Contrary to rumors of a complete sale, Australia’s largest dairy company, Van Diemen’s Land Co. (VDL) states it is looking toward a sell-down of parts of its operations while looking to boost and expand its dairy business. In June of this year it was believed that VDL would be selling its 25 farms in Tasmania’s north-west on speculation that the company was underperforming compared to the wider market. But due to favorable market conditions, the company focusing on reducing operating and overhead costs, and increased production from increased investment in growth, records indicate a profit of NZ$1.8 million for the last fiscal year. Going into 2015, projections for milk production are forecast to be 6% above 2014. Mike Trousellot, chief executive of Taranaki Investment Management Ltd, which owns VDL’s parent company, Tasman Farms, states that there no timetable set for the sell-down of assets, and goes on to state that Australian investors are becoming more comfortable with investing in Australia’s dairy sector which provides cash value and capital gains benefits.
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