MyFarm Investments

Rimu Dairies Limited Partnership


Register Interest


The law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to this offer if you are a person who comes within Schedule 1, clause 3(2)(a)-(c) or 3(3)(a)-(b)(ii) (inclusive) of the Financial Markets Conduct Act 2013. This includes where the amount invested upfront by the investor (plus any other investments the Investor has already made in the financial products) is $750,000 or more.


If you fall within Schedule 1, clause 3 of the FMCA as a result of this exclusion, you may not receive a complete and balanced set of information. You will also have fewer other legal protections for this investment. Investments of this kind are not suitable for retail investors. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.

Transaction Size
NZD $7,250,000.00
Share Price
Minimum Investment
NZD $50,000.00
Issue Type

Your opportunity to access forecast returns of 7.5% p.a from a diversified selection of assets in Dairy: New Zealand’s #1 export industry.

Rimu Dairies LP aims to deliver strong investor returns from the best of New Zealand’s dairy sector.

Income will come from the partnership’s three assets:

1)     A 172ha dairy farm, located in prime Southland dairy country and to be managed on a 50/50 sharemilker agreement.

2)     Shares in Fonterra, one of New Zealand’s largest companies with 80% share of New Zealand’s milk production.

3)     Shares in LIC (Livestock Improvement Corporation), one of New Zealand’s leading providers of animal genetics.

The 7.5% p.a forecast return is based on a combination of dairy farm earnings (60% of income) and dividends from the shareholdings (40% of income).

Why Dairy?

Dairy is a powerhouse of the New Zealand Economy and our largest export, with annual dairy exports valued at $22bn. After a difficult period, the sector has been through a reset over the past eight years, and has emerged stronger, having built a track record of positive returns. Global supply and demand growth are back in line, and this stability has led the milk price to reach new highs over the past two years. With this season’s milk price forecast of $8.50 per kgMS, returns for dairy farmers remaining firmly in positive territory. There is also now more clarity around environmental regulations, and land prices have moderated sufficiently to provide investors with the potential for a healthy cash return.

Why the Rimu Road Property?

The 172ha dairy farm is located in a prime farming area, 19 km from Invercargill. The property is well appointed, with a 40 a-side herringbone cowshed with automatic cup removers, modern effluent disposal and good homes. The farm has a strong track record of consistent performance, and its fertile soils and climatic conditions mean good pasture levels year-round, reducing the need for imported feed and other high-intensity farming methods.

The farm is operated through a 50/50 sharemilker model, which reduces operational risk for investors. The bulk of the costs most exposed to price pressures and volatility are the responsibility of the sharemilking partner. The sharemilker owns the cows, moveable plant and machinery, employs all staff and operates the farm in return for 50% of the milk income. The farm owner receives the balance 50% of the milk income. This structure often attracts the best young farmers and is an important route to farm ownership.

Why Invest in Co-op Shares?

The Partnership plans to invest 25% of its funds in Fonterra FCG and LIC (Livestock Improvement Corporation) shares, both of which are forecast to deliver dividend yields of over 10% in the coming years. As an investor, you can only access these shares if you own farmland and belong to those co-ops through supply or use of services.

Fonterra, with 80% share of the national milk supply, is back on track with a clear strategy focused around New Zealand milk and sustainability. Recent performances have matched their market guidance.

Fonterra Co-operative Group Limited (FCG) shares are forecast to deliver dividend yields of over 10% p.a based on today’s prices. As a bonus, a capital return is also forecast by 2024, meaning total dividends over 2023 and 2024 are forecast to represent 39% of the current FCG share price.

The Fonterra share structure is such that the dollar value dividend is the same for FCG as the NZX-listed FSF shares, however FCG shares are currently trading at a 15-20% discount to FSF shares, giving a higher percentage dividend yield.

LIC is listed on the NZX, and is one of New Zealand’s leading providers of dairy genetics, dairy milk testing services and herd improvement software. Their shares are currently generating a 14% dividend yield plus imputation credits.

MyFarm Upcoming Webinars

An introduction to Fonterra & LIC Webinar

Thursday 23rd March, 12 noon

We will be joined by Joshua Dale and David Harris from Craigs Investment Partners.

Investors will gain an analyst's view on global dairy nutrition co-operative Fonterra, and LIC, a world-class herd improvement technology co-operative.

Joshua and David will take us through each company's recent performance as well as their outlook for the future.

Register here.

An introduction to Dairy Farming and Rimu Dairies LP

Tuesday 28th March, 12 noon

Explore the fundamentals of dairy farming. MyFarm's Grant Rowan will be discussing dairy as a business, covering the management of dairyland, the 50/50 share milking model, and exactly what products are produced as New Zealand's biggest export earner.

We’ll be joined by the wider MyFarm team with Investment analyst Brad Rose, and Head of Establishment Gareth Evans covering the due diligence and financial modelling of Rimu Dairies Limited Partnership.

Register here.

Rimu Dairies LP Factsheet - 7 March 2023
March 7, 2023
Rimu Dairies LP IM - 7 March 2023
March 7, 2023

Join our Business/Issuer newsletter

Our quarterly Issuer newsletter is for businesses and issuers, and contains platform updates and business insights.

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.