Smaller investors will be able to get a slice of New Zealand's dairy industry after a Feilding company slashed the minimum investment required to be part of it.
MyFarm is making investment packages available to smaller investors through its associated business MyFarm Asset Management.
MyFarm syndicate investors must invest a minimum of $250,000. However, from now on, the Feilding-based company will be offering the general public the opportunity of participating in its new syndicates from as little as $20,000.
People would be passive (silent) investors, said MyFarm sales manager Grant Payton. Historically it was only people who had large funds to invest and who met eligibility criteria that could put money into dairy farms.
"Now we have an option that is more attractive to the ‘mum and dad' investors, who have $20,000 and want access to the dairy industry. It is also attracting younger people and more city people."
Payton said $20,000 investors would invest through a collective investment vehicle (CIV) which would make a single pooled investment in a dairy farm alongside other syndicate investors.
MyFarm has 47 dairy farms, most in Southland. It has 33 staff and more than 300 investors. The company runs an investment arm while a separate farm management arm oversees the dairy farms on behalf of owners.
"The main reason we're putting CIVs together is to give the general public an opportunity to participate in the syndicates we promote."
- Manawatu Standard