Company will own over 980 acres of farmland in the country
By Kaitlynn Anderson
The Canadian Public Sector Pension Investment Board will purchase a 335.2-hectare (828.3-acre) dairy farm in New Zealand.
PSP Investments, which manages pension investments for the Public Service, Canadian Armed Forces, RCMP and Reserve Force, received approval from New Zealand’s Overseas Investment Office (OIO) for this farm purchase in Canterbury, NZ, according to yesterday’s article in the New Zealand Herald.
PSP Investments will also buy a neighbouring dairy support block on 77.2 hectares of land, for a total purchase price of NZD$17.7 million (over CAD$15 million).
The business plans to amalgamate the two properties, according to the decision summary from the New Zealand government.
“The Applicant proposes to convert some of the dairy support land to create a larger milking platform, and to support increasing the total number of cows by approximately 400 cows,” the summary stated.
While some area residents are concerned about this foreign investment, the New Zealand government believes there will be benefits for the country, including:
- the creation of additional jobs on the amalgamated dairy farm
- an increased volume of milk being processed in New Zealand
- increased export receipts
- capital investment to convert dairy support land to dairying
This dairy operation purchase is not the first time Canadians have made large overseas investment purchases, either.
The Ontario Teachers’ Pension Plan Board (OTPP), for example, bought an avocado farm in Australia last month for more than CAD$177 million.