New Zealand dairy's move into South America continues apace with a 19,500-hectare Chilean land purchase by investment group Manuka.
The syndicate of 14 New Zealand families, chaired by former Fonterra director Mark Townshend, has settled a deal to buy nearly half of Hacienda Rupanco, one of Chile's largest farms.
The acquisition ends a four-year saga and boosts Manuka's holdings to 14 farms, spread across 24,000 hectares of prime agricultural land around Osorno - a dairy heartland 950 kilometres south of the capital, Santiago.
Mr Townshend said the purchase - comparable to a third of the size of Lake Taupo - represented a "massive step forward" for Manuka.
"It's a project we've been working on for quite some time and we've bought other farms in the meanwhile," he said.
"This spring we're coming into, we'll have 13 farms set up, six we're milking on now and another seven are under construction."
As part of the deal Manuka will take on 350 employees and 22 milking sheds. About 15,000 cattle will graze on Manuka land this spring.
Manuka would not reveal how much was paid for the land, funded by part equity and part borrowing, but dismissed reports of $101 million as "wide of the mark".
"We're very happy with the price we paid. Otherwise we wouldn't have bought it," Mr Townshend said.
"This is a unique environment. In terms of soil quality and climate, to get 19,500ha in one block, it would be hard to repeat anywhere in the world."
Though the firm's principal interest was the farm's milk-producing potential, the soil quality would create additional horticultural and crop options.
