The Unconditional Blog

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Who’s interested in buying dairy farms in NZ?

Posted on: May 30th, 2008 | Filed in Website searching

With today’s announcement of a final payout by Fonterra of $7.90 per kilogram of milk solids, pumping an estimated $9.6 billion into the NZ economy, the question must be asked as to the appeal of dairy farms in NZ to overseas investors.

As was reported recently the rural real estate market is performing strongly with dairy cited as a key driver with some record sales being achieved. Some of the demand for farms is made up of domestic investors as well as industry consolidation, but undoubtedly with such profitability and capital growth, overseas investors will be showing interest.

With over 6,800 farm and agricultural land listings on the website it is interesting to look at the key countries overseas who are visiting the website to search on this category. Our statistics track visitors from over 200 countries every month of which the top 10 are pretty consistent. For this category covering farms these countries are:

  1. New Zealand
  2. Australia
  3. Great Britain (UK)
  4. United States
  5. South Africa
  6. Canada
  7. Singapore
  8. Japan
  9. Hong Kong
  10. Netherlands

Domestic traffic represents 7 out of 10 visitors with the remaining 9 of the top 10 accounting for 85% of the balance.

What is most interesting is the change in visitors over the past year. Strongest growth has come from South Africa which has seen visitor traffic searching for farms grow over 270%. Of all visitors from South Africa 11% looked at farms (the overall average for all site traffic is 5% looking at farms). High growth has been seen from visitors from both Singapore and Hong Kong with 24% and 28% respective growth in visitors. In absolute terms the US is the most significant market with 8% of all US visitors to the site looking at farms representing a 25% growth in visitors searching for farms in the year.

The other countries in the top 10 including significantly the UK and Australia showed a 19% and 14% decline in traffic to farm listings.

International web traffic to farms May 2008

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