Is this a good investment?

Q: R 9.3 million 316 hector Dairy Farm, coastal area, near east london, good infrastrucure, sold as going concern, cattle included, comprises of2 farm houses, both 3 bedroom, newly renovated, col room avattoir, seed sheds, workshop, welders, compressors, grinders, all tools, tractors, 34 point herring bone dairy, 6150 litre hulk tank, 35 camps with water, reservoir connected to 3 submersible boreholes, fresh water, srping good for bottlng 5000ltres per hour.

A: I s this one of the dairy farms on your way to East London between Alexandria and Port Alfred? There have been dairy farms there for years, very few left because the farmers receive no more subsidies from the government. Who is going to buy your milk? Parmalat or Dairy Bell? Be careful because there is a price fixing case hanging over both of them. If you have never farmed forget about it, dairy farming is hard, very hard, you have to knwo what you are doing and with the power cuts you are going to be in big trouble if you have 1 000 Holsteins that have to be milked and there is no power. so first check about generators. Best thing is to ask the books of the farm and have them checked out by an auditor, 2nd get a farm manager, because you will never cope, get a vet to check out the cows to see how old they are and what their condition is, go to one of the consultants at BKB and ask him to go and check out the farm for you. He will at a fee. I think it is a good investment, but you cannot buy a farm on paper only, you have to go there yourself and check the veldt out. Remember 316 hectares are small, not a big farm will it sustain you cows? The more green grass or lucern they eat the more milk they give. So do not use the internet, go there with a team of proffesionals that you can trust. Oh most important check the condition of your pumps and fences, farm gates, electric milk machines.

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