Franklin property presents pork industry opportunity
November 2022

Franklin property presents pork industry opportunity

A Franklin district rural property is for sale. Containing a large piggery and located between Mangatangi and Maramarua just off State Highway Two, the farm provides an excellent opportunity to invest in the New Zealand pork industry.

Mark Needham and Kane Needham of PGG Wrightson Real Estate, Pukekohe are offering the 143 hectare property on behalf of Sunpork Australia.

“Sunpork is Australia’s largest pig producer, also with a substantial New Zealand operation.

“As well as the piggery, this property presents additional income streams from forestry and grazing land.

“This listing offers investors an ideal entry to the pork industry. While pork producers face some hurdles at present, the sector’s fundamentals are sound, which provides good opportunity for investors prepared to take a long term approach,” says Mark.

Like many others in the primary sector, pork producers are facing multiple challenges, which for pig farmers range from the price of feed, to sourcing labour, issues around country of origin labelling, and concerns about pending animal welfare regulations.

“Most primary production investment requires the capacity to weather cyclical trends. At present, pork is at a relatively low point in its cycle. However, the sector is well placed to overcome its challenges, suggesting investment now should reap good medium to longer term rewards. All pork presently produced in New Zealand is consumed in this country: we do not export pork, though our pork production is at the leading edge on country of origin and welfare issues, which also bodes well for the future,” says Mark.

 

PE - Needham - buildings

 

Accommodating a maximum of 4900 pigs, the piggery sits on a nine hectare footprint within the property.

“Comprising offices and several specialised facilities such as a workshop, laboratory, food storage and preparation area, isolation unit and sheds for various stages of the pig lifecycle, from mating and gestating to finishing, the property also has a four-bedroom and three three-bedroom staff houses. The pigs are housed in enclosed sheds that have either retractable sides for ventilation, or are mechanically ventilated.

“They feed on a diet of dairy by-products such as whey and dissolved air flotation, and/or pelleted feed. Drinking water is sourced from a bore on the property, and the sheds are flushed regularly with clean water.

“Effluent from the sheds, comprising approximately 100 cubic metres per day, is washed and scraped through channels and underground pipes to an anaerobic/aerobic oxidation treatment system. This consists of three wastewater ponds, which operate in sequence and are located within a gully to the west of the piggery complex. Treated wastewater is irrigated onto pasture within the north-eastern portion of the farm in an area split into 15 blocks, providing a total land area of 22.4 hectares available for irrigation,” says Mark.

Along with the piggery operation, the property has 11,500 recently planted pines in three locations, plus one older block of approximately 3.7 hectares in forestry nearing harvest. This offers the opportunity to use the latter for grazing and cropping once the trees are taken off, diversifying the property’s potential income.

 

PE - Needham - Pond

 

“Several purchase options are available. These include Sunpork, the current owner, entering into a lease back agreement with the new owner for the piggery itself. Alternatively, the property could sell as a going concern. If required, including supply contracts as part of that agreement is a further option,” says Mark.

 

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