Overseas Investment Office data show a number of nationalities have been given consent to invest in the dairy industry during recent years.
Since July 1 2005 there have been five Irish applications, three from the Netherlands, one each from Russia, the United States and Australia, one listed as various and, this year, German company Aquila Capital was given consent for an investment in Southland.
Chen Palmer New Zealand Public Law Specialists represent Hamburg-based Aquila.
Chen Palmer partner Mai Chen says Aquila has funds of about €35 million ($62.4 million) to invest in the New Zealand dairy industry - although some of that may be invested in other places, such as Australia.
"From a risk-return point of view, the best value-for-money proposition in agriculture right now is New Zealand, given the country's low-cost geography for dairy farming," Chen says.
"Aquila's investment philosophy is to co-invest in farms with New Zealanders and to improve farm productivity using New Zealand farmers.
"This often results in significant capital development, additional milk solids and additional employment."
Cliff King, director and founder of Fielding-based farming syndicate company MYFarm, says the German investment company signalled its interest about 18 months ago.
MYFarm has been syndicating farms for 20 years, in which investors group together to buy a property.
The German company has a minority interest of less than 25 per cent in three New Zealand farms and a majority holding in one farm, King says.
"All with New Zealand investors and all with New Zealand equity managers, those are young farmers getting their first opportunity to buy the land."
The German investors, who also have two investments in Australian farms through MYFarm, are good partners, King says.
"They're very supportive of the Fonterra co-operative, which we like ... although there is one farm that does supply Synlait.
"They're very attracted to the stability of New Zealand and the vibrancy of our industry would be another thing, but most importantly I think they're attracted to the co-operative nature of the industry."
The German firm was looking to make more investments and has three applications before the Overseas Investment Office, King says.
Traditionally, MYFarm has a low level of overseas investors, now about 10 per cent, mostly with Aquila.
"You've got to remember New Zealanders go to Uruguay and America and other places to invest so we must, I suppose, expect similar sort of interest from overseas," King says.
"Where people want to develop the land, strongly support New Zealand processing facilities and brands, and support the settlement of young New Zealanders onto the farms as equity managers, that's gotta be good really."
German firm among several nations investing in NZ dairy industry
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