Investors promised up to 16% from dairy farming

A German-based company which manages assets of more than €7bn predicts that the gap between global supply and demand for dairy products could widen to 5bn litres by 2020, and says investors can get a return as high as 16% per year from dairy farming.

Based in Hamburg, Aquila Capital is one of Europe’s leading independent alternative asset managers, but looks to the other side of the world for the best dairying returns on investment.

Aquila’s experts believe the best opportunities for investors over the next decade lie in farms in OECD/ investment grade countries with secure land titles. Andrew Sliper, senior manager farm investments at Aquila, pinpoints parts of Tasmania and Victoria, with their relatively favourable and predictable climates, as the most lucrative dairying areas — even though he is a New Zealander.