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Re: Another real economy victim of FIRE? Dairy farmers shoots cows, then self
That's this outfit:
http://www.nzfsu.co.nz/index.pasp?
LONG, LONG term I reckon it's a good opportunity.......but it's a question of WHEN to enter...and I think that's after the 1st or 2nd big stumble.
For me, my entry into dairy farming came after someone made a staggering investment on building a series of dairy farms from scratch......he far overextended himself.....infrastructure was new, but only approx 90% complete...milk production only about 40% of sustainable potential...we swooped in like a vulture and bought it for a song......
That's what I'd be looking for in South America.......the big draw card WAS cheap land prices to compensate for the poor(relatively speaking) local/regional general and specialized infrastructure and services.
So they get cheap land.......and the rest they need to bring with them, figure out themselves, or wait.
This outfit is approx 75% down from their recent year highs...I don't know if that's good or bad in terms of entry point opportunities.....I'm usually focused on higher return individual private equity due diligence.
I do know that a lot of NZ and Aus dairy farmers thought it would be a good idea to diversify away from JUST dairying in this region and into other regions........
I'd love to go over and have a look at AG investment in South America and combine it with a bit of mountain climbing but I've unfortunately got too many things to juggle at the moment and am a bit time poor....probably will not be able to get across until late 2011 or 2012 at the earliest.
I do know that Brazil is chocker full of lots of Americans, Canadians, Kiwis, and Aussies who have been moving to the Brazilian interior "wild west" and developing VERY big tracts......VERY big.
Originally posted by doom&gloom
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http://www.nzfsu.co.nz/index.pasp?
LONG, LONG term I reckon it's a good opportunity.......but it's a question of WHEN to enter...and I think that's after the 1st or 2nd big stumble.
For me, my entry into dairy farming came after someone made a staggering investment on building a series of dairy farms from scratch......he far overextended himself.....infrastructure was new, but only approx 90% complete...milk production only about 40% of sustainable potential...we swooped in like a vulture and bought it for a song......
That's what I'd be looking for in South America.......the big draw card WAS cheap land prices to compensate for the poor(relatively speaking) local/regional general and specialized infrastructure and services.
So they get cheap land.......and the rest they need to bring with them, figure out themselves, or wait.
This outfit is approx 75% down from their recent year highs...I don't know if that's good or bad in terms of entry point opportunities.....I'm usually focused on higher return individual private equity due diligence.
I do know that a lot of NZ and Aus dairy farmers thought it would be a good idea to diversify away from JUST dairying in this region and into other regions........
I'd love to go over and have a look at AG investment in South America and combine it with a bit of mountain climbing but I've unfortunately got too many things to juggle at the moment and am a bit time poor....probably will not be able to get across until late 2011 or 2012 at the earliest.
I do know that Brazil is chocker full of lots of Americans, Canadians, Kiwis, and Aussies who have been moving to the Brazilian interior "wild west" and developing VERY big tracts......VERY big.
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