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Source: ONE News -
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There are fears that farm prices could plummet as New Zealand's
largest dairy landowners get ready to sell up.
Allan Crafar and his brother Frank own 22 properties around the
North Island.
But their golden run is over, the country's largest dairy farmers putting all their properties on the market.
"I've had enough of pressure from all sorts of people outside the farm gate which seem to know more about our business than we do," says Allan Crafar.
It is understood the Crafars owe the banks over $150 million.
Allan Crafar says they convinced a lot of bankers to lend a lot of money over the years and they have always had confidence in him and his brother.
Allan Crafar is blaming compliance costs and prosecutions for the sale including a record $90,000 fine late last month for discharging effluent.
The brothers have been plagued by troubles over the years. ONE News obtained exclusive footage when they were prosecuted for breaching animal welfare laws three years ago.
Cows were starved to death and 100 bobby calves were left without enough water.
"It's a sad day for the New Zealand dairy industry because one of their most productive families and hardest working families feel like they're being run out of town," says Allan Crafar.
It's another blow for dairy farmers already feeling the pinch at a time when global milk prices have halved in the last year and banks have tightened up on lending.
"It's just a sign of the times that even previously successful businesses are struggling in the current environment," says John Ballingall, NZIER economist.
The sell-up is already prompting fears by Federated Farmers that flooding more farms onto the market could devalue properties.
"If they want the crazy prices of before, there's no buyer for them. So properties are quite often just sitting on the market for a long time," says Wendy Clarke of Federated Farmers
But the Crafars will be hoping for a speedier sale.
The website interest.co.nz says Allan Crafar has confirmed they are in talks to sell out to a Chinese company for more than $200 million.
The sale would make the Chinese interests one of the biggest individual shareholders in Fonterra, but would save two New Zealand banks and PGG Wrightson Finance from taking big losses on loans to the farming group.
Crafar refused to identify the Chinese firm involved in the
discussions.
