting up the big Undera dairy business for sale.

The company was placed in voluntary administration in March.

The dairy business gained significant coverage when Harvey Norman founder and executive chairman Gerry Harvey announced his company had bought 49.9 per cent of the business in September 2015.

The multi-million dollar dairy near Undera, which was established by Alex Arena, was originally expected to milk up to 6000 cows and grow a substantial amount of its own feed.

The dairy had consistently registered losses, with its 2017 annual report noting a loss of $5.95 million for the year ending June 30, 2017, following a $2.71 million loss for the year ending June 30, 2016.

The farm has been listed with Elders Real Estate on instruction from Stewart McCallum and Ryan Eagle of Ferrier Hodgson, and the sale process is being managed by Elders executives Nick Myer and Anthony Stevens.

According to Elders, the dairy boasts state-of-the-art technology combined with modern purpose-built infrastructure and a premium quality milking herd originating from some of the world’s highest profile registered Holstein genetics.

The business has a portfolio of 3461 Ml water entitlements, in addition to 650 Ml of dam storage, and extensive Goulburn River frontage.

Currently milking about 2500 Holstein cows, the dairy boasts annual milk production of more than 30 million litres.

A current supply contract is in place with an Australian milk company.

The agents say given recent levels of investment, the property is ideally positioned to capitalise on further expansion and feed-lotting opportunities.

Coomboona Dairies is available on a walk-in walk-out basis, including livestock, plant and equipment, feed on-hand and consumables, by way of expression of interest closing on Thursday, August 16.