- Australian Dairy Nutritionals (AHF) sells its Ecklin South farm in Victoria for $5.6 million
- The sale comes at a time of record land sales in South West Victoria and the final sales price represents a price of over $9500 per acre
- AHF said the sale includes the land and farm chattels but does not include the herd
- A deposit of $250,000 has already been paid and the settlement is expected to occur on September 30
- AHF is down 1.79 per cent and is trading at 5.5 cents per share at 3:47 pm AEST
Australian Dairy Nutritionals (AHF) has agreed to sell its Ecklin South farm in Victoria for $5.6 million.
The sale comes at a time of record land sales in South West Victoria and the final sales price represents a price of over $9500 per acre.
AHF said the sale included the land and farm chattels but did not include the herd. Some of the herd will be sold, while other animals will be relocated to the Group’s remaining farms.
A deposit of $250,000 has already been paid and the settlement is expected to occur on September 30.
AHF said the decision to sell the farm was made following a review, which found that a significant amount of capital was tied up in the farm portfolio. Additionally, its milk production is significantly higher than its manufacturing requirements.
The sale of the farm and some cattle will be used to repay the full finance facility.
The company’s farm portfolio now includes the fully certified organic dairy farm, Yaringa, as well as the two adjacent farms located in Brucknell, Victoria.
These farms will continue to produce sufficient milk to supply AHF’s infant formula plant.
AHF was down 1.79 per cent and trading at 5.5 cents per share at 3:47 pm AEST.