Agricultural asset manager Warakirri Asset Management has launched an Australian and New Zealand dairy strategy.
The new ‘own-and-operate’ strategy is expected to deliver competitive risk-adjusted returns of over 10% per year by investing in a diversified portfolio of investment-grade dairy farming and infrastructure assets.
Warakirri already operates a portfolio of 57 dairy properties across Australia and New Zealand.
Jim McKay, Warakirri’s managing director, said: “We believe significant long-term investment opportunities continue to exist in the dairy industry and have seen a constant increase in demand for milk and dairy products both domestically and in the Asia Pacific region.
“There is a global supply deficit in milk, looking out to 2030 and beyond, of approximately 20 million tonnes of liquid milk supply, which is approximately a 17% deficit to total demand.”
Ben James, Warakirri Dairies CEO, said: “Dairy is the third-largest food source by volume globally and not only is total milk consumption growing, but per capita consumption is growing with around 15% of all new food consumption via dairy products.
“Growing demand and shrinking production has supported milk price growth over the long term, which has outpaced inflation and which is expected to be supported by widening milk-supply gaps.”
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