Shares in the newly-listed Australian Dairy Farms Group Purchases jumped 27.7% after it announced the purchase for $1.869 million of a Victorian dairy farm.
At $0.35, the shares are up almost 60% since listing in October. The $13 billion Australian dairy industry’s prospects increased with the signing of the Australia-China which, when ratified, will mean a lifting of tariffs on Australian goods.
The newly purchased 244 hectare Ignatios Farm is in South West Victoria’s golden triangle of dairy farming, a 16 km drive from the company’s existing Brucknell Farms.
The acquisition will be used a support farm for cropping, hay making and grazing non-milking livestock.
The company listed on the ASX on October 28, raising $9.3 million to aggregate small farms to become a major supplier of milk.
Australian Dairy Farms Group is conducting due diligence on other farms in the same area.
The company says there are numerous good quality farms remain available despite reported heightened interest in the dairy industry in recent months.