Poultry farm could deliver nice little nest egg

The poultry farm at Netherton, north of Paeroa, is currently grossing $850,000 per annum. Photo / Supplied

A state-of-the-art business supplying broiler chickens to one of New Zealand's leading poultry companies is up for sale as a freehold going concern as part of Bayleys' Total Property portfolio.

Shane Snijder and Bob Croft of Bayleys Counties along with colleague Karl Davis of Bayleys Waikato are marketing the large 38.6039ha property at Fisher Rd, Netherton, not far from the Coromandel Forest Park just north of Paeroa.

The business, which is an hour's drive from central Hamilton and 113km from downtown Auckland, is being sold by tender closing on September 24 at Bayleys Counties office in Papakura.

"This is an opportunity to secure one of only 170 large-scale poultry operations in New Zealand," said Snijder.

"It's a lucrative chicken-rearing business supplying birds to Inghams Enterprises Limited with a contract in place to underpin future income projections. The business is currently grossing $850,000 per annum, which, given that Inghams handle a lot of the associated production tasks, is a healthy return."

Full operational support is provided by Inghams for the production of more than 220,000 birds per 50-day run across four ultra-modern sheds.

"Inghams supply the day-old chicks and the feed, while a full-time manager oversees the growing cycle. Inghams then muster the birds and look after cartage. There is a 10-day cleaning and sanitising period between each production run whereby the sheds are prepared for a new intake of chicks," said Snijder.

"It's an extremely efficient and effectively run operation with up-to-the minute computerised systems in place that would allow a hands-off investor to monitor all aspects of the operation remotely - and in real time."

The property has an experienced full-time manager on the payroll who is fully familiar with all aspects of the operation and this arrangement could continue with a new owner, allowing them to pursue other business interests.

The broiler operation comprises four identical sheds each having an internal floor area of 2672sq m. Each shed has four 15-tonne silos with batch weighing systems and two sets of computerised scales.

There is also a staff amenities block which includes offices and bathroom facilities, a barn, a large four-bay rectangular shed, a generator room plus a decommissioned 10-aside herringbone milking shed from the property's dairy farming roots.

The balance of the land not required for the poultry operation is subdivided into about 1.6ha of paddocks and used for grazing and grass silage.

This land is currently leased at a total of $22,000 per annum.

A relocated villa, built around 1910, which has been repiled and remodelled, is set in established grounds within the property and resource consent is in place to build another dwelling close to the broiler sheds to allow efficient monitoring of the operation around the clock.

In addition, resource consents have been issued to subdivide the property into three lots and to allow for the building of an additional two sheds.

"I wish every property I had on my books attracted as much attention as this one has," said Snijder.

"The phone has been running hot with calls across the spectrum, from investors in Australia to local Waikato farmers looking to balance their dairying, beef and sheep interests with a poultry operation, through to established New Zealand investors wishing to diversify their portfolios."

Inghams Enterprises was founded across the Tasman in 1918 and is a multi-faceted company that now contributes significantly to the poultry industry both in New Zealand and throughout Australia.