PGG Wrightson offshoot NZ Farming Systems Uruguay is looking to head off potential American and European rivals by using a $40 million cash injection to accelerate the pace of farm purchases in Uruguay.
The deputy chairman of PGG Wrightson, Craig Norgate, said yesterday the threat of other foreign
investors in Uruguay was putting the pressure on.
"We tend to feel as though the time we've got to buy the land is a little shorter than it was prior to Christmas."
His comments came after NZFSU - formed last year to exploit NZ-style dairy and beef farming opportunities in Uruguay - announced it had increased issued capital from $123 million to $162 million.
The extra shares had gone to a range of local and overseas investors, including Australian-based fund manager Hunter Hall which has taken a 19 per cent stake.
The immediate cash injection from the part-paid extra shares issued is just over $20.2 million, while another $19.5 million is subject to a call in December.
The cash will be used to buy more farms which NZFSU is identifying. They would be developed into New Zealand-style dairy farms.
NZFSU was clear about the type of land it wanted and what it wanted to pay, Norgate said.
Globally, agricultural commodity and land prices had been rising.
"Rather than having a couple of years to get the land, we probably want to do it a little sooner than that.
"Particularly the Europeans and the Americans are really looking all over the world now and accumulating land."
There was a global "mega-trend" whereby large investors were wanting to accumulate agribusinesses and farm land around the globe.
NZFSU currently has four farms in Uruguay and the company said it expects to announce further purchases soon.
Meanwhile, Norgate said it was now hoped NZFSU's listing on the NZX could be brought forward to before Christmas. Earlier, it was hoped a listing could be done by the first quarter of 2008.
"We're not going to be too far away from the top 50 the way we're going," Norgate said.
