One of Fonterra’s biggest shareholders has put much of their dairy farming empire on the market.
South Canterbury farmers Dave and Karen Ellis are ranked No 2 on Fonterra’s list of top-20 shareholders, via their company Ellis-Lea Farms (2000) Ltd.
Based in Timaru, the couple owns four farms in the district covering a total of 5469 hectares and with a rateable value of almost $93 million.
However, late last year they put much of their land up for sale.
According to the listing, the company’s offering consists of three dairy farms, two located at Orton, one located at Waitohi plus one support block located at Pleasant Point, South Canterbury, New Zealand. The total package is about 1400ha. It remains for sale through Bayleys.
“The Ellis-Lea Farms consistently meet production targets and collectively have produced over 2,000,000kgMS and are on target to produce 2,251,282kgMS in the 2017/2018 season milking approximately 4,682 cows,” the listing reads.
Ellis-Lea Farms owns about one million Fonterra shares, or .06%, on a market capitalisation of $7 billion.
The dairy co-op in March reported operating earnings for the business were down 24% to $323 million for the six months to January compared to the same period a year earlier.
Revenue was down 1% to $9.75 billion. However, the bottom line showed a modest return to profit of $80m after impairments and litigation costs spilled red ink over the same half last year.
Photo: Otago Daily Times
2018: $80 million