- My Story Is
My client is an excellent vegetable farmer in a very good growing area of Tasmania.
He is looking for the right equity partner as a way to expand his business.
Vegetable farming has always been his goal, even while he and his brother were growing up on their family’s wonderful dairy farm near Meander in Tasmania.
The family did an excellent job of generational transfer when their father decided to retire in the year 2000.
They acquired a vegetable farm and ran that together with the dairy farm under one business.
In 2005, the brothers decided to separate the dairy and vegetable businesses into their own different legal corporate entities.
His brother now owns and operates his family’s original dairy farm and is also a well-known as an excellent farm operator.
My client achieved his goal to focus exclusively on vegetable farming.
The vegetable farm business of my client has a good location adjacent to the highway immediately north of Deloraine.
His good location is a competitive advantage for the sale of his vegetables to the major local distributors like Simplex and McCains.
His farm grows and sells about these amounts per year:
Carrots – 500 to 600 tonnes
Onions – 500-600 tonnes
Sheep – 400 ewes are grown as a natural fit with our vegetable business.
The goal of my client now is to double the size of his farm from 300 acres to 600 acres.
One reason is that economies of scale should increase his profitability.
I also estimate that a larger farm will protect his business if the vegetable industry consolidates like it already has in dairy.
My client has already identified two different farms that could be purchased.
A$1 million or so is the estimated price that he may be able to buy one of these farms. Neither farm is currently listed for sale in the the market.
My client is searching for an equity partner who has a natural need to invest in vegetable farms in our area.
EBITDA, Total Asset Values and balance sheet financial figures are available on request for qualified parties.
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